DoD Awards $203M for REMUS 600 MK 18 System Integration Support to Defense Systems and Solutions
Contract Overview
Contract Amount: $20,311,035 ($20.3M)
Contractor: Defense Systems and Solutions
Awarding Agency: Department of Defense
Start Date: 2022-09-27
End Date: 2026-09-30
Contract Duration: 1,464 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: REMUS 600 MK 18 SYSTEM INTEGRATION SUPPORT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35808
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $20.3 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: REMUS 600 MK 18 SYSTEM INTEGRATION SUPPORT Key points: 1. Contract awarded to Defense Systems and Solutions for integration support of the REMUS 600 MK 18 system. 2. The contract value is $203,110,350, with a duration of 1464 days. 3. Competition was full and open after exclusion of sources, suggesting a specific justification for source selection. 4. The sector is primarily related to defense systems and equipment manufacturing.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts for similar integration support is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while competition was sought, specific sources were excluded, potentially limiting the breadth of competitive proposals and impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for advanced defense system integration. The CPFF structure necessitates close oversight to ensure cost efficiency and prevent unnecessary expenditure.
Public Impact
Enhances capabilities for unmanned underwater vehicles (UUVs) crucial for naval operations. Supports advanced reconnaissance and mine countermeasures missions. Ensures operational readiness and technological superiority for the U.S. Army. Potential for job creation within the defense contracting sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Exclusion of sources in competition may limit price discovery.
- Long contract duration increases risk of scope creep and cost escalation.
Positive Signals
- Awarded to a specialized defense contractor.
- Supports critical national security capabilities.
- Long-term support ensures system sustainment.
Sector Analysis
This contract falls within the Defense sector, specifically supporting the integration of unmanned systems. Spending benchmarks for similar complex system integration contracts can vary widely based on technology and scope, but this award represents a significant investment in naval warfare capabilities.
Small Business Impact
The contract was not awarded to a small business. Analysis of subcontracting opportunities for small businesses is not provided in the data, but is a key area for oversight.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires robust oversight from the Department of the Army to monitor costs, ensure performance, and prevent contractor overreach. Regular audits and performance reviews are essential for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost overrun risk due to CPFF structure.
- Potential for limited competition impacting price.
- Long contract duration increases risk of obsolescence or scope creep.
- Lack of small business participation noted.
- Need for strong government oversight to manage contractor performance and costs.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.3 million to DEFENSE SYSTEMS AND SOLUTIONS. REMUS 600 MK 18 SYSTEM INTEGRATION SUPPORT
Who is the contractor on this award?
The obligated recipient is DEFENSE SYSTEMS AND SOLUTIONS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.3 million.
What is the period of performance?
Start: 2022-09-27. End: 2026-09-30.
What specific technical capabilities does the REMUS 600 MK 18 system provide, and how does this integration support enhance those capabilities?
The REMUS 600 MK 18 system is a medium-class unmanned underwater vehicle (UUV) typically used for mine countermeasures (MCM) and intelligence, surveillance, and reconnaissance (ISR) missions. Integration support likely involves software updates, hardware compatibility enhancements, sensor integration, and operational training to improve the system's autonomy, data processing, and deployment efficiency for the U.S. Army's specific operational requirements.
What were the specific reasons for excluding certain sources during the full and open competition, and how did this impact the final contract price?
The exclusion of sources typically occurs when only a limited number of contractors possess the specialized knowledge, technology, or security clearances required for a particular system. The specific reasons would be detailed in the contract's justification and approval (J&A) document. This exclusion could potentially limit competitive pressure, possibly leading to a higher price than if a broader range of vendors had participated.
How will the effectiveness of the REMUS 600 MK 18 system integration be measured throughout the contract's duration?
Effectiveness will likely be measured through key performance parameters (KPPs) and technical performance measures (TPMs) outlined in the contract's statement of work. These could include metrics related to system uptime, mission success rates, data accuracy, integration timelines, and successful deployment in realistic operational environments. Regular testing, demonstrations, and user feedback will be crucial for assessing and ensuring the system's effectiveness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 631 DISCOVERY DR, HUNTSVILLE, AL, 35806
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,311,035
Exercised Options: $20,311,035
Current Obligation: $20,311,035
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $1,193,024
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ18D0001
IDV Type: IDC
Timeline
Start Date: 2022-09-27
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 12:09:00
Last Modified: 2025-08-21
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