DoD awards $23.5M for drone defeat electro-optical/infrared sights, with limited competition

Contract Overview

Contract Amount: $23,508,801 ($23.5M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2023-07-12

End Date: 2025-11-28

Contract Duration: 870 days

Daily Burn Rate: $27.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE TASK ORDER IS FOR THE MOBILE, LOW, SLOW, SMALL UNMANNED AERIAL SYSTEMS INTEGRATED DEFEAT SYSTEM ELECTRO OPTICAL/INFRARED STABILIZED SIGHT SYSTEM

Place of Performance

Location: BRIDGETON, SAINT LOUIS County, MISSOURI, 63044

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: THE TASK ORDER IS FOR THE MOBILE, LOW, SLOW, SMALL UNMANNED AERIAL SYSTEMS INTEGRATED DEFEAT SYSTEM ELECTRO OPTICAL/INFRARED STABILIZED SIGHT SYSTEM Key points: 1. The contract focuses on specialized sight systems for unmanned aerial systems, indicating a niche but critical defense capability. 2. Limited competition suggests potential for higher costs and reduced innovation compared to a more open bidding process. 3. The fixed-price contract type shifts some risk to the contractor, but the overall value proposition requires further scrutiny. 4. Performance is tied to a specific delivery order with a defined end date, suggesting a focused, short-to-medium term need. 5. The procurement falls within the broader defense sector's investment in counter-UAS technologies.

Value Assessment

Rating: fair

Benchmarking the value of this specific electro-optical/infrared stabilized sight system is challenging without direct comparisons to similar, recently procured components. The $23.5 million award for a delivery order ending in late 2025 suggests a significant investment in specialized technology. However, the lack of competitive bidding raises concerns about whether the government secured the best possible price and value. Further analysis would require understanding the system's technical specifications and comparing its cost to similar systems procured through competitive means, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, DRS Sustainment Systems, Inc., was considered. This approach bypasses the standard competitive bidding process, which typically involves soliciting offers from multiple interested parties. While sole-source awards can be justified for unique capabilities or urgent needs, they limit the government's ability to leverage market competition to drive down prices and ensure the most innovative solutions are considered.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings and potentially superior solutions that could arise from a competitive bidding environment.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other Department of Defense branches requiring advanced counter-unmanned aerial system capabilities. The contract delivers specialized electro-optical/infrared stabilized sight systems crucial for detecting and defeating low, slow, and small unmanned aerial systems. The geographic impact is primarily within military operations and training environments, with potential deployment globally. Workforce implications may include specialized manufacturing and technical support roles within DRS Sustainment Systems, Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in if this technology becomes standard without competitive alternatives.
Specific performance metrics and success criteria are not detailed in the provided data.

Positive Signals

Addresses a critical and evolving defense need (counter-UAS).
Fixed-price contract type provides some cost certainty for the government.
Award to an established defense contractor with likely relevant expertise.
Specific technology focus (EO/IR sights) suggests a tailored solution.

Sector Analysis

The defense sector is heavily invested in advanced sensor and targeting technologies, particularly in response to the proliferation of unmanned aerial systems. This contract for electro-optical/infrared stabilized sight systems fits within the broader market for defense electronics and aerospace components. The North American Industry Classification System (NAICS) code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' encompasses companies producing such specialized equipment. Spending in this area is driven by evolving threats and the need for technological superiority.

Small Business Impact

As this contract was awarded on a sole-source basis, there is no indication of small business set-aside provisions or subcontracting opportunities being explicitly mandated within this specific award. The focus on specialized defense technology often involves large, established prime contractors. Without a competitive process, the likelihood of direct small business participation through set-asides is diminished. Further investigation into DRS Sustainment Systems, Inc.'s subcontracting plans would be necessary to assess any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures. Specific oversight mechanisms would include contract administration by the relevant Army contracting office, performance monitoring against the delivery order requirements, and financial oversight to ensure funds are expended appropriately. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Counter-UAS Systems
Defense Electronics Manufacturing
Aerospace and Defense Sensor Technology
Unmanned Aerial Vehicle Components
Army Aviation Support

Risk Flags

Sole-source award raises concerns about competition and potential cost overruns.
Lack of detailed technical specifications and performance metrics in public data.
Potential for vendor lock-in due to specialized technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to DRS SUSTAINMENT SYSTEMS, INC. THE TASK ORDER IS FOR THE MOBILE, LOW, SLOW, SMALL UNMANNED AERIAL SYSTEMS INTEGRATED DEFEAT SYSTEM ELECTRO OPTICAL/INFRARED STABILIZED SIGHT SYSTEM

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 $23.5 million.

What is the period of performance?

Start: 2023-07-12. End: 2025-11-28.

What is the specific technical capability of the electro-optical/infrared stabilized sight system being procured, and how does it compare to existing or alternative technologies?

The provided data indicates the system is designed for 'mobile, low, slow, small unmanned aerial systems integrated defeat.' This suggests a focus on detecting and tracking small, potentially difficult-to-acquire aerial targets, likely for defensive purposes. The electro-optical/infrared (EO/IR) nature implies it uses both visible light and thermal imaging to identify targets. Without detailed technical specifications, a direct comparison to alternative technologies is difficult. However, the defense market is rapidly evolving in counter-UAS (C-UAS) with various solutions including radar, acoustic sensors, jammers, and directed energy weapons. This EO/IR sight likely serves as a crucial component within a larger C-UAS system, providing target identification and tracking capabilities that complement other detection methods. Its 'stabilized' feature is critical for maintaining a clear view of moving targets from a mobile platform.

What is the justification for awarding this contract on a sole-source basis, and what due diligence was performed to ensure fair and reasonable pricing?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent and compelling needs where only one source can fulfill the requirement. For this contract, the specific reason for the sole-source designation is not detailed in the provided data. However, defense procurements for highly specialized systems, especially those involving integrated components or proprietary technology developed by a specific contractor, can sometimes lead to sole-source awards. To ensure fair and reasonable pricing in such cases, the government usually relies on techniques like price analysis, cost analysis (if cost data is available), comparison to previous similar procurements (if any exist), or market research to establish a benchmark. Without access to the contracting officer's justification and approval (J&A) document, it's impossible to ascertain the exact rationale or the specific methods used to validate the pricing.

How does the $23.5 million award for this delivery order compare to historical spending on similar electro-optical/infrared systems by the Department of Defense?

Directly comparing this $23.5 million delivery order to historical spending on similar EO/IR systems is challenging without more specific data on the system's capabilities and the nature of past procurements. The Department of Defense procures a vast array of EO/IR systems, ranging from components for individual soldier equipment to sophisticated targeting pods for fighter jets and surveillance systems for large drones. The 'mobile, low, slow, small UAS integrated defeat' designation suggests a specialized application within the counter-UAS domain. If this represents a significant upgrade or a new capability for defeating emerging threats, the cost might be considered reasonable within the context of cutting-edge defense technology development. However, if similar, less specialized systems were procured for substantially less, it could indicate a premium being paid due to the sole-source nature or the specific technological advancements.

What are the potential risks associated with relying on a single contractor (DRS Sustainment Systems, Inc.) for this critical defense technology?

Relying on a single contractor for critical defense technology like this specialized sight system presents several risks. Firstly, there's the risk of vendor lock-in, where the government becomes dependent on one supplier, potentially limiting future flexibility and negotiation power. Secondly, without competition, there's a reduced incentive for the contractor to innovate aggressively or offer the most cost-effective solutions, potentially leading to higher long-term costs. Thirdly, supply chain disruptions or financial instability within the sole-source contractor could directly impact the delivery of essential defense capabilities. Finally, a lack of competitive benchmarking makes it harder to ensure the technology remains state-of-the-art and that the pricing remains fair and reasonable over the system's lifecycle.

What is the expected performance and reliability of these sight systems, and are there specific metrics or Key Performance Parameters (KPPs) defined in the contract?

The provided data does not include specific performance metrics or Key Performance Parameters (KPPs) for the electro-optical/infrared stabilized sight systems. Typically, contracts for defense systems would outline detailed requirements related to factors such as detection range, target identification accuracy, tracking precision under various environmental conditions (e.g., weather, vibration), system reliability (Mean Time Between Failures - MTBF), operational lifespan, power consumption, and integration capabilities with other platforms. The 'stabilized' aspect implies a requirement for maintaining accurate aim despite platform movement. Without these defined KPPs, it is difficult to objectively assess the expected performance and reliability. The contract type (Firm Fixed Price) suggests that the contractor is obligated to deliver a system meeting certain specifications, but the specifics of those specifications are not publicly detailed here.

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: 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: 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: $23,508,801

Exercised Options: $23,508,801

Current Obligation: $23,508,801

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $15,577,782

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