DoD awards $45.7M for C-UAS CLS, a sole-source contract for critical counter-drone technology

Contract Overview

Contract Amount: $45,741,519 ($45.7M)

Contractor: SRC Inc

Awarding Agency: Department of Defense

Start Date: 2022-07-20

End Date: 2023-07-26

Contract Duration: 371 days

Daily Burn Rate: $123.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONTRACTOR LOGISTICS SUPPORT (CLS), AND PROGRAMMATIC ACTIVITIES IN SUPPORT OF THE C-UAS FIXED SITE LOW, SLOW, SMALL UNMANNED AERIAL VEHICLE INTEGRATED DEFEAT SYSTEM (FS-LIDS) MANAGED BY THE INTEGRATED FIRES/RAPID CAPABILITIES OFFICE (IF/RCO)

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $45.7 million to SRC INC for work described as: CONTRACTOR LOGISTICS SUPPORT (CLS), AND PROGRAMMATIC ACTIVITIES IN SUPPORT OF THE C-UAS FIXED SITE LOW, SLOW, SMALL UNMANNED AERIAL VEHICLE INTEGRATED DEFEAT SYSTEM (FS-LIDS) MANAGED BY THE INTEGRATED FIRES/RAPID CAPABILITIES OFFICE (IF/RCO) Key points: 1. Contract awarded to SRC Inc. for contractor logistics support and programmatic activities for the C-UAS FS-LIDS. 2. The contract was not competed, raising questions about potential price discovery and value for money. 3. Performance period is approximately one year, indicating a need for ongoing support for this system. 4. The system is managed by the Integrated Fires/Rapid Capabilities Office (IF/RCO), suggesting a focus on urgent or evolving threats. 5. The North American Industry Classification System (NAICS) code 334511 points to the manufacturing of navigation, guidance, and control systems. 6. This award falls within the defense sector, specifically focusing on counter-unmanned aerial systems.

Value Assessment

Rating: questionable

Benchmarking the value for this sole-source contract is challenging without competitive data. The cost-plus-fixed-fee structure can incentivize cost overruns if not closely monitored. Given the lack of competition, it's difficult to assess if the pricing is optimal or if taxpayers are receiving the best possible value. Further analysis would require understanding the specific services rendered and comparing them to industry standards for similar logistics and programmatic support in the defense sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or security clearances. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price and may indicate a reliance on a specific proprietary solution.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to compete for government contracts.

Public Impact

The primary beneficiaries are the Department of Defense units requiring counter-unmanned aerial system capabilities. Services delivered include contractor logistics support and programmatic activities essential for the C-UAS FS-LIDS. The geographic impact is likely within areas where the DoD operates and deploys C-UAS systems, potentially globally. Workforce implications may include specialized technical support personnel required for the C-UAS system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source nature limits visibility into alternative solutions or pricing.
Cost-plus-fixed-fee contract type requires diligent oversight to manage costs effectively.

Positive Signals

Addresses a critical and evolving threat (unmanned aerial systems).
Contract awarded to a known entity (SRC Inc.) with potential expertise in this area.
Supports a specific program managed by a rapid capabilities office, indicating strategic importance.

Sector Analysis

The defense sector, particularly the area of electronic warfare and counter-unmanned aerial systems (C-UAS), is experiencing significant growth due to evolving global threats. This contract for contractor logistics support and programmatic activities for the C-UAS FS-LIDS fits within this specialized niche. The market for C-UAS technology is competitive, but specific system integration and support can be highly specialized, sometimes leading to sole-source or limited competition awards. Comparable spending benchmarks are difficult to establish without more detailed service breakdowns, but investments in C-UAS are generally increasing across major defense agencies.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a specific small business set-aside component. The sole-source nature of the award further limits opportunities for small businesses to participate as prime contractors. Subcontracting opportunities for small businesses may exist if SRC Inc. chooses to engage them, but this is not guaranteed or mandated by the contract terms. The impact on the small business ecosystem is minimal in terms of direct award, but it highlights the concentration of specialized defense contracts within larger, established firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. As a sole-source award, transparency might be limited compared to competed contracts. Accountability measures would rely on the contract's performance metrics and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Counter-UAS Systems
Defense Logistics Support
Rapid Capabilities Office Programs
Electronic Warfare Systems

