DoD Awards $37.2M Contract for Bradley System Technical Support to DRS Network & Imaging Systems

Contract Overview

Contract Amount: $37,241,334 ($37.2M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-18

End Date: 2025-12-31

Contract Duration: 2,449 days

Daily Burn Rate: $15.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: BRADLEY SYSTEM TECHNICAL SUPPORT AND SUSTAINMENT SYSTEM TECHNICAL SUPPORT FOR ALL ON VEHICLE COMPONENTS (E.G. POWER, DIAGNOSTICS, AND OPTICS HARDWARE AND SOFTWARE SYSTEMS) THAT ARE SOURCE-CONTROLLED TO DRS.

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $37.2 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: BRADLEY SYSTEM TECHNICAL SUPPORT AND SUSTAINMENT SYSTEM TECHNICAL SUPPORT FOR ALL ON VEHICLE COMPONENTS (E.G. POWER, DIAGNOSTICS, AND OPTICS HARDWARE AND SOFTWARE SYSTEMS) THAT ARE SOURCE-CONTROLLED TO DRS. Key points: 1. Contract focuses on critical technical support for Bradley vehicle components, including power, diagnostics, and optics. 2. Sole-source award to DRS Network & Imaging Systems LLC raises questions about competition and potential cost savings. 3. The contract duration extends to December 2025, indicating a long-term need for these specialized services. 4. Engineering services (NAICS 541330) are essential for maintaining complex military hardware.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not carefully managed. Benchmarking against similar sole-source technical support contracts for complex military systems is difficult without more data, but the fixed fee component aims to provide some cost control.

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 for taxpayers as there was no competitive pressure to drive down the price.

Taxpayer Impact: The lack of competition for this significant contract value may result in higher taxpayer expenditure compared to a competitively awarded contract.

Public Impact

Ensures continued operational readiness of Bradley Fighting Vehicles through essential technical support. Supports a critical component of the U.S. Army's armored fleet. Potential for increased costs due to sole-source nature impacts overall defense budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Cost Plus Fixed Fee contract type can incentivize higher spending.
Lack of detailed performance metrics in provided data.

Positive Signals

Provides essential sustainment for a key military platform.
Contract has a defined end date, allowing for future re-evaluation.
Specific focus on critical vehicle components.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting military vehicle systems. Spending benchmarks for sole-source technical support on complex defense platforms can vary widely, but typically aim for cost-effectiveness through long-term sustainment agreements.

Small Business Impact

The data indicates this contract was awarded to DRS Network & Imaging Systems LLC and does not specify any subcontracting to small businesses. Further investigation would be needed to determine if small business participation was a requirement or opportunity.

Oversight & Accountability

The Department of Defense is responsible for overseeing this contract. Accountability would involve monitoring performance, costs, and ensuring adherence to contract terms. The sole-source nature warrants closer scrutiny to ensure fair pricing and value.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competitive pricing.
Cost Plus Fixed Fee contract type can lead to cost overruns.
Lack of transparency regarding the justification for sole-sourcing.
Potential for contractor lock-in due to source-controlled components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.2 million to DRS NETWORK & IMAGING SYSTEMS LLC. BRADLEY SYSTEM TECHNICAL SUPPORT AND SUSTAINMENT SYSTEM TECHNICAL SUPPORT FOR ALL ON VEHICLE COMPONENTS (E.G. POWER, DIAGNOSTICS, AND OPTICS HARDWARE AND SOFTWARE SYSTEMS) THAT ARE SOURCE-CONTROLLED TO DRS.

Who is the contractor on this award?

The obligated recipient is DRS NETWORK & IMAGING SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $37.2 million.

What is the period of performance?

Start: 2019-04-18. End: 2025-12-31.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this contract, the data states it was 'NOT COMPETED' and source-controlled to DRS. Further documentation would be required to understand the specific rationale and confirm if competitive options were genuinely unavailable or deemed impractical.

How does the Cost Plus Fixed Fee structure ensure cost control for this specific Bradley system support?

The Cost Plus Fixed Fee (CPFF) structure involves the contractor being reimbursed for allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost can fluctuate based on actual expenses. Effective cost control relies on robust government oversight of allowable costs and efficient contractor performance to minimize expenditures within the agreed-upon scope.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured?

The provided data does not detail the specific Key Performance Indicators (KPIs) or metrics used to measure DRS Network & Imaging Systems LLC's performance. Effective oversight would necessitate clearly defined KPIs related to system uptime, response times for technical issues, quality of repairs, and adherence to delivery schedules for parts and services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV18R0091

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA

Address: 100 N BABCOCK ST, MELBOURNE, FL, 32935

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,241,334

Exercised Options: $37,241,334

Current Obligation: $37,241,334

Actual Outlays: $-11,023

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $1,279,280

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline