DoD Awards $48.7M for Engineering Technical Services to DRS Sustainment Systems, Inc
Contract Overview
Contract Amount: $48,697,027 ($48.7M)
Contractor: DRS Sustainment Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2006-08-08
End Date: 2011-03-31
Contract Duration: 1,696 days
Daily Burn Rate: $28.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200611!007783!2100!W56HZV!TACOM - WARREN !W56HZV06C0538 !A!N! !N! ! !20060808!20080930!006265466!006265466!122604846!N!DRS SUSTAINMENT SYSTEMS, INC !201 EVANS LN !SAINT LOUIS !MO!63121!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000000817412!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !336992!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!U!1!001!N!1G!C!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: WEST PLAINS, HOWELL County, MISSOURI, 65775
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $48.7 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: 200611!007783!2100!W56HZV!TACOM - WARREN !W56HZV06C0538 !A!N! !N! ! !20060808!20080930!006265466!006265466!122604846!N!DRS SUSTAINMENT SYSTEMS, INC !201 EVANS LN !SAINT LOUIS !MO!63121!65000!510!29!ST. LOUIS !ST. … Key points: 1. Contract awarded for engineering technical services related to combat vehicles. 2. Significant value of $48.7 million for a 5-year period. 3. Sole-source award raises questions about competition and potential price discovery. 4. Services fall under the Defense sector, specifically combat vehicles.
Value Assessment
Rating: questionable
The contract value of $48.7 million for engineering technical services over nearly 5 years appears substantial. Without comparable contracts or detailed cost breakdowns, it's difficult to definitively assess its value. However, the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This significantly limits price discovery and competition, potentially leading to higher costs for taxpayers. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher costs than if multiple vendors had been considered, impacting taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The specific engineering services provided are critical for military vehicle readiness. Long-term contracts for specialized technical services can impact budget predictability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Award to established company
- Long-term service provision
Sector Analysis
This contract falls within the Defense sector, specifically supporting combat vehicles. Spending in this area is crucial for national security but often involves complex, specialized services where competition can be challenging.
Small Business Impact
The awardee, DRS Sustainment Systems, Inc., is a large business. There is no indication in the provided data that small businesses were involved as subcontractors or partners in this specific contract.
Oversight & Accountability
Oversight of sole-source contracts is critical to ensure fair pricing and prevent waste. The Defense Contract Management Agency (DCMA) is responsible for contract administration, but the lack of competition warrants closer scrutiny of the awarded price.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Lack of transparency regarding justification for sole-source.
- No clear indication of small business participation.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.7 million to DRS SUSTAINMENT SYSTEMS, INC. 200611!007783!2100!W56HZV!TACOM - WARREN !W56HZV06C0538 !A!N! !N! ! !20060808!20080930!006265466!006265466!122604846!N!DRS SUSTAINMENT SYSTEMS, INC !201 EVANS LN !SAINT LOUIS !MO!63121!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000000817412!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !336992!E! !3! ! ! ! ! !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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $48.7 million.
What is the period of performance?
Start: 2006-08-08. End: 2011-03-31.
What was the justification for awarding this contract on a sole-source basis?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. Further investigation into the contract file would be necessary to determine the official reason.
How does the cost of these engineering services compare to similar contracts awarded competitively?
Without access to a benchmark of competitively awarded contracts for similar engineering technical services within the combat vehicle domain, a direct cost comparison is not possible. The sole-source nature of this award inherently prevents a direct competitive benchmark, raising concerns about potential cost inefficiencies.
What is the long-term impact of this sole-source award on the sustainment of military armored vehicles?
While a sole-source award can ensure continuity of service from a known provider, it may limit opportunities for innovation and cost savings that could arise from competition. The long-term effectiveness hinges on DRS Sustainment Systems' performance and the government's ability to manage the contract effectively despite the lack of competitive pressure.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leonardo SPA (UEI: 428869465)
Address: 201 EVANS LN, SAINT LOUIS, MO, 63121
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-08-08
Current End Date: 2011-03-31
Potential End Date: 2011-03-31 00:00:00
Last Modified: 2019-06-17
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