DoD's $37.8M movement tracking system equipment contract awarded to DRS Network & Imaging Systems, LLC

Contract Overview

Contract Amount: $37,847,000 ($37.8M)

Contractor: DRS Network & Imaging Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2012-12-27

End Date: 2014-01-06

Contract Duration: 375 days

Daily Burn Rate: $100.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER OFF GSA SCHEDULE CONTRACT # GS-35F-0670V FOR MOVEMENT TRACKING SYSTEM EQUIPMENT ITEMS.

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $37.8 million to DRS NETWORK & IMAGING SYSTEMS, LLC for work described as: DELIVERY ORDER OFF GSA SCHEDULE CONTRACT # GS-35F-0670V FOR MOVEMENT TRACKING SYSTEM EQUIPMENT ITEMS. Key points: 1. The contract value represents a significant investment in specialized equipment for defense logistics. 2. Competition dynamics for this type of specialized equipment can be limited, potentially impacting price. 3. The fixed-price contract type aims to mitigate cost overruns, but requires careful scope management. 4. Performance duration of 375 days suggests a focused, short-term deployment or upgrade. 5. The award falls within the broader IT and defense logistics sectors, supporting critical operational needs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the 'movement tracking system equipment items.' However, the total award of $37.8 million for a 375-day duration indicates a substantial per-diem cost. Comparing this to similar large-scale equipment procurements for defense logistics would be necessary to assess if the pricing is competitive. The firm fixed-price nature suggests the contractor bears the risk of cost overruns, which can be a positive indicator if the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The number of bidders is not specified, but the fact that it was competed broadly suggests a healthy market for this type of equipment. Full and open competition generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified vendors, ensuring that the government receives the best value for its investment.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential equipment for tracking and managing assets. Services delivered include the provision of specialized movement tracking system equipment. The contract is geographically focused on Florida, as indicated by the 'ST' and 'SN' fields. Workforce implications are likely related to the installation, maintenance, and operation of the new equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'movement tracking system equipment items' are not precisely defined.
Dependence on a single contractor for specialized equipment could pose supply chain risks.
Ensuring interoperability with existing DoD systems is crucial for effective deployment.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type helps control costs and provides budget certainty.
The contractor, DRS Network & Imaging Systems, LLC, likely has relevant experience in defense systems.

Sector Analysis

This contract falls within the broader defense sector, specifically related to logistics and asset management technology. The market for defense tracking systems is specialized, often involving high-tech solutions tailored to military operational requirements. Spending in this area is driven by the need for enhanced situational awareness, efficient supply chain management, and asset accountability. Comparable spending benchmarks would involve looking at other procurements for similar tracking, identification, and logistics management systems within the Department of Defense and other federal agencies.

Small Business Impact

The contract was awarded to DRS Network & Imaging Systems, LLC, and there is no indication of a small business set-aside. The 'SB' field is false. Therefore, this contract does not directly benefit small businesses through a set-aside. However, the prime contractor may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the equipment and services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'SA' field. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified equipment within the agreed-upon price. Transparency is facilitated by the contract's award under full and open competition, with details generally available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) procurements
Global Positioning System (GPS) equipment contracts
Tactical Data Link (TDL) systems
Asset visibility and tracking systems

Risk Flags

Potential for scope definition issues with 'equipment items'.
Risk of contractor quality compromise under fixed-price terms if unforeseen issues arise.
Dependence on specific technology that could become obsolete.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.8 million to DRS NETWORK & IMAGING SYSTEMS, LLC. DELIVERY ORDER OFF GSA SCHEDULE CONTRACT # GS-35F-0670V FOR MOVEMENT TRACKING SYSTEM EQUIPMENT ITEMS.

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $37.8 million.

What is the period of performance?

Start: 2012-12-27. End: 2014-01-06.

What specific types of 'movement tracking system equipment items' were procured under this contract?

The provided data does not specify the exact nature of the 'movement tracking system equipment items.' This could range from GPS trackers, RFID tags, ruggedized mobile devices with tracking software, or specialized sensors. Understanding the specific items is crucial for assessing their technological sophistication, operational necessity, and potential for obsolescence. Without this detail, a precise evaluation of the contract's value and impact is limited. Further investigation into the contract's statement of work or associated documentation would be required to identify the precise equipment.

How does the per-diem cost of this contract compare to similar DoD equipment procurements?

The total contract value is $37,847,000 over a duration of 375 days. This equates to approximately $100,925 per day ($37,847,000 / 375 days). To benchmark this effectively, one would need to compare it against daily rates for similar specialized equipment procurements within the Department of Defense. Factors such as the type of equipment, its technological capabilities, quantity, and the specific operational environment would influence daily costs. Without access to a database of comparable daily rates for specialized defense tracking equipment, a definitive assessment of whether $100,925 per day is high, low, or average is not possible from the provided data alone.

What is the track record of DRS Network & Imaging Systems, LLC in delivering similar defense tracking systems?

DRS Network & Imaging Systems, LLC, as part of Leonardo DRS, has a significant history of providing advanced technology solutions to the U.S. military and government agencies. Their portfolio often includes electro-optical and infrared systems, network-centric solutions, and other specialized defense electronics. While this specific contract focuses on 'movement tracking system equipment,' it aligns with their general capabilities in providing sophisticated hardware and integrated systems for defense applications. A deeper dive into their past performance on similar contracts, including any reported issues or successes, would provide a more granular assessment of their track record for this particular award.

What are the potential risks associated with the firm fixed-price contract type for this specific equipment?

The primary risk with a firm fixed-price (FFP) contract, even for equipment, is that the contractor may cut corners on quality or performance to maintain profitability if unforeseen issues arise during production or delivery. For specialized 'movement tracking system equipment,' this could mean components that are less durable, less accurate, or have shorter lifespans than anticipated. While FFP is generally favored for cost control, it requires a very well-defined scope of work. If the 'equipment items' are complex or involve novel technology, the contractor might face unexpected development or manufacturing challenges, potentially leading to disputes or a less-than-optimal final product, despite the fixed price.

How does the geographic focus on Florida impact the overall effectiveness and cost of this contract?

The contract specifies 'ST' (State) as 'FL' (Florida) and 'SN' (State Name) as 'FLORIDA.' This indicates that the delivery or primary operational base for this movement tracking system equipment is within Florida. The geographic focus could imply specific training requirements, installation needs, or operational deployment within that state's military installations or facilities. From a cost perspective, concentrating delivery or operations in one state might streamline logistics and reduce travel expenses compared to a nationwide deployment. However, it also means the benefits and immediate impact are localized, and the effectiveness is tied to the specific needs and environment within Florida.

What is the historical spending trend for movement tracking system equipment by the Department of Defense?

The provided data only pertains to a single contract award in late 2012. To understand historical spending trends for movement tracking system equipment by the Department of Defense, a comprehensive analysis of federal procurement databases (like FPDS or USASpending) over several fiscal years would be necessary. This would involve filtering for similar product/service codes (like NAICS 811212 or relevant PSC codes) and keywords related to tracking systems. Such an analysis would reveal whether spending in this category has been increasing, decreasing, or remaining stable, and identify major contractors and agencies involved in these procurements.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Computer and Office Machine Repair and Maintenance

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 1110 W HIBISCUS BLVD, MELBOURNE, FL, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,847,000

Exercised Options: $37,847,000

Current Obligation: $37,847,000

Parent Contract

Parent Award PIID: GS35F0670V

IDV Type: FSS

Timeline