Army Awards $27M for M-LIDS Sustainment to DRS Sustaining Systems, Inc
Contract Overview
Contract Amount: $27,002,473 ($27.0M)
Contractor: DRS Sustainment Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2024-07-25
End Date: 2025-09-30
Contract Duration: 432 days
Daily Burn Rate: $62.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
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 $27.0 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: M-LIDS TO 14 Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Significant value of $27M for sustainment services. 3. Focus on critical navigation and guidance systems for the Army. 4. Potential for cost overruns given the Cost Plus Fixed Fee structure.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure allows for costs to exceed initial estimates, potentially impacting overall value. 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, indicating a sole-source award. This limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for these sustainment services.
Public Impact
Ensures continued operational readiness of critical Army navigation and guidance systems. Supports a specific contractor's role in maintaining specialized military equipment. Impacts the Army's ability to leverage advanced technology for defense operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Ensures sustainment of critical systems
- Supports operational readiness
Sector Analysis
This contract falls within the defense sector, specifically focusing on the manufacturing and sustainment of complex navigation and guidance systems. Spending in this area is critical for national security but requires careful oversight to ensure cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine potential impacts on small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost creep. Regular performance reviews and audits will be crucial for accountability.
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
- Sole-source award limits competition.
- Cost Plus Fixed Fee structure may incentivize cost overruns.
- Lack of transparency in pricing due to no-bid award.
- Potential for contractor lock-in for future sustainment needs.
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 $27.0 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 $27.0 million.
What is the period of performance?
Start: 2024-07-25. End: 2025-09-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. Without specific documentation, it's difficult to assess the validity of this decision. However, sole-source contracts often bypass competitive bidding, potentially leading to higher costs and reduced innovation.
What are the potential risks associated with the Cost Plus Fixed Fee contract type for this sustainment effort?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs plus a fixed fee. This can incentivize cost overruns, as the contractor's profit is fixed regardless of the final cost. For sustainment, where unforeseen issues can arise, this structure requires robust government oversight to manage costs effectively.
How does this contract contribute to the overall effectiveness of the Army's navigation and guidance systems?
This contract is essential for maintaining the operational readiness and effectiveness of the Army's M-LIDS (Mobile-Light Integrated Defense System) and related navigation and guidance systems. By ensuring these complex systems are properly sustained and repaired, the contract directly supports the Army's ability to perform its missions effectively in various operational environments.
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: $27,002,473
Exercised Options: $27,002,473
Current Obligation: $27,002,473
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $7,096,678
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: 2024-07-25
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 12:09:00
Last Modified: 2025-08-27
More Contracts from DRS Sustainment Systems, Inc
- THE Purpose of This NEW Undefinitized Contract IS to Procure 146 Each Abrams Active Protection Systems, 826 Each Abrams Countermeasures, and 27 Kits of the Abrams Calibration/Maintenance Kits for the Department of the Army and the United States Marine Corps — $431.6M (Department of Defense)
- LOW Rate Initial Production/Full Rate Production for the Joint Assault Bridge — $397.7M (Department of Defense)
- Procurement of 274 Each M1000 Trailers — $104.8M (Department of Defense)
- This Task Order IS for Capability Development Document Increment-1, Procurement of 10 Configuration B Vehicles and Associated Spares — $103.3M (Department of Defense)
- M1200 Service Technical Support — $100.7M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)