DoD's $133.7M FBCB2 computer system delivery order awarded to DRS Network & Imaging Systems, LLC

Contract Overview

Contract Amount: $133,675,661 ($133.7M)

Contractor: DRS Network & Imaging Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-26

End Date: 2012-02-10

Contract Duration: 1,232 days

Daily Burn Rate: $108.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FFP DELIVERY ORDER FOR PRE-PRICED FBCB2 COMPUTER SYSTEM LRUS

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32901

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $133.7 million to DRS NETWORK & IMAGING SYSTEMS, LLC for work described as: FFP DELIVERY ORDER FOR PRE-PRICED FBCB2 COMPUTER SYSTEM LRUS Key points: 1. The contract was a firm-fixed-price delivery order for pre-priced computer systems. 2. The award was not competed, raising questions about potential price discovery. 3. The contract duration was over three years, indicating a significant commitment. 4. The system, FBCB2, is a battlefield command and control system. 5. The award was made by the Department of the Army within the DoD. 6. The contract value represents a substantial investment in tactical communication technology.

Value Assessment

Rating: fair

As a delivery order against a pre-priced system, direct comparison to other contracts is limited without knowing the original competitive baseline. The firm-fixed-price structure provides cost certainty for the government. However, the lack of competition for this specific order means there's no current market validation of the pricing. Benchmarking would require access to the original contract's pricing structure and comparison to similar LRU (Line Replaceable Unit) costs for military computer systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed at the time of this specific award. This suggests it was likely placed against an existing contract or agreement where competition was previously established, or it was deemed necessary to award to a single source without further solicitation. The lack of a competitive process for this particular order limits the government's ability to leverage market forces for potentially better pricing or innovative solutions.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers if competitive pressures are absent. Without a competitive bidding process, there is less assurance that the government is receiving the best possible value for its investment.

Public Impact

Soldiers in the field benefit from enhanced battlefield situational awareness and command and control capabilities. The FBCB2 system provides real-time tracking and communication for ground forces. The services delivered are critical for modern military operations and troop safety. The geographic impact is global, supporting deployed Army units wherever they operate. The contract supports jobs in the defense manufacturing and IT sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for this delivery order could result in suboptimal pricing.
Reliance on a sole-source award may limit access to newer, potentially more cost-effective technologies.
The long duration of the contract could expose the government to risks if technology evolves rapidly.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The FBCB2 system is a critical component of Army's tactical communication infrastructure.
Awarding to an established provider may ensure system reliability and interoperability.

Sector Analysis

This contract falls within the defense electronics manufacturing sector, specifically focusing on battlefield management systems. The market for military communication and command systems is characterized by high technological barriers to entry and significant government investment. Comparable spending benchmarks would involve analyzing other large-scale procurements of tactical data systems and ruggedized computing hardware for military applications, often involving specialized components and stringent reliability requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, DRS Network & Imaging Systems, LLC, is likely a large business. There is no explicit information provided regarding subcontracting plans for small businesses within this specific delivery order. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal unless the prime contractor voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a delivery order, it is part of a larger contract vehicle, which would have its own oversight mechanisms. Transparency is generally provided through contract award databases, though detailed performance metrics and cost breakdowns may be limited for sole-source awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Command and Control Systems
Tactical Data Systems
Military Computer Hardware
Battlefield Management Systems
Department of Defense IT Procurement

Risk Flags

Sole-source award
Lack of current competition
Potential for price escalation without market checks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $133.7 million to DRS NETWORK & IMAGING SYSTEMS, LLC. FFP DELIVERY ORDER FOR PRE-PRICED FBCB2 COMPUTER SYSTEM LRUS

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 $133.7 million.

What is the period of performance?

Start: 2008-09-26. End: 2012-02-10.

What was the original contract vehicle under which this delivery order was placed, and what was the competitive history of that vehicle?

The provided data indicates this is a delivery order (DO) for pre-priced FBCB2 computer system LRUs. To understand the competitive history, one would need to identify the parent contract number associated with this delivery order. Delivery orders are typically issued against indefinite-delivery indefinite-quantity (IDIQ) contracts, basic ordering agreements (BOAs), or other established contract vehicles. If the parent contract was competitively awarded, it would provide a baseline for value. However, if the parent contract itself was sole-source or had limited competition, the value proposition for this specific delivery order would be further constrained. Without the parent contract details, assessing the true competitive landscape and its impact on pricing is challenging.

How does the per-unit cost of these FBCB2 computer system LRUs compare to similar ruggedized military-grade computing hardware?

Benchmarking the per-unit cost of these FBCB2 computer system LRUs requires access to the specific technical specifications and pricing details within the 'pre-priced' structure of the original contract. Without these specifics, a direct comparison is difficult. However, military-grade ruggedized computing hardware is generally significantly more expensive than commercial off-the-shelf (COTS) equivalents due to stringent requirements for durability, environmental resistance (temperature, shock, vibration), electromagnetic interference shielding, and extended lifecycle support. If the $133.7 million total value is divided by the number of LRUs procured (which is not provided), the resulting per-unit cost could be compared to industry reports on military electronics or similar government procurements, keeping in mind the specialized nature of FBCB2 components.

What are the key performance metrics and reliability standards for the FBCB2 computer system LRUs procured under this contract?

The FBCB2 (Force XXI Battle Command Brigade and Below) system is designed to provide commanders and soldiers with enhanced battlefield situational awareness by displaying the location of friendly forces, enemy forces, and other relevant tactical information on a digital map. The LRUs (Line Replaceable Units) procured under this contract are critical components of this system. Key performance metrics would likely include processing speed, data throughput, power consumption, and Mean Time Between Failures (MTBF) for reliability. Reliability standards for military hardware are typically very high, often exceeding commercial standards, to ensure operational readiness in harsh battlefield environments. Specific metrics would be detailed in the technical specifications and performance work statement of the original contract.

What is the track record of DRS Network & Imaging Systems, LLC in delivering similar complex military electronic systems?

DRS Network & Imaging Systems, LLC, a subsidiary of Leonardo DRS, has a significant history of supplying advanced electronic systems to the U.S. military and other defense organizations. They are known for providing a range of products including command and control systems, communication equipment, electro-optical/infrared systems, and power solutions. Their experience with the FBCB2 program specifically suggests a proven capability in delivering and supporting this type of battlefield technology. A review of their contract history would likely show numerous awards for similar complex systems, indicating a substantial track record in meeting military requirements for performance, reliability, and integration.

Given the sole-source nature of this delivery order, what mechanisms were in place to ensure fair and reasonable pricing?

Even for sole-source awards, contracting regulations typically require the government to obtain a Justification and Approval (J&A) that details the rationale for not competing the requirement. For a delivery order against a pre-priced contract, the pricing is expected to align with the terms established in the parent contract. Contracting officers are still obligated to ensure that the pricing is fair and reasonable. This often involves reviewing cost proposals, comparing prices to historical data, or using other price analysis techniques. However, the absence of direct market competition for the delivery order itself inherently limits the government's leverage in price negotiations compared to a fully competed procurement.

How has spending on FBCB2 systems evolved over time, and does this $133.7M award represent a significant increase or decrease?

The FBCB2 system has been a cornerstone of the U.S. Army's tactical communication and situational awareness capabilities for many years, undergoing various upgrades and iterations. Spending on FBCB2 and its successors has been substantial over the past two decades. This specific $133.7 million award, issued in 2008 for delivery through 2012, represents a significant single procurement action within a broader, ongoing program. To assess if it represents an increase or decrease, one would need to compare it to the total annual spending on FBCB2 during that period and subsequent years, considering factors like the number of units procured, system upgrades, and the introduction of newer systems like the Command Post Platform (CPP) or Joint Battle Command-Platform (JBC-P). The trend likely reflects the Army's continuous effort to modernize its C2 capabilities.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: $133,675,661

Exercised Options: $133,675,661

Current Obligation: $133,675,661

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T06DJ405

IDV Type: IDC

Timeline