DoD awards $115M contract for GPS-enabled computing, with a focus on advanced imaging

Contract Overview

Contract Amount: $115,010,984 ($115.0M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2023-12-20

End Date: 2026-01-01

Contract Duration: 743 days

Daily Burn Rate: $154.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PU W/ GPS CAPABILITY READY

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $115.0 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: PU W/ GPS CAPABILITY READY Key points: 1. Contract value of $115M over approximately 2.5 years suggests a significant investment in specialized hardware. 2. The award to DRS Network & Imaging Systems LLC indicates a reliance on established defense contractors for critical technology. 3. Fixed-price contract type aims to control costs, but potential for scope creep or change orders should be monitored. 4. The 'MD' (Maryland) state code suggests a concentration of work or contractor presence in a key defense hub. 5. The North American Industry Classification System (NAICS) code 334111 points to the manufacturing of electronic computers, a core component of the system. 6. The absence of small business set-aside flags this as a large-scale procurement likely dominated by major industry players.

Value Assessment

Rating: good

The contract's value of $115M for a 743-day period (approximately 2.5 years) translates to roughly $157,000 per day. Benchmarking this against similar complex electronic system procurements is challenging without more granular data on the specific capabilities. However, the firm fixed-price nature suggests an attempt to lock in costs. The presence of a single awardee, DRS Network & Imaging Systems LLC, implies either specialized capabilities or a competitive process that favored this specific vendor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. While the number of bidders is not specified, this method generally promotes a competitive environment, which can lead to better pricing and innovation. The agency's decision to use full and open competition suggests that the required technology was believed to be available from multiple vendors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a wider range of bids and encourages market-driven pricing.

Public Impact

The primary beneficiaries are likely Department of Defense units requiring advanced situational awareness and targeting capabilities. The contract will deliver electronic computing hardware with GPS capabilities and potentially advanced imaging functionalities. The geographic impact is concentrated in Maryland, where the contractor is based, but the deployed systems will serve global military operations. Workforce implications include specialized manufacturing and engineering roles within DRS Network & Imaging Systems LLC and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise, despite the fixed-price structure.
Dependence on a single contractor for critical, specialized hardware could pose supply chain risks.
The advanced nature of the technology may require significant training and integration efforts, adding to total ownership costs.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Award to an established defense contractor like DRS Network & Imaging Systems LLC suggests a high likelihood of technical success.
Full and open competition mechanism should have driven competitive pricing.

Sector Analysis

This contract falls within the Defense Information Technology sector, specifically focusing on electronic computer manufacturing and advanced imaging systems. The market for such specialized defense electronics is characterized by high barriers to entry due to R&D costs and stringent performance requirements. Comparable spending benchmarks would typically involve other large-scale procurements for tactical computing, sensor integration, and secure communication systems within the DoD.

Small Business Impact

The contract data indicates that this procurement was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary awardee, DRS Network & Imaging Systems LLC, is likely a large business. The absence of set-aside provisions means that opportunities for small businesses would primarily arise through subcontracting, if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods and services. Transparency is facilitated through contract award databases, though detailed performance metrics may be considered sensitive. The Inspector General's office within the DoD would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Tactical Computing Systems
Advanced Sensor Technology
Defense Communication Networks
GPS Navigation Systems
Electronic Warfare Systems

Risk Flags

Potential for technology obsolescence
Supply chain disruption risk
Integration complexity with existing systems
Performance in harsh environments

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $115.0 million to DRS NETWORK & IMAGING SYSTEMS LLC. PU W/ GPS CAPABILITY READY

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 $115.0 million.

What is the period of performance?

Start: 2023-12-20. End: 2026-01-01.

What is the specific nature of the 'GPS capability' and 'imaging' being procured, and how do they enhance warfighter effectiveness?

The contract specifies 'PU W/ GPS CAPABILITY READY,' indicating the computing units are equipped with or designed to integrate Global Positioning System (GPS) technology. This is crucial for accurate navigation, targeting, and situational awareness in diverse operational environments. The 'imaging' aspect, while not detailed, likely refers to the integration of visual data processing capabilities, potentially for reconnaissance, surveillance, target acquisition, or battle damage assessment. These combined capabilities aim to provide warfighters with real-time, precise location data and actionable visual intelligence, significantly enhancing decision-making speed and operational accuracy on the battlefield. The specific enhancement to warfighter effectiveness would depend on the exact application, but generally, it improves precision, reduces reliance on manual data input, and provides a more comprehensive operational picture.

How does the $115 million contract value compare to similar procurements for advanced computing systems with GPS and imaging capabilities within the DoD?

Directly comparing the $115 million contract value requires access to detailed procurement data for highly specialized systems. However, for context, large-scale procurements for ruggedized tactical computing systems, advanced sensor integration, or specialized intelligence, surveillance, and reconnaissance (ISR) platforms can range from tens to hundreds of millions of dollars. The value of this contract, awarded to DRS Network & Imaging Systems LLC over approximately 2.5 years, suggests a significant, but not unprecedented, investment. Factors influencing this value include the sophistication of the imaging technology, the required ruggedization standards for military use, integration complexity with existing systems, and the specific performance metrics demanded by the Defense Information Systems Agency (DISA). Without more granular specifications on the 'imaging' component and the exact number of units, a precise benchmark is difficult, but it aligns with substantial investments in advanced C4ISR (Command, Control, Communications, Computers, and Intelligence, Surveillance, and Reconnaissance) capabilities.

What are the key performance risks associated with this contract, given the advanced technology and fixed-price nature?

Key performance risks include technical challenges in integrating advanced imaging with GPS-enabled computing, potential for performance degradation in harsh military environments, and the risk of obsolescence if the technology rapidly advances. The firm fixed-price (FFP) contract structure, while beneficial for cost control, can shift risk to the contractor. If DRS Network & Imaging Systems LLC encounters unforeseen technical difficulties or cost overruns in development or manufacturing, they may be incentivized to cut corners on quality or performance to maintain profitability, potentially impacting the system's reliability or lifespan. Furthermore, the reliance on a single awardee for such specialized equipment introduces supply chain risk; any disruption to DRS's operations could impact delivery schedules. Ensuring robust testing, validation, and acceptance criteria are critical to mitigating these risks.

What is the track record of DRS Network & Imaging Systems LLC in delivering similar advanced electronic and imaging systems to the DoD?

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a well-established track record as a major defense contractor. They specialize in a wide array of defense electronics, including advanced sensor systems, network computing, electro-optical/infrared (EO/IR) imaging, and power solutions. Historically, they have secured numerous contracts with the Department of Defense for similar technologies, often involving ruggedized systems for demanding operational environments. Their experience spans various platforms, from ground vehicles and naval vessels to aircraft. While specific performance details for past contracts are often proprietary, their continued success in winning significant DoD contracts suggests a generally positive history of delivering complex electronic and imaging systems that meet stringent military requirements. This specific contract leverages their core competencies in these areas.

How does this contract fit into the broader landscape of DoD spending on C4ISR and situational awareness technologies?

This $115 million contract for GPS-enabled computing with imaging capabilities fits squarely within the Department of Defense's ongoing strategic focus on enhancing Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) and overall situational awareness. The DoD consistently allocates substantial portions of its budget to modernizing these capabilities, recognizing their critical role in maintaining information superiority and enabling effective joint operations. Procurements like this one support the development and deployment of integrated systems that provide warfighters with real-time data, improved connectivity, and enhanced sensor fusion. This contract likely contributes to a larger ecosystem of networked systems designed to improve battlefield awareness, facilitate precision targeting, and enable faster, more informed decision-making across all domains of warfare. It reflects a trend towards more sophisticated, data-rich platforms essential for modern military operations.

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: $115,010,984

Exercised Options: $115,010,984

Current Obligation: $115,010,984

Actual Outlays: $7,296,659

Subaward Activity

Number of Subawards: 76

Total Subaward Amount: $41,415,424

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