DoD Awards $130.8M Contract to SRC Inc for Electronic Warfare Improvements

Contract Overview

Contract Amount: $130,858,246 ($130.9M)

Contractor: SRC Inc

Awarding Agency: Department of Defense

Start Date: 2019-01-28

End Date: 2021-03-31

Contract Duration: 793 days

Daily Burn Rate: $165.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: RAPIDLY DEVELOP AND DEPLOY THE INCREMENT 1, BLOCK 2 AND INCREMENT 1 ELECTRONIC WARFARE (EW) IMPROVEMENTS TO INCREMENT 1 AND INCREMENT 2.

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $130.9 million to SRC INC for work described as: RAPIDLY DEVELOP AND DEPLOY THE INCREMENT 1, BLOCK 2 AND INCREMENT 1 ELECTRONIC WARFARE (EW) IMPROVEMENTS TO INCREMENT 1 AND INCREMENT 2. Key points: 1. Contract awarded to SRC Inc for critical EW system upgrades. 2. Significant investment in defense technology, specifically electronic warfare. 3. Potential for technological advantage in a key defense sector. 4. Limited competition raises questions about cost-effectiveness.

Value Assessment

Rating: fair

The contract value of $130.8M for EW improvements appears substantial. Benchmarking against similar EW development contracts is difficult without more detailed scope information, but the lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in higher taxpayer costs due to the absence of market forces driving down prices.

Public Impact

Enhances US Army's electronic warfare capabilities, crucial for modern combat. Supports advanced technology development in a sensitive defense area. Impacts national security by improving threat detection and response. Potential for job creation within SRC Inc and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the defense sector, specifically focusing on electronic warfare systems. Spending in defense R&D and advanced manufacturing is substantial, with EW being a critical and evolving area.

Small Business Impact

The contract was awarded to SRC Inc, a large business. There is no indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.

Oversight & Accountability

As a sole-source contract, oversight is crucial to ensure fair pricing and effective execution. The Department of the Army's contracting officers are responsible for monitoring performance and costs.

Related Government Programs

Risk Flags

Tags

electromedical-and-electrotherapeutic-ap, department-of-defense, ny, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $130.9 million to SRC INC. RAPIDLY DEVELOP AND DEPLOY THE INCREMENT 1, BLOCK 2 AND INCREMENT 1 ELECTRONIC WARFARE (EW) IMPROVEMENTS TO INCREMENT 1 AND INCREMENT 2.

Who is the contractor on this award?

The obligated recipient is SRC INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $130.9 million.

What is the period of performance?

Start: 2019-01-28. End: 2021-03-31.

What is the specific technological advancement achieved with this $130.8M investment, and how does it compare to potential alternatives?

The contract aims to develop and deploy Increment 1, Block 2 and Increment 1 EW improvements. While specific details are proprietary, these upgrades likely enhance capabilities in areas like signal intelligence, jamming, and electronic attack. A comparative analysis against alternative solutions or competitor technologies would be necessary to fully assess the value and ensure the investment yields a significant technological edge.

Given the sole-source nature, what mechanisms are in place to mitigate the risk of inflated costs and ensure fair pricing?

For sole-source contracts, agencies typically employ rigorous cost analysis, including reviewing the contractor's cost proposals, historical pricing data, and independent government cost estimates. Negotiation strategies and potentially certified cost and pricing data requirements help mitigate the risk of inflated costs. Regular performance reviews and audits are also essential to ensure the contractor is meeting objectives efficiently.

How will the effectiveness of these EW improvements be measured, and what are the key performance indicators for this contract?

Effectiveness is likely measured through a combination of technical performance tests, operational assessments, and mission success metrics. Key performance indicators would probably include metrics related to signal detection range, jamming effectiveness, system reliability, integration with existing platforms, and overall contribution to mission objectives. Formal testing and validation phases are critical to confirm the deployed improvements meet the required operational capabilities.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingElectromedical and Electrotherapeutic Apparatus Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 7502 ROUND POND RD, NORTH SYRACUSE, NY, 13212

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

Financial Breakdown

Contract Ceiling: $159,592,807

Exercised Options: $130,858,246

Current Obligation: $130,858,246

Actual Outlays: $706,255

Subaward Activity

Number of Subawards: 99

Total Subaward Amount: $16,777,191

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2019-01-28

Current End Date: 2021-03-31

Potential End Date: 2021-03-31 12:03:00

Last Modified: 2024-09-09

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