DoD's $131.9M MFOCS Block II Hardware Order to DRS Network & Imaging Systems LLC Raises Value Concerns

Contract Overview

Contract Amount: $131,887,889 ($131.9M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2020-03-20

End Date: 2022-01-01

Contract Duration: 652 days

Daily Burn Rate: $202.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MOUNTED FAMILY OF COMPUTER SYSTEMS (MFOCS) BLOCK II HARDWARE ORDER

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $131.9 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: MOUNTED FAMILY OF COMPUTER SYSTEMS (MFOCS) BLOCK II HARDWARE ORDER Key points: 1. Significant contract value of $131.9M for computer systems hardware. 2. Sole awardee is DRS Network & Imaging Systems LLC, raising questions about competition. 3. Risk of overpayment due to limited competition and fixed-price contract. 4. Spending falls within the IT/Defense sector, characterized by rapid technological change.

Value Assessment

Rating: questionable

The contract value of $131.9M for MFOCS Block II hardware appears high, especially given the limited competition. Without a clear benchmark or breakdown of per-unit costs, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although listed as 'FULL AND OPEN COMPETITION', the award was a delivery order to a single contractor, DRS Network & Imaging Systems LLC. This suggests potential limitations in the competitive process or a specific justification for the sole awardee.

Taxpayer Impact: The impact on taxpayers is uncertain due to the lack of transparent pricing and competitive pressure, potentially leading to higher costs than necessary.

Public Impact

Military readiness may be impacted if the hardware is critical and costs are inflated. Taxpayer funds are being allocated to a significant defense contract, necessitating scrutiny. The defense sector's reliance on specialized technology makes cost oversight challenging.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite 'full and open' designation
Potential for inflated pricing due to lack of competitive pressure
Lack of detailed cost breakdown for assessment
Fixed-price contract may not incentivize cost efficiency

Positive Signals

Contract awarded to a known entity in the defense sector
Clear delivery order with defined end dates

Sector Analysis

This spending falls within the Information Technology and Defense sectors. Benchmarks for similar complex computer systems hardware can vary widely based on technological sophistication and scale, making direct comparisons difficult without more detail.

Small Business Impact

The data does not indicate any specific benefit or set-aside for small businesses in this contract. The awardee, DRS Network & Imaging Systems LLC, is a large corporation, suggesting limited direct impact on small business participation.

Oversight & Accountability

The award being a delivery order under a larger contract requires review of the original solicitation and justification for the awardee. Oversight should focus on ensuring fair pricing and performance throughout the contract duration.

Related Government Programs

Electronic Computer Manufacturing
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Lack of clear competitive justification
Potential for inflated pricing
Limited transparency on cost breakdown
Fixed-price contract risks if scope changes
Uncertainty regarding per-unit cost benchmarks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $131.9 million to DRS NETWORK & IMAGING SYSTEMS LLC. MOUNTED FAMILY OF COMPUTER SYSTEMS (MFOCS) BLOCK II HARDWARE 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 $131.9 million.

What is the period of performance?

Start: 2020-03-20. End: 2022-01-01.

What specific justification was provided for awarding this significant delivery order to DRS Network & Imaging Systems LLC, given the 'full and open competition' designation?

The provided data lists 'FULL AND OPEN COMPETITION' as the contract type, yet the award is a delivery order to a single entity. Further investigation into the original contract vehicle and any associated justifications for this specific award is necessary to understand if competition was truly maximized or if there were specific technical or programmatic reasons for this sole award.

How does the $131.9M cost for the MFOCS Block II hardware compare to industry benchmarks for similar systems, considering the potential for cost overruns in defense contracts?

Without detailed specifications of the MFOCS Block II hardware and comparable industry benchmarks, a precise cost comparison is challenging. However, the substantial value of $131.9M, coupled with limited competitive transparency, raises a flag for potential cost overruns. A thorough analysis would require access to technical specifications and market research data for similar systems.

What measures are in place to ensure the effectiveness and reliability of the MFOCS Block II hardware delivered under this contract, and how is performance being monitored?

The contract specifies a Firm Fixed Price (FFP) type, which generally incentivizes the contractor to deliver the specified goods within budget. However, effectiveness and reliability depend on stringent testing, acceptance criteria, and ongoing performance monitoring by the Defense Information Systems Agency. Details on specific quality assurance and performance metrics are not provided in this data.

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

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: $131,887,889

Exercised Options: $131,887,889

Current Obligation: $131,887,889

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $5,637,802

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HC102818D0045

IDV Type: IDC

Timeline