DoD awards $33.1M for advanced weapon sights, with limited competition impacting price discovery

Contract Overview

Contract Amount: $33,115,693 ($33.1M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-27

End Date: 2027-07-30

Contract Duration: 883 days

Daily Burn Rate: $37.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FAMILY OF WEAPON SIGHTS, SNIPER (FWS-S) IMPROVED NIGHT AND DAY OBSERVATION DEVICE BLOCK III(INOD BLK III) DELIVERY ORDER

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $33.1 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: FAMILY OF WEAPON SIGHTS, SNIPER (FWS-S) IMPROVED NIGHT AND DAY OBSERVATION DEVICE BLOCK III(INOD BLK III) DELIVERY ORDER Key points: 1. The contract focuses on advanced night and day observation devices for sniper systems. 2. Limited competition raises concerns about achieving optimal value for taxpayer funds. 3. The fixed-price contract type shifts some performance risk to the contractor. 4. The duration of the delivery order suggests a sustained need for these critical optics. 5. The award is made to a single, established supplier, indicating potential market concentration. 6. The specific nature of the technology may limit the pool of qualified bidders.

Value Assessment

Rating: fair

Benchmarking the value for this specific 'FAMILY OF WEAPON SIGHTS, SNIPER (FWS-S) IMPROVED NIGHT AND DAY OBSERVATION DEVICE BLOCK III(INOD BLK III)' is challenging due to limited public data on comparable systems. The firm fixed-price structure provides cost certainty but does not inherently guarantee the best possible price without robust competition. The total award amount of $33.1 million over approximately 2.5 years suggests a significant investment in advanced optics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source or limited competition procurement. This approach is often used when a specific technology or capability is only available from a single source, or when urgent needs preclude a full and open competition. The lack of multiple bidders means that price discovery through competitive bidding was not utilized, potentially leading to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in less favorable terms for taxpayers compared to fully competed contracts.

Public Impact

Sniper teams within the Department of the Army will benefit from enhanced observation capabilities. The contract delivers improved night and day observation devices, crucial for mission effectiveness. The primary geographic impact is within the operational theaters where Army sniper units are deployed. This procurement supports specialized roles within the military, potentially impacting personnel readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher unit costs for the weapon sights.
Lack of competitive pressure could reduce incentives for the contractor to innovate or offer cost savings.
Sole-source awards can create long-term dependencies on a single supplier, limiting future flexibility.
The specific technical requirements might be difficult for new entrants to meet, hindering market diversification.

Positive Signals

The award is to an established contractor with a track record in defense imaging systems.
Firm fixed-price contract type provides budget certainty for the Department of the Army.
The technology aims to improve soldier effectiveness and survivability through enhanced observation.
The delivery order structure allows for phased acquisition and delivery of critical equipment.

Sector Analysis

The market for advanced optical and electro-optical systems for defense applications is highly specialized and technologically intensive. This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector (NAICS 334511). Companies in this space often invest heavily in R&D to maintain a competitive edge. Spending in this area is driven by the need for superior situational awareness and targeting capabilities for military personnel, particularly in complex operational environments. Comparable spending benchmarks are difficult to ascertain without more specific technical details, but significant investments are common for advanced military optics.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of advanced weapon sights and the sole-source award, it is unlikely that significant subcontracting opportunities for small businesses will be mandated or readily available through this specific procurement vehicle. The primary contractor, DRS Network & Imaging Systems LLC, is a large business, suggesting that the focus is on specialized capabilities rather than broad market engagement.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Army contracting and program management offices. Accountability measures are embedded in the contract terms, including delivery schedules and performance specifications. Transparency is limited due to the sole-source nature of the award, with less public visibility into the negotiation process. The Inspector General's office may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Night Vision Systems
Weapon Optics
Targeting Systems
Military Observation Devices
Army Procurement
Advanced Imaging Technology

Risk Flags

Limited Competition
Potential for Higher Costs
Supply Chain Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to DRS NETWORK & IMAGING SYSTEMS LLC. FAMILY OF WEAPON SIGHTS, SNIPER (FWS-S) IMPROVED NIGHT AND DAY OBSERVATION DEVICE BLOCK III(INOD BLK III) DELIVERY ORDER

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 $33.1 million.

What is the period of performance?

Start: 2025-02-27. End: 2027-07-30.

