DoD awards $14M+ contract for Army field support, raising questions about competition and value

Contract Overview

Contract Amount: $14,040,768 ($14.0M)

Contractor: DRS Network & Imaging Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2008-06-09

End Date: 2016-11-07

Contract Duration: 3,073 days

Daily Burn Rate: $4.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AWARD OF BASE CONTRACT UNDER WHICH WORK DIRECTIVES (WDS) MAY BE EXECUTED BY THE CONTRACTING OFFICER, ALONG WITH THE INITIAL WD DRS-TEM-00AA FOR FSR FIELD SUPPORT FOR ARMY EXPEDITIOINARY WARRIOR EXPERIMENTS SPIRAL E EXPERIMENTS.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to DRS NETWORK & IMAGING SYSTEMS, LLC for work described as: AWARD OF BASE CONTRACT UNDER WHICH WORK DIRECTIVES (WDS) MAY BE EXECUTED BY THE CONTRACTING OFFICER, ALONG WITH THE INITIAL WD DRS-TEM-00AA FOR FSR FIELD SUPPORT FOR ARMY EXPEDITIOINARY WARRIOR EXPERIMENTS SPIRAL E EXPERIMENTS. Key points: 1. Contract awarded to DRS Network & Imaging Systems, LLC for engineering services. 2. Significant duration of 3073 days suggests long-term support needs. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. The 'Cost Plus Fixed Fee' structure requires careful monitoring to ensure value.

Value Assessment

Rating: questionable

The contract's 'Cost Plus Fixed Fee' structure necessitates close oversight to ensure costs remain reasonable. Without competitive benchmarks, assessing the true value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition could result in taxpayer funds being used less efficiently than if multiple vendors had vied for the contract.

Public Impact

Taxpayers may be paying a premium due to the lack of competitive bidding. The long contract duration could lock the government into a potentially suboptimal solution. Limited transparency in sole-source awards can erode public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Cost-plus contract type
Long contract duration

Positive Signals

Provides essential field support for Army experiments
Contractor has a history with the agency

Sector Analysis

This contract falls under Engineering Services, a sector often characterized by specialized expertise. Benchmarks for similar long-term, sole-source engineering support contracts are difficult to establish without competitive data.

Small Business Impact

The awardee, DRS Network & Imaging Systems, LLC, is not identified as a small business. This contract does not appear to include provisions for small business subcontracting.

Oversight & Accountability

The sole-source nature of this award warrants enhanced oversight to ensure the contractor is delivering services efficiently and at a fair price. Regular performance reviews and cost audits are crucial.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for overpricing due to lack of competition.
Risk of contractor inefficiency not being penalized.
Limited transparency in sole-source procurement.
Long contract duration may not adapt to evolving needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to DRS NETWORK & IMAGING SYSTEMS, LLC. AWARD OF BASE CONTRACT UNDER WHICH WORK DIRECTIVES (WDS) MAY BE EXECUTED BY THE CONTRACTING OFFICER, ALONG WITH THE INITIAL WD DRS-TEM-00AA FOR FSR FIELD SUPPORT FOR ARMY EXPEDITIOINARY WARRIOR EXPERIMENTS SPIRAL E EXPERIMENTS.

Who is the contractor on this award?

The obligated recipient is DRS NETWORK & IMAGING SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2008-06-09. End: 2016-11-07.

What specific factors justified the sole-source award, and were alternatives thoroughly explored?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. Without detailed documentation, it's difficult to ascertain if all reasonable alternatives were explored. This lack of transparency can obscure whether the government truly received the best possible value or if a competitive process could have yielded better pricing and innovation.

How is the 'fixed fee' component of this Cost Plus Fixed Fee contract being managed to ensure it reflects fair compensation for the services rendered?

In a Cost Plus Fixed Fee contract, the fixed fee is negotiated upfront and remains constant regardless of actual costs. Effective management involves rigorous monitoring of allowable costs, ensuring they are reasonable and allocable to the contract. The fee's fairness is assessed against industry standards for similar services and the contractor's performance risk. Regular audits and performance reviews are essential to validate the fee's appropriateness over the contract's life.

What mechanisms are in place to measure the effectiveness and efficiency of the field support provided under this long-term contract?

Effectiveness and efficiency are typically measured through performance metrics, key performance indicators (KPIs), and regular progress reports. For field support, this could include response times, resolution rates, and user satisfaction surveys. The contracting officer must actively track these metrics against established targets and conduct periodic reviews to ensure the contractor is meeting or exceeding expectations and providing value for taxpayer money.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV07R0654

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 110 WYNN DR NW, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,040,768

Exercised Options: $14,040,768

Current Obligation: $14,040,768

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline