DoD awards $340M for INDIA Sensor Fuzed Weapon, a sole-source contract for ammunition manufacturing

Contract Overview

Contract Amount: $340,729,124 ($340.7M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2010-12-08

End Date: 2018-12-31

Contract Duration: 2,945 days

Daily Burn Rate: $115.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: INDIA SENSOR FUZED WEAPON - INCORPORATE FPDS TRANSACTION CODE 1

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $340.7 million to TEXTRON SYSTEMS CORPORATION for work described as: INDIA SENSOR FUZED WEAPON - INCORPORATE FPDS TRANSACTION CODE 1 Key points: 1. Contract awarded to Textron Systems Corporation for a significant sum, indicating a substantial investment in this specific weapon system. 2. The contract's duration spans nearly 8 years, suggesting a long-term need and commitment to the program. 3. The product service code (PSC) is not specified, making it difficult to benchmark against similar ammunition procurements. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was not competed, raising questions about potential cost savings and market-driven pricing. 6. The geographic location of the contractor is Massachusetts, which may have implications for regional economic impact.

Value Assessment

Rating: fair

The total award amount of $340 million over nearly 8 years is substantial. Without specific details on the number of units procured or performance metrics, a direct value-for-money assessment is challenging. The firm fixed-price contract type is generally favorable for the government in managing cost overruns. However, the lack of competition prevents a direct comparison to market rates or alternative suppliers, making it difficult to ascertain if this represents optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This typically occurs when only one responsible source is available or when the agency determines that a sole-source award is in the government's best interest. The lack of competition means that the government did not benefit from the price discovery and potential cost reductions that can arise from multiple bidders vying for the contract.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium compared to a competitively bid contract. Without competitive pressure, the contractor may not have the same incentive to offer the lowest possible price.

Public Impact

The primary beneficiaries are the U.S. Department of Defense, which receives advanced ammunition capabilities. The contract supports the production and delivery of the INDIA Sensor Fuzed Weapon system. The geographic impact is primarily centered around the contractor's facilities in Massachusetts, potentially supporting local jobs and the regional economy. The contract implies a need for specialized manufacturing capabilities within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price benchmarking and potential cost savings for taxpayers.
Sole-source nature of the award raises questions about the availability of alternative suppliers or technologies.
The long contract duration could lead to price increases if not managed effectively through contract modifications.
Limited public information on the specific capabilities and performance of the INDIA Sensor Fuzed Weapon makes independent assessment difficult.

Positive Signals

Firm Fixed Price contract type provides cost certainty to the government.
Award to an established contractor (Textron Systems Corporation) suggests a level of confidence in their capabilities.
The significant investment indicates a strategic importance of this weapon system to national defense.

Sector Analysis

The defense sector, particularly ammunition manufacturing, is characterized by high barriers to entry due to specialized technology, stringent quality control, and significant capital investment. This contract falls within the broader defense manufacturing industry, which is a critical component of national security. Benchmarking this specific weapon system's cost is challenging without detailed technical specifications and performance data, but the award amount suggests a sophisticated and potentially high-unit-cost munition.

Small Business Impact

There is no indication that this contract included small business set-asides or subcontracting requirements. As a sole-source award to a large corporation, it is unlikely to directly benefit small businesses through prime contract opportunities. However, Textron Systems Corporation may engage small businesses as subcontractors for components or services, though this is not explicitly stated in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm fixed-price nature of the contract provides a degree of accountability for cost control on the contractor's side. Transparency is limited due to the sole-source nature and the proprietary details of the weapon system, but contract awards are generally reported in federal procurement databases.

Related Government Programs

Defense Ammunition Procurement
Advanced Munitions Systems
Sensor Fuzed Weapons Programs
Textron Systems Corporation Contracts

Risk Flags

Sole-source award may result in higher costs.
Lack of competition limits price discovery.
Limited public information on weapon system performance.
Long contract duration requires ongoing oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $340.7 million to TEXTRON SYSTEMS CORPORATION. INDIA SENSOR FUZED WEAPON - INCORPORATE FPDS TRANSACTION CODE 1

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $340.7 million.

