DoD's $100.7M M1200 Technical Support Contract Awarded to DRS Sustainment Systems

Contract Overview

Contract Amount: $100,667,116 ($100.7M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2009-05-08

End Date: 2018-04-01

Contract Duration: 3,250 days

Daily Burn Rate: $31.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: M1200 SERVICE TECHNICAL SUPPORT

Place of Performance

Location: BRIDGETON, SAINT LOUIS County, MISSOURI, 63044

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $100.7 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: M1200 SERVICE TECHNICAL SUPPORT Key points: 1. The contract, valued at over $100 million, was awarded to DRS Sustainment Systems, Inc. 2. This represents a significant investment in military armored vehicle support. 3. The 'NOT COMPETED' status raises questions about potential price discovery and value. 4. The sector is dominated by specialized defense contractors.

Value Assessment

Rating: questionable

The contract's value of $100.7 million over its duration is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar technical support services for armored vehicles.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

Awarded as 'NOT COMPETED', this sole-source approach limits price discovery and potentially leads to higher costs for taxpayers. The absence of competition means there was no market pressure to drive down the price.

Taxpayer Impact: The lack of competition on this large contract likely resulted in a higher cost to taxpayers than if it had been competitively bid.

Public Impact

Ensures continued operational readiness for critical military armored vehicles. Supports jobs within DRS Sustainment Systems, Inc. Potential for cost overruns due to lack of competitive pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Lack of transparency in pricing

Positive Signals

Ensures critical system support
Long-term contract duration

Sector Analysis

This contract falls within the Defense sector, specifically supporting military armored vehicles. Spending in this area is critical for national security but often involves complex, specialized systems with limited competition.

Small Business Impact

This contract was awarded to a large business, DRS Sustainment Systems, Inc. There is no indication of small business participation in this specific award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government received the best possible value. Further oversight may be needed to track spending and performance.

Related Government Programs

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

Risk Flags

Sole-source award
High dollar value
Lack of competitive bidding
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $100.7 million to DRS SUSTAINMENT SYSTEMS, INC. M1200 SERVICE TECHNICAL SUPPORT

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 $100.7 million.

What is the period of performance?

Start: 2009-05-08. End: 2018-04-01.

What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. Without specific details on the justification, it's difficult to assess the fairness of the pricing. However, the absence of competition inherently limits the government's ability to negotiate the lowest possible price.

What are the potential risks associated with a $100 million sole-source contract for technical support?

The primary risk is paying a premium due to the lack of competitive bidding, potentially leading to inefficient use of taxpayer funds. Other risks include vendor lock-in, reduced innovation, and potential complacency from the contractor regarding performance and cost control.

How does this contract contribute to the overall effectiveness and readiness of the military's armored vehicle fleet?

This contract is crucial for maintaining the operational readiness and effectiveness of the M1200 armored vehicle fleet. Reliable technical support ensures that these critical assets are functional and mission-capable, directly impacting military operations and national security.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

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

Address: 4201 INNOVATION WAY, BRIDGETON, MO, 63044

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: $101,754,952

Exercised Options: $101,754,952

Current Obligation: $100,667,116

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline