Army Awards $46.8M for M1A1 Tank Software Support to DRS Network & Imaging Systems

Contract Overview

Contract Amount: $46,783,559 ($46.8M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2018-11-16

End Date: 2024-06-08

Contract Duration: 2,031 days

Daily Burn Rate: $23.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: WORK DIRECTIVE (WD) FOR MAIN BATTLE TANK SYSTEMS (MBTS) TO PERFORM M1A1 EMBEDDED DIAGNOSTICS (ED) POST PRODUCTION SOFTWARE SUPPORT

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $46.8 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: WORK DIRECTIVE (WD) FOR MAIN BATTLE TANK SYSTEMS (MBTS) TO PERFORM M1A1 EMBEDDED DIAGNOSTICS (ED) POST PRODUCTION SOFTWARE SUPPORT Key points: 1. The contract focuses on post-production software support for M1A1 embedded diagnostics. 2. DRS Network & Imaging Systems LLC is the sole awardee, indicating a lack of competition. 3. The contract type is Cost Plus Fixed Fee, which can carry higher cost risk. 4. This spending falls within Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The $46.8M award for software support over approximately 6 years suggests a significant investment. Benchmarking is difficult without more specific service details, but the Cost Plus Fixed Fee structure warrants scrutiny for potential cost overruns compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, raising concerns about price discovery and potentially higher costs. A sole-source award limits opportunities for other vendors to offer competitive pricing and innovative solutions.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential software support services.

Public Impact

Ensures continued operational readiness of M1A1 Abrams tanks through software maintenance. Supports the U.S. Army's armored vehicle fleet modernization and sustainment efforts. The award benefits a specific defense contractor, DRS Network & Imaging Systems LLC. Potential for cost overruns due to the Cost Plus Fixed Fee contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost Plus Fixed Fee contract type increases cost risk.
Long contract duration (approx. 6 years) may not reflect current market conditions.

Positive Signals

Ensures critical software support for main battle tanks.
Supports ongoing defense readiness and modernization.

Sector Analysis

This contract falls under Engineering Services, a broad category often involving specialized technical support. Defense spending on complex systems like main battle tanks is substantial, with benchmarks varying widely based on system complexity and service scope.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' fields are false. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. Regular performance reviews and cost audits would be crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Cost Plus Fixed Fee contract type
Potential for cost overruns
Long contract duration
Limited transparency on justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.8 million to DRS NETWORK & IMAGING SYSTEMS LLC. WORK DIRECTIVE (WD) FOR MAIN BATTLE TANK SYSTEMS (MBTS) TO PERFORM M1A1 EMBEDDED DIAGNOSTICS (ED) POST PRODUCTION SOFTWARE SUPPORT

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 $46.8 million.

What is the period of performance?

Start: 2018-11-16. End: 2024-06-08.

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

The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are used when only one vendor possesses the necessary specialized capabilities or when urgency precludes a competitive process. Without further information, it's difficult to assess if alternative competitive strategies were explored or if this was the most appropriate procurement method.

How does the Cost Plus Fixed Fee structure compare to potential fixed-price alternatives for this type of software support?

Cost Plus Fixed Fee (CPFF) contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. This structure shifts more cost risk to the government compared to fixed-price contracts, where the contractor bears the risk of cost overruns. For software support, fixed-price contracts might offer better value if the scope of work is well-defined, potentially leading to lower overall costs for the taxpayer.

What performance metrics are in place to ensure the effectiveness of the embedded diagnostics software support?

The provided data does not specify performance metrics or key performance indicators (KPIs) for this contract. Effective oversight would require clearly defined metrics related to software uptime, bug resolution times, system performance improvements, and user satisfaction to ensure the contractor is delivering value and meeting the Army's needs.

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

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: $46,783,559

Exercised Options: $46,783,559

Current Obligation: $46,783,559

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $3,296,595

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV19D0009

IDV Type: IDC

Timeline