DoD Awards $397.7M for Joint Assault Bridge Production, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $397,717,809 ($397.7M)
Contractor: DRS Sustainment Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2016-05-11
End Date: 2028-01-31
Contract Duration: 4,282 days
Daily Burn Rate: $92.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOW RATE INITIAL PRODUCTION/FULL RATE PRODUCTION FOR THE JOINT ASSAULT BRIDGE.
Place of Performance
Location: WEST PLAINS, HOWELL County, MISSOURI, 65775
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $397.7 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: LOW RATE INITIAL PRODUCTION/FULL RATE PRODUCTION FOR THE JOINT ASSAULT BRIDGE. Key points: 1. The contract for Joint Assault Bridge production is awarded to DRS Sustainment Systems, Inc. 2. A significant contract value of $397.7 million highlights the investment in military armored vehicle manufacturing. 3. The contract's duration extends to January 2028, indicating a long-term production commitment. 4. Potential cost overruns are a concern, with a reported $9.2M breach of the cost limitation. 5. This falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector.
Value Assessment
Rating: questionable
The contract value is substantial, but the reported $9.2 million breach of the cost limitation raises concerns about cost control and potential future overruns. Further analysis is needed to understand the drivers of this breach.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the breach of the cost limitation may indicate issues with initial pricing accuracy or unforeseen cost escalations.
Taxpayer Impact: Taxpayer funds are being utilized for the production of critical military equipment. The breach of cost limitations warrants close monitoring to ensure efficient use of funds.
Public Impact
Enhances Army's bridging capabilities for tactical operations. Supports modernization of armored vehicle fleet. Ensures readiness for military deployment. Contributes to the defense industrial base. Potential for job creation in manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overrun breach
- Long contract duration
- Potential for scope creep
Positive Signals
- Full and open competition
- Firm fixed price contract type
- Strategic military asset
Sector Analysis
This contract falls under the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector. Spending in this area is driven by defense modernization priorities and geopolitical security needs. Benchmarks would typically be compared against similar large-scale vehicle production contracts.
Small Business Impact
The data indicates the prime contractor is DRS Sustainment Systems, Inc. There is no explicit information provided regarding small business participation or subcontracting goals within this specific contract award. Further investigation would be needed to assess SMB involvement.
Oversight & Accountability
The contract is managed by the Department of the Army. Oversight would focus on monitoring contract performance, adherence to cost limitations, and timely delivery of the Joint Assault Bridge systems to ensure accountability and effective use of taxpayer funds.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost overrun breach of limitation
- Long contract duration increases risk exposure
- Potential for schedule delays
- Dependence on a single prime contractor
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $397.7 million to DRS SUSTAINMENT SYSTEMS, INC. LOW RATE INITIAL PRODUCTION/FULL RATE PRODUCTION FOR THE JOINT ASSAULT BRIDGE.
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 $397.7 million.
What is the period of performance?
Start: 2016-05-11. End: 2028-01-31.
What specific factors led to the $9.2 million breach of the cost limitation, and what corrective actions are being implemented?
The breach of the cost limitation requires detailed examination of the contract's execution. Potential factors include unforeseen material cost increases, production inefficiencies, or changes in technical requirements. Corrective actions should involve a thorough review of the cost drivers, renegotiation of terms if necessary, and enhanced oversight to prevent future breaches and ensure fiscal responsibility.
How does the per-unit cost of the Joint Assault Bridge compare to similar systems or previous production runs, considering the cost overrun?
Assessing the per-unit cost requires access to detailed cost breakdowns and historical data. Given the reported cost overrun, the current per-unit cost is likely higher than initially projected. A comparative analysis against similar military bridging systems or previous iterations of the Joint Assault Bridge would reveal if this cost increase is an anomaly or indicative of broader industry trends or program-specific challenges.
What is the long-term strategic value and operational necessity of the Joint Assault Bridge program, justifying the significant investment and potential cost risks?
The Joint Assault Bridge is a critical enabler for military ground operations, allowing armored and combat vehicles to traverse wet and dry gaps. Its strategic value lies in enhancing mobility, survivability, and operational flexibility on the battlefield. The significant investment is justified by the need to maintain a technological advantage and ensure mission success in complex operational environments, despite the inherent risks associated with large-scale defense procurement.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $708,544,158
Exercised Options: $661,478,527
Current Obligation: $397,717,809
Subaward Activity
Number of Subawards: 342
Total Subaward Amount: $68,378,373
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-05-11
Current End Date: 2028-01-31
Potential End Date: 2028-01-31 12:01:00
Last Modified: 2026-01-12
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