DoD awards $70M contract for optical instruments, with a significant portion allocated to DRS Network & Imaging Systems LLC

Contract Overview

Contract Amount: $69,990,338 ($70.0M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2020-10-27

End Date: 2025-05-30

Contract Duration: 1,676 days

Daily Burn Rate: $41.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FWS-I FRP PY21

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $70.0 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: FWS-I FRP PY21 Key points: 1. The contract value of $69.9 million indicates a substantial investment in specialized optical equipment. 2. The award to DRS Network & Imaging Systems LLC suggests a focus on established providers with proven capabilities in this niche sector. 3. The duration of the contract (over 5 years) points to a long-term need for these optical instruments. 4. The fixed-price contract type offers cost certainty for the government, assuming the scope remains stable. 5. The absence of small business set-aside flags a potential gap in opportunities for smaller, specialized firms in this procurement. 6. The primary location of performance in Florida may indicate regional economic impacts and workforce development opportunities.

Value Assessment

Rating: good

The contract value of $69.9 million for optical instruments appears reasonable given the long performance period of over five years and the specialized nature of the equipment. Benchmarking against similar large-scale procurements for advanced optical systems would provide a more precise value-for-money assessment. The firm-fixed-price structure helps manage cost risks for the government, provided the scope of work is well-defined and does not undergo significant changes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The fact that it resulted in a single award to DRS Network & Imaging Systems LLC could imply that this contractor offered the most advantageous proposal based on the evaluation criteria. Further details on the number of bids received would clarify the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovation. However, if only one strong bidder emerged, it might suggest limitations in the market or the specific requirements of the solicitation.

Public Impact

The Department of the Army is the primary beneficiary, receiving advanced optical instruments essential for its operations. The contract supports the manufacturing and delivery of optical instruments, likely for defense or surveillance applications. Performance is concentrated in Florida, potentially creating or sustaining jobs in the advanced manufacturing and defense sectors within that state. The workforce implications include skilled labor in optical engineering, manufacturing, and quality assurance within the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the specific technology is proprietary and difficult to replace.
Long-term contract duration could lead to complacency if performance monitoring is not rigorous.
Dependence on a single contractor for critical optical systems poses a supply chain risk.

Positive Signals

Awarded through full and open competition, indicating a broad market search.
Firm-fixed-price contract provides cost predictability for the government.
Long contract duration suggests a sustained and critical need for the equipment.
Contractor is likely experienced in the specialized field of optical instruments.

Sector Analysis

The procurement falls within the Optical Instrument and Lens Manufacturing sector (NAICS 333314), a specialized area within the broader manufacturing industry. This sector is crucial for defense, scientific research, and various commercial applications requiring high-precision optics. The market size for such specialized instruments can vary, but government contracts often represent significant portions due to the high cost and specific requirements of defense-grade equipment. Comparable spending benchmarks would likely be found within other defense procurements for surveillance, targeting, or imaging systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB=false, SMB=false). This suggests that the requirements were likely beyond the scope or capabilities typically offered by small businesses, or that the competition was structured to attract larger, more established firms. There is no explicit information on subcontracting plans, but given the prime contractor's size and the nature of the product, there might be opportunities for specialized small businesses to participate as subcontractors if the prime contractor opts to utilize them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) research in optics
Night Vision and Electronic Sensors Directorate (NVESD) procurements
Tactical Optics and Photonics programs
Intelligence, Surveillance, and Reconnaissance (ISR) equipment contracts

Risk Flags

Long-term contract duration may increase risk of scope creep or price escalation in future phases.
Concentration of award to a single large contractor could limit future market competition.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.0 million to DRS NETWORK & IMAGING SYSTEMS LLC. FWS-I FRP PY21

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 $70.0 million.

What is the period of performance?

Start: 2020-10-27. End: 2025-05-30.

What is the specific type and intended use of the optical instruments being procured under this contract?

The contract number and description (NAICS 333314 - Optical Instrument and Lens Manufacturing) indicate the procurement of specialized optical instruments. While the exact specifications are not detailed in the provided data, such instruments in a Department of Defense context often include advanced imaging systems, targeting optics, surveillance equipment, or components for larger sensor platforms. Their intended use is likely to support military operations, intelligence gathering, or situational awareness for personnel in various operational environments. The long duration and significant value suggest these are critical, potentially complex systems rather than simple off-the-shelf items.

How does the awarded amount of approximately $70 million compare to historical spending on similar optical instrument procurements by the Department of Defense?

A direct comparison requires access to historical spending data for similar optical instrument procurements. However, $70 million over a period of nearly five years (October 2020 to May 2025) suggests an average annual spend of roughly $14 million. This figure is substantial but not extraordinary for major defense systems. For context, procurements for advanced targeting pods, reconnaissance sensors, or specialized night vision systems can range from tens to hundreds of millions of dollars. The specific value should be benchmarked against contracts with similar technical complexity, quantity, and performance requirements to determine if it represents a fair market price.

What are the key performance indicators (KPIs) or quality assurance measures associated with this contract to ensure the instruments meet DoD standards?

While specific KPIs are not detailed in the provided summary data, defense contracts of this magnitude typically include rigorous quality assurance provisions and performance metrics. These often encompass adherence to technical specifications, defect rates, reliability testing, operational readiness, and timely delivery schedules. The contract likely incorporates clauses requiring compliance with military standards (e.g., MIL-STD) and may involve government acceptance testing, source inspection, and performance monitoring throughout the contract lifecycle. Failure to meet these standards could result in contract remedies, including rejection of goods or financial penalties.

What is the track record of DRS Network & Imaging Systems LLC in delivering similar optical systems to the government?

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a well-established track record as a major defense contractor specializing in advanced sensor and network systems, including electro-optical and infrared (EO/IR) products. They have historically secured numerous contracts with the Department of Defense and other government agencies for various imaging, targeting, and surveillance equipment. Their experience likely includes producing systems that meet stringent military requirements for performance, durability, and reliability. A deeper dive into their contract history would reveal specific programs and delivery performance on similar optical systems.

What are the potential risks associated with a sole awardee (even if competed) for critical optical systems, and how are these mitigated?

Even when a contract is awarded after full and open competition, having a single prime contractor for critical systems like advanced optical instruments presents potential risks. These include supply chain vulnerabilities if the contractor faces production issues, potential price increases in future contract modifications or renewals if competition diminishes, and a lack of alternative sources in emergencies. Mitigation strategies employed by the government often involve robust contract oversight, performance incentives, requirements for maintaining technical data packages to enable future competition, and potentially encouraging the development of secondary sources or alternative technologies over the contract's life.

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: $69,990,338

Exercised Options: $69,990,338

Current Obligation: $69,990,338

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $1,159,825

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