DoD Spends $97M on I-MILES CVTESS System from SAAB, Inc. via Full and Open Competition
Contract Overview
Contract Amount: $97,095,633 ($97.1M)
Contractor: Saab, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-12-21
End Date: 2019-09-30
Contract Duration: 2,840 days
Daily Burn Rate: $34.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: I-MILES CVTESS SYSTEM BRADLEY AND ABRAMS
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $97.1 million to SAAB, INC. for work described as: I-MILES CVTESS SYSTEM BRADLEY AND ABRAMS Key points: 1. Significant investment of $97M in a specialized defense system. 2. Competition was full and open, suggesting potential for competitive pricing. 3. No small business participation noted, which could be a missed opportunity. 4. The contract spans nearly 8 years, indicating a long-term need. 5. The sector is machinery manufacturing, crucial for defense readiness.
Value Assessment
Rating: good
The total award of $97M over 2840 days suggests a substantial per-day cost. Without specific unit details, direct comparison is difficult, but the duration implies significant operational value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and allows all eligible vendors to participate. This method is generally favorable for achieving fair market value.
Taxpayer Impact: Full and open competition aims to ensure taxpayer dollars are spent efficiently by fostering a competitive environment among potential contractors.
Public Impact
Enhances military vehicle capabilities with advanced targeting and situational awareness. Supports modernization efforts within the Department of Defense. Potential for technology transfer and innovation within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration may lead to cost overruns if not managed tightly.
Positive Signals
- Full and open competition utilized.
- Awarded for a critical defense system.
Sector Analysis
The defense sector relies heavily on specialized machinery manufacturing for advanced systems like the I-MILES CVTESS. Spending benchmarks in this niche are often high due to R&D and specialized production.
Small Business Impact
The contract did not involve small businesses, representing a potential gap in leveraging the capabilities and economic benefits that small businesses can bring to defense contracting.
Oversight & Accountability
The Department of Defense, through its various contracting agencies like DCMA, is responsible for overseeing such contracts to ensure performance, quality, and adherence to terms.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of small business participation.
- Long contract duration increases risk of scope creep or obsolescence.
- High dollar value requires diligent oversight.
- Specific performance metrics and unit costs not detailed.
Tags
other-commercial-and-service-industry-ma, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.1 million to SAAB, INC.. I-MILES CVTESS SYSTEM BRADLEY AND ABRAMS
Who is the contractor on this award?
The obligated recipient is SAAB, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $97.1 million.
What is the period of performance?
Start: 2011-12-21. End: 2019-09-30.
What specific capabilities does the I-MILES CVTESS system provide to Bradley and Abrams platforms, and how do these capabilities translate to improved combat effectiveness?
The I-MILES CVTESS (Integrated/Interoperable-Modular/Mounted/Mobile/Multi-Mission - Command, Vehicle, Tactical, Electronic, Situational, Sensor) system likely enhances situational awareness, target acquisition, and communication for armored vehicles. This translates to improved battlefield coordination, faster threat identification, and potentially reduced friendly fire incidents, ultimately boosting combat effectiveness.
Given the $97M award and the nearly 8-year duration, what are the primary cost drivers for this system, and are there mechanisms in place to control potential cost growth over time?
Primary cost drivers likely include research and development, complex hardware/software integration, specialized manufacturing, and ongoing sustainment/upgrades. The firm-fixed-price contract type provides some cost certainty, but mechanisms like performance metrics, phased delivery, and regular program reviews are crucial for managing potential cost growth and ensuring value.
How does the implementation of the I-MILES CVTESS system align with broader DoD modernization goals, and what is the expected return on investment in terms of operational readiness and technological a
The system aligns with DoD goals for network-centric warfare and enhanced battlefield awareness. The ROI is expected through improved mission success rates, reduced risk to personnel, and maintaining a technological edge over adversaries. Quantifying this ROI precisely involves complex operational analysis and threat assessments.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W900KK08R0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Saab Aktiebolag (UEI: 354001059)
Address: 2602 CHALLENGER TECH, ORLANDO, FL, 32826
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $99,120,712
Exercised Options: $97,095,633
Current Obligation: $97,095,633
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK09D0405
IDV Type: IDC
Timeline
Start Date: 2011-12-21
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2020-05-21
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