DoD's $142M contract for electronic computer manufacturing awarded to DRS Network & Imaging Systems LLC

Contract Overview

Contract Amount: $142,044,314 ($142.0M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2019-03-28

End Date: 2020-11-01

Contract Duration: 584 days

Daily Burn Rate: $243.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MFOCS ORDER

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $142.0 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: MFOCS ORDER Key points: 1. The contract value of $142 million represents a significant investment in electronic computer manufacturing capabilities. 2. Competition dynamics for this contract are assessed to understand its impact on pricing and innovation. 3. Risk indicators are being monitored to ensure successful delivery and performance. 4. The contract's performance context is crucial for evaluating its contribution to broader defense objectives. 5. This contract positions DRS Network & Imaging Systems LLC within the defense sector's supply chain for critical hardware.

Value Assessment

Rating: good

The contract's value of $142 million for electronic computer manufacturing appears reasonable given the scope of defense-related hardware. Benchmarking against similar contracts for specialized electronic systems suggests that the pricing is within an expected range. However, a detailed cost breakdown and comparison to commercial off-the-shelf (COTS) equivalents, where applicable, would provide a more precise value-for-money assessment. The firm fixed-price structure generally indicates a predictable cost outcome for the government.

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 bids. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and quality. This approach is intended to maximize the government's ability to obtain the best value by leveraging the widest possible pool of potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider range of innovative solutions, ultimately leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense, which receives critical electronic computer systems. The services delivered include the manufacturing and supply of specialized electronic computer hardware. The geographic impact is primarily within Florida, where the contractor is located, but the systems will be deployed by the DoD. Workforce implications include potential job creation and skill development within the defense manufacturing sector at DRS Network & Imaging Systems LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during manufacturing.
Dependency on a single contractor for critical electronic components could pose supply chain risks.
Ensuring the long-term sustainment and upgradeability of the manufactured systems.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract provides cost certainty for the government.
Contractor's established presence in defense contracting indicates experience with similar requirements.

Sector Analysis

The contract falls within the Electronic Computer Manufacturing sector, a critical component of the broader Information Technology and Defense industries. This sector is characterized by rapid technological advancements, complex supply chains, and significant R&D investment. Spending in this area is often driven by national security requirements and the need for advanced computing capabilities. Comparable spending benchmarks would involve analyzing other DoD contracts for similar electronic systems and manufacturing services, which can range from tens to hundreds of millions of dollars depending on scale and specialization.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, DRS Network & Imaging Systems LLC, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks out small business subcontractors for specialized components or services, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), which are responsible for ensuring compliance with contract terms, quality standards, and financial accountability. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. The firm fixed-price nature of the contract also provides a degree of accountability by capping the government's financial liability.

Related Government Programs

Defense Information Systems Agency (DISA) procurements
Electronic and precision equipment manufacturing
Department of Defense IT infrastructure
Specialized computer systems

Risk Flags

Potential for supply chain disruption
Risk of component obsolescence
Ensuring long-term system sustainment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $142.0 million to DRS NETWORK & IMAGING SYSTEMS LLC. MFOCS ORDER

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 Information Systems Agency).

What is the total obligated amount?

The obligated amount is $142.0 million.

What is the period of performance?

Start: 2019-03-28. End: 2020-11-01.

What is the track record of DRS Network & Imaging Systems LLC in delivering similar electronic computer systems to the Department of Defense?

DRS Network & Imaging Systems LLC has a history of providing various electronic systems and components to the Department of Defense. While specific details on past performance for identical systems are not provided in this data snippet, their role as a significant defense contractor suggests experience with complex manufacturing and integration requirements. A deeper dive into their contract history, including past performance reviews and any reported issues on previous DoD contracts, would offer a more comprehensive understanding of their reliability and capability in delivering electronic computer systems.

How does the $142 million contract value compare to other similar procurements for electronic computer manufacturing within the DoD?

The $142 million contract value is substantial and falls within the mid-to-large range for specialized electronic system procurements. Without specific details on the exact nature of the 'electronic computer manufacturing' (e.g., ruggedized laptops, specialized servers, custom embedded systems), direct comparison is challenging. However, contracts for similar defense-grade computing hardware can range from tens of millions to hundreds of millions of dollars. The firm fixed-price nature suggests a defined scope, and this value appears consistent with procuring a significant quantity or highly specialized set of these systems for military applications.

What are the primary risk indicators associated with this firm fixed-price contract for electronic computer manufacturing?

Key risk indicators for this firm fixed-price contract include potential for scope creep if requirements are not rigidly defined, contractor underestimation of production costs leading to quality compromises, and supply chain disruptions for critical components. Given the nature of electronic manufacturing, obsolescence of components and the need for specialized technical expertise are also inherent risks. The government's risk is primarily mitigated by the fixed-price structure, which caps cost, but performance risks remain if the contractor struggles to meet specifications or delivery schedules.

How effective is the 'full and open competition' strategy in ensuring value for money for this type of defense procurement?

The 'full and open competition' strategy is generally considered highly effective in ensuring value for money for defense procurements, including electronic computer manufacturing. By allowing all responsible sources to bid, it maximizes the potential for competitive pricing, encourages innovation, and provides the government with a wider selection of solutions. This approach leverages market forces to drive down costs and improve quality. While it requires more upfront effort in solicitation and evaluation, the long-term benefits for taxpayers in terms of cost savings and better-performing systems are typically significant.

What are the historical spending patterns for electronic computer manufacturing by the Department of Defense, and how does this contract fit in?

The Department of Defense consistently spends billions of dollars annually on IT hardware, including electronic computer systems, to maintain its technological edge. Spending patterns are influenced by evolving threats, modernization initiatives, and the lifecycle of existing equipment. This $142 million contract represents a specific investment within that broader spending context, likely addressing a particular operational need or upgrade cycle for specialized computing capabilities. It fits into a pattern of ongoing procurement to ensure the warfighter has access to current and reliable technology.

What are the implications of the contract being awarded in Florida (ST: FL) for the broader defense industrial base?

The award to a contractor located in Florida has implications for the regional defense industrial base, potentially stimulating economic activity and job growth within the state. It also highlights Florida's role as a hub for defense manufacturing and technology. From a national perspective, it signifies the distribution of defense contracts across different geographic areas, supporting a distributed industrial base. The specific location may also be relevant for logistical considerations, proximity to military installations, or access to a skilled workforce specialized in electronics manufacturing.

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

Solicitation ID: HC102817R0006

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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $142,044,314

Exercised Options: $142,044,314

Current Obligation: $142,044,314

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HC102818D0045

IDV Type: IDC

Timeline