DoD Awards $89M Logistic Support Services Contract to DRS Network & Imaging Systems LLC
Contract Overview
Contract Amount: $89,204,591 ($89.2M)
Contractor: DRS Network & Imaging Systems LLC
Awarding Agency: Department of Defense
Start Date: 2011-09-14
End Date: 2019-12-31
Contract Duration: 3,030 days
Daily Burn Rate: $29.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: BASIC AWARD FOR LOGISTIC SUPPORT SERVICES
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32935
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $89.2 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: BASIC AWARD FOR LOGISTIC SUPPORT SERVICES Key points: 1. Significant contract value of $89.2 million for logistic support. 2. Awarded via full and open competition, indicating a competitive market. 3. Potential risk associated with a Cost Plus Fixed Fee contract type. 4. Services fall under Engineering Services (NAICS 541330).
Value Assessment
Rating: good
The $89.2 million contract value is substantial for logistic support services. Benchmarking against similar DoD contracts for engineering and logistic support would provide a clearer picture of its value, but the competitive award suggests a reasonable price discovery process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more cost-effective outcome compared to non-competitive methods.
Public Impact
Ensures continued logistic support for Department of the Army operations. Supports a large defense contractor, potentially impacting employment. Funds are allocated to engineering and technical services critical for military readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Long contract duration (3030 days) may lead to scope creep or evolving needs.
- No small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Services are essential for military operations.
- Contract awarded to a known entity in the defense sector.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting logistic functions for the Department of Defense. Spending in this area is critical for maintaining military readiness and operational efficiency.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting goals. This represents a missed opportunity for small business participation in this significant defense contract.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for contract performance and financial management. The contract type (CPFF) requires careful monitoring to control costs.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- No small business participation.
- Lack of specific service details in the provided data.
- Potential for cost escalation without stringent oversight.
Tags
engineering-services, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $89.2 million to DRS NETWORK & IMAGING SYSTEMS LLC. BASIC AWARD FOR LOGISTIC SUPPORT SERVICES
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $89.2 million.
What is the period of performance?
Start: 2011-09-14. End: 2019-12-31.
What specific logistic support services are being provided under this contract, and how do they align with current Army operational needs?
The contract is for 'BASIC AWARD FOR LOGISTIC SUPPORT SERVICES'. While the specific details are not provided, these services typically encompass a range of activities such as supply chain management, maintenance, transportation, and inventory control. The alignment with current Army needs would depend on the evolving strategic and operational requirements of the service branch.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract structure in this context?
The CPFF structure carries inherent risks for the government, primarily the potential for cost overruns. While the contractor receives a fixed fee, the 'cost plus' element means the government covers all allowable costs. This can incentivize contractors to incur higher costs if not meticulously monitored, potentially exceeding initial budget expectations.
How effectively does the full and open competition process ensure value for money for these complex logistic support services?
Full and open competition is generally effective in promoting value for money by fostering a competitive environment that drives down prices and encourages innovation. However, for highly specialized or complex services like advanced logistic support, the government must ensure that evaluation criteria adequately assess technical capability and past performance alongside price to guarantee the best overall value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W31P4Q10R0021
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
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, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $95,208,748
Exercised Options: $89,204,591
Current Obligation: $89,204,591
Actual Outlays: $-163
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-09-14
Current End Date: 2019-12-31
Potential End Date: 2019-12-31 12:12:00
Last Modified: 2024-09-24
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