DoD's $20.9M M1200 Armored Knight Reset Effort Awarded to DRS Sustainment Systems, Inc

Contract Overview

Contract Amount: $20,920,784 ($20.9M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2011-09-16

End Date: 2014-10-31

Contract Duration: 1,141 days

Daily Burn Rate: $18.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS ACTION IS FOR THE FY11 M1200 ARMORED KNIGHT RESET EFFORT. THE REQUIREMENT IS FOR A QUANTITY RESET OF 72 VEHICLES. FIXED PRICED CLINS ASSOCIATED WITH THIS ACTION ARE FOR THE LABOR AND MATERIAL FOR THE ACTUAL RESET OF 72 UNITS, INCLUDING ALL MANDATORY REPLACEMENT PARTS. THE CPFF CLINS FOR THIS EFFORT ENTAIL BASE AND ADDITIONAL UNIT REQUIREMENTS FOR ADDITIONAL WORK EFFORT (AWE) OR LABOR AND MATERIALS OVER AND ABOVE BASIC RESET REQUIREMENTS, RESET OF THE FIRE SUPPORT SENSOR SYSTEM (FS3), FIELD NET SPARES REPAIRS, NET TRAINING AND DISASSEMBLY OF PARTS FROM 35 M707 S. THE FUNDING IS FY11 OPERATION AND MAINTENANCE (OMA) FOR THIS EFFORT.

Place of Performance

Location: WEST PLAINS, HOWELL County, MISSOURI, 65775

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: THIS ACTION IS FOR THE FY11 M1200 ARMORED KNIGHT RESET EFFORT. THE REQUIREMENT IS FOR A QUANTITY RESET OF 72 VEHICLES. FIXED PRICED CLINS ASSOCIATED WITH THIS ACTION ARE FOR THE LABOR AND MATERIAL FOR THE ACTUAL RESET OF 72 UNITS, INCLUDING ALL MANDATORY REPLACEMENT PARTS. THE C… Key points: 1. Contract focuses on resetting 72 armored vehicles, including labor and materials for mandatory replacements. 2. Additional work covers fire support sensor systems, field net spares, training, and parts disassembly. 3. Funding is allocated from FY11 Operation and Maintenance (OMA) funds. 4. The contract type is a Definitive Contract with Firm Fixed Price and Cost Plus Fixed Fee CLINs. 5. This award represents a significant investment in maintaining critical armored vehicle capabilities. 6. The duration of the contract is over three years, indicating a substantial reset effort.

Value Assessment

Rating: fair

The total award amount is $20.9 million for the reset of 72 M1200 Armored Knight vehicles. Without specific per-vehicle cost breakdowns or comparisons to similar reset efforts, it is difficult to definitively benchmark the value for money. The inclusion of Additional Work Effort (AWE) and specialized components like the Fire Support Sensor System (FS3) suggests a comprehensive scope that may justify the overall cost. However, a detailed cost-benefit analysis would be needed for a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for a sole-source procurement is not provided in the data. This lack of competition means that the government did not explore potential cost savings or alternative solutions that might have been available from other vendors. The absence of a competitive bidding process raises questions about whether the most favorable pricing and terms were secured.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. Without a competitive process, it is harder to ensure that the government is receiving the best possible value for its investment.

Public Impact

The primary beneficiaries are the U.S. Army units operating the M1200 Armored Knight vehicles, ensuring their operational readiness. The services delivered include comprehensive resetting of 72 vehicles, encompassing labor, materials, and specialized system repairs. The geographic impact is primarily within the operational theaters where these vehicles are deployed, ensuring force projection capabilities. Workforce implications include skilled labor for vehicle maintenance, repair, and specialized system integration, supporting defense industrial base jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source award limits transparency in pricing and vendor selection.
Scope creep potential with 'Additional Work Effort' (AWE) clauses.

Positive Signals

Ensures readiness of critical armored vehicle assets.
Comprehensive reset effort addresses labor and material needs.
Long-term contract duration supports sustained maintenance capabilities.

Sector Analysis

The defense industrial base for armored vehicle manufacturing and sustainment is a critical sector. This contract falls under the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' industry. Spending in this area is driven by the need to maintain and modernize aging fleets, as well as to develop new capabilities. Comparable spending benchmarks would typically involve other reset or upgrade programs for similar vehicle platforms within the Department of Defense.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (sb: false). As a sole-source contract, there is no explicit small business set-aside. Subcontracting opportunities for small businesses are not detailed, but prime contractors are often encouraged or required to engage small businesses in their supply chains. The impact on the small business ecosystem is likely minimal unless DRS Sustainment Systems, Inc. proactively includes them in their subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures are embedded within the contract's CLIN structure (Fixed Price and Cost Plus Fixed Fee), requiring adherence to scope and delivery schedules. Transparency is limited due to the sole-source nature of the award; however, contract modifications and performance reports would be subject to internal DoD review and potentially Inspector General oversight if specific concerns arise.

Related Government Programs

M1 Abrams Tank Reset Programs
Bradley Fighting Vehicle Sustainment
Combat Vehicle Modernization Initiatives
Department of Defense Maintenance and Repair Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns due to 'Additional Work Effort' clauses.
Limited public data on per-unit cost benchmarks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to DRS SUSTAINMENT SYSTEMS, INC. THIS ACTION IS FOR THE FY11 M1200 ARMORED KNIGHT RESET EFFORT. THE REQUIREMENT IS FOR A QUANTITY RESET OF 72 VEHICLES. FIXED PRICED CLINS ASSOCIATED WITH THIS ACTION ARE FOR THE LABOR AND MATERIAL FOR THE ACTUAL RESET OF 72 UNITS, INCLUDING ALL MANDATORY REPLACEMENT PARTS. THE CPFF CLINS FOR THIS EFFORT ENTAIL BASE AND ADDITIONAL UNIT REQUIREMENTS FOR ADDITIONAL WORK EFFORT (AWE) OR LABOR AND MATERIALS OVER AND ABOVE BASIC RESET REQUIREMENTS, RESET OF THE FIRE SUPPORT SENSOR SYSTEM (FS3), FIELD

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 $20.9 million.

What is the period of performance?

Start: 2011-09-16. End: 2014-10-31.

What is the historical spending pattern for M1200 Armored Knight reset efforts by the Department of Defense?

The provided data focuses on a single FY11 action totaling $20.9 million. To establish a historical spending pattern, one would need to analyze contract awards for M1200 Armored Knight resets across multiple fiscal years. This would involve searching databases like FPDS or USASpending for similar contracts, noting award amounts, quantities reset, and the contractors involved. Without this broader dataset, it's impossible to determine if this $20.9 million represents a typical, high, or low expenditure for such reset efforts. Factors like inflation, evolving maintenance requirements, and the overall fleet readiness status would influence historical spending trends.

How does the cost per vehicle reset in this contract compare to industry benchmarks or similar DoD reset programs?

The total contract value is $20.9 million for 72 vehicles, yielding an approximate cost of $290,000 per vehicle for the reset effort. However, this figure includes various components beyond basic reset, such as Additional Work Effort (AWE), Fire Support Sensor System (FS3) resets, and spare parts. To benchmark this effectively, one would need detailed cost breakdowns for each CLIN and compare them to industry standards for armored vehicle refurbishment or similar reset programs for other platforms like the M1 Abrams or Bradley Fighting Vehicle. The sole-source nature of this award makes direct cost comparison challenging, as competitive bids often drive down per-unit costs. A thorough analysis would require access to detailed cost proposals and data from competed contracts.

What are the specific risks associated with the sole-source award of this contract?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not be securing the best possible value for its investment. Another risk is reduced transparency in the pricing structure and the justification for the selected contractor. Furthermore, a sole-source award might limit the government's access to innovative solutions or alternative technologies that other qualified contractors could offer. This can also set a precedent for future sole-source awards, potentially hindering the development of a more competitive market for armored vehicle sustainment services.

What is the track record of DRS Sustainment Systems, Inc. in performing similar armored vehicle reset or maintenance contracts?

DRS Sustainment Systems, Inc. is a known entity within the defense contracting space, often involved in providing sustainment, modernization, and support services for various military platforms. To assess their track record specifically for M1200 Armored Knight resets, one would need to examine their past performance on similar contracts. This includes reviewing contract histories for on-time delivery, adherence to quality standards, cost performance, and customer satisfaction ratings. Information on past performance can often be found in government databases (e.g., Contractor Performance Assessment Reporting System - CPARS) or through industry analysis. A positive track record would indicate a lower risk for this specific contract, while a history of issues might raise concerns.

What is the expected impact of this contract on the operational readiness of the U.S. Army's armored vehicle fleet?

This contract directly addresses the operational readiness of the M1200 Armored Knight vehicles by undertaking a comprehensive reset effort. Resetting involves bringing vehicles back to a specified standard, addressing wear and tear, and ensuring all systems are functional. By resetting 72 vehicles, the Army can maintain or improve the availability of these critical assets for training, deployment, and combat operations. The inclusion of spare parts and specialized system repairs further contributes to sustained readiness. The successful and timely completion of this contract is therefore crucial for ensuring that units equipped with the M1200 have reliable and effective platforms.

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

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: $20,920,784

Exercised Options: $20,920,784

Current Obligation: $20,920,784

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline