Army Awards $21.2M for Armored Vehicle Production to DRS Sustainment Systems

Contract Overview

Contract Amount: $21,213,891 ($21.2M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2009-05-08

End Date: 2012-07-16

Contract Duration: 1,165 days

Daily Burn Rate: $18.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PRODUCTION

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: PRODUCTION Key points: 1. The contract value is $21.2 million, awarded to DRS Sustainment Systems, Inc. 2. This award falls under the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. 3. The contract was not competed, raising potential concerns about price discovery. 4. The duration of the contract is 1165 days, ending in July 2012.

Value Assessment

Rating: questionable

The contract was awarded on a Firm Fixed Price basis. Without competitive bidding, it is difficult to assess if the price is optimal or if it represents good value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may have resulted in higher costs than if the contract had been openly competed, impacting taxpayer funds.

Public Impact

Taxpayers may have paid a premium due to the lack of competitive bidding. The specific armored vehicle components produced are critical for military operations. The long duration of the contract suggests a sustained need for these components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpricing

Positive Signals

Firm Fixed Price contract type
Awarded to a known defense contractor

Sector Analysis

This contract falls within the Defense Industrial Base, specifically focusing on the manufacturing of military armored vehicles and their components. Spending in this sector is often driven by national security needs and can be subject to less price sensitivity than commercial sectors.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The 'NOT COMPETED' status suggests that standard competitive oversight procedures may have been bypassed. The award's justification and any subsequent performance reviews would be key areas for oversight.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency in price determination
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to DRS SUSTAINMENT SYSTEMS, INC. PRODUCTION

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 $21.2 million.

What is the period of performance?

Start: 2009-05-08. End: 2012-07-16.

What was the justification for not competing this contract, and how was the price determined to be fair and reasonable?

The justification for not competing the contract is not provided in the data. Typically, sole-source awards require a detailed justification, such as the existence of a unique capability or urgent need. The determination of a fair and reasonable price in such cases often relies on historical pricing, cost analysis, or comparison to similar, albeit non-identical, contracts.

What are the risks associated with a sole-source award for critical military hardware production?

Sole-source awards for critical military hardware carry risks of inflated costs due to the absence of competitive pressure, potential for complacency in quality or delivery schedules, and a lack of innovation that competition might foster. It also limits the government's ability to explore alternative solutions or suppliers.

How effective was this contract in meeting the Army's needs for armored vehicle components given its non-competitive nature?

The effectiveness of the contract in meeting the Army's needs cannot be fully assessed solely from the award data. While the contract was awarded and presumably fulfilled, the lack of competition makes it difficult to determine if the outcome was the most cost-effective or efficient. Performance metrics and end-user feedback would be necessary for a complete evaluation.

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

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

Financial Breakdown

Contract Ceiling: $21,213,891

Exercised Options: $21,213,891

Current Obligation: $21,213,891

Contract Characteristics

Cost or Pricing Data: YES

Timeline