Risk Flags

Sole-source award limits competition and potential for better pricing.
Cost-plus-fixed-fee contract requires diligent oversight to control costs.
Lack of detailed public information on 'programmatic activities'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.7 million to SRC INC. CONTRACTOR LOGISTICS SUPPORT (CLS), AND PROGRAMMATIC ACTIVITIES IN SUPPORT OF THE C-UAS FIXED SITE LOW, SLOW, SMALL UNMANNED AERIAL VEHICLE INTEGRATED DEFEAT SYSTEM (FS-LIDS) MANAGED BY THE INTEGRATED FIRES/RAPID CAPABILITIES OFFICE (IF/RCO)

Who is the contractor on this award?

The obligated recipient is SRC INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $45.7 million.

What is the period of performance?

Start: 2022-07-20. End: 2023-07-26.

What is the specific nature of the 'programmatic activities' included in this contract?

The term 'programmatic activities' is broad and can encompass a range of support functions beyond standard contractor logistics. For this contract, it likely includes services such as system integration, testing, training development, technical documentation, and potentially research and development related to the C-UAS FS-LIDS. Without further clarification from the Department of Defense or SRC Inc., the precise scope remains undefined. Understanding these activities is crucial for a comprehensive value assessment, as they may represent a significant portion of the contract's total value and contribute to the system's overall effectiveness and future development.

How does the cost-plus-fixed-fee (CPFF) structure influence the contractor's incentives and potential for cost overruns?

A Cost-Plus-Fixed-Fee (CPFF) contract structure involves the government reimbursing the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it also carries a risk of cost overruns if the initial cost estimates are inaccurate or if unforeseen issues arise during performance. The government must exercise rigorous oversight to monitor costs, ensure allowability, and prevent scope creep that could inflate expenses without a corresponding increase in the fixed fee. The effectiveness of this structure hinges on robust cost tracking and management by both the contractor and the contracting officer.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key performance indicators (KPIs) for a contract like this, focused on contractor logistics support and programmatic activities for a C-UAS system, would likely include metrics related to system availability, response times for support requests, successful completion of maintenance and repair tasks, accuracy and timeliness of programmatic documentation, and adherence to project milestones. For the C-UAS FS-LIDS, specific performance metrics might also relate to the system's operational readiness and effectiveness in detecting and mitigating threats. The contract's statement of work (SOW) would detail these specific KPIs and the acceptable performance thresholds. Regular performance reviews and reporting would be essential to track progress against these KPIs.

What is SRC Inc.'s track record with similar C-UAS or defense logistics contracts?

SRC Inc. has a documented history of providing advanced technology solutions and support to the U.S. military and intelligence agencies, including in areas related to radar, electronic warfare, and command and control systems. While specific details on their past performance on C-UAS logistics support contracts may not be publicly available, their general experience in defense systems suggests a foundational capability. A deeper dive into their contract history, past performance evaluations (if accessible), and any relevant certifications would provide a more definitive assessment of their suitability and track record for this specific C-UAS FS-LIDS contract. Their established presence in the defense sector indicates a level of familiarity with government contracting processes and requirements.

Are there any known risks associated with the C-UAS FS-LIDS system itself that this contract aims to mitigate?

The C-UAS FS-LIDS system is designed to counter the growing threat posed by small, low-flying, and slow-moving unmanned aerial vehicles, which can be difficult to detect and engage with traditional air defense systems. Risks associated with such systems include their potential use by adversaries for surveillance, disruption, or attack. This contract's focus on contractor logistics support and programmatic activities suggests it aims to ensure the system's operational readiness, maintainability, and potentially its ongoing development to adapt to evolving threats. Risks mitigated could include system downtime due to maintenance issues, obsolescence of components, or a lack of technical expertise for effective operation and sustainment, thereby ensuring the system remains a viable defense asset.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

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: $45,741,519

Exercised Options: $45,741,519

Current Obligation: $45,741,519

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $923,681

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W31P4Q20D0032

IDV Type: IDC

Timeline