Army & Marines Award $431.6M Contract for Abrams Active Protection Systems and Countermeasures

Contract Overview

Contract Amount: $431,645,766 ($431.6M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2018-06-15

End Date: 2022-04-30

Contract Duration: 1,415 days

Daily Burn Rate: $305.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: THE PURPOSE OF THIS NEW UNDEFINITIZED CONTRACT IS TO PROCURE 146 EACH ABRAMS ACTIVE PROTECTION SYSTEMS, 826 EACH ABRAMS COUNTERMEASURES, AND 27 KITS OF THE ABRAMS CALIBRATION/MAINTENANCE KITS FOR THE DEPARTMENT OF THE ARMY AND THE UNITED STATES MARINE CORPS.

Place of Performance

Location: BRIDGETON, SAINT LOUIS County, MISSOURI, 63044

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $431.6 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: THE PURPOSE OF THIS NEW UNDEFINITIZED CONTRACT IS TO PROCURE 146 EACH ABRAMS ACTIVE PROTECTION SYSTEMS, 826 EACH ABRAMS COUNTERMEASURES, AND 27 KITS OF THE ABRAMS CALIBRATION/MAINTENANCE KITS FOR THE DEPARTMENT OF THE ARMY AND THE UNITED STATES MARINE CORPS. Key points: 1. Procurement of 146 Active Protection Systems and 826 countermeasures for Abrams tanks. 2. Contract awarded to DRS Sustainment Systems, Inc., a key defense contractor. 3. Significant investment in armored vehicle survivability for both Army and Marine Corps. 4. High-value contract highlights ongoing modernization efforts in ground vehicle defense.

Value Assessment

Rating: good

The contract value of $431.6 million for 146 APS and 826 countermeasures appears reasonable given the advanced nature of the technology. Benchmarking against similar complex defense system procurements suggests this pricing is within expected ranges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially increases costs compared to a competitive process. The justification for sole-source is not provided.

Taxpayer Impact: Taxpayer funds are being used for a critical defense upgrade, with the potential for higher costs due to the lack of competition.

Public Impact

Enhances survivability of Abrams tanks, protecting service members in combat. Supports modernization of U.S. ground forces with advanced defensive technology. Directly impacts the operational readiness of both the Army and Marine Corps. Represents a significant investment in national defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs.
Undefinitized contract (UDC) carries inherent risk until finalized.
Specific performance metrics and delivery schedules need close monitoring.

Positive Signals

Addresses critical need for enhanced vehicle protection.
Supports modernization of key combat platforms.
Procures advanced technology for warfighter safety.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on advanced weapon systems and vehicle modernization. Spending in this area is driven by evolving threats and the need to maintain technological superiority.

Small Business Impact

The contract was awarded to DRS Sustainment Systems, Inc., a large business. There is no indication of small business participation in this specific award, which is common for large, specialized defense procurements.

Oversight & Accountability

As an undefinitized contract, close oversight is crucial to ensure the final definitization aligns with cost and performance expectations. The Department of Defense has established processes for UDC management, but vigilance is required.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competitive pricing.
Undefinitized contract status introduces risk.
Potential for cost overruns without competition.
Dependence on a single contractor for critical technology.
Need for robust oversight of contract definitization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $431.6 million to DRS SUSTAINMENT SYSTEMS, INC. THE PURPOSE OF THIS NEW UNDEFINITIZED CONTRACT IS TO PROCURE 146 EACH ABRAMS ACTIVE PROTECTION SYSTEMS, 826 EACH ABRAMS COUNTERMEASURES, AND 27 KITS OF THE ABRAMS CALIBRATION/MAINTENANCE KITS FOR THE DEPARTMENT OF THE ARMY AND THE UNITED STATES MARINE CORPS.

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 $431.6 million.

What is the period of performance?

Start: 2018-06-15. End: 2022-04-30.

What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically relates to unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair pricing, the government often conducts detailed cost analyses, reviews historical pricing, and may negotiate incentives within the contract terms. However, without competition, the government's leverage in price negotiation is reduced.

What are the key performance metrics for the Abrams Active Protection Systems and countermeasures, and how will their effectiveness be measured post-delivery?

Key performance metrics likely include detection range, reaction time, effectiveness against various threat types (e.g., RPGs, ATGMs), system reliability, and integration with the Abrams platform. Effectiveness will be measured through rigorous testing, simulated combat scenarios, operational deployment feedback, and post-mission analysis. Independent verification and validation processes are essential.

What is the projected long-term cost of ownership, including maintenance, upgrades, and sustainment, for these newly procured APS and countermeasures?

The long-term cost of ownership is a critical consideration beyond the initial procurement. It will encompass sustainment, spare parts, specialized maintenance personnel, software updates, and potential future upgrades to counter evolving threats. Detailed sustainment plans and cost projections should be developed and monitored to manage the total lifecycle cost effectively.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV17R0102

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

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: $498,014,444

Exercised Options: $431,645,766

Current Obligation: $431,645,766

Actual Outlays: $152,142

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $222,184

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline