DoD's $49M Jordan Border Security Program Phase 1B contract awarded to DRS C3 & Aviation Company

Contract Overview

Contract Amount: $49,158,818 ($49.2M)

Contractor: DRS C3 & Aviation Company

Awarding Agency: Department of Defense

Start Date: 2011-12-02

End Date: 2016-01-31

Contract Duration: 1,521 days

Daily Burn Rate: $32.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: JORDAN BORDER SECURITY PROGRAM PHASE 1B

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $49.2 million to DRS C3 & AVIATION COMPANY for work described as: JORDAN BORDER SECURITY PROGRAM PHASE 1B Key points: 1. The contract's value of $49.16 million for computer systems design services appears to be a significant investment in border security technology. 2. Awarded as a definitive contract with a firm fixed price, it suggests a clear scope and budget, potentially mitigating cost overruns. 3. The single award indicates a lack of broader competition, raising questions about potential price discovery and value for money. 4. The contract duration of 1521 days (over 4 years) suggests a long-term project, requiring sustained oversight. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation. 6. The North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design, aligning with technological solutions for border security.

Value Assessment

Rating: fair

Benchmarking the value of this $49.16 million contract is challenging without specific details on the services rendered and comparable projects. However, the firm fixed-price structure is a positive indicator for cost control. The lack of competition, as noted below, could imply that the price may not have been optimized through a competitive bidding process. Further analysis would require understanding the specific technological solutions and their market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, DRS C3 & Aviation Company, was considered. This approach bypasses the standard competitive bidding process, which typically involves soliciting proposals from multiple interested parties. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they generally limit price competition and may not result in the best possible pricing for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from a competitive bidding environment, potentially leading to higher overall expenditure for the services rendered.

Public Impact

The primary beneficiaries of this contract are likely the Jordanian border security forces, who will receive enhanced technological capabilities. The services delivered are expected to improve border surveillance, detection, and response mechanisms, contributing to regional stability. The geographic impact is focused on the border regions of Jordan, aiming to enhance security and control. Workforce implications could include training for Jordanian personnel on the new systems and potential support roles for the contractor's staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to a higher price than could have been achieved through a competitive process.
The long contract duration (over 4 years) increases the risk of scope creep or evolving technological needs not being adequately addressed.
Sole-source awards can sometimes indicate a lack of market research or a reliance on a single vendor's capabilities, potentially limiting innovation.

Positive Signals

The firm fixed-price contract type provides cost certainty and incentivizes the contractor to manage expenses efficiently.
Awarding to DRS C3 & Aviation Company suggests they possess specialized capabilities deemed necessary for this critical border security program.
The definitive contract structure implies a well-defined scope of work, reducing ambiguity for both parties.

Sector Analysis

This contract falls within the broader defense and security sector, specifically focusing on technology solutions for border management. The market for such systems is driven by national security concerns and the increasing need for advanced surveillance and control technologies. Comparable spending benchmarks would involve looking at other government contracts for border security technology, intelligence, surveillance, and reconnaissance (ISR) systems, and command and control (C2) solutions, both domestically and internationally.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary awardee, DRS C3 & Aviation Company, is likely a large business. The absence of specific small business provisions means there may be limited direct impact on the small business ecosystem through this particular contract, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and program management offices, potentially involving the Defense Contract Management Agency (DCMA) for contract administration. 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-upon price. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available through federal procurement databases.

Related Government Programs

Jordan Border Security Program
Department of Defense Procurement
Computer Systems Design Services
Border Security Technology Contracts
International Security Assistance Programs

Risk Flags

Sole-source award may limit price competition.
Long contract duration increases risk of technological obsolescence.
Lack of public justification for sole-sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.2 million to DRS C3 & AVIATION COMPANY. JORDAN BORDER SECURITY PROGRAM PHASE 1B

Who is the contractor on this award?

The obligated recipient is DRS C3 & AVIATION COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $49.2 million.

What is the period of performance?

Start: 2011-12-02. End: 2016-01-31.

What specific computer systems design services were procured under this contract, and how do they enhance Jordan's border security?

The contract, valued at approximately $49.16 million, was awarded to DRS C3 & Aviation Company for computer systems design services under NAICS code 541512. While the specific technical details are not publicly elaborated, such services typically involve the design, development, integration, and testing of complex IT systems. For border security, this could encompass the creation of integrated command and control platforms, sensor networks (e.g., radar, cameras, biometric scanners), data analysis software for threat detection, communication systems, and potentially the underlying infrastructure to support these technologies. The goal is to provide a more comprehensive and technologically advanced approach to monitoring and securing Jordan's borders, likely improving situational awareness, response times, and the ability to interdict illicit activities.

Why was this contract awarded on a sole-source basis, and what are the implications for cost-effectiveness?

The contract was designated as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. Justifications for sole-sourcing typically include situations where only one responsible source can provide the required supplies or services, such as when a unique capability is required, or for reasons of urgency or compatibility with existing systems. Without specific justification details, it's presumed DRS C3 & Aviation Company possessed unique expertise or technology essential for the Jordan Border Security Program. The implication for cost-effectiveness is generally negative; sole-source awards bypass the competitive bidding process, which is designed to drive down prices through market forces. Consequently, taxpayers may have paid a premium compared to what might have been achieved in a fully competitive environment. However, if the unique capabilities provided significant, unquantifiable security benefits, the higher cost might be deemed acceptable.

How does the $49.16 million contract value compare to other federal spending on similar border security technology programs?

Comparing this $49.16 million contract requires context regarding the scope and duration of 'similar' programs. Federal spending on border security technology is substantial and multifaceted, encompassing surveillance systems, sensors, communication equipment, data analytics platforms, and infrastructure. Programs like the U.S. Customs and Border Protection's (CBP) investments in integrated surveillance and sensor systems, or the Department of Defense's (DoD) support for international partners' security initiatives, can run into hundreds of millions or even billions of dollars over several years. This specific contract, while significant, appears to be a focused investment for a particular phase ('Phase 1B') of a program. Its value should be assessed against the specific technological advancements and security enhancements it delivers, rather than just the raw dollar amount in isolation from other large-scale federal security procurements.

What is the track record of DRS C3 & Aviation Company in delivering complex defense and security technology solutions?

DRS C3 & Aviation Company, part of Leonardo DRS, has a substantial track record in providing advanced technology solutions for defense and security applications. Their portfolio often includes command, control, communications, computers, and intelligence (C4I) systems, airborne electronics, and surveillance technologies. They have been a significant contractor for the U.S. Department of Defense and other government agencies, involved in numerous complex programs requiring sophisticated engineering and integration capabilities. Their experience suggests they are well-equipped to handle large-scale technology projects like the Jordan Border Security Program. However, as with any large contractor, performance can vary across specific contracts, and a detailed review of past performance on similar projects would be necessary for a complete assessment.

What are the potential risks associated with a long-duration (1521 days) sole-source contract for technology systems?

A long-duration (over 4 years) sole-source contract for technology systems presents several potential risks. Firstly, the lack of competition means the government is locked into a single provider, limiting options if performance issues arise or if better solutions become available elsewhere. Secondly, technology evolves rapidly; a system designed and implemented over four years might be partially or wholly outdated by its completion date, especially in areas like computer systems design. Thirdly, sole-sourcing can reduce the incentive for the contractor to innovate aggressively or maintain competitive pricing throughout the contract's life. Finally, long-term reliance on a single vendor can create vendor lock-in, making future transitions or upgrades more complex and costly. Effective program management, clear performance metrics, and contingency planning are crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W15P7T09RD258

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 400 PROFESSIONAL DR STE 400, GAITHERSBURG, MD, 20879

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

Financial Breakdown

Contract Ceiling: $50,800,532

Exercised Options: $49,158,818

Current Obligation: $49,158,818

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $34,426,266

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline