Army's $36.8M contract for advanced FLIR sensors aims to enhance target identification beyond enemy weapon ranges

Contract Overview

Contract Amount: $36,856,951 ($36.9M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2016-03-15

End Date: 2023-09-30

Contract Duration: 2,755 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: IGF::OT::IGF THE PURPOSE OF THIS CONTRACT, W909MY-16-C-0009, FOR THIRD GENERATION FORWARD LOOKING INFRARED (3GEN FLIR) IS TO DESIGN, DEVELOP, FABRICATE AND QUALIFY A PRODUCIBLE DEWAR COOLER BENCH (DCB) TO IMPROVE THE U.S. ARMY'S EXISTING FLIR SENSOR TECHNOLOGY AND PROVIDE ENHANCED CAPABILITIES FOR RECONNAISSANCE, SURVEILLANCE AND TARGET ACQUISITION. THE U.S. ARMY REQUIRES SENSOR TECHNOLOGY WITH THE CAPABILITY TO CORRECTLY IDENTIFY DETECTED GROUND TARGETS BEYOND THE MAXIMUM EFFECTIVE RANGE OF ENEMY WEAPONS SYSTEMS. THE END-STATE OBJECTIVES ARE TO HAVE INTERCHANGEABLE COMPONENTS FOR THE DCB, AFOCAL, IMAGER AND CIRCUIT CARD ASSEMBLIES (CCA) SIMILAR TO THE ARCHITECTURE OF SECOND GENERATION FLIR.

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $36.9 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: IGF::OT::IGF THE PURPOSE OF THIS CONTRACT, W909MY-16-C-0009, FOR THIRD GENERATION FORWARD LOOKING INFRARED (3GEN FLIR) IS TO DESIGN, DEVELOP, FABRICATE AND QUALIFY A PRODUCIBLE DEWAR COOLER BENCH (DCB) TO IMPROVE THE U.S. ARMY'S EXISTING FLIR SENSOR TECHNOLOGY AND PROVIDE ENHANC… Key points: 1. Contract focuses on designing, developing, and qualifying a producible Dewar Cooler Bench (DCB) for improved Forward Looking Infrared (FLIR) sensor technology. 2. Objective is to enable the U.S. Army to identify ground targets beyond the maximum effective range of enemy weapons. 3. Aims for interchangeable components for the DCB, AFOCAL, imager, and circuit card assemblies, mirroring second-generation FLIR architecture. 4. The contract was awarded to DRS Network & Imaging Systems LLC. 5. This procurement falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing NAICS code. 6. The contract type is Cost Plus Incentive Fee, indicating performance-based incentives. 7. The contract duration is substantial, spanning over 7 years. 8. The contract was awarded via full and open competition.

Value Assessment

Rating: good

The total contract value of $36.8 million over approximately 7.5 years suggests a significant investment in advanced sensor technology. While specific cost breakdowns are not provided, the Cost Plus Incentive Fee (CPIF) structure implies that the contractor is incentivized to control costs while meeting performance objectives. Benchmarking against similar advanced sensor development contracts would be necessary for a precise value-for-money assessment, but the focus on enhancing critical reconnaissance and surveillance capabilities indicates a strategic allocation of funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 3 bids indicates a degree of competition, which is generally favorable for price discovery and innovation. The specific details of the competitive process, such as the evaluation criteria and the number of proposals received, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are U.S. Army personnel involved in reconnaissance, surveillance, and target acquisition missions. The contract delivers enhanced FLIR sensor technology with improved target identification capabilities. The geographic impact is primarily within military operational theaters where the Army deploys these advanced sensors. Workforce implications include specialized engineering, manufacturing, and testing roles related to advanced optics and electronics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 7 years) could lead to cost overruns if not managed effectively.
Cost Plus Incentive Fee contracts can sometimes lead to higher costs if incentives are not well-aligned with overall program goals.
Technological obsolescence is a risk in long-term defense contracts, requiring continuous innovation.
Dependence on a single contractor (DRS Network & Imaging Systems LLC) for a critical technology.
Potential for scope creep in a complex design and development effort.

Positive Signals

Focus on improving critical military capabilities for national security.
Awarded through full and open competition, suggesting potential for competitive pricing.
CPIF contract structure incentivizes contractor performance and cost control.
Clear objective to enhance existing technology with interchangeable components.
Contractor has experience in imaging and network systems.

Sector Analysis

This contract falls within the defense sector, specifically focusing on advanced sensor technology manufacturing. The market for such systems is characterized by high R&D investment, stringent performance requirements, and significant government procurement. Comparable spending benchmarks would involve looking at other contracts for advanced electro-optical/infrared (EO/IR) systems, targeting pods, and reconnaissance equipment. The industry is dominated by a few key players capable of meeting the technical specifications required for military applications.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB is false). There is no explicit information regarding subcontracting plans for small businesses. Without this information, it is difficult to assess the direct impact on the small business ecosystem. However, large prime contractors are often required to meet small business subcontracting goals on major defense contracts, which could provide opportunities for qualified small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The Cost Plus Incentive Fee structure necessitates close monitoring of costs and performance against established targets. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though detailed performance metrics may be sensitive.

Related Government Programs

Army FLIR Systems
Target Acquisition Systems
Reconnaissance and Surveillance Equipment
Defense Electro-Optical/Infrared Systems
Sensor Technology Development

Risk Flags

Long contract duration
Potential for technological obsolescence
Complexity of advanced sensor development

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.9 million to DRS NETWORK & IMAGING SYSTEMS LLC. IGF::OT::IGF THE PURPOSE OF THIS CONTRACT, W909MY-16-C-0009, FOR THIRD GENERATION FORWARD LOOKING INFRARED (3GEN FLIR) IS TO DESIGN, DEVELOP, FABRICATE AND QUALIFY A PRODUCIBLE DEWAR COOLER BENCH (DCB) TO IMPROVE THE U.S. ARMY'S EXISTING FLIR SENSOR TECHNOLOGY AND PROVIDE ENHANCED CAPABILITIES FOR RECONNAISSANCE, SURVEILLANCE AND TARGET ACQUISITION. THE U.S. ARMY REQUIRES SENSOR TECHNOLOGY WITH THE CAPABILITY TO CORRECTLY IDENTIFY DETECTED GROUND TARGETS BEYOND THE MAXIMUM EFFECTIVE RANGE OF EN

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 $36.9 million.

What is the period of performance?

Start: 2016-03-15. End: 2023-09-30.

What is the specific performance improvement expected from the Third Generation Forward Looking Infrared (3GEN FLIR) system compared to previous generations?

The primary performance improvement expected from the 3GEN FLIR system is enhanced capability for reconnaissance, surveillance, and target acquisition. Specifically, the contract aims to provide sensor technology with the capability to correctly identify detected ground targets beyond the maximum effective range of enemy weapons systems. This implies improvements in resolution, sensitivity, range, and potentially the ability to penetrate obscurants like smoke or fog. The objective of interchangeable components, similar to the architecture of second-generation FLIR, suggests a goal of increased modularity, maintainability, and potentially reduced lifecycle costs, while simultaneously pushing the performance envelope further.

How does the Cost Plus Incentive Fee (CPIF) structure work for this contract, and what are the potential implications for cost control?

A Cost Plus Incentive Fee (CPIF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs and receives a fee that is adjusted based on performance relative to target objectives. For this 3GEN FLIR contract, the fee would likely be tied to specific technical performance metrics (e.g., detection range, identification accuracy, component reliability) and potentially cost targets. If the contractor exceeds performance targets, the fee increases, up to a ceiling. If performance falls short, the fee decreases, potentially down to a minimum. This structure incentivizes the contractor to not only control costs but also to achieve or exceed the demanding technical requirements of developing advanced sensor technology, aligning their profit motive with mission success.

What is the track record of DRS Network & Imaging Systems LLC in delivering similar advanced sensor technologies to the Department of Defense?

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a significant track record in developing and manufacturing advanced sensor systems for military applications. They are known for their expertise in infrared imaging, including thermal imaging cameras, cooled and uncooled infrared detectors, and integrated sensor systems. Their products are used across various platforms, including ground vehicles, aircraft, and naval vessels, for surveillance, targeting, and situational awareness. While specific details on past 3GEN FLIR development contracts are not immediately available in this data, their established presence and capabilities in the broader EO/IR market suggest a strong foundation for undertaking this complex development effort.

What are the potential risks associated with the long duration (over 7 years) of this contract for the development of cutting-edge technology?

The extended duration of over seven years for this contract presents several potential risks, particularly in the realm of cutting-edge technology. Firstly, there is the risk of technological obsolescence; the threat landscape and technological advancements may evolve significantly during the contract period, potentially rendering the developed system less effective or requiring costly upgrades. Secondly, managing a long-term development effort can lead to scope creep, where requirements change or expand over time, potentially increasing costs and delaying delivery. Thirdly, maintaining contractor focus and motivation over such an extended period can be challenging. Finally, the longer the contract, the greater the potential for unforeseen economic fluctuations or changes in defense priorities that could impact funding or the program's strategic relevance.

How does the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code relate to the contract's objectives?

The North American Industry Classification System (NAICS) code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' is highly relevant to this contract. The contract's objective is to design, develop, and fabricate a Dewar Cooler Bench (DCB) for Forward Looking Infrared (FLIR) sensors. FLIR systems are critical components used for detection (of targets), navigation (especially in low visibility), and guidance (of munitions or platforms). These systems are integral to aeronautical and nautical applications, as well as ground-based reconnaissance and surveillance. Therefore, the manufacturing of such advanced sensor instruments directly falls under the scope of this NAICS code, classifying the contractor's activities within the appropriate industrial sector.

Given the 'full and open competition' and 3 bids, what does this suggest about the market for advanced FLIR technology?

The fact that this contract was awarded under 'full and open competition' with three bids suggests a moderately competitive market for advanced FLIR technology at the time of award. 'Full and open competition' implies that all responsible sources were permitted to submit bids, indicating a desire by the Army to explore a range of options. Receiving three bids suggests that there were at least a few companies capable of meeting the stringent technical requirements for this type of advanced military sensor. While three bidders is better than a sole-source award, a larger number of bidders would typically indicate a more robust and competitive market, potentially leading to even greater price efficiencies and innovation. It implies that the market is specialized, with a limited number of players possessing the necessary expertise and facilities.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W909MY15RD002

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,320,809

Exercised Options: $42,113,673

Current Obligation: $36,856,951

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $160,946

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline