DoD's $88.2M order for computer systems awarded to DRS Network & Imaging Systems LLC

Contract Overview

Contract Amount: $88,221,471 ($88.2M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2018-05-02

End Date: 2019-06-01

Contract Duration: 395 days

Daily Burn Rate: $223.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS DELIVERY ORDER 0037 IS TO PROCURE 92,140 MOUNTED FAMILY OF COMPUTER SYSTEMS (M-FOCS) HARDWARE ITEMS IN SUPPORT OF PM MISSION COMMAND.

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $88.2 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: THE PURPOSE OF THIS DELIVERY ORDER 0037 IS TO PROCURE 92,140 MOUNTED FAMILY OF COMPUTER SYSTEMS (M-FOCS) HARDWARE ITEMS IN SUPPORT OF PM MISSION COMMAND. Key points: 1. This delivery order represents a significant investment in tactical computing hardware for the Army's Mission Command. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. The duration of the delivery order is approximately 13 months, indicating a focused procurement. 5. The contract is for manufacturing electronic computer systems, aligning with NAICS code 334111. 6. The awardee, DRS Network & Imaging Systems LLC, is a key player in defense electronics.

Value Assessment

Rating: good

The contract value of $88.2 million for 92,140 units of M-FOCS hardware appears reasonable given the scope. Benchmarking against similar large-scale military hardware procurements would provide further context on value for money. The firm-fixed-price structure is generally favorable for the government in managing cost certainty.

Cost Per Unit: Approximately $957 per unit for the M-FOCS hardware.

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, potentially leading to better pricing and innovation. The number of bidders is not specified, but the open competition is a positive indicator for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve the quality of goods and services procured.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize the M-FOCS hardware to enhance mission command capabilities. The services delivered include the manufacturing and supply of specialized computer systems designed for military operational environments. The geographic impact is primarily within Florida, where the contractor is located, but the systems will be deployed across Army units. The contract supports the defense industrial base and potentially jobs within the electronic computer manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of hardware given the rapid pace of technological advancement in computing.
Dependence on a single contractor for a large quantity of critical hardware could pose supply chain risks if not managed effectively.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Firm-fixed-price contract type helps to control costs and manage budget predictability.
The contractor, DRS Network & Imaging Systems LLC, has a track record in defense electronics manufacturing.

Sector Analysis

This contract falls within the Electronic Computer Manufacturing sector (NAICS 334111), a segment of the broader IT and Defense industries. The market for specialized military computing hardware is characterized by stringent performance requirements, long product lifecycles, and significant R&D investment. Comparable spending benchmarks would involve analyzing other large-scale procurements of tactical computing systems for military branches.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor may engage small businesses as subcontractors for components or services, which would be detailed in their subcontracting plan if applicable.

Oversight & Accountability

Oversight for this delivery order would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified hardware. Transparency is facilitated by the contract award being made under full and open competition, with details often available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army tactical computing systems
Mission Command systems
Military computer hardware procurement
Defense IT infrastructure

Risk Flags

Potential for hardware obsolescence
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.2 million to DRS NETWORK & IMAGING SYSTEMS LLC. THE PURPOSE OF THIS DELIVERY ORDER 0037 IS TO PROCURE 92,140 MOUNTED FAMILY OF COMPUTER SYSTEMS (M-FOCS) HARDWARE ITEMS IN SUPPORT OF PM MISSION COMMAND.

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 $88.2 million.

What is the period of performance?

Start: 2018-05-02. End: 2019-06-01.

What is the track record of DRS Network & Imaging Systems LLC in fulfilling similar military hardware contracts?

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a significant history of supplying electronic systems to the U.S. military. They specialize in ruggedized computing, displays, and imaging solutions designed for harsh environments. Past performance on similar contracts, particularly those involving tactical computing and command systems, would be a key factor in their selection for this delivery order. Reviewing their contract history with the Department of Defense and other agencies for similar product categories can provide insight into their reliability, quality, and ability to meet delivery schedules. While specific details of past performance are often proprietary, their established presence in the defense sector suggests a capacity to handle large-scale procurements of this nature.

How does the per-unit cost of $957 for the M-FOCS hardware compare to market rates for comparable ruggedized computer systems?

The per-unit cost of approximately $957 for the Mounted Family of Computer Systems (M-FOCS) hardware needs to be benchmarked against specialized, ruggedized military-grade computing systems. Standard commercial off-the-shelf (COTS) rugged laptops or tablets can range from $1,000 to $5,000 or more, depending on specifications, durability, and features. Military-specific systems often incorporate higher levels of environmental resistance (temperature, shock, vibration, dust, water), enhanced security features, and specific interface requirements, which can drive up costs. Without detailed specifications of the M-FOCS, a direct comparison is challenging. However, if the M-FOCS are highly specialized and ruggedized for tactical use, $957 per unit could represent a competitive price point, especially considering the large volume procured under a firm-fixed-price contract.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential hardware obsolescence due to the rapid evolution of technology, supply chain disruptions affecting component availability, and performance issues if the hardware does not meet the demanding operational requirements of the PM Mission Command. Mitigation strategies likely include robust testing and validation protocols before full deployment, clear performance specifications in the contract, and potentially provisions for future upgrades or replacements. The firm-fixed-price nature of the contract shifts some financial risk to the contractor, incentivizing them to manage production costs and quality effectively. Furthermore, the award under full and open competition suggests a vetting process that includes assessment of the contractor's technical capabilities and past performance, indirectly mitigating performance risks.

What is the expected impact of these M-FOCS systems on the Army's operational effectiveness?

The Mounted Family of Computer Systems (M-FOCS) are critical components of the Army's Command, Control, Communications, Computers, and Intelligence (C4I) architecture, specifically supporting PM Mission Command. These systems are designed to provide soldiers with enhanced situational awareness, improved communication capabilities, and the ability to process and disseminate battlefield information in real-time, even in mounted platforms. By equipping units with reliable and advanced computing hardware, the M-FOCS are expected to significantly improve command decision-making speed and accuracy, enhance coordination among units, and ultimately contribute to greater operational effectiveness and mission success in complex environments. The procurement of over 92,000 units suggests a widespread fielding effort across various Army formations.

How does this $88.2 million procurement compare to historical spending on similar computer hardware by the Department of Defense?

The $88.2 million for this specific delivery order represents a substantial, but not unprecedented, investment in tactical computing hardware by the Department of Defense. The DoD procures vast quantities of IT and electronic equipment annually, with individual contract values often reaching tens or hundreds of millions of dollars, particularly for major weapon systems or large-scale equipment fielding. To provide a precise comparison, one would need to analyze historical spending data for similar categories, such as 'Electronic Computers' (NAICS 334111) or specific military computing system procurements across different branches over several fiscal years. This single order is part of a larger, ongoing effort to modernize military C4ISR capabilities, and its scale should be viewed within the context of the DoD's overall annual IT and hardware acquisition budgets, which typically run into the billions.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 100 N BABCOCK ST, MELBOURNE, FL, 32935

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

Financial Breakdown

Contract Ceiling: $88,221,471

Exercised Options: $88,221,471

Current Obligation: $88,221,471

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T13D0054

IDV Type: IDC

Timeline