DoD's $20.7M R&D Contract with DRS Defense Solutions: A Deep Dive

Contract Overview

Contract Amount: $20,699,001 ($20.7M)

Contractor: DRS Defense Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2009-06-16

End Date: 2013-01-31

Contract Duration: 1,325 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: U436510 BAA TEC-33 AND TEC-34 TAS::21 2020::TAS

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.7 million to DRS DEFENSE SOLUTIONS LLC for work described as: U436510 BAA TEC-33 AND TEC-34 TAS::21 2020::TAS Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration was substantial at 1325 days. 4. The award was a definitive contract, indicating a firm agreement for services. 5. The contract type was Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure necessitates close monitoring to ensure costs remain reasonable. Benchmarking against similar R&D contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive sign for price discovery. However, the Cost Plus Fixed Fee nature of the award means the final price is not fixed upfront, requiring robust oversight.

Taxpayer Impact: Taxpayer funds are utilized for R&D, with the ultimate value dependent on the successful development of technologies. Cost controls are crucial to maximize taxpayer benefit.

Public Impact

This contract supports technological advancement within the Department of Defense. The R&D focus suggests potential for future defense capabilities. The long duration indicates a significant project scope. The contract was awarded in Maryland, potentially benefiting the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure can incentivize higher spending.
Lack of specific performance metrics makes value assessment challenging.
Long contract duration increases risk of scope creep or changing requirements.

Positive Signals

Full and open competition utilized.
Contract awarded by a major agency (DoD).
Focus on R&D aligns with strategic defense needs.

Sector Analysis

This contract falls under the Research and Development sector, specifically for Physical, Engineering, and Life Sciences. Spending in this area is critical for innovation but can be prone to cost overruns due to the inherent uncertainties of R&D.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further investigation would be needed to determine if subcontracting opportunities were provided to small businesses.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for oversight. The Cost Plus Fixed Fee structure requires diligent monitoring of costs and performance to ensure accountability and prevent waste.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee structure carries inherent risk of cost overruns.
Lack of specific R&D deliverables makes value assessment difficult.
Long contract duration increases exposure to changing requirements and market conditions.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.7 million to DRS DEFENSE SOLUTIONS LLC. U436510 BAA TEC-33 AND TEC-34 TAS::21 2020::TAS

Who is the contractor on this award?

The obligated recipient is DRS DEFENSE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2009-06-16. End: 2013-01-31.

What specific R&D objectives were pursued under this contract, and how were they aligned with DoD's strategic goals?

The contract focused on 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While the specific objectives are not detailed, such R&D typically aims to enhance existing defense capabilities, develop new technologies for military applications, or improve operational efficiency. Alignment with DoD's strategic goals would be assessed by reviewing the project's deliverables against stated modernization priorities and future threat assessments.

How effectively was the Cost Plus Fixed Fee structure managed to control costs and ensure value for money?

Effective management of a Cost Plus Fixed Fee contract relies heavily on robust oversight, clear performance metrics, and stringent cost controls. Without detailed reporting on cost variances, profit margins, and adherence to budget, it's difficult to definitively assess value. The agency's oversight processes, including audits and regular reviews, would be critical in mitigating the inherent risks of this contract type and ensuring taxpayer funds were used efficiently.

What were the key performance indicators (KPIs) for this contract, and how did the contractor perform against them?

The provided data does not specify the key performance indicators (KPIs) for this contract. For R&D contracts, KPIs often relate to milestones achieved, technological advancements demonstrated, prototype development, and adherence to research timelines. Assessing contractor performance would require access to contract performance reports, technical reviews, and potentially end-user feedback on the developed technologies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 7600 WISCONSIN AVE, BETHESDA, MD, 20814

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,984,180

Exercised Options: $20,984,180

Current Obligation: $20,699,001

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline