DoD's $63.8M contract for optical instruments to DRS Network & Imaging Systems LLC awarded under full and open competition

Contract Overview

Contract Amount: $63,814,400 ($63.8M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-10

End Date: 2027-01-31

Contract Duration: 508 days

Daily Burn Rate: $125.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FWS-I SYSTEMS

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $63.8 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: FWS-I SYSTEMS Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a robust market for optical instruments. 3. Risk indicators appear low given firm-fixed-price contract type. 4. Performance context is within the Department of the Army's needs. 5. Sector positioning is within the specialized optical instrument manufacturing industry.

Value Assessment

Rating: good

The contract value of $63.8M for optical instruments appears reasonable given the duration and the nature of the specialized equipment. Benchmarking against similar contracts for advanced imaging systems suggests this pricing is competitive. The firm-fixed-price structure further supports value by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a single award suggests that DRS Network & Imaging Systems LLC offered the best value among the competing entities. This level of competition is generally favorable for price discovery and ensuring a fair market price.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives high-quality equipment at a reasonable price.

Public Impact

The Department of Defense, specifically the Department of the Army, will benefit from advanced optical instruments. These instruments are crucial for various military operations and intelligence gathering. The contract's performance is expected to support national security objectives. The geographic impact is primarily within Florida, where the contractor is located, but the end-use is defense-wide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if technology is highly proprietary.
Long-term sustainment costs not fully detailed in award data.
Dependence on a single supplier for critical optical components.

Positive Signals

Awarded through full and open competition, indicating broad market engagement.
Firm-fixed-price contract type minimizes cost overrun risks for the government.
Contractor has a track record in defense systems, suggesting capability.

Sector Analysis

The optical instrument and lens manufacturing sector is highly specialized, requiring significant R&D and precision manufacturing capabilities. This contract fits within the defense segment of this sector, where demand for advanced imaging and surveillance technology is consistently high. Comparable spending in this niche can vary widely based on technological sophistication and quantity, but multi-million dollar awards are common for advanced military systems.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no explicit indication of significant subcontracting opportunities for small businesses in the provided data. The focus appears to be on a large, established prime contractor capable of delivering complex optical systems. Further analysis would be needed to determine the extent of small business participation in the supply chain.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Army, likely through program managers and contracting officers. Accountability measures are inherent in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the public nature of contract awards, though specific performance metrics are typically internal.

Related Government Programs

Defense Intelligence Agency Systems
Army Aviation Systems
Naval Surface Warfare Center Contracts
Air Force Research Laboratory Contracts

Risk Flags

Potential for technical obsolescence
Supply chain dependency
Long-term sustainment costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.8 million to DRS NETWORK & IMAGING SYSTEMS LLC. FWS-I SYSTEMS

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 $63.8 million.

What is the period of performance?

Start: 2025-09-10. End: 2027-01-31.

What is the specific type and intended use of the optical instruments being procured?

The provided data indicates the North American Industry Classification System (NAICS) code is 333314, which covers Optical Instrument and Lens Manufacturing. While the exact specifications are not detailed, this typically includes a range of advanced optical devices such as cameras, telescopes, periscopes, night vision equipment, and other specialized imaging systems. For the Department of the Army, these instruments are likely intended for surveillance, reconnaissance, targeting, navigation, and situational awareness in various operational environments. The contract duration of approximately 508 days (from award to end date) suggests a need for ongoing or phased delivery of these critical components.

How does the awarded amount compare to historical spending on similar optical systems by the Department of Defense?

Comparing the $63.8 million award to historical spending requires access to detailed historical contract databases. However, based on the nature of advanced military optical systems, this amount is within a typical range for significant procurements. For instance, similar contracts for electro-optical/infrared (EO/IR) systems or advanced targeting pods can range from tens to hundreds of millions of dollars. The fact that this is a single award to DRS Network & Imaging Systems LLC, a known defense contractor, suggests it might be for a specific program or a substantial quantity of a particular system. Without more granular data on specific system types and quantities procured historically, a precise comparison is difficult, but the value appears consistent with the defense sector's investment in such technologies.

What are the key performance indicators (KPIs) or quality standards expected for these optical instruments?

The provided contract data does not explicitly list the Key Performance Indicators (KPIs) or quality standards. However, for defense-grade optical instruments, stringent quality and performance requirements are standard. These typically include specifications related to resolution, magnification, field of view, spectral sensitivity, durability (e.g., resistance to shock, vibration, temperature extremes), reliability, and operational readiness. The firm-fixed-price contract type implies that the contractor is responsible for meeting all specified technical and quality requirements. Failure to meet these standards could result in contract non-compliance, penalties, or rejection of deliverables, as determined by the Army's quality assurance representatives.

What is the track record of DRS Network & Imaging Systems LLC in delivering similar defense contracts?

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a well-established track record in providing advanced defense electronics and systems, including electro-optical and infrared (EO/IR) solutions, targeting systems, and network infrastructure. They have been a significant supplier to the U.S. military across various branches for many years. Their history includes numerous contracts for complex systems, often involving sophisticated optics and imaging technologies. While specific performance details for past contracts are not in this award notice, their continued success in winning competitive defense contracts suggests a generally positive performance history and capability to meet demanding military requirements.

Are there any identified risks associated with this contract, such as technical obsolescence or supply chain vulnerabilities?

Potential risks associated with this contract include technical obsolescence, especially given the rapid pace of technological advancement in optics and imaging. If the procured systems are based on older technology, they could become outdated relatively quickly. Supply chain vulnerabilities are also a concern, particularly if key components are sourced from a limited number of suppliers or from geopolitical regions with instability. The long-term sustainment and maintenance of these complex systems also present a risk, as ongoing support costs can be significant. The firm-fixed-price nature of the contract helps mitigate cost overrun risks for the government, but risks related to performance, delivery timelines, and technological relevance remain.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $63,814,400

Exercised Options: $63,814,400

Current Obligation: $63,814,400

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $833,632

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB22D0008

IDV Type: IDC

Timeline