Department of the Army awards $22.7M for fluid distribution systems, with a 748-day performance period

Contract Overview

Contract Amount: $22,701,106 ($22.7M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-13

End Date: 2025-09-30

Contract Duration: 748 days

Daily Burn Rate: $30.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: EARLY ENTRY FLUID DISTRIBUTION SYSTEM (E2FDS) DELIVERY ORDER W56HZV-23-F-0423 IS TO ORDER AND FUND CLINS: 3010, 3015, 3017, 3018AC, AND 3019.

Place of Performance

Location: BRIDGETON, SAINT LOUIS County, MISSOURI, 63044

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $22.7 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: EARLY ENTRY FLUID DISTRIBUTION SYSTEM (E2FDS) DELIVERY ORDER W56HZV-23-F-0423 IS TO ORDER AND FUND CLINS: 3010, 3015, 3017, 3018AC, AND 3019. Key points: 1. The contract focuses on the procurement and funding of specific CLINs related to the E2FDS. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The performance period spans over two years, indicating a medium-term requirement. 5. The primary contractor, DRS SUSTAINMENT SYSTEMS, INC, will deliver the specified components. 6. The North American Industry Classification System (NAICS) code 333911 points to pump and pumping equipment manufacturing.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without detailed cost breakdowns or comparisons to similar E2FDS procurements. The firm fixed price structure provides cost certainty for the government, but the overall value for money depends on the necessity and efficiency of the procured fluid distribution systems. Further analysis would require understanding the unit costs and the criticality of these systems to Army operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally promotes price discovery and allows the government to select the most advantageous offer. The open competition suggests a healthy market for these types of systems.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring the government receives competitive pricing for its procurements.

Public Impact

The U.S. Army benefits from the acquisition of essential fluid distribution systems for its operations. The contract supports the delivery of components for the EARLY ENTRY FLUID DISTRIBUTION SYSTEM (E2FDS). The contract is being performed in Missouri, potentially impacting the local economy and workforce. The procurement contributes to the readiness and operational capabilities of Army units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
The provided data does not include unit costs, making it difficult to assess cost-effectiveness.
The specific capabilities and necessity of the E2FDS are not detailed, impacting value assessment.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace.
Firm Fixed Price contract type shifts cost risk to the contractor.
The contract has a defined performance period, providing a clear timeline for delivery.

Sector Analysis

The contract falls within the Pump and Pumping Equipment Manufacturing sector (NAICS 333911). This sector is crucial for various industrial and military applications requiring fluid handling. The market size for such specialized military equipment can be niche, with a few key manufacturers often dominating. This procurement represents a specific demand within the broader defense industrial base for specialized fluid distribution systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary contractor, DRS SUSTAINMENT SYSTEMS, INC, would be responsible for its own supply chain, which may or may not involve small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. The Firm Fixed Price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is facilitated by the contract award being publicly available, though detailed performance metrics and cost breakdowns may not be readily accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Logistics Systems
Military Equipment Procurement
Fluid Handling Systems
Defense Supply Chain Management

Risk Flags

Potential for cost overruns if contractor faces financial difficulties under FFP.
Risk of technology obsolescence impacting long-term value.
Dependence on contractor's ability to meet strict delivery schedules.
Ensuring long-term sustainment and interoperability of procured systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to DRS SUSTAINMENT SYSTEMS, INC. EARLY ENTRY FLUID DISTRIBUTION SYSTEM (E2FDS) DELIVERY ORDER W56HZV-23-F-0423 IS TO ORDER AND FUND CLINS: 3010, 3015, 3017, 3018AC, AND 3019.

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 $22.7 million.

What is the period of performance?

Start: 2023-09-13. End: 2025-09-30.

What is the track record of DRS SUSTAINMENT SYSTEMS, INC with the Department of Defense?

DRS SUSTAINMENT SYSTEMS, INC has a history of contracting with the Department of Defense. While specific details of their past performance on similar systems are not provided in this data snippet, their selection for this delivery order suggests they meet the necessary qualifications and have likely fulfilled previous defense contracts. A deeper dive into their contract history, including past performance reviews and any disputes or awards, would provide a more comprehensive understanding of their reliability and expertise in delivering defense-related equipment and services.

How does the $22.7 million value compare to similar fluid distribution system contracts?

Direct comparison of the $22.7 million value for this specific delivery order is difficult without access to a broader database of similar E2FDS procurements or comparable fluid distribution systems for military applications. The value is influenced by the quantity, specifications, and complexity of the systems being procured, as well as the duration of the contract (748 days). To benchmark effectively, one would need to identify contracts with similar technical requirements, quantities, and performance periods awarded to different entities or within different branches of the military. The firm fixed price nature also implies that the contractor absorbed potential cost fluctuations.

What are the primary risks associated with this contract for the Department of the Army?

The primary risks for the Department of the Army in this contract include potential performance issues if DRS SUSTAINMENT SYSTEMS, INC fails to deliver the E2FDS components according to specifications and on schedule. Given the Firm Fixed Price structure, there's a risk of cost overruns for the contractor, which could lead to quality compromises or delays if the contractor struggles financially. Another risk is obsolescence; if the technology within the E2FDS becomes outdated rapidly, the investment might yield diminished returns. Finally, ensuring the long-term sustainment and interoperability of these systems post-delivery also presents a logistical risk.

How effective is the EARLY ENTRY FLUID DISTRIBUTION SYSTEM (E2FDS) in supporting Army operations?

The effectiveness of the EARLY ENTRY FLUID DISTRIBUTION SYSTEM (E2FDS) is critical for its operational success, though specific performance metrics are not detailed in the provided award data. Generally, such systems are designed to rapidly establish essential fluid supply lines in deployed environments, supporting fuel, water, or other critical liquid needs for forward operating bases or during initial phases of deployment. Its effectiveness would be measured by its reliability, ease of deployment, throughput capacity, and resilience in challenging conditions. Without specific operational data or user feedback, a definitive assessment of its effectiveness remains qualitative, based on its intended purpose within Army logistics.

What are the historical spending patterns for fluid distribution systems within the Department of the Army?

Historical spending patterns for fluid distribution systems within the Department of the Army are not detailed in this specific award notice. However, such systems are a recurring requirement for military operations, particularly for logistics and sustainment in deployed environments. Spending in this category can fluctuate based on modernization efforts, operational tempo, and the lifecycle of existing equipment. Analyzing past budgets and contract awards for similar systems over several fiscal years would reveal trends in investment, identify key suppliers, and indicate the typical scale and frequency of such procurements.

What is the significance of the NAICS code 333911 (Pump and Pumping Equipment Manufacturing) in this context?

The NAICS code 333911 signifies that the primary business activity of the contractor, or the nature of the goods being procured, falls under the manufacturing of pumps and pumping equipment. This is highly relevant as fluid distribution systems inherently rely on pumps to move liquids. This classification helps in understanding the industrial sector involved, identifying potential competitors within that sector, and benchmarking costs against industry standards for pump manufacturing. It confirms that the contract is for the physical production or supply of specialized pumping and fluid handling machinery.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Pump and Pumping Equipment Manufacturing

Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $22,701,106

Exercised Options: $22,701,106

Current Obligation: $22,701,106

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $4,967,355

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV17D0008

IDV Type: IDC

Timeline