Textron Systems awarded $331M for Unmanned Influence Sweep Systems, impacting naval defense capabilities

Contract Overview

Contract Amount: $331,212,685 ($331.2M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2014-09-30

End Date: 2024-09-30

Contract Duration: 3,653 days

Daily Burn Rate: $90.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: UNMANNED INFLUENCE SWEEP SYSTEM (UISS)

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $331.2 million to TEXTRON SYSTEMS CORPORATION for work described as: UNMANNED INFLUENCE SWEEP SYSTEM (UISS) Key points: 1. Contract value of $331.2M over a 10-year period suggests significant investment in advanced naval technology. 2. The award to Textron Systems Corporation indicates a strong market position for this specific defense contractor. 3. The use of a Cost Plus Incentive Fee (CPIF) contract type suggests a need for performance-based incentives in a complex development or production environment. 4. The duration of the contract (over 10 years) points to a long-term strategic need for the Unmanned Influence Sweep System. 5. The North American Industry Classification System (NAICS) code 334511 places this contract within the instrument manufacturing sector, specifically for search, detection, and navigation systems. 6. The contract's focus on unmanned systems aligns with broader trends in military modernization and the adoption of autonomous technologies.

Value Assessment

Rating: good

The total contract value of $331.2 million over 10 years averages to approximately $33.1 million per year. Benchmarking this against similar large-scale defense system development and production contracts is challenging without more specific details on system complexity and quantity. However, the duration and scope suggest a substantial investment. The CPIF contract type implies that cost controls and performance targets are critical, with potential for savings or increased costs based on contractor performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The fact that there were 5 bidders suggests a competitive environment for this type of specialized defense system. A competitive process is generally expected to yield better pricing and innovative solutions for the government.

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

Public Impact

The primary beneficiaries are the U.S. Navy, which will receive advanced unmanned systems for mine countermeasures and related operations. The services delivered include the development, production, and sustainment of the Unmanned Influence Sweep System (UISS). The geographic impact is primarily within the operational theaters of the U.S. Navy, potentially extending globally. Workforce implications include specialized engineering, manufacturing, and technical support roles at Textron Systems and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPIF contract type can lead to cost overruns if not managed carefully, as the government bears a significant portion of the costs.
Long-term contracts can sometimes reduce flexibility to adapt to rapidly changing technological landscapes or evolving threats.
Reliance on a single contractor for a critical system over an extended period could pose supply chain or strategic risks.

Positive Signals

Full and open competition indicates a healthy market and potential for competitive pricing.
The 10-year duration suggests a stable, long-term commitment to a critical capability, providing predictability for the contractor and the Navy.
The award to Textron Systems, a known defense contractor, suggests a level of confidence in their ability to deliver complex systems.

Sector Analysis

The Unmanned Influence Sweep System (UISS) falls within the defense sector, specifically focusing on naval mine countermeasures and unmanned maritime systems. This market is characterized by high technological barriers to entry, significant R&D investment, and long procurement cycles. The U.S. Navy is a major customer for such systems, with spending driven by evolving geopolitical threats and the need for advanced force protection. Comparable spending benchmarks would involve other large-scale unmanned vehicle programs or complex electronic warfare systems.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract, as the 'sb' field is false. However, Textron Systems, like many large defense contractors, likely engages small businesses as subcontractors for specialized components or services. The extent of subcontracting to small businesses will be crucial for assessing the broader impact on the small business defense ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded within the CPIF contract structure, linking contractor performance to financial incentives. Transparency is generally maintained through contract awards databases and reporting requirements, though specific performance metrics may be sensitive. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Unmanned Maritime Systems (UMS)
Mine Countermeasures (MCM)
Naval Surface Warfare
Defense Procurement
Advanced Manufacturing

Risk Flags

Potential for cost overruns due to CPIF contract type.
Risk of technological obsolescence over the 10-year contract duration.
Dependency on a single contractor for a critical defense capability.
Need for robust oversight to ensure performance targets are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $331.2 million to TEXTRON SYSTEMS CORPORATION. UNMANNED INFLUENCE SWEEP SYSTEM (UISS)

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $331.2 million.

What is the period of performance?

Start: 2014-09-30. End: 2024-09-30.

What is Textron Systems Corporation's track record with similar unmanned systems contracts for the U.S. Navy?

Textron Systems Corporation has a significant history of developing and producing unmanned systems for various military applications, including maritime and aerial platforms. They are known for their expertise in areas such as unmanned aerial vehicles (UAVs) and unmanned surface vehicles (USVs). For the U.S. Navy specifically, Textron has been involved in programs related to mine countermeasures and intelligence, surveillance, and reconnaissance (ISR) capabilities. Their experience with complex defense systems and integration requirements positions them as a capable contractor for the UISS program. A review of their past performance on similar contracts would reveal their ability to meet technical specifications, delivery schedules, and cost targets, which are critical indicators for the success of this long-term award.

How does the $331.2 million contract value compare to historical spending on mine countermeasures systems?

The $331.2 million awarded to Textron Systems for the Unmanned Influence Sweep System (UISS) represents a substantial investment in naval mine countermeasures. Historically, mine countermeasures programs have varied significantly in cost depending on the technology employed, whether manned or unmanned, and the scale of production. Older, more traditional systems might have lower individual unit costs but require larger fleets and more personnel. Advanced unmanned systems like the UISS, while having a high aggregate contract value, aim to provide greater efficiency, reduced risk to personnel, and potentially lower lifecycle costs. Comparing this specific award to the total historical spending on MCM programs would require analyzing budgets over several decades, but this contract clearly signifies a major commitment to modernizing this critical capability with unmanned technology.

What are the primary risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this program?

The Cost Plus Incentive Fee (CPIF) contract type, while designed to incentivize performance and cost control, carries inherent risks. For the UISS program, a primary risk is that the government may end up paying more than anticipated if the contractor's costs exceed initial estimates, even with performance incentives. The complexity of developing and producing advanced unmanned systems means that cost projections can be uncertain. There's also a risk of 'cost growth' where the contractor might incur higher expenses than planned, which the government then shares. Effective oversight and robust negotiation of the target cost and incentive structure are crucial to mitigate these risks and ensure the government receives good value. Without stringent management, CPIF contracts can sometimes lead to less cost-consciousness than fixed-price arrangements.

How effective is the full and open competition process in ensuring value for taxpayers on large defense contracts like this?

Full and open competition is generally considered the most effective method for ensuring value for taxpayers on large defense contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices, encourages innovation, and promotes efficiency. In the case of the UISS contract, the participation of five bidders suggests that the market for such systems is robust enough to support competition. This process allows the Department of the Navy to compare multiple technical approaches and pricing structures, selecting the best overall value. While the CPIF structure introduces some cost uncertainty, the competitive initial award helps establish a baseline and encourages the contractor to manage costs effectively to achieve incentive fees, ultimately benefiting the taxpayer through potentially better performance and cost outcomes than a sole-source award.

What are the potential long-term implications of a 10-year contract duration for the UISS program?

A 10-year contract duration for the Unmanned Influence Sweep System (UISS) program has several long-term implications. Positively, it provides stability and predictability for both the U.S. Navy and Textron Systems Corporation. This allows for long-term planning, investment in specialized manufacturing capabilities, and workforce development. It can also lead to economies of scale and learning curve efficiencies over time, potentially reducing per-unit costs. However, a long duration also carries risks. Technology can evolve rapidly, and a 10-year commitment might lock the Navy into a system that becomes outdated before the contract ends. There's also a risk of contractor complacency or reduced agility in responding to changing requirements. Effective contract management, including potential for contract modifications or reviews, is essential to harness the benefits while mitigating the drawbacks of such an extended commitment.

What is the significance of the NAICS code 334511 (Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing) for this contract?

The assignment of NAICS code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' is highly significant for the Unmanned Influence Sweep System (UISS) contract. This code precisely categorizes the core function of the UISS: it is an instrument and system designed for detection (of influence, likely related to mines) and navigation within a maritime environment. This classification places the contract within a specific segment of the manufacturing industry that specializes in sophisticated electronic and mechanical systems for defense and aerospace applications. It indicates that the procurement is focused on high-technology hardware and integrated systems, rather than services or simpler equipment. This context helps in understanding the technical complexity, the type of expertise required from the contractor, and the relevant industry benchmarks for pricing and performance within this specialized manufacturing sector.

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: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002413R6312

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 124 INDUSTRY LN, HUNT VALLEY, MD, 21030

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

Financial Breakdown

Contract Ceiling: $355,113,762

Exercised Options: $347,103,539

Current Obligation: $331,212,685

Actual Outlays: $34,699,368

Subaward Activity

Number of Subawards: 118

Total Subaward Amount: $26,490,731

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline