DoD awards $11.75M for LTLM II+M production systems to Safran Defense & Space, Inc

Contract Overview

Contract Amount: $11,749,536 ($11.7M)

Contractor: Safran Defense & Space, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-05-20

End Date: 2026-03-31

Contract Duration: 315 days

Daily Burn Rate: $37.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER TWO FOR LTLM II+M PRODUCTION SYSTEMS

Place of Performance

Location: BEDFORD, HILLSBOROUGH County, NEW HAMPSHIRE, 03110

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to SAFRAN DEFENSE & SPACE, INC. for work described as: DELIVERY ORDER TWO FOR LTLM II+M PRODUCTION SYSTEMS Key points: 1. Contract awarded as a delivery order under an existing contract. 2. Pricing structure is Firm Fixed Price, indicating cost certainty. 3. Contract duration is 315 days, suggesting a short-term production run. 4. The North American Industry Classification System (NAICS) code 334511 points to a specialized manufacturing sector. 5. The contract is not subject to small business set-asides. 6. The award is for production systems, implying a mature product. 7. The contract is for the Department of the Army within the Department of Defense.

Value Assessment

Rating: fair

The contract value of $11.75 million for a 315-day delivery order for production systems appears reasonable given the specialized nature of the equipment. Without specific details on the quantity or complexity of the LTLM II+M production systems, a direct comparison to similar contracts is challenging. However, the firm fixed-price structure suggests that the contractor has assumed the cost risk, which can be a positive indicator of value if the contractor can deliver within the agreed-upon price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source basis, meaning it was not competed. This typically occurs when a specific product or service is only available from a single source, or under specific circumstances outlined in federal acquisition regulations. The lack of competition means that price discovery through market forces was not utilized for this specific award, potentially leading to higher costs than if it had been competed.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, which could result in a higher overall cost for this acquisition compared to a competed contract.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive the LTLM II+M production systems. The services delivered are the production and delivery of specialized systems for military applications. The geographic impact is primarily within the United States, where the production and delivery will likely occur. Workforce implications may include employment at Safran Defense & Space, Inc. and its subcontractors involved in the production process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if the fixed price does not adequately account for all production costs.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to an established defense contractor suggests a degree of reliability.
Delivery order under an existing contract may indicate a streamlined process for an established need.

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, a highly specialized area of defense manufacturing. This sector is characterized by high barriers to entry due to technological complexity and stringent quality requirements. Spending in this sector is often driven by national security needs and technological advancements. Comparable spending benchmarks are difficult to establish without more specific product details, but defense systems manufacturing typically involves significant investment.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. As a sole-source award, the opportunity for small businesses to participate through subcontracting is dependent on the prime contractor's decisions. This award does not directly contribute to the small business contracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the specified systems within the agreed price. Transparency is limited due to the sole-source nature of the award; justifications for sole-sourcing are usually available through official channels but not detailed in this summary.

Related Government Programs

LTLM II+M Production Systems
Department of the Army Procurement
Defense Manufacturing Contracts
Sole-Source Acquisitions

Risk Flags

Sole-source award may limit cost-effectiveness.
Lack of competition could impact price discovery.
Limited public information on system specifics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to SAFRAN DEFENSE & SPACE, INC.. DELIVERY ORDER TWO FOR LTLM II+M PRODUCTION SYSTEMS

Who is the contractor on this award?

The obligated recipient is SAFRAN DEFENSE & SPACE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2025-05-20. End: 2026-03-31.

What is the specific nature and function of the LTLM II+M production systems being procured?

The provided data does not specify the exact nature or function of the 'LTLM II+M Production Systems.' The NAICS code 334511 suggests it relates to 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' This implies the systems are likely advanced technological components or integrated systems used for military operations, potentially involving sensors, guidance mechanisms, or communication equipment. Further details would be required from the contracting agency or the contractor to understand the precise application and capabilities of these systems.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the agency's needs. This could be due to proprietary technology, unique capabilities, or specific requirements that only one contractor can fulfill. Federal regulations (e.g., FAR Part 6) outline the conditions under which sole-source procurements are permissible. A formal justification document, often including a market research report and rationale, would normally be required and made available through official government contracting portals.

How does the $11.75 million contract value compare to historical spending on similar LTLM systems or related defense equipment?

Without knowing the specific quantity, configuration, and capabilities of the 'LTLM II+M Production Systems,' it is difficult to provide a precise comparison to historical spending. The $11.75 million award is for a 315-day delivery order, suggesting a specific production run rather than a full program. To benchmark this value, one would need to identify previous contracts for the same or comparable LTLM systems, analyze the scope of work, quantities, and unit costs, and adjust for inflation and technological advancements. The sole-source nature of this award also complicates direct value comparisons, as competitive bidding often drives prices down.

What are the key performance metrics or deliverables expected under this contract?

The provided data indicates that the contract is for 'LTLM II+M Production Systems' and has a delivery period from May 20, 2025, to March 31, 2026. Key performance metrics would likely revolve around the timely delivery of the specified production systems, adherence to quality standards, and potentially performance specifications related to the systems' functionality. Deliverables would include the physical production systems themselves. Specific technical requirements, acceptance criteria, and reporting obligations would be detailed in the full contract statement of work, which is not included in the provided summary.

What is Safran Defense & Space, Inc.'s track record with the Department of the Army and for similar defense systems?

Safran Defense & Space, Inc. is a known entity in the defense sector. To assess their track record specifically with the Department of the Army and for similar systems, a review of their contract history would be necessary. This would involve examining past awards, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or issues. Their experience in manufacturing 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument' would be a key indicator of their capability to fulfill this specific contract successfully.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2 COOPER LN, BEDFORD, NH, 03110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,749,536

Exercised Options: $11,749,536

Current Obligation: $11,749,536

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB24D0005

IDV Type: IDC

Timeline