What is the specific technical capability improvement offered by the 'INOD BLK III' compared to previous versions or existing systems?

The provided data does not detail the specific technical advancements of the 'INOD BLK III' beyond it being an 'IMPROVED NIGHT AND DAY OBSERVATION DEVICE BLOCK III'. Typically, improvements in such systems focus on enhanced resolution, extended range, better low-light performance, reduced size and weight, improved thermal imaging capabilities, or integration with digital fire control systems. Without further technical specifications or documentation, a precise comparison to previous versions or competing systems is not possible. However, the designation 'Block III' implies a significant iteration and upgrade, suggesting enhancements in areas critical for sniper operations such as target identification at greater distances and under adverse conditions.

Has DRS Network & Imaging Systems LLC previously supplied similar weapon sights to the Department of Defense, and what is their track record?

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a well-established history of supplying electro-optical and infrared systems, including weapon sights and observation devices, to the U.S. military. They have been involved in various programs providing advanced imaging solutions for different platforms and roles. Their track record generally includes delivering complex technological systems under defense contracts. Specific performance metrics for past contracts, such as on-time delivery rates, adherence to specifications, and cost performance, would require a deeper dive into contract databases and performance reports. However, their continued selection for programs like this suggests a generally positive performance history and recognized expertise in the field.

What is the rationale for awarding this contract on a sole-source basis, and were alternative solutions considered?

The contract is noted as 'NOT AVAILABLE FOR COMPETITION,' strongly indicating a sole-source award. The rationale for sole-source procurements typically stems from unique capabilities, proprietary technology, essential system compatibility, or urgent and compelling needs where only one source can reasonably satisfy the requirement. For advanced weapon sights like the 'INOD BLK III,' it's plausible that the specific design, technology, or integration requirements are met by only one manufacturer, DRS Network & Imaging Systems LLC. While the provided data doesn't elaborate, government procurement regulations require agencies to justify sole-source awards and consider alternatives. It's possible that a market research phase determined no other vendors could meet the stringent technical specifications or that existing systems required a specific upgrade path only available from the incumbent.

How does the $33.1 million award compare to historical spending on similar weapon sight systems by the Department of the Army?

Direct comparison of the $33.1 million award for the 'FAMILY OF WEAPON SIGHTS, SNIPER (FWS-S) IMPROVED NIGHT AND DAY OBSERVATION DEVICE BLOCK III(INOD BLK III)' to historical spending on similar systems is challenging without precise definitions of 'similar.' However, advanced military optics, especially those incorporating night vision, thermal imaging, and digital integration for sniper applications, represent a significant investment. The total value over the contract duration (approximately 2.5 years) suggests a substantial per-unit cost or a large quantity of units. Historical spending on sniper weapon systems and associated optics by the Army has often been in the tens to hundreds of millions of dollars over multi-year periods, reflecting the high cost of specialized, technologically advanced equipment designed for demanding operational environments and enhanced soldier performance.

What are the potential risks associated with relying on a single contractor for such critical military equipment?

Relying on a single contractor for critical military equipment like advanced weapon sights introduces several risks. Firstly, there's a risk of price escalation over time, as the contractor faces limited competitive pressure to offer cost reductions. Secondly, dependence on one supplier can create supply chain vulnerabilities; disruptions at the contractor's facility or their own supply chain could halt deliveries. Thirdly, it can stifle innovation, as the government may not benefit from alternative technological approaches or improvements developed by other companies. Lastly, it can lead to vendor lock-in, making it difficult and costly to switch to different systems or suppliers in the future, even if better alternatives emerge.

What is the expected impact of these improved sights on sniper team effectiveness and mission success rates?

The 'INOD BLK III' is expected to significantly enhance sniper team effectiveness by providing superior observation capabilities in both day and night conditions. Improved night vision and potentially thermal imaging allow for better target detection, identification, and tracking at longer ranges and in low-visibility environments. Enhanced day optics could offer greater clarity and magnification. These improvements directly contribute to mission success by increasing the probability of accurate engagement, reducing the risk of fratricide or collateral damage through better target discrimination, and improving overall situational awareness for the sniper team. Ultimately, better optics translate to increased operational capability and potentially enhanced soldier survivability.

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: $33,115,693

Exercised Options: $33,115,693

Current Obligation: $33,115,693

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $9,957,225

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