Army Awards $23.6M for 42 M1200 KNIGHT Vehicles to DRS Sustainment Systems
Contract Overview
Contract Amount: $23,632,455 ($23.6M)
Contractor: DRS Sustainment Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2010-02-10
End Date: 2012-03-31
Contract Duration: 780 days
Daily Burn Rate: $30.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M1200 KNIGHT (42 EA)
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63121
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $23.6 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: M1200 KNIGHT (42 EA) Key points: 1. Significant contract value for specialized military vehicles. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on armored vehicle manufacturing, a critical defense sector.
Value Assessment
Rating: fair
The contract price of $23.6 million for 42 units averages approximately $562,677 per vehicle. Without competitive bidding, it's difficult to benchmark against similar contracts, but this appears to be a substantial investment for armored vehicles.
Cost Per Unit: $562,677
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competition. This method limits price discovery and may result in higher costs for the government compared to a fully competed procurement.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not have received the best possible price for these vehicles.
Public Impact
Direct impact on military readiness and troop protection. Supports a specific segment of the defense industrial base. Funds specialized vehicle manufacturing, potentially limiting broader industry innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of price benchmark for comparison.
- High per-unit cost for specialized vehicles.
Positive Signals
- Addresses a specific military equipment need.
- Contract awarded to an established defense supplier.
Sector Analysis
This contract falls within the Defense sector, specifically military armored vehicle manufacturing. Spending benchmarks in this area are highly variable due to the specialized nature and low volume of production for such equipment.
Small Business Impact
The data indicates this contract was not awarded to small businesses. The prime contractor, DRS Sustainment Systems, Inc., is likely a large business, suggesting limited direct benefit to small businesses through this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price paid was fair and reasonable. Further oversight may be needed to understand why competition was not pursued.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source procurement
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in price justification
- No small business participation noted
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 $23.6 million to DRS SUSTAINMENT SYSTEMS, INC. M1200 KNIGHT (42 EA)
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 $23.6 million.
What is the period of performance?
Start: 2010-02-10. End: 2012-03-31.
What was the justification for the sole-source award of the M1200 KNIGHT vehicles?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternative sources. Without specific documentation, it's presumed the Department of the Army determined DRS Sustainment Systems, Inc. was the only capable provider or that competition was not feasible or cost-effective at the time of award.
How does the per-unit cost of the M1200 KNIGHT compare to similar armored vehicles procured competitively?
Benchmarking the $562,677 per-unit cost is challenging without specific details on the M1200 KNIGHT's capabilities and the competitive pricing of comparable vehicles. However, given the sole-source nature, it's plausible that a competitive process could have yielded a lower per-unit price, assuming suitable alternatives existed.
What is the long-term effectiveness and operational impact of procuring these vehicles via a sole-source contract?
The long-term effectiveness is tied to the vehicle's performance and the Army's operational needs. However, the sole-source approach may impact future procurement costs and potentially limit the adoption of newer, more competitive technologies if the incumbent contractor's solutions become entrenched without market pressure.
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, 63121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,922,838
Exercised Options: $23,632,455
Current Obligation: $23,632,455
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-02-10
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 12:03:00
Last Modified: 2016-08-02
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