DoD Awards $24.8M Sole-Source Contract to DRS for Battle Management Systems to Romania

Contract Overview

Contract Amount: $24,813,001 ($24.8M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-06

End Date: 2029-03-14

Contract Duration: 1,559 days

Daily Burn Rate: $15.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS A FIRM FIXED PRICE CONTRACT UNDER FOREIGN MILITARY SALES REQUIREMENT FOR THE COUNTRY OF ROMANIA UNDER FMS CASE RO-BUGI, ARP AE24073 AND AE24075. IT IS SOLE-SOURCED TO DRS FOR BATTLE MANAGEMENT SYSTEM, VEHICLE INTERCOM SYSTEM.

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: THIS IS A FIRM FIXED PRICE CONTRACT UNDER FOREIGN MILITARY SALES REQUIREMENT FOR THE COUNTRY OF ROMANIA UNDER FMS CASE RO-BUGI, ARP AE24073 AND AE24075. IT IS SOLE-SOURCED TO DRS FOR BATTLE MANAGEMENT SYSTEM, VEHICLE INTERCOM SYSTEM. Key points: 1. Contract awarded under Foreign Military Sales (FMS) to support Romania. 2. Sole-sourced to DRS Network & Imaging Systems LLC for specialized communication equipment. 3. Firm Fixed Price contract type aims to control costs for this specific requirement. 4. No small business participation noted in this award.

Value Assessment

Rating: fair

The contract value of $24.8 million for specialized battle management and intercom systems appears within a reasonable range for such niche defense technology, especially given the sole-source nature. Benchmarking is difficult without specific system details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract is sole-sourced due to the specific nature of the Battle Management System and Vehicle Intercom System, likely requiring proprietary technology or integration. This limits price discovery through competition, relying on negotiation and justification for the fixed price.

Taxpayer Impact: Taxpayer funds are used to support a foreign military sale, with the cost determined through a sole-source negotiation rather than competitive bidding.

Public Impact

Enhances Romania's military capabilities through U.S. defense technology transfer. Supports U.S. foreign policy objectives by strengthening allied defense. Potential for follow-on sustainment and training contracts. Impacts the defense industrial base by securing a contract for DRS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Lack of small business participation.
Foreign Military Sales can involve complex pricing structures.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Supports a key NATO ally.
Addresses a specific military operational requirement.

Sector Analysis

This contract falls within the Other Communications Equipment Manufacturing sector, which is a subset of the broader defense industrial base. Spending in this area is driven by national security needs and international partnerships, with significant government investment.

Small Business Impact

This contract does not appear to include any provisions for small business participation. The sole-source nature and specialized equipment likely led to the selection of a large, established prime contractor.

Oversight & Accountability

Oversight will be managed by the Department of the Army through the Foreign Military Sales process. Accountability for performance and adherence to contract terms rests with DRS Network & Imaging Systems LLC.

Related Government Programs

Other Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competition
Foreign Military Sales complexity
No small business set-aside

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to DRS NETWORK & IMAGING SYSTEMS LLC. THIS IS A FIRM FIXED PRICE CONTRACT UNDER FOREIGN MILITARY SALES REQUIREMENT FOR THE COUNTRY OF ROMANIA UNDER FMS CASE RO-BUGI, ARP AE24073 AND AE24075. IT IS SOLE-SOURCED TO DRS FOR BATTLE MANAGEMENT SYSTEM, VEHICLE INTERCOM SYSTEM.

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 $24.8 million.

What is the period of performance?

Start: 2024-12-06. End: 2029-03-14.

What is the specific justification for the sole-source award to DRS, and how was the firm fixed price determined to be fair and reasonable?

The justification for a sole-source award typically stems from the unique capabilities or proprietary nature of the technology, such as specialized battle management or vehicle intercom systems. The fair and reasonable pricing for a firm fixed price contract is usually determined through detailed cost analysis, comparison to similar historical contracts (if available), and negotiation between the contracting agency and the sole-source provider, often with input from the requiring foreign government.

What are the potential risks associated with a sole-source FMS contract for specialized defense equipment?

Risks include a lack of competitive pricing, potentially leading to higher costs for the U.S. taxpayer and the foreign partner. There's also a risk of vendor lock-in, where the relying nation becomes dependent on a single supplier for critical systems. Ensuring adequate technical support and long-term sustainment from a sole-source provider can also be a concern.

How does this contract contribute to the overall effectiveness of Romania's military operations and interoperability with NATO forces?

By providing advanced battle management and communication systems, this contract directly enhances Romania's operational effectiveness, enabling better command and control, situational awareness, and coordination on the battlefield. These systems are crucial for interoperability, ensuring seamless communication and data sharing with NATO allies during joint operations and exercises.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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: $24,813,001

Exercised Options: $24,813,001

Current Obligation: $24,813,001

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline