Army Awards $28.8M for M-LIDS Sustainment to DRS Sustainment Systems
Contract Overview
Contract Amount: $28,790,392 ($28.8M)
Contractor: DRS Sustainment Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2024-07-05
End Date: 2026-09-30
Contract Duration: 817 days
Daily Burn Rate: $35.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: M-LIDS TO 14
Place of Performance
Location: BRIDGETON, SAINT LOUIS County, MISSOURI, 63044
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $28.8 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: M-LIDS TO 14 Key points: 1. This contract focuses on sustainment for M-LIDS, a critical component for military operations. 2. The award to DRS Sustainment Systems, Inc. indicates a reliance on established providers for specialized equipment. 3. Lack of competition raises questions about potential overpricing and limited innovation. 4. The IT sector, particularly defense-related systems, often involves complex and long-term sustainment needs.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to costs exceeding initial estimates if not closely managed. Benchmarking against similar sustainment contracts for complex systems is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure to reduce bids.
Taxpayer Impact: The lack of competition may result in higher costs for the Department of Defense, ultimately impacting taxpayer funds allocated for defense.
Public Impact
Ensures continued operational readiness of M-LIDS systems for the Army. Supports a specific defense contractor, potentially impacting local economies where the contractor operates. Highlights the ongoing need for maintenance and support of advanced military technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee pricing
- Potential for cost overruns
Positive Signals
- Ensures sustainment of critical M-LIDS systems
- Supports established defense contractor
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on the manufacturing and sustainment of navigation and guidance systems. Spending in this area is often characterized by high R&D costs and long-term support requirements.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both the prime contractor and the award type suggest a focus on larger, established entities within the defense industrial base.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste, fraud, and abuse. Regular audits and performance reviews are crucial.
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
- Lack of competitive bidding
- Potential for cost overruns due to CPFF structure
- Limited transparency in pricing
- Reliance on a single vendor for critical sustainment
Tags
search-detection-navigation-guidance-aer, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.8 million to DRS SUSTAINMENT SYSTEMS, INC. M-LIDS TO 14
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 $28.8 million.
What is the period of performance?
Start: 2024-07-05. End: 2026-09-30.
What specific factors justified the sole-source award for M-LIDS sustainment, and were alternatives explored?
Justification for sole-source awards typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Department of Defense must document these reasons thoroughly. Exploring alternatives, even if ultimately deemed unsuitable, is a standard part of the procurement process to ensure best value and compliance.
How does the Cost Plus Fixed Fee structure compare to other contract types for similar sustainment services in terms of cost control?
Cost Plus Fixed Fee contracts offer flexibility but can incentivize contractors to increase costs to achieve a higher fixed fee profit margin. Other contract types like Firm-Fixed-Price (FFP) or Cost Plus Incentive Fee (CPIF) might offer better cost control mechanisms, depending on the predictability of the work and the government's risk tolerance.
What is the long-term strategy for M-LIDS sustainment, and does it include plans for future competition or technology refresh?
A long-term strategy should outline the lifecycle management of the M-LIDS system, including planned upgrades, obsolescence management, and potential future procurements. Incorporating opportunities for competition or technology insertion can drive innovation and ensure cost-effectiveness over the system's lifespan.
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: $28,790,392
Exercised Options: $28,790,392
Current Obligation: $28,790,392
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $6,143,629
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
Start Date: 2024-07-05
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 12:09:00
Last Modified: 2025-09-18
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