DoD Awards $17.8M for Missile Circuit Boards, Sole-Sourced to DRS Network & Imaging Systems

Contract Overview

Contract Amount: $17,802,990 ($17.8M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-14

End Date: 2028-07-31

Contract Duration: 1,447 days

Daily Burn Rate: $12.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MISSILE PROCUREMENT

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: MISSILE PROCUREMENT Key points: 1. Significant contract value for specialized electronic components. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract duration (4 years) suggests ongoing need. 4. Focus on missile procurement highlights critical defense sector spending.

Value Assessment

Rating: questionable

The contract value of $17.8 million for bare printed circuit boards is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to inflated prices, impacting the efficient use of taxpayer funds for critical defense hardware.

Public Impact

Ensures supply of critical components for missile systems. Potential for higher costs due to lack of competitive bidding. Supports a specific defense contractor, DRS Network & Imaging Systems. Long-term commitment may indicate strategic importance of the supplier.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Long-term commitment without market validation

Positive Signals

Ensures critical component supply
Supports defense readiness

Sector Analysis

Spending in the defense electronics sector, particularly for missile components, is driven by national security needs. Benchmarks for bare printed circuit boards vary widely based on complexity and volume, but sole-source awards often exceed competitive pricing.

Small Business Impact

This award does not appear to involve small businesses, as the prime contractor is DRS Network & Imaging Systems LLC. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving fair value. Transparency regarding the justification for the sole-source selection is crucial.

Related Government Programs

Bare Printed Circuit Board Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award lacks competitive pricing validation.
Potential for cost overruns due to lack of competition.
Long-term duration may lock in potentially suboptimal pricing.
Dependency on a single supplier creates supply chain risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to DRS NETWORK & IMAGING SYSTEMS LLC. MISSILE PROCUREMENT

Who is the contractor on this award?

The obligated recipient is DRS NETWORK & IMAGING SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2024-08-14. End: 2028-07-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives in the market. Without specific documentation, it's presumed that DRS Network & Imaging Systems possesses specialized expertise or technology essential for these missile circuit boards that other vendors cannot replicate, necessitating a direct award to ensure program continuity and national security requirements are met.

How does the pricing compare to industry benchmarks for similar bare printed circuit boards?

Assessing the pricing against industry benchmarks is challenging without competitive data. However, sole-source contracts often carry a premium due to the absence of market pressure. A thorough review of the contract's cost elements and comparison with publicly available pricing for comparable, competitively procured circuit boards would be necessary to determine if the $17.8 million represents fair and reasonable pricing.

What is the potential impact on missile system readiness if this supplier's capabilities were unavailable?

The sole-source award suggests a high degree of reliance on DRS Network & Imaging Systems for these specific circuit boards, implying a significant impact on missile system readiness should their capabilities become unavailable. This dependency highlights a potential supply chain risk. Contingency planning, such as developing alternative sources or ensuring robust inventory management, would be critical to mitigate this risk.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Bare Printed Circuit Board Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA

Address: 100 N BABCOCK ST, MELBOURNE, FL, 32935

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,802,990

Exercised Options: $17,802,990

Current Obligation: $17,802,990

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $3,625,806

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPRRA220D0012

IDV Type: IDC

Timeline