DoD's $21M contract for optical instruments awarded to DRS Network & Imaging Systems LLC

Contract Overview

Contract Amount: $20,994,754 ($21.0M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2019-07-26

End Date: 2023-11-30

Contract Duration: 1,588 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FWS-I SYSTEMS MC

Place of Performance

Location: VERO BEACH, INDIAN RIVER County, FLORIDA, 32965

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: FWS-I SYSTEMS MC Key points: 1. Value for money appears fair given the contract duration and fixed-price nature. 2. Full and open competition suggests a healthy market for these specialized optical instruments. 3. Contract performance risks are mitigated by the firm fixed-price structure. 4. This contract supports the Army's need for advanced imaging capabilities. 5. The sector is characterized by high technological barriers and specialized manufacturing. 6. Spending in this niche area is driven by defense modernization requirements.

Value Assessment

Rating: fair

The total contract value of approximately $21 million over nearly four years suggests a moderate annual spend. Without specific benchmarks for comparable optical instrument systems, a precise value-for-money assessment is challenging. However, the firm fixed-price (FFP) contract type generally shifts risk to the contractor, which can lead to better cost control if managed effectively. The single award for a delivery order implies this was a specific need met by a capable vendor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This approach is generally preferred as it fosters a competitive environment, potentially leading to more favorable pricing and innovation. The fact that it resulted in a single delivery order suggests that while competition was broad, DRS Network & Imaging Systems LLC offered the best value or met the specific requirements most effectively.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is not unduly constrained by a lack of vendor options.

Public Impact

The primary beneficiaries are the Department of the Army, which receives advanced optical instruments for its operations. The contract delivers specialized optical and imaging systems crucial for surveillance, reconnaissance, or targeting. The geographic impact is primarily within Florida, where the contractor is located, potentially supporting local jobs. The contract supports a specialized segment of the manufacturing workforce skilled in optical engineering and production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial pricing did not fully account for unforeseen technical challenges.
Dependence on a single contractor for this specific delivery order could pose supply chain risks if not managed proactively.
Ensuring the technology remains current throughout the contract's lifecycle requires ongoing monitoring.

Positive Signals

Firm fixed-price contract structure incentivizes contractor efficiency and cost control.
Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
The contractor's specialization in network and imaging systems indicates relevant expertise for this requirement.

Sector Analysis

The optical instrument and lens manufacturing sector (NAICS 333314) is a specialized segment of the broader manufacturing industry. It involves the production of precision optical components and systems, often requiring advanced materials and sophisticated manufacturing processes. This sector is critical for defense, scientific research, and various commercial applications. Spending in this area is typically driven by technological advancements and specific operational needs, such as those within military intelligence and surveillance.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of optical instrument manufacturing, it is possible that larger, more established firms possess the necessary capabilities and certifications. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The overall impact on the small business ecosystem would depend on the extent of any subcontracting.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Army's contracting and program management offices. Accountability is primarily driven by the firm fixed-price contract terms, requiring the contractor to deliver specified goods within the agreed-upon price. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) programs
Night Vision and Electronic Sensors Directorate (NVESD) procurements
Tactical and Strategic Systems procurements
Intelligence, Surveillance, and Reconnaissance (ISR) equipment

Risk Flags

Potential for obsolescence of technology over the contract duration.
Dependence on a single supplier for a critical component.
Risk of performance degradation in harsh operational environments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to DRS NETWORK & IMAGING SYSTEMS LLC. FWS-I SYSTEMS MC

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 $21.0 million.

What is the period of performance?

Start: 2019-07-26. End: 2023-11-30.

What is the track record of DRS Network & Imaging Systems LLC in fulfilling similar defense contracts?

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a significant history of supplying advanced technology solutions to the U.S. military. Their portfolio includes electro-optical/infrared systems, network-centric sensors, and communication systems. Analyzing their past performance on contracts with similar scope, duration, and technical complexity would provide insight into their reliability and ability to meet delivery schedules and quality standards. Reviewing contract award histories and past performance evaluations, where available, can help assess their capability to execute this specific optical instrument contract successfully.

How does the per-unit cost or overall value compare to similar optical instrument procurements by the DoD?

Benchmarking the value of this $21 million contract requires detailed comparison with similar procurements. Factors such as the specific technical specifications of the optical instruments, the quantities ordered, the complexity of integration, and the contract duration are crucial. Without access to detailed specifications and pricing data for comparable contracts, a precise value-for-money assessment is difficult. However, the fact that it was awarded under full and open competition suggests that the pricing was deemed competitive at the time of award. Further analysis would involve comparing the unit cost against market rates for comparable commercial off-the-shelf (COTS) or custom-developed systems.

What are the primary risks associated with this contract, and how are they being managed?

The primary risks associated with this contract likely include technical performance, schedule adherence, and potential cost growth (though mitigated by FFP). Technical risks involve ensuring the optical instruments meet stringent military specifications and perform reliably in demanding environments. Schedule risks pertain to timely delivery, which is critical for operational readiness. The firm fixed-price (FFP) contract structure inherently transfers cost risk to the contractor, incentivizing them to manage expenses effectively. However, the government still bears the risk of non-performance or inadequate quality. Oversight by the Army's program management and quality assurance teams, along with defined acceptance criteria, are key management strategies.

How effective has the Army been in leveraging competition for specialized optical systems?

The award of this contract under 'full and open competition' suggests the Army actively sought a competitive environment for these specialized optical instruments. This approach is generally effective in driving innovation and achieving competitive pricing by allowing all qualified sources to participate. The success of this competition is measured by the number of bids received and the final negotiated price relative to independent cost estimates or market benchmarks. While this specific award went to one vendor, the initial competitive process is a positive indicator of the Army's strategy to maximize value and access the best available technology.

What is the historical spending trend for optical instrument and lens manufacturing within the Department of Defense?

Historical spending data for the optical instrument and lens manufacturing sector (NAICS 333314) within the Department of Defense would reveal trends in investment in this area. Analyzing multi-year spending patterns can indicate whether demand for such systems is increasing, decreasing, or remaining stable. This context is important for understanding the significance of the $21 million awarded to DRS Network & Imaging Systems LLC. Significant year-over-year increases might suggest new program starts or upgrades, while consistent spending could point to ongoing sustainment or modernization efforts.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91CRB13R0028

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $20,994,754

Exercised Options: $20,994,754

Current Obligation: $20,994,754

Actual Outlays: $704,395

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $561,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W91CRB14D0011

IDV Type: IDC

Timeline