DoD awards $76.8M order for MFOCS-II to DRS Network & Imaging Systems LLC

Contract Overview

Contract Amount: $76,816,662 ($76.8M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2023-10-31

End Date: 2024-10-01

Contract Duration: 336 days

Daily Burn Rate: $228.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FY-23 MFOCS-II ORDER

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $76.8 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: FY-23 MFOCS-II ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. The duration of 336 days indicates a medium-term project requirement. 4. The awardee, DRS Network & Imaging Systems LLC, is a significant player in defense contracting. 5. The North American Industry Classification System (NAICS) code 334111 points to computer manufacturing, a critical sector for defense operations. 6. The contract is not set aside for small businesses, implying a focus on large prime contractors.

Value Assessment

Rating: good

The award amount of $76.8 million for the MFOCS-II order appears reasonable given the scope of electronic computer manufacturing and related services. Benchmarking against similar large-scale defense IT or manufacturing contracts would provide a more precise value assessment. The firm-fixed-price structure helps manage cost risks for the government, but detailed cost breakdowns are not publicly available to fully assess pricing efficiency.

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 this method generally fosters a competitive environment, which can lead to better pricing and innovation. The Defense Information Systems Agency (DISA) likely conducted a thorough evaluation process to select the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value for its investment by considering a wide range of qualified contractors.

Public Impact

The Department of Defense benefits from enhanced capabilities through the MFOCS-II system, likely improving command, control, or communication functions. The services delivered are related to electronic computer manufacturing, supporting critical defense infrastructure. The contract is being performed in Florida (ST: FL), indicating a geographic concentration of work and potential economic impact in that state. The workforce implications include employment opportunities within DRS Network & Imaging Systems LLC and its potential subcontractors, particularly in the technology and manufacturing sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits transparency on the degree of competition achieved.
Limited public detail on the specific functionalities and performance metrics of MFOCS-II makes independent assessment of value difficult.
The firm-fixed-price contract, while good for cost certainty, may limit flexibility if requirements evolve significantly during the performance period.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type provides predictable costs for the government.
The awardee, DRS Network & Imaging Systems LLC, has a track record in defense contracting, implying experience and capability.
The contract supports critical defense systems (MFOCS-II), aligning with national security objectives.

Sector Analysis

The contract falls within the Information Technology and Defense sectors, specifically related to electronic computer manufacturing and potentially integrated systems. The market for defense IT and manufacturing is substantial, driven by continuous modernization needs. This award to DRS Network & Imaging Systems LLC, a known defense contractor, positions them to continue providing essential components or systems to the Department of Defense. Comparable spending benchmarks would involve looking at other large-scale IT hardware or system integration contracts awarded by DISA or other military branches.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates no explicit small business participation (SB: false). This suggests that the primary contractor, DRS Network & Imaging Systems LLC, will likely fulfill the majority of the work. While there are no direct subcontracting requirements specified here, large prime contractors often engage small businesses for specialized components or services, which could indirectly benefit the small business ecosystem. However, without specific subcontracting plans, the direct impact on small businesses remains uncertain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management structures, likely involving the Defense Contract Management Agency (DCMA) for performance monitoring. Transparency is facilitated by the contract award data being publicly available. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering the specified goods or services within the agreed price. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

MFOCS-II Program
Defense Information Systems Agency (DISA) Contracts
Department of Defense IT Procurement
Electronic Computer Manufacturing Contracts
Firm Fixed Price Delivery Orders

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Risk of contractor performance issues impacting delivery timelines or quality.
Dependency on a single prime contractor for critical system components.
Technological obsolescence risk in the rapidly evolving electronics sector.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.8 million to DRS NETWORK & IMAGING SYSTEMS LLC. FY-23 MFOCS-II 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 $76.8 million.

What is the period of performance?

Start: 2023-10-31. End: 2024-10-01.

What is the specific nature of the MFOCS-II system and its criticality to DoD operations?

The Modular Force Operations Command System II (MFOCS-II) is a critical component within the Department of Defense's communication and command infrastructure. While specific details are often classified or proprietary, systems like MFOCS-II typically provide robust, deployable command and control (C2) capabilities for tactical units. They integrate various communication methods, data processing, and situational awareness tools to enable commanders to effectively manage operations in diverse and often challenging environments. The criticality stems from its role in ensuring seamless information flow and decision-making at the tactical edge, directly impacting mission success and soldier safety. The award to DRS Network & Imaging Systems LLC suggests a need for continued manufacturing, sustainment, or upgrades of these essential systems.

How does the $76.8 million award compare to historical spending on the MFOCS-II program or similar systems?

Without access to historical contract data specifically for the MFOCS-II program or detailed breakdowns of its lifecycle costs, a direct comparison is challenging. However, $76.8 million represents a significant investment for a single delivery order, indicating a substantial requirement for hardware, software, or services related to the system. To benchmark effectively, one would need to analyze previous awards for MFOCS-II, including sustainment, upgrades, and new procurements, as well as compare it to other large-scale command and control system procurements by DISA or other military branches. The firm-fixed-price nature suggests a defined scope, and the duration of 336 days points to a medium-term effort rather than a multi-year development program.

What are the potential risks associated with this contract for the Department of Defense?

Potential risks for the DoD on this contract include performance risk if DRS Network & Imaging Systems LLC fails to deliver the specified goods or services to the required quality standards or within the timeline. There's also a technical risk if the MFOCS-II system, or the components being manufactured/provided, encounter unforeseen obsolescence or integration issues with evolving DoD networks. Given the firm-fixed-price nature, cost risk is largely transferred to the contractor, but scope creep or poorly defined requirements could still lead to disputes or delays. Furthermore, reliance on a single prime contractor for a critical system like MFOCS-II could pose a supply chain risk if the contractor faces financial instability or production challenges.

What is DRS Network & Imaging Systems LLC's track record with similar DoD contracts?

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a substantial track record of performing contracts for the Department of Defense, particularly in areas related to command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, as well as electronic warfare and aviation electronics. They have frequently been awarded contracts for the production, sustainment, and upgrade of various military hardware and software systems. Their history suggests a strong capability in manufacturing complex electronic systems and integrating them into military platforms. Analyzing their past performance ratings, on-time delivery records, and any past performance disputes on similar large-value contracts would provide further insight into their reliability for this specific MFOCS-II order.

How does the competition level (full and open) typically influence pricing and innovation for DoD contracts of this nature?

A 'full and open' competition generally fosters a more competitive pricing environment because it allows all responsible sources to bid, increasing the number of potential offerors. This wider pool of bidders is incentivized to offer competitive prices to win the contract. Furthermore, competition can spur innovation as contractors strive to differentiate their offerings through advanced technology, improved processes, or unique solutions to meet the government's requirements. For a contract like this, involving electronic computer manufacturing, multiple bidders might propose different technological approaches or manufacturing efficiencies, potentially leading to better value and more advanced capabilities for the DoD than a sole-source or limited competition award.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - COMPUTE

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: $76,816,662

Exercised Options: $76,816,662

Current Obligation: $76,816,662

Actual Outlays: $12,111,091

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $18,267,194

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HC102818D0045

IDV Type: IDC

Timeline