DoD's $32.7M EMD Prototypes Contract Awarded to DRS Network & Imaging Systems LLC

Contract Overview

Contract Amount: $32,741,575 ($32.7M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2013-03-18

End Date: 2016-09-30

Contract Duration: 1,292 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: EMD PROTOTYPES MANAGEMENT, ENGINEERING,

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $32.7 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: EMD PROTOTYPES MANAGEMENT, ENGINEERING, Key points: 1. Contract awarded for EMD Prototypes Management, Engineering. 2. DRS Network & Imaging Systems LLC secured the award. 3. The Department of Defense, specifically the Department of the Army, issued the contract. 4. The contract falls under NAICS code 334511 (Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing). 5. This was a full and open competition award.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award value of $32.7 million over approximately 3.5 years suggests a moderate investment for prototype development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. However, the Cost Plus Fixed Fee structure may still present challenges in achieving the most cost-effective outcome.

Taxpayer Impact: Taxpayer funds were used for prototype development, with the efficiency dependent on the final product's success and the cost management during the contract period.

Public Impact

Development of advanced search, detection, navigation, guidance systems for military applications. Potential for technological advancements in aeronautical and nautical instrumentation. Supports the Department of the Army's modernization efforts. Contract duration of over 3 years suggests a significant project scope.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Long contract duration may increase risk of scope creep or obsolescence.

Positive Signals

Full and open competition ensures a broad range of potential bidders.
Award to an established company (DRS Network & Imaging Systems LLC) suggests capability.

Sector Analysis

The contract falls within the Defense sector, specifically focusing on advanced instrumentation and systems manufacturing. Spending benchmarks for similar prototype development contracts can vary widely based on technological complexity and program scale.

Small Business Impact

The contract was awarded to DRS Network & Imaging Systems LLC, a large business. There is no indication of small business subcontracting goals or participation in the provided data.

Oversight & Accountability

Oversight would be crucial given the Cost Plus Fixed Fee structure to ensure efficient use of funds and adherence to project milestones. The Department of the Army is responsible for accountability.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
Lack of specific detail on expected technological advancements.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 million to DRS NETWORK & IMAGING SYSTEMS LLC. EMD PROTOTYPES MANAGEMENT, ENGINEERING,

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 $32.7 million.

What is the period of performance?

Start: 2013-03-18. End: 2016-09-30.

What specific technological advancements are expected from these EMD prototypes, and how do they align with current and future military operational needs?

The EMD prototypes are intended to advance capabilities within search, detection, navigation, guidance, and related systems for aeronautical and nautical applications. The specific advancements are not detailed, but they are expected to support the Department of the Army's modernization objectives, potentially enhancing situational awareness, targeting accuracy, and operational effectiveness in complex environments. Alignment with future needs would depend on the strategic planning and threat assessments conducted by the DoD.

What are the primary risks associated with the Cost Plus Fixed Fee contract type for this prototype development, and what mitigation strategies are in place?

The primary risk of a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as their fee is fixed regardless of the actual expenses incurred. This can lead to cost overruns. Mitigation strategies typically involve robust government oversight, detailed cost tracking, performance metrics, and clear definition of work scope to prevent scope creep. The government's negotiation of the fixed fee also plays a role in managing this risk.

How will the effectiveness of these prototypes be measured, and what is the process for transitioning successful prototypes into full-scale production or deployment?

The effectiveness of the prototypes will likely be measured against predefined technical performance specifications and operational requirements outlined in the contract Statement of Work. This could involve rigorous testing, simulations, and user evaluations. The transition process to full-scale production or deployment would typically involve further development phases, including Engineering and Manufacturing Development (EMD) if this contract is for initial prototypes, followed by low-rate initial production (LRIP) and full-rate production decisions based on demonstrated effectiveness and program affordability.

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: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB12R0045

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

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: $35,266,326

Exercised Options: $32,836,664

Current Obligation: $32,741,575

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline