DoD awards $48.7M for JETS FRP SYSTEMS, with significant portion for Florida operations

Contract Overview

Contract Amount: $48,666,064 ($48.7M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-01

End Date: 2025-12-01

Contract Duration: 1,644 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: JETS FRP SYSTEMS - PY5

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $48.7 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: JETS FRP SYSTEMS - PY5 Key points: 1. Contract value represents a substantial investment in advanced defense systems. 2. Competition dynamics suggest a potentially competitive bidding process for this award. 3. Performance period extends over several years, indicating a long-term need. 4. Geographic concentration in Florida highlights regional defense industry importance. 5. The firm-fixed-price structure aims to control costs for the government. 6. This award falls within the broader category of defense electronics and systems manufacturing.

Value Assessment

Rating: good

The contract value of $48.7 million for JETS FRP SYSTEMS appears reasonable given the specialized nature of defense systems. Benchmarking against similar contracts for advanced navigation and guidance systems would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, leading to better pricing and innovation. The number of bidders is not specified, but the open competition suggests a healthy market for these specialized systems.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider pool of suppliers to offer their best value.

Public Impact

The Department of the Army is the primary beneficiary, receiving advanced JETS FRP SYSTEMS. These systems are crucial for enhancing search, detection, navigation, and guidance capabilities. Operations are concentrated in Florida, supporting the regional defense industrial base. The contract likely supports specialized technical roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if contract scope expands beyond initial requirements.
Dependence on a single contractor for critical system components could pose supply chain risks.
Ensuring long-term system sustainment and upgradeability requires careful planning.

Positive Signals

Firm-fixed-price contract helps mitigate cost uncertainty for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
Long-term performance period allows for sustained delivery of critical capabilities.

Sector Analysis

This contract falls within the defense electronics and systems manufacturing sector, specifically focusing on search, detection, navigation, guidance, and related instruments. This is a highly specialized area within the broader aerospace and defense industry, characterized by high R&D investment and stringent performance requirements. Comparable spending in this sub-sector often involves significant investments in advanced sensor technology and integrated systems for military applications.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. While the prime contractor is DRS Network & Imaging Systems LLC, a large business, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting planned for this award.

Oversight & Accountability

The Department of Defense employs various oversight mechanisms, including contract performance monitoring, quality assurance surveillance plans, and financial audits, to ensure accountability. The firm-fixed-price nature of the contract inherently places cost accountability on the contractor. Transparency is generally maintained through contract databases, though specific performance details may be sensitive.

Related Government Programs

Defense Navigation Systems
Aerospace Electronics Manufacturing
Military Sensor Technology
Department of Defense Procurement

Risk Flags

Potential supply chain dependencies for specialized components.
Cybersecurity vulnerabilities inherent in advanced electronic systems.
Long-term sustainment and upgradeability planning required.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.7 million to DRS NETWORK & IMAGING SYSTEMS LLC. JETS FRP SYSTEMS - PY5

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 $48.7 million.

What is the period of performance?

Start: 2021-06-01. End: 2025-12-01.

What is the historical spending trend for JETS FRP SYSTEMS or similar systems by the Department of the Army?

Analyzing historical spending for JETS FRP SYSTEMS or comparable navigation and guidance systems by the Department of the Army is crucial for understanding long-term investment patterns and budget allocation. Without specific historical data for this exact system, we can infer trends from broader categories like 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS 334511). Spending in this sector is often driven by modernization programs, operational readiness requirements, and evolving threat landscapes. Fluctuations in spending can be linked to specific program lifecycles, technological advancements, and overall defense budget appropriations. A sustained or increasing trend might indicate a growing reliance on these systems, while a declining trend could suggest program maturity or shifts in defense priorities. Understanding these patterns helps in assessing the current award's significance within the context of past and future investments.

How does the per-unit cost of the JETS FRP SYSTEMS compare to industry benchmarks or similar government contracts?

Determining the per-unit cost for the JETS FRP SYSTEMS requires detailed breakdown of the contract, which is not fully available in the provided data. The total award of $48.7 million is for a duration of over four years, and the number of units to be delivered is not specified. To benchmark, we would need to know the quantity of systems or components being procured. If, for example, 100 systems were delivered, the average cost per system would be approximately $487,000. This figure would then be compared against publicly available data for similar advanced navigation and guidance systems procured by the DoD or other federal agencies, as well as commercial market rates. Factors such as system complexity, technological sophistication, and required certifications significantly influence per-unit costs in this specialized defense sector. A higher-than-average cost might be justified by unique capabilities or stringent performance specifications.

What are the key performance indicators (KPIs) for the JETS FRP SYSTEMS, and how is performance being measured?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) for the JETS FRP SYSTEMS or the specific methods used for performance measurement. However, for systems related to 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical,' typical KPIs would likely include accuracy (e.g., navigational precision, detection range), reliability (e.g., Mean Time Between Failures - MTBF), operational availability, system response time, and environmental resilience (e.g., performance under various temperature, vibration, or electromagnetic conditions). Performance measurement is usually conducted through a combination of contractor self-reporting, government acceptance testing, operational testing during deployment, and periodic reviews outlined in the contract's Statement of Work (SOW). The government's Quality Assurance Surveillance Plan (QASP) would detail how these KPIs are monitored and evaluated to ensure the contractor meets contractual obligations.

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

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a significant track record of delivering complex electronic systems, including electro-optical/infrared (EO/IR) systems, communication systems, and avionics, to the U.S. military and other government agencies. Their portfolio often includes products for surveillance, reconnaissance, targeting, and navigation. Past performance evaluations, often available through government contract databases or agency reports, would provide specific insights into their success rate, quality of deliverables, and adherence to schedules and budgets on previous contracts. Generally, companies of this size and specialization within the defense sector are accustomed to rigorous performance standards and oversight. Assessing their past performance on contracts of similar scope and technical complexity is essential for evaluating the risk associated with this current award.

Are there any identified risks associated with the technology or implementation of the JETS FRP SYSTEMS?

Potential risks associated with the JETS FRP SYSTEMS could stem from several areas. Technological risks might include the maturity of the specific components, potential obsolescence of certain technologies within the system's lifecycle, or integration challenges with existing military platforms. Implementation risks could involve supply chain vulnerabilities for specialized components, contractor's capacity to meet production demands, or unforeseen difficulties in field deployment and sustainment. Given the 'Search, Detection, Navigation, Guidance' nature of the systems, cybersecurity risks are also paramount, requiring robust protection against unauthorized access or interference. The Department of Defense typically employs risk management frameworks to identify, assess, and mitigate such risks throughout the system's lifecycle, often requiring contractors to detail their own risk mitigation strategies.

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: W91CRB16R0017

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

Financial Breakdown

Contract Ceiling: $50,786,064

Exercised Options: $50,786,064

Current Obligation: $48,666,064

Subaward Activity

Number of Subawards: 74

Total Subaward Amount: $57,035,588

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB16D0028

IDV Type: IDC

Timeline