DoD awards $43.6M for CSS software development and engineering services to DRS Network & Imaging Systems LLC

Contract Overview

Contract Amount: $43,585,024 ($43.6M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-09

End Date: 2025-12-08

Contract Duration: 1,095 days

Daily Burn Rate: $39.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE FOLLOWING REQUIREMENT UNDER FMS CASE PL-B-UDT IS FOR CSS SW DEVELOPMENT, SYSTEM INTEGRATION LAB (SIL) B CONUS, VEHICLE SITE SURVEY, ENGINEERING SERVICE

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $43.6 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: THE FOLLOWING REQUIREMENT UNDER FMS CASE PL-B-UDT IS FOR CSS SW DEVELOPMENT, SYSTEM INTEGRATION LAB (SIL) B CONUS, VEHICLE SITE SURVEY, ENGINEERING SERVICE Key points: 1. Contract value represents a significant investment in critical defense systems. 2. Engineering services are essential for complex system integration and development. 3. The contract duration of 1095 days suggests a long-term need for these services. 4. The award was not competitively procured, raising questions about potential cost efficiencies. 5. The fixed-price contract type aims to control costs, but the lack of competition limits benchmarking. 6. The geographic location in Florida may indicate a concentration of specialized defense contracting activity.

Value Assessment

Rating: fair

The contract value of $43.6 million for engineering services is substantial. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively assess value for money. The 'NOT AVAILABLE FOR COMPETITION' status limits the ability to benchmark against market rates or other potential providers. However, the firm fixed-price structure provides some cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This typically occurs when a specific contractor possesses unique capabilities or when circumstances prevent a full and open competition. The lack of competition means that the government did not benefit from the price discovery and innovation that can arise from multiple bidders vying for the contract.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium compared to a competitively bid contract. Without competitive pressure, the contractor may not have the same incentive to offer the lowest possible price.

Public Impact

The Department of Defense benefits from the development and integration of crucial Command, Control, and Communications Systems (CSS). This contract supports the modernization and operational readiness of military vehicles and systems. Engineering services will be delivered primarily within the United States, with a focus on Florida. The contract supports specialized technical roles within the defense industry, potentially impacting the workforce in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency into the justification for sole-source award.
Potential for cost overruns if not closely managed due to lack of competitive pressure.

Positive Signals

Firm fixed-price contract type provides cost certainty.
Contract duration indicates a sustained need for critical defense capabilities.
Award to an established entity (DRS Network & Imaging Systems LLC) may suggest reliability.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader Information Technology and Defense industries. The market for specialized defense engineering services is often characterized by high barriers to entry due to security clearances, proprietary technology, and established relationships with government agencies. Spending in this area is driven by the continuous need for military modernization and technological advancement.

Small Business Impact

The data indicates that this contract was not awarded to a small business, nor does it appear to have a specific small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary contractor, DRS Network & Imaging Systems LLC, will likely perform the majority of the work, with potential subcontracting opportunities being limited or not specifically mandated for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award, but contract details and performance reports are usually available through official government channels, subject to security classifications.

Related Government Programs

Command, Control, and Communications Systems (CSS)
Defense Engineering Services
System Integration Contracts
Military Vehicle Modernization

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost escalation over the 3-year duration.
Scope creep risk in complex software development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.6 million to DRS NETWORK & IMAGING SYSTEMS LLC. THE FOLLOWING REQUIREMENT UNDER FMS CASE PL-B-UDT IS FOR CSS SW DEVELOPMENT, SYSTEM INTEGRATION LAB (SIL) B CONUS, VEHICLE SITE SURVEY, ENGINEERING SERVICE

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 $43.6 million.

What is the period of performance?

Start: 2022-12-09. End: 2025-12-08.

What is the specific justification for awarding this contract on a sole-source basis to DRS Network & Imaging Systems LLC?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is the standard indicator for a sole-source award. The specific justification would typically be detailed in a Justification and Approval (J&A) document filed by the procuring agency (Department of the Army). Common reasons for sole-source awards include the existence of only one responsible source capable of providing the required service, urgent and compelling needs that preclude competition, or when the services are highly specialized and only one contractor possesses the necessary expertise, facilities, or intellectual property. Without access to the J&A, the precise rationale remains undisclosed in the provided data.

How does the contract value of $43.6 million compare to similar engineering services contracts within the Department of Defense?

Benchmarking this $43.6 million contract requires access to a database of similar Department of Defense (DoD) engineering services contracts, ideally those awarded for Command, Control, and Communications Systems (CSS) development and integration. Given the sole-source nature, direct comparison is challenging. However, large-scale engineering and system integration projects for defense applications can range from tens to hundreds of millions of dollars, depending on complexity, duration, and scope. The value appears substantial but not necessarily outside the norm for complex defense system development. Further analysis would involve identifying contracts with similar North American Industry Classification System (NAICS) codes (like 541330 for Engineering Services) and contract types.

What are the key performance indicators (KPIs) or deliverables expected under this contract, and how will performance be measured?

The provided data outlines the general scope: 'CSS SW DEVELOPMENT, SYSTEM INTEGRATION LAB (SIL) B CONUS, VEHICLE SITE SURVEY, ENGINEERING SERVICE.' Specific Key Performance Indicators (KPIs) and detailed deliverables are not included in the summary data. Typically, such contracts would include milestones for software development phases, successful system integration testing in the SIL, completion of site surveys, and adherence to engineering design specifications. Performance measurement would likely involve regular progress reviews, acceptance testing of delivered software modules and integrated systems, and adherence to the project schedule and budget. The Contracting Officer's Representative (COR) would be responsible for monitoring these aspects.

What is the track record of DRS Network & Imaging Systems LLC in performing similar defense contracts, particularly in software development and system integration?

DRS Network & Imaging Systems LLC, part of Leonardo DRS, has a significant history of providing advanced technology solutions and services to the U.S. military and government agencies. Their portfolio often includes electro-optical and infrared systems, network solutions, and integrated command and control systems. While specific details on their past performance for CSS software development and system integration under contracts of this exact nature require deeper research into contract databases (like FPDS or SAM.gov), their established presence in the defense sector suggests they possess relevant experience. Past performance evaluations and award histories would provide a more granular view of their capabilities and reliability in similar projects.

What are the potential risks associated with the long contract duration (1095 days) and the firm fixed-price nature of this award?

A long contract duration of 1095 days (3 years) for a firm fixed-price (FFP) award presents several potential risks. For the contractor, there's a risk of underestimating costs over such a long period, especially if material prices, labor rates, or technological requirements change significantly. Scope creep, if not managed tightly through contract modifications, can erode profit margins. For the government, the primary risk with FFP contracts is that the contractor may cut corners on quality or performance to protect their profit margin if costs escalate unexpectedly. Additionally, the long duration might mean the technology or requirements could evolve, potentially making the delivered solution outdated by the end of the contract term, although the FFP structure incentivizes the contractor to deliver the specified scope efficiently.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W91CRB22R5025

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

Financial Breakdown

Contract Ceiling: $43,585,024

Exercised Options: $43,585,024

Current Obligation: $43,585,024

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline