DoD Awards $70M Contract for Combat Vehicle Sustainment to DRS Sustainment Systems

Contract Overview

Contract Amount: $69,952,684 ($70.0M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2006-09-26

End Date: 2010-05-31

Contract Duration: 1,343 days

Daily Burn Rate: $52.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200612!007689!2100!W56HZV!TACOM - WARREN !W56HZV06C0523 !A!N! !N! ! !20060926!20101231!006265466!006265466!122604846!N!DRS SUSTAINMENT SYSTEMS, INC !201 EVANS LN !SAINT LOUIS !MO!63121!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000012200748!N!N!000000000000!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !336992!E! !1! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!A!Y!C! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001! !

Place of Performance

Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63121

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $70.0 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: 200612!007689!2100!W56HZV!TACOM - WARREN !W56HZV06C0523 !A!N! !N! ! !20060926!20101231!006265466!006265466!122604846!N!DRS SUSTAINMENT SYSTEMS, INC !201 EVANS LN !SAINT LOUIS !MO!63121!65000!510!29!ST. LOUIS !ST. … Key points: 1. The contract, valued at $69.95 million, is for sustainment of combat assault and tactical vehicles. 2. DRS Sustainment Systems, Inc. secured this award, indicating a potential lack of broader competition. 3. The award falls under the 'Combat Vehicles' sector, a critical area for defense readiness. 4. The firm fixed price contract type suggests a defined scope and cost structure.

Value Assessment

Rating: fair

The contract value of $69.95 million for a 4.5-year period appears reasonable for specialized military vehicle sustainment. Benchmarking against similar complex vehicle support contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, suggesting a limited competition approach. This could potentially lead to higher prices than if full and open competition were pursued, as the government may not have benefited from the lowest possible price.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these sustainment services.

Public Impact

Ensures continued operational readiness of critical combat vehicles. Supports the U.S. Army's armored vehicle fleet maintenance. Impacts the defense industrial base and specialized manufacturing capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Long-term sustainment dependency

Positive Signals

Ensures critical vehicle readiness
Supports a specific defense contractor

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Combat Vehicles. Spending in this area is crucial for national security, and benchmarks often relate to the complexity and lifespan of the equipment being supported.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. The prime contractor, DRS Sustainment Systems, Inc., is a significant entity, and further analysis would be needed to determine small business participation.

Oversight & Accountability

The award was made by the Department of the Army. Oversight would typically involve contract management teams ensuring performance, quality, and adherence to terms, especially given the lack of initial competition.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of Full and Open Competition
Potential for Price Escalation
Contract Duration and Scope
Dependency on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.0 million to DRS SUSTAINMENT SYSTEMS, INC. 200612!007689!2100!W56HZV!TACOM - WARREN !W56HZV06C0523 !A!N! !N! ! !20060926!20101231!006265466!006265466!122604846!N!DRS SUSTAINMENT SYSTEMS, INC !201 EVANS LN !SAINT LOUIS !MO!63121!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000012200748!N!N!000000000000!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !336992!E! !1! ! ! ! ! !999

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 $70.0 million.

What is the period of performance?

Start: 2006-09-26. End: 2010-05-31.

What was the justification for not competing this contract, and what analysis was done to ensure fair and reasonable pricing?

The justification for not competing this contract is not explicitly detailed in the provided data. Typically, sole-source or limited competition awards require a formal justification, such as the existence of a unique capability or urgent need. A thorough analysis of fair and reasonable pricing would involve comparing proposed costs to historical data, industry benchmarks, and potentially independent cost estimates to mitigate the risks associated with limited competition.

What are the long-term risks associated with awarding sustainment contracts on a limited or sole-source basis for critical military assets?

Long-term risks include potential price escalation due to lack of competitive pressure, reduced innovation from the contractor, and a dependency on a single provider which can create vulnerabilities if that provider faces financial or operational difficulties. It can also stifle the development of alternative solutions or capabilities within the broader defense industrial base.

How does the sustainment of these combat vehicles contribute to overall military effectiveness and readiness?

Effective sustainment is paramount for maintaining the operational readiness and combat effectiveness of military assets. It ensures that vehicles are properly maintained, repaired, and modernized, allowing them to perform their intended missions reliably. Without adequate sustainment, even the most advanced vehicles can degrade, leading to reduced operational capability and increased risk to personnel.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV06R0341

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 201 EVANS LN, SAINT LOUIS, MO, 90

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline