DoD's $21.5M R&D contract for infrared receivers awarded to DRS Network & Imaging Systems LLC

Contract Overview

Contract Amount: $21,493,190 ($21.5M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2006-11-02

End Date: 2018-10-01

Contract Duration: 4,351 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEAR-MID INFRARED APD FPA ACTIVE RECEIVER

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75243

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: NEAR-MID INFRARED APD FPA ACTIVE RECEIVER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Performance period spans over 12 years, indicating a long-term research and development effort. 4. The contract was awarded to a single vendor, DRS Network & Imaging Systems LLC. 5. The North American Industry Classification System (NAICS) code 541710 points to research and development in physical sciences. 6. The contract was awarded by the Department of the Air Force, a branch of the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to the specialized nature of the technology and the long performance period. Cost Plus Fixed Fee contracts inherently carry a risk of exceeding initial estimates, as the contractor is reimbursed for allowable costs plus a fixed fee. Without detailed cost breakdowns and comparisons to similar R&D efforts for infrared receivers, a definitive value-for-money assessment is difficult. The duration of the contract suggests significant investment, but the ultimate return on investment is tied to the success of the research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the designation suggests a competitive process was intended. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition aims to ensure that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and performance.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, who will receive advanced infrared receiver technology. This contract supports research and development in advanced sensor technology, potentially leading to improved defense capabilities. The geographic impact is primarily within Texas, where the contractor DRS Network & Imaging Systems LLC is located. The contract likely involves specialized scientific and engineering personnel, contributing to the high-tech workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs without strict budgetary constraints, potentially leading to higher final costs than anticipated.
The long duration of the contract (over 12 years) increases the risk of scope creep or technological obsolescence before completion.
Lack of specific details on the number of bidders in the 'full and open competition' makes it difficult to fully assess the competitive pressure on pricing.
The absence of a specific Product or Service Code (PSC) might indicate a highly specialized or novel research area, making direct comparisons difficult.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contract supports critical research and development for national defense, aligning with strategic objectives.
The contractor, DRS Network & Imaging Systems LLC, is a known entity in defense contracting, potentially bringing established expertise.
The fixed fee component of the contract provides some level of cost predictability for the government, despite the cost-reimbursement nature.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering. The market for specialized defense-related R&D is often characterized by high barriers to entry due to intellectual property, specialized knowledge, and stringent security requirements. Comparable spending benchmarks for such niche R&D projects are difficult to establish without more specific technical details, but the overall defense R&D spending is substantial, with significant portions allocated to advanced technologies like sensors and imaging.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal unless the prime contractor voluntarily engages small businesses for specialized components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and progress. Transparency is generally maintained through contract databases and reporting requirements, though specific technical details of R&D may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Air Force Advanced Technology Programs
Infrared Sensor Development Contracts
Advanced Imaging Systems Research

Risk Flags

Long contract duration increases risk of obsolescence or changing requirements.
Cost Plus Fixed Fee structure requires careful oversight to manage potential cost overruns.
Specialized R&D nature makes direct value benchmarking difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to DRS NETWORK & IMAGING SYSTEMS LLC. NEAR-MID INFRARED APD FPA ACTIVE RECEIVER

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 Air Force).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2006-11-02. End: 2018-10-01.

What is the track record of DRS Network & Imaging Systems LLC in delivering similar R&D contracts for the Department of Defense?

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a significant history of contracting with the U.S. Department of Defense, including the Air Force. They specialize in a wide range of defense electronics, including electro-optical and infrared systems, which aligns with the nature of this contract. Their track record often involves complex R&D and production of advanced sensor and imaging technologies for various military platforms. While specific performance metrics for past R&D contracts are not publicly detailed in this context, their continued awards suggest a generally satisfactory performance history in delivering sophisticated technological solutions to the DoD. However, like any large defense contractor, they may have experienced both successes and challenges in past projects, which would be detailed in internal DoD performance reviews.

How does the awarded amount of $21.5 million compare to similar R&D contracts for infrared receiver technology?

Comparing the $21.5 million award for this specific 'NEAR-MID INFRARED APD FPA ACTIVE RECEIVER' contract to similar R&D efforts is challenging without more granular data on the technical scope and duration of comparable projects. R&D contracts can vary widely in cost based on the novelty of the technology, the complexity of the research, the required testing, and the length of the development cycle. Contracts for advanced sensor development, particularly those involving specialized components like Avalanche Photodiode Focal Plane Arrays (APD FPA), can be substantial. Given the over 12-year performance period (from 2006 to 2018), the annual average spending would be relatively modest, suggesting a focused, long-term research effort rather than a rapid development program. Without access to a database of highly specific, comparable R&D contracts, a precise benchmark is difficult, but the amount is not inherently unreasonable for a multi-year, specialized defense R&D initiative.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for Research and Development (R&D) revolve around cost control and potential for cost overruns. In a CPFF contract, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing the contractor's profit. The risk for the government is that the actual costs may significantly exceed initial estimates, even though the fee remains fixed. This can happen if the R&D proves more complex or time-consuming than anticipated, or if cost-saving efficiencies are not realized. For the contractor, the risk is that their actual costs might exceed the estimated costs upon which the fixed fee was negotiated, potentially reducing their profit margin or even leading to a loss if the fee is insufficient to cover unforeseen expenses. Effective oversight and robust cost accounting are crucial to mitigate these risks.

How does the long performance period (over 12 years) impact the assessment of this contract's effectiveness?

A performance period exceeding 12 years for an R&D contract signifies a long-term, potentially high-risk, high-reward endeavor. Assessing effectiveness over such a duration requires a phased approach. Initially, effectiveness is measured by the contractor's adherence to research milestones, technical progress, and efficient use of funds relative to the planned research trajectory. As the project matures, effectiveness shifts towards the successful development of the intended technology and its potential for transition into operational systems. The extended timeline also introduces risks such as technological obsolescence, changes in strategic priorities, or the contractor's sustained capability. Therefore, continuous monitoring and periodic re-evaluation of the contract's objectives and progress against evolving requirements are essential to gauge its ultimate effectiveness.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code imply about the nature of this contract?

The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' indicates that this contract is focused on scientific inquiry and experimentation aimed at discovering or developing new knowledge and products. This typically involves activities like theoretical analysis, systematic experimentation, and the development of prototypes or processes. For this specific contract concerning infrared receivers, it suggests the work goes beyond simple manufacturing or procurement; it involves innovation, testing new materials or designs, and advancing the state-of-the-art in infrared detection technology. Such R&D is often foundational for future defense capabilities, requiring highly skilled scientific and engineering personnel.

Are there any indications of potential cost overruns or budget issues based on the contract type and duration?

The contract type, Cost Plus Fixed Fee (CPFF), inherently carries a risk of cost overruns for the government, as the contractor is reimbursed for actual allowable costs. While the 'fixed fee' component provides some predictability regarding profit, the total cost is variable. The long duration of over 12 years further amplifies this risk. Over such an extended period, research complexities can increase, unforeseen technical challenges may arise, and market conditions or material costs can fluctuate, all of which can drive up the total cost. Without access to detailed cost performance reports or specific program reviews, it's impossible to definitively state if cost overruns have occurred. However, the CPFF structure and the lengthy timeline necessitate vigilant oversight from the contracting agency to manage and mitigate potential cost escalations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $21,493,190

Exercised Options: $21,493,190

Current Obligation: $21,493,190

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline