DoD awarded $90.1M for urgent electronic computer manufacturing needs to DRS Network & Imaging Systems, LLC

Contract Overview

Contract Amount: $90,133,423 ($90.1M)

Contractor: DRS Network & Imaging Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2008-02-11

End Date: 2009-03-27

Contract Duration: 410 days

Daily Burn Rate: $219.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LETTER DELIVERY ORDER CONTRACT FOR URGENT REQUIREMENTS

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32901

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $90.1 million to DRS NETWORK & IMAGING SYSTEMS, LLC for work described as: LETTER DELIVERY ORDER CONTRACT FOR URGENT REQUIREMENTS Key points: 1. Contract awarded for urgent electronic computer manufacturing, indicating a critical need. 2. The contract was not competed, raising questions about potential cost efficiencies. 3. A firm-fixed-price contract type suggests price certainty for the government. 4. The duration of 410 days for this urgent requirement warrants further scrutiny. 5. The award was made by the Department of the Army, a major component of the DoD. 6. The contractor, DRS Network & Imaging Systems, LLC, is positioned to fulfill specialized manufacturing needs.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific details on the 'urgent requirements' and the nature of the electronic computer manufacturing. The lack of competition suggests potential for overpayment. However, the firm-fixed-price structure provides some cost control. The total award amount of $90.1 million for a 410-day period indicates a significant investment, and without comparative data on similar urgent procurements, assessing true value-for-money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis ('NOT COMPETED'), meaning only one vendor was solicited. This approach is typically used when only one source is capable of meeting the requirement, often due to urgency, unique capabilities, or proprietary technology. The lack of competition limits the government's ability to explore alternative solutions or negotiate the best possible price through a bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as the government does not benefit from competitive bidding, which typically drives down costs.

Public Impact

The Department of Defense benefits from the acquisition of critical electronic computer components for urgent operational needs. The services delivered are specialized manufacturing of electronic computer equipment. The geographic impact is primarily in Florida, where the contractor is located. The contract supports the defense industrial base and potentially the workforce at DRS Network & Imaging Systems, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed award.
Urgency of requirement could lead to rushed processes and potential oversight gaps.
Limited transparency due to sole-source nature of the award.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to a specific contractor suggests they possess unique or critical capabilities.
Award supports urgent defense needs, potentially enhancing operational readiness.

Sector Analysis

The contract falls within the Electronic Computer Manufacturing sector, a critical component of the broader Information Technology and Defense industries. This sector involves the production of hardware essential for various defense applications, including command and control systems, communication devices, and data processing units. The market size for defense-related electronics is substantial, driven by continuous technological advancements and the need for specialized, high-reliability equipment. This specific contract, valued at over $90 million, represents a significant procurement within this niche.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Without specific set-aside goals or subcontracting requirements, the direct benefit to small businesses from this particular award is likely minimal, unless DRS Network & Imaging Systems, LLC voluntarily engages them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a sole-source award for urgent requirements, the justification for the procurement method and the contractor's performance would be subject to internal review. Transparency might be limited due to the non-competitive nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Procurement
Electronic Equipment Manufacturing
Urgent Requirement Contracts
Sole-Source Procurements
Information Technology Hardware

Risk Flags

Sole-source award lacks competitive pricing.
Urgency may indicate potential planning or readiness gaps.
Limited public information on specific requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.1 million to DRS NETWORK & IMAGING SYSTEMS, LLC. LETTER DELIVERY ORDER CONTRACT FOR URGENT REQUIREMENTS

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 $90.1 million.

What is the period of performance?

Start: 2008-02-11. End: 2009-03-27.

What specific 'urgent requirements' necessitated a sole-source award for electronic computer manufacturing?

The provided data does not specify the exact 'urgent requirements' that led to this sole-source award. Typically, such justifications are documented by the procuring agency and can include factors like immediate operational needs, unique technological requirements that only one vendor can meet, or situations where a delay in competition would be detrimental to national security. Without access to the contract's justification for other than full and open competition (J&C), it is impossible to detail the specific drivers. The urgency suggests a critical gap in existing capabilities or an unforeseen demand.

How does the $90.1 million award compare to typical spending on similar electronic computer manufacturing contracts by the DoD?

Direct comparison is difficult without knowing the exact specifications of the electronic computer manufacturing. However, $90.1 million for a 410-day contract is a substantial amount, suggesting either a large quantity of complex systems or highly specialized, high-value components. The DoD frequently awards large contracts for electronic systems, but the 'urgent requirement' and 'not competed' nature of this award make direct benchmarking against competitively awarded, standard production runs challenging. It is likely on the higher end for a single, non-competed urgent need.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risk of a sole-source award is the potential for paying a higher price than would be achieved through competition. Without competing bids, the government loses the leverage to negotiate the best possible price. Other risks include a lack of innovation from the supplier (as there's no competitive pressure), potential for complacency, and reduced transparency in the procurement process. For the government, there's also the risk that the chosen contractor may not have the most efficient or cost-effective solution available in the market.

What is the track record of DRS Network & Imaging Systems, LLC in fulfilling Department of Defense contracts, particularly for electronic computer manufacturing?

The provided data indicates DRS Network & Imaging Systems, LLC was awarded this $90.1 million contract. To assess their track record, one would need to examine their past performance on similar contracts, including delivery timeliness, quality of products, adherence to budget, and overall customer satisfaction ratings from the DoD. A deeper dive into contract databases and performance reports would be necessary to determine if they have a history of successfully delivering complex electronic systems under demanding conditions, especially for urgent requirements.

What does the 410-day duration suggest about the complexity or scale of the electronic computer manufacturing required?

A duration of 410 days (approximately 13.5 months) for a $90.1 million contract suggests a significant undertaking. This timeframe could indicate the production of a large quantity of complex electronic systems, the development of new or customized technology, or a lengthy integration and testing process. It implies that this is not a simple off-the-shelf purchase but rather a requirement involving substantial manufacturing, assembly, and potentially engineering efforts over a considerable period.

How does this contract fit into the broader landscape of the DoD's spending on electronic computer manufacturing and related IT infrastructure?

This contract represents a specific, urgent procurement within the DoD's vast IT and electronics spending. While the total DoD IT budget runs into billions, this $90.1 million award highlights the need for specialized, potentially non-standard, electronic computer hardware. Its 'urgent' and 'sole-source' nature suggests it addresses a gap not covered by routine, competitively procured IT infrastructure. It underscores the DoD's reliance on contractors like DRS Network & Imaging Systems, LLC for critical, time-sensitive technological needs.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 1110 HIBISCUS BLVD W, MELBOURNE, FL, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $90,133,423

Exercised Options: $90,133,423

Current Obligation: $90,133,423

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DJ405

IDV Type: IDC

Timeline