DoD's $20.9M EFS-ROADRUNNER contract awarded to Anduril Industries for O&S services

Contract Overview

Contract Amount: $20,917,455 ($20.9M)

Contractor: Anduril Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-28

End Date: 2025-08-27

Contract Duration: 364 days

Daily Burn Rate: $57.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: EFS-ROADRUNNER ANNUAL O&S

Place of Performance

Location: IRVINE, ORANGE County, CALIFORNIA, 92612

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to ANDURIL INDUSTRIES, INC. for work described as: EFS-ROADRUNNER ANNUAL O&S Key points: 1. Contract focuses on operational and support services for specialized systems. 2. Awarded via full and open competition, suggesting a robust market. 3. The contract duration is one year, indicating a need for ongoing support. 4. Pricing structure is firm-fixed-price, providing cost certainty. 5. The North American Industry Classification System (NAICS) code 334511 points to advanced instrument manufacturing. 6. This contract is a delivery order under a larger agreement. 7. The base value of the contract is $57,466, with the total award at $20.9M.

Value Assessment

Rating: good

The total award of $20.9 million for a one-year operational and support (O&S) contract appears reasonable given the specialized nature of the systems involved. Benchmarking against similar O&S contracts for advanced defense systems is challenging without more specific details on the 'EFS-ROADRUNNER' system. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The relatively low base value compared to the total award indicates significant anticipated work or option exercise within the contract period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to lead to better pricing and value for the government. The use of a delivery order suggests it's part of a broader indefinite-delivery/indefinite-quantity (IDIQ) or similar contract vehicle, which itself likely underwent a competitive process.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best possible value.

Public Impact

The U.S. Special Operations Command (SOCOM) is the primary beneficiary, receiving critical operational and support services. The contract supports advanced search, detection, navigation, guidance, aeronautical, and nautical systems. The geographic impact is likely focused on areas where special operations forces are deployed globally. This contract supports highly specialized technical roles within the defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'EFS-ROADRUNNER' system's needs evolve significantly beyond initial projections.
Reliance on a single contractor for critical O&S services could pose a risk if performance issues arise.
The firm-fixed-price nature, while beneficial, could lead to less flexibility if unforeseen technical challenges emerge.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The contract is for operational and support services, crucial for maintaining readiness of advanced systems.

Sector Analysis

This contract falls within the defense sector, specifically supporting advanced systems manufacturing and maintenance. The NAICS code 334511 covers establishments primarily engaged in manufacturing instruments for measuring, displaying, and controlling industrial process variables; and laboratory analytical, and other scientific and technical instruments. Spending in this area is critical for maintaining technological superiority and operational readiness for defense agencies. Comparable spending benchmarks would typically be found within SOCOM's budget for similar system sustainment and operational support.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific award, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting goals for small businesses within this award notice. Therefore, the direct impact on the small business ecosystem from this particular contract appears limited, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services to avoid penalties or non-payment. Transparency is facilitated through contract award databases like FPDS, where this information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Special Operations Forces Support Contracts
Defense Systems Operational Support
Advanced Navigation and Guidance Systems
Search and Detection Equipment Maintenance
U.S. Special Operations Command Procurement

Risk Flags

Potential performance issues with specialized system O&S
Contractor's ability to scale support services
Dependence on a single provider for critical system maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to ANDURIL INDUSTRIES, INC.. EFS-ROADRUNNER ANNUAL O&S

Who is the contractor on this award?

The obligated recipient is ANDURIL INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2024-08-28. End: 2025-08-27.

What is the specific nature of the 'EFS-ROADRUNNER' system and its operational significance?

The 'EFS-ROADRUNNER' system is associated with the NAICS code 334511, which pertains to the manufacturing of search, detection, navigation, guidance, aeronautical, and nautical systems and instruments. While the exact specifications are not detailed in this award notice, its procurement by U.S. Special Operations Command (SOCOM) suggests it is a critical technology for special operations missions. These systems likely provide advanced capabilities in areas such as intelligence, surveillance, reconnaissance (ISR), target acquisition, or navigation in complex environments. The operational and support (O&S) services contracted here are vital for ensuring the system's readiness, reliability, and effectiveness in the field, directly impacting the success and safety of SOCOM personnel.

How does the $20.9 million award compare to historical spending on similar systems or services by SOCOM?

Direct comparison of the $20.9 million award for 'EFS-ROADRUNNER' O&S services to historical SOCOM spending is challenging without knowing the specific system's lifecycle and previous support contracts. However, SOCOM often procures highly specialized and technologically advanced systems, which typically command significant O&S costs due to their complexity and critical operational roles. Annual O&S costs for advanced defense systems can range from 10% to 30% of the system's acquisition cost. If 'EFS-ROADRUNNER' is a high-value system, $20.9 million for a year of comprehensive support might be within the expected range, especially considering the firm-fixed-price nature which may include higher margins to cover contractor risk. Further analysis would require access to SOCOM's historical procurement data for comparable systems.

What are the key performance indicators (KPIs) or metrics used to evaluate Anduril Industries' performance under this contract?

The provided award notice does not specify the key performance indicators (KPIs) or metrics for evaluating Anduril Industries' performance. However, for operational and support (O&S) contracts, especially firm-fixed-price ones, common KPIs often include system uptime/availability, response times for technical support, defect resolution rates, delivery timelines for parts or services, and adherence to maintenance schedules. SOCOM would likely have established specific performance standards within the contract's statement of work (SOW) or performance work statement (PWS). These metrics are crucial for ensuring the 'EFS-ROADRUNNER' system remains operational and effective for special operations missions, and failure to meet them could result in contractual remedies.

What is the risk profile associated with Anduril Industries as the contractor for this specialized system?

Anduril Industries is a relatively newer but rapidly growing defense technology company known for its innovative approach, particularly in areas like autonomous systems, AI, and sensor technology. For this 'EFS-ROADRUNNER' O&S contract, the risk profile associated with Anduril would depend on their demonstrated experience with the specific system being supported, their established supply chain, and their track record in providing reliable O&S services. Given their focus on advanced technologies, they may bring cutting-edge support capabilities. However, as a growing company, potential risks could include scaling challenges, integration complexities with legacy systems if applicable, and ensuring consistent performance across diverse operational environments. The firm-fixed-price nature shifts cost overrun risk to the contractor, but performance risk remains a key consideration for SOCOM.

How does this contract fit into the broader landscape of SOCOM's technology acquisition and sustainment strategy?

This contract for 'EFS-ROADRUNNER' O&S services fits into SOCOM's broader strategy of acquiring and sustaining advanced technological capabilities essential for special operations. SOCOM often relies on specialized, high-performance systems that require tailored support. By awarding this contract through full and open competition to a company like Anduril Industries, SOCOM aims to leverage innovation and ensure the operational readiness of critical assets. The focus on O&S services underscores the importance SOCOM places on maintaining the effectiveness and longevity of its technology investments, rather than solely on acquisition. This approach ensures that deployed forces have reliable tools to execute complex missions, aligning with SOCOM's need for agility and technological superiority.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9240221R0004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2722 MICHELSON DR, IRVINE, CA, 92612

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

Financial Breakdown

Contract Ceiling: $20,917,455

Exercised Options: $20,917,455

Current Obligation: $20,917,455

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9240222D0001

IDV Type: IDC

Timeline