DoD awards $146M for night vision equipment, with a significant portion going to DRS Infrared Technologies

Contract Overview

Contract Amount: $14,610,568 ($14.6M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2003-06-13

End Date: 2011-05-15

Contract Duration: 2,893 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200309!004589!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0703CJ206 !A!N! !N! !20030613!20060630!037204125!037204125!061345351!N!DRS INFRARED TECHNOLOGIES, L P!13544 N CENTRAL EXPY !DALLAS !TX!75243!19000!113!48!DALLAS !DALLAS !TEXAS !+000002987424!N!N!000000000000!5855!NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!003!B! !A!N!F! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001! !

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75243, UNITED STATES OF AMERICA

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: 200309!004589!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0703CJ206 !A!N! !N! !20030613!20060630!037204125!037204125!061345351!N!DRS INFRARED TECHNOLOGIES, L P!13544 N CENTRAL EXPY !DALLAS !TX!75243!19000!113!48!DALLAS !DALLA… Key points: 1. Contract awarded for night vision equipment, a critical component for defense operations. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The duration of the contract spans over 8 years, indicating a long-term need. 4. The primary contractor, DRS Infrared Technologies, has a track record in this specialized field. 5. The contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code. 6. The award value of $146M reflects substantial investment in advanced defense technology.

Value Assessment

Rating: good

The contract value of $146,105,68 is substantial for night vision equipment. Benchmarking against similar contracts is challenging without more specific technical details, but the duration and the nature of the equipment suggest a significant investment. The fixed-price nature of the contract provides cost certainty for the government, assuming the contractor can deliver within the agreed-upon terms. The number of bids received (3) indicates some level of competition, which is generally positive for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Three bids were received, indicating a moderate level of competition for this specialized defense equipment. While three bidders suggest some market interest, a higher number could potentially drive prices down further. The government's approach ensures a broad search for qualified contractors.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to vie for the contract, potentially leading to more competitive pricing and better value for the government's investment.

Public Impact

The primary beneficiaries are the U.S. military personnel who will utilize the advanced night vision equipment. The contract delivers essential equipment for surveillance, reconnaissance, and operational effectiveness in low-light conditions. The geographic impact is national, supporting defense readiness across various military branches and potentially global deployments. Workforce implications include employment opportunities within DRS Infrared Technologies and its supply chain, particularly in specialized manufacturing and engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for all development and production complexities.
Risk of technological obsolescence given the rapid pace of advancement in night vision technology.
Dependence on a single primary contractor could pose supply chain risks if not managed proactively.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract is firm fixed-price, providing cost predictability for the government.
The contractor, DRS Infrared Technologies, is a known entity in the defense sector with expertise in infrared and night vision systems.

Sector Analysis

This contract falls within the broader defense electronics sector, specifically focusing on night vision and related sensing technologies. The market for such equipment is driven by defense spending and technological innovation. Companies like DRS Infrared Technologies operate in a niche but critical segment, supplying advanced capabilities to military forces worldwide. Comparable spending benchmarks would typically involve other large-scale procurements of electro-optical and infrared systems for defense applications.

Small Business Impact

There is no explicit indication of small business set-asides for this particular contract. Given the specialized nature of night vision equipment and the prime contractor's established position, it is likely that any small business involvement would be through subcontracting opportunities. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of qualified small businesses within the supply chain.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms, quality standards, and delivery schedules. Accountability measures are embedded in the firm fixed-price structure, incentivizing the contractor to meet specifications within budget. Transparency is generally maintained through contract award databases, though specific technical details may be classified or proprietary.

Related Government Programs

Night Vision Systems
Electro-Optical/Infrared Systems
Defense Electronics Procurement
Military Sensor Technology
Department of Defense Contracts

Risk Flags

Long contract duration may lead to technological obsolescence.
Limited competition (3 bidders) could impact price optimization.
Specific performance metrics not detailed in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to DRS NETWORK & IMAGING SYSTEMS LLC. 200309!004589!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0703CJ206 !A!N! !N! !20030613!20060630!037204125!037204125!061345351!N!DRS INFRARED TECHNOLOGIES, L P!13544 N CENTRAL EXPY !DALLAS !TX!75243!19000!113!48!DALLAS !DALLAS !TEXAS !+000002987424!N!N!000000000000!5855!NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !3! ! ! ! ! !99990909!B

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2003-06-13. End: 2011-05-15.

What is the specific type and capability of the night vision equipment being procured under this contract?

The contract specifies 'NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA' under the NAICS code 334511 (Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing). This suggests the equipment likely includes advanced systems capable of detecting and amplifying ambient light or emitting infrared radiation for visibility in low-light or no-light conditions. These could range from individual soldier-worn goggles and weapon sights to larger platform-mounted surveillance systems. The 'emitted and reflect radia' part implies systems that might use active illumination (emitting IR light) or passive detection of reflected IR or visible light.

How does the per-unit cost of this night vision equipment compare to similar systems in the market or other government procurements?

Determining a precise per-unit cost is difficult without knowing the exact quantity and specific model of night vision equipment procured under this $146 million contract. The contract award data only provides the total value and duration. However, advanced military-grade night vision systems, especially those with sophisticated features like thermal imaging, long-range detection, or integration with other systems, can be very expensive. Without specific unit counts and itemized pricing, a direct comparison to market rates or other government procurements is not feasible from the provided data alone. The number of bids (3) suggests a competitive but potentially specialized market.

What is the track record of DRS Infrared Technologies in delivering similar night vision systems to the Department of Defense?

DRS Infrared Technologies, now part of Leonardo DRS, has a well-established history of providing advanced infrared and night vision systems to the U.S. military. They are known for producing a range of products including thermal imaging cameras, image intensifier systems, and integrated sensor suites for various platforms (ground vehicles, aircraft, soldier systems). Their involvement in numerous defense contracts over the years indicates a significant track record. The fact that they were awarded this substantial contract suggests they met the technical and performance requirements set forth by the Department of Defense for this specific procurement.

What are the potential risks associated with the long duration (over 8 years) of this contract?

The long duration of this contract, from initial award in 2003 to final delivery in 2011 (totaling 2893 days or over 8 years), presents several potential risks. Firstly, technological obsolescence is a significant concern; night vision technology evolves rapidly, and equipment delivered towards the end of the contract might be outdated compared to newer commercial or military developments. Secondly, maintaining consistent performance and support over such an extended period can be challenging. Thirdly, the fixed-price nature, while offering cost certainty initially, could become disadvantageous for the contractor if unforeseen cost increases occur over the years, or for the government if market prices drop significantly. Finally, long-term contracts can sometimes reduce flexibility for the agency to adapt to changing operational needs or budget constraints.

How does this contract fit into the broader context of U.S. military spending on surveillance and reconnaissance equipment?

This $146 million contract for night vision equipment is a component of the larger U.S. military budget allocated to intelligence, surveillance, and reconnaissance (ISR) capabilities. ISR is a critical domain for modern warfare, encompassing a wide array of technologies from satellites and drones to ground-based sensors and individual soldier equipment. Night vision systems are a fundamental part of this, enabling operations in all weather and light conditions. While $146 million is a substantial sum for a single contract, it represents a fraction of the overall annual defense spending on ISR, which can run into tens or hundreds of billions of dollars across all branches of the military.

Were there any specific performance metrics or key performance parameters (KPPs) defined in the contract that indicate the expected effectiveness of the night vision equipment?

The provided data does not include specific details about Key Performance Parameters (KPPs) or detailed performance metrics for the night vision equipment. Such information is typically found within the detailed contract solicitation documents and technical specifications, which are not part of this summary data. However, for military night vision systems, KPPs commonly relate to factors such as detection range, recognition range, target identification capability, field of view, resolution, weight, power consumption, durability (resistance to shock, vibration, environmental factors), and integration capabilities with other systems (e.g., helmet mounts, weapon rails, communication systems).

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline