DoD Awards $27M Contract for Unmanned Aerial System Logistics Support to DRS Sustentment Systems

Contract Overview

Contract Amount: $26,956,248 ($27.0M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2023-07-17

End Date: 2024-09-30

Contract Duration: 441 days

Daily Burn Rate: $61.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS TASK ORDER IS FOR THE MOBILE, LOW, SMALL, UNMANNED AERIAL SYSTEM INTEGRATED CONTRACT LOGISTICS SUPPORT (CLS)

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: THIS TASK ORDER IS FOR THE MOBILE, LOW, SMALL, UNMANNED AERIAL SYSTEM INTEGRATED CONTRACT LOGISTICS SUPPORT (CLS) Key points: 1. The contract focuses on logistics support for mobile, low, and small unmanned aerial systems. 2. DRS Sustentment Systems, Inc. is the sole awardee, indicating a potential lack of competition. 3. The award is a Delivery Order under an existing contract, suggesting it's part of a larger framework. 4. The sector is dominated by system manufacturing, with a specific focus on navigation and guidance instruments.

Value Assessment

Rating: fair

The contract value of $26.96 million for a period of 441 days is difficult to benchmark without specific details on the scope of logistics support. The Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed carefully.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, which raises concerns about price discovery and whether the government received the best possible value. A sole-source award limits opportunities for other qualified vendors to offer their services and potentially lower costs.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these logistics services.

Public Impact

Ensures operational readiness of critical unmanned aerial systems for the Department of the Army. Supports advanced defense technology, potentially impacting national security capabilities. The contract's duration and value suggest a significant ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee pricing structure
Sole-source award

Positive Signals

Supports critical defense systems
Existing contract vehicle

Sector Analysis

The sector involves the manufacturing of search, detection, navigation, guidance, aeronautical, and nautical systems. Spending in this area is often driven by defense modernization and technological advancements, with significant investment in unmanned systems.

Small Business Impact

There is no indication that small businesses were involved in this specific task order, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed for small business participation.

Oversight & Accountability

The use of a sole-source award warrants close oversight to ensure fair pricing and performance. The Department of Defense should have robust internal controls to justify non-competitive awards and monitor contract execution.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for overpricing due to sole-source award
Lack of transparency in the procurement process
Risk of cost overruns with CPFF contract type
Limited opportunity for small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to DRS SUSTAINMENT SYSTEMS, INC. THIS TASK ORDER IS FOR THE MOBILE, LOW, SMALL, UNMANNED AERIAL SYSTEM INTEGRATED CONTRACT LOGISTICS SUPPORT (CLS)

Who is the contractor on this award?

The obligated recipient is DRS SUSTAINMENT SYSTEMS, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2023-07-17. End: 2024-09-30.

What specific logistics support services are included in this task order, and how do they align with the capabilities of DRS Sustentment Systems, Inc.?

The task order specifies integrated contract logistics support for mobile, low, and small unmanned aerial systems. This likely encompasses maintenance, repair, spare parts management, training, and technical support. DRS Sustentment Systems, Inc. is known for its expertise in defense sustainment and logistics, making them a logical choice for such services, though the exact scope requires further detail to fully assess alignment.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's presumed the Army determined DRS Sustentment Systems, Inc. was the only viable option. However, the process for ensuring fair and reasonable pricing in such scenarios, like market research or independent cost estimates, needs to be scrutinized.

How will the effectiveness of the logistics support be measured, and what are the key performance indicators (KPIs) for this contract?

Effectiveness is likely measured through metrics such as system availability rates, response times for maintenance requests, turnaround times for repairs, and overall mission readiness of the unmanned aerial systems. Key Performance Indicators (KPIs) would be defined in the contract's performance work statement, focusing on ensuring the unmanned systems are operational when and where needed by the Department of the Army.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA

Address: 4201 INNOVATION WAY, BRIDGETON, MO, 63044

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

Financial Breakdown

Contract Ceiling: $26,956,248

Exercised Options: $26,956,248

Current Obligation: $26,956,248

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $6,198,210

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W31P4Q20D0031

IDV Type: IDC

Timeline