Army Awards $52.5M for INOD BLK III, Boosting Navigation Systems
Contract Overview
Contract Amount: $52,503,137 ($52.5M)
Contractor: DRS Network & Imaging Systems LLC
Awarding Agency: Department of Defense
Start Date: 2024-06-07
End Date: 2027-01-30
Contract Duration: 967 days
Daily Burn Rate: $54.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: INOD BLK III - ARMY
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32935
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $52.5 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: INOD BLK III - ARMY Key points: 1. Significant investment in advanced navigation and detection systems. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract (967 days) indicates a substantial project duration. 4. Focus on Florida-based contractor suggests potential regional economic impact.
Value Assessment
Rating: questionable
The contract value of $52.5M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or alternative solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and may result in higher costs for taxpayers compared to a competitive procurement.
Taxpayer Impact: The lack of competition could lead to a higher overall cost for the Army, impacting taxpayer funds.
Public Impact
Enhances critical military navigation and detection capabilities. Supports a specific contractor, potentially impacting market dynamics in this niche. Long-term commitment of funds for advanced technology development and deployment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of publicly available benchmark data
- Long contract duration
Positive Signals
- Investment in critical defense technology
- Potential for technological advancement
Sector Analysis
The defense sector, particularly systems manufacturing, often involves complex, specialized equipment. Spending benchmarks for such niche systems are highly variable and depend on technological sophistication and scale.
Small Business Impact
The contract was awarded to DRS NETWORK & IMAGING SYSTEMS LLC, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure the government receives fair value. The Army's contracting officers must rigorously justify the sole-source justification and monitor performance and costs.
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
- Lack of competition
- Potential for cost overruns
- Limited transparency on pricing justification
- Dependency on a single supplier
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.5 million to DRS NETWORK & IMAGING SYSTEMS LLC. INOD BLK III - ARMY
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 $52.5 million.
What is the period of performance?
Start: 2024-06-07. End: 2027-01-30.
What is the specific technological advancement or unique capability that necessitates a sole-source award for the INOD BLK III system?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or the unavailability of alternatives from other sources. For the INOD BLK III, this could relate to highly specialized sensor technology, integration with existing classified systems, or a critical need for a specific, proven solution with minimal development risk.
How does the $52.5M contract value compare to similar navigation system procurements, and what are the risks associated with this price point?
Without competitive bids, direct comparison is challenging. However, the value is significant for specialized systems. Risks include potential overpayment if the sole-source provider lacks competitive pressure to optimize costs. Benchmarking against similar, albeit not identical, systems in the defense market would be necessary for a more informed risk assessment.
What are the key performance indicators and oversight mechanisms in place to ensure the effectiveness and value delivery of the INOD BLK III system over its contract duration?
Effective oversight would involve clearly defined performance metrics tied to the system's operational requirements, regular progress reviews, and stringent acceptance testing. The Army should have mechanisms to track system reliability, accuracy, and user feedback, ensuring the $52.5M investment translates into tangible operational benefits and meets stated objectives.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
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: $52,503,137
Exercised Options: $52,503,137
Current Obligation: $52,503,137
Actual Outlays: $1,199,224
Subaward Activity
Number of Subawards: 86
Total Subaward Amount: $12,861,554
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB23D0007
IDV Type: IDC
Timeline
Start Date: 2024-06-07
Current End Date: 2027-01-30
Potential End Date: 2027-01-30 00:00:00
Last Modified: 2025-09-30
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