What is the period of performance?

Start: 2010-12-08. End: 2018-12-31.

What is the specific operational capability and intended use of the INDIA Sensor Fuzed Weapon?

The INDIA Sensor Fuzed Weapon is a type of advanced munition designed to detect and engage targets from above. It typically incorporates a sensor package to identify targets of interest and a warhead capable of defeating them. These weapons are often used against armored vehicles and other high-value targets in complex battlefield environments. The 'INDIA' designation likely refers to a specific program or variant within the U.S. military's arsenal. Its intended use is to provide precision strike capabilities, reducing collateral damage and increasing effectiveness against specific threats, thereby enhancing battlefield dominance for ground forces.

How does the $340 million contract value compare to other similar ammunition procurements by the DoD?

Comparing the $340 million contract value for the INDIA Sensor Fuzed Weapon to other ammunition procurements is challenging without more specific details on the quantity of units, the technological sophistication, and the contract duration. However, large-scale awards for advanced munitions can range from tens of millions to hundreds of millions of dollars. For instance, contracts for guided missiles or complex bomb kits often fall into this range. The value suggests this is a significant investment in a specialized munition, likely reflecting advanced technology and manufacturing processes. Without a direct comparison of unit costs or program scope, it's difficult to definitively state if it's high or low relative to similar items.

What are the key performance indicators (KPIs) used to assess the success of this contract and the weapon system?

Key performance indicators (KPIs) for a contract like this would typically focus on several areas. For the weapon system itself, KPIs would include accuracy (e.g., probability of hit), range, reliability (e.g., mean time between failures), target discrimination capabilities, and effectiveness against designated threats. For the contract execution, KPIs would likely involve on-time delivery of munitions, adherence to quality standards (e.g., defect rates), and potentially cost performance if there are any cost-reimbursable elements or performance incentives. The Department of Defense would establish these KPIs, and their achievement would be monitored by the Defense Contract Management Agency (DCMA) throughout the contract's lifecycle.

What is Textron Systems Corporation's track record with similar defense contracts, particularly in ammunition manufacturing?

Textron Systems Corporation has a significant and established track record in the defense industry, including extensive experience in developing and manufacturing advanced weapon systems and munitions. They are known for producing a range of products, including precision-guided munitions, armored vehicles, and unmanned systems. Their involvement in programs related to sensor-fuzed munitions or similar advanced ordnance would be a key indicator of their capability for this specific contract. A review of their past performance on similar DoD contracts would reveal their ability to meet technical requirements, delivery schedules, and quality standards, providing a basis for the government's sole-source decision.

What are the potential risks associated with a sole-source award for a critical defense system like the INDIA Sensor Fuzed Weapon?

The primary risk associated with a sole-source award for a critical defense system is the lack of competitive pressure, which can lead to higher costs for the government than might be achieved through open competition. This can result in taxpayers paying a premium. Additionally, sole-source awards can reduce the incentive for the contractor to innovate or improve efficiency, as there is no direct market competition. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future options or flexibility. Furthermore, without multiple bidders, there may be less transparency into the pricing structure and the overall value proposition of the system.

How has historical spending on sensor-fuzed weapons or similar advanced munitions evolved within the DoD?

Historical spending on sensor-fuzed weapons and similar advanced munitions within the DoD has generally trended upwards, reflecting a strategic shift towards precision strike capabilities and reduced collateral damage. Programs like the Sensor Fuzed Weapon (SFW) and related technologies have seen significant investment over the past few decades, particularly following lessons learned from conflicts where precision targeting was paramount. Budgets for these types of munitions are often influenced by evolving threat landscapes, technological advancements, and the overall defense spending climate. While specific figures fluctuate annually based on program maturity and acquisition priorities, the trend indicates a sustained commitment to developing and fielding these sophisticated weapon systems.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 201 LOWELL ST, WILMINGTON, MA, 01887

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: $344,556,095

Exercised Options: $340,774,019

Current Obligation: $340,729,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline