DoD awards $192.5M for uncrewed aircraft systems to Defense Systems and Solutions, with delivery expected by July 2028

Contract Overview

Contract Amount: $19,249,069 ($19.2M)

Contractor: Defense Systems and Solutions

Awarding Agency: Department of Defense

Start Date: 2025-09-25

End Date: 2028-07-29

Contract Duration: 1,038 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UAS INTERNATIONAL UNCREWED AIRCRAFT SYSTEM FMS (FOREIGN MILITARY SALES) GHANA (PB-B-WLK), NIGERIA (PB-B-WMB), BULGARIA (PB-B-VLN), LITHUANIA (LH-B-UAG), AND SEYCHELLES (PB-B-VLI)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to DEFENSE SYSTEMS AND SOLUTIONS for work described as: UAS INTERNATIONAL UNCREWED AIRCRAFT SYSTEM FMS (FOREIGN MILITARY SALES) GHANA (PB-B-WLK), NIGERIA (PB-B-WMB), BULGARIA (PB-B-VLN), LITHUANIA (LH-B-UAG), AND SEYCHELLES (PB-B-VLI) Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a structured procurement process. 2. The contract value of $192.5 million over approximately 3.5 years suggests a significant investment in uncrewed aircraft systems. 3. Delivery orders are being issued against this contract, implying a phased approach to fulfilling requirements. 4. The contract is for Foreign Military Sales (FMS) to multiple countries, highlighting international defense cooperation. 5. The primary contractor, Defense Systems and Solutions, will provide uncrewed aircraft systems and related support. 6. The contract's duration and value warrant monitoring for performance and adherence to delivery schedules.

Value Assessment

Rating: good

The contract value of $192.5 million for uncrewed aircraft systems appears reasonable given the scope of Foreign Military Sales to multiple nations. Benchmarking against similar FMS contracts for advanced defense systems would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract shifts risk to the contractor, which can be favorable for the government if costs are well-managed.

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 suggests that while the competition was open, certain sources may have been excluded based on specific criteria, possibly related to security, capability, or prior performance. The number of bidders is not specified, but the 'full and open' designation implies a competitive process aimed at achieving fair market prices.

Taxpayer Impact: This competitive approach is intended to ensure that taxpayer funds are used efficiently by driving down costs through market forces, even with potential source exclusions.

Public Impact

International partners, including Ghana, Nigeria, Bulgaria, Lithuania, and Seychelles, will receive advanced uncrewed aircraft systems. The delivery of these systems enhances the defense capabilities of allied and partner nations. The contract supports the U.S. government's foreign policy objectives through military sales and security assistance. The program indirectly supports jobs within the defense manufacturing and support sectors in the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if additional countries or system variants are added without proper modification.
Dependence on contractor's supply chain for timely delivery of complex components.
Ensuring interoperability of systems across different user nations could present integration challenges.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the government.
Award to a single contractor streamlines management and oversight.
Foreign Military Sales framework facilitates international cooperation and strengthens alliances.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on uncrewed aerial systems (UAS). The market for UAS is rapidly expanding, driven by military modernization, surveillance needs, and technological advancements. Spending in this area is significant across global defense budgets, with the U.S. Department of Defense being a major procurer. Comparable spending benchmarks would involve looking at other FMS contracts for similar defense platforms or major defense equipment procurements.

Small Business Impact

The contract does not indicate any specific small business set-asides. Given the nature of advanced defense systems and the prime contractor's specialization, it is unlikely that small businesses would be the primary recipients of this prime contract. However, the prime contractor may engage small businesses as subcontractors for specific components or services, which would be subject to subcontracting plans if applicable.

Oversight & Accountability

Oversight will be managed by the Department of the Army, likely through program management offices responsible for FMS and defense systems procurement. Accountability measures will be embedded in the contract terms, including delivery schedules, performance specifications, and payment milestones. Transparency is facilitated through the contract award process and reporting requirements, though specific details of FMS programs can sometimes be sensitive.

Related Government Programs

Foreign Military Sales Program
Unmanned Aircraft Systems (UAS) Procurement
Defense Equipment Sales
International Security Assistance

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Complexity of integrating systems across multiple international partners.
Geopolitical instability in recipient regions could affect program execution or future needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to DEFENSE SYSTEMS AND SOLUTIONS. UAS INTERNATIONAL UNCREWED AIRCRAFT SYSTEM FMS (FOREIGN MILITARY SALES) GHANA (PB-B-WLK), NIGERIA (PB-B-WMB), BULGARIA (PB-B-VLN), LITHUANIA (LH-B-UAG), AND SEYCHELLES (PB-B-VLI)

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 $19.2 million.

What is the period of performance?

Start: 2025-09-25. End: 2028-07-29.

What is the track record of Defense Systems and Solutions in delivering complex defense systems, particularly uncrewed aircraft systems, under FMS contracts?

Assessing the track record of Defense Systems and Solutions (DSS) is crucial for understanding their capability to execute this $192.5 million contract. While specific details on DSS's past performance on similar FMS contracts for UAS are not provided in the data, their selection suggests they met the Department of the Army's requirements. A deeper dive would involve reviewing past performance evaluations, contract completion history, and any reported issues or successes on previous government contracts, especially those involving international sales and complex technology. Information on their financial stability and capacity to manage large-scale international procurements would also be relevant.

How does the per-unit cost of the uncrewed aircraft systems compare to similar systems procured by the U.S. or allied nations?

The provided data does not include per-unit cost information, making a direct comparison difficult. The total contract value of $192.5 million is for a unspecified quantity of systems and associated support over several years. To benchmark the value, one would need to know the specific type and capabilities of the UAS being procured, the quantity, and the associated training, maintenance, and logistics packages. Comparing this to publicly available data on similar UAS procurements by the U.S. military or other NATO allies, adjusted for inflation and system sophistication, would be necessary to determine if the pricing is competitive and represents good value for money.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential delays in delivery due to supply chain disruptions or manufacturing complexities, technical issues with the UAS, and geopolitical factors affecting the recipient nations. For FMS contracts, there's also the risk of changing requirements from the partner nations or political shifts impacting the sale. Mitigation strategies likely involve robust contract management by the Department of the Army, including detailed performance metrics, regular progress reviews, and contingency planning. The firm fixed-price nature of the contract also incentivizes the contractor to manage cost and schedule risks effectively to avoid financial penalties.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for this type of specialized defense equipment?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with the need for specific capabilities or security clearances. While it allows for a wider pool of potential bidders than a sole-source award, the exclusion of certain sources could limit the overall competitive landscape. Its effectiveness in ensuring competitive pricing depends heavily on the number of bidders that remain after exclusions and the specific criteria used for exclusion. If the exclusions significantly narrow the field to only a few capable vendors, the price discovery mechanism might be less robust compared to truly unrestricted full and open competition.

What is the historical spending trend for uncrewed aircraft systems by the Department of the Army, and how does this contract fit within that trend?

Historical spending data for UAS by the Department of the Army shows a consistent and increasing trend over the past decade, driven by the recognized operational value of these systems across various mission sets. This $192.5 million contract, awarded over approximately 3.5 years, represents a significant, but not unprecedented, investment. It aligns with the broader strategic push to integrate and expand UAS capabilities within the Army's force structure and for its international partners. The FMS component indicates a focus on equipping allies, which is a common element of historical defense spending aimed at interoperability and burden-sharing.

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: FIRM FIXED PRICE (J)

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: $19,249,069

Exercised Options: $19,249,069

Current Obligation: $19,249,069

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,680,095

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