DoD awards $23.6M for advanced sensor systems, with SRC Inc. as the sole provider

Contract Overview

Contract Amount: $23,583,305 ($23.6M)

Contractor: SRC Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-03

End Date: 2025-09-06

Contract Duration: 368 days

Daily Burn Rate: $64.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE PURPOSE OF THIS TASK ORDER W31P4Q24F0200 IS TO PROVIDE SIX (6) INCREMENT (INC.) 2.1 SYSTEMS FOR FS-LIDS & TEN (10) INC. 2.1 SYSTEMS FOR M-LIDS.

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to SRC INC for work described as: THE PURPOSE OF THIS TASK ORDER W31P4Q24F0200 IS TO PROVIDE SIX (6) INCREMENT (INC.) 2.1 SYSTEMS FOR FS-LIDS & TEN (10) INC. 2.1 SYSTEMS FOR M-LIDS. Key points: 1. The contract focuses on delivering Increment 2.1 systems for FS-LIDS and M-LIDS. 2. A firm-fixed-price structure indicates clear cost expectations for the government. 3. The sole-source nature of this award warrants scrutiny for potential price inflation. 4. Performance is expected over approximately one year, with a defined delivery schedule. 5. The contract falls under the manufacturing of search, detection, and navigation instruments. 6. This award represents a significant investment in specialized defense technology.

Value Assessment

Rating: fair

The total award of $23.6 million for 16 advanced sensor systems appears substantial. Without comparable sole-source awards or detailed cost breakdowns, it is difficult to definitively benchmark the value for money. The firm-fixed-price contract provides some cost certainty, but the lack of competition raises concerns about whether the government secured the best possible price. Further analysis of the contractor's historical pricing for similar systems would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, SRC Inc., was solicited. This approach is typically used when a unique capability is required or when only one source is capable of meeting the requirement. The absence of a competitive bidding process means that the government did not benefit from the price discovery that typically occurs in an open market, potentially leading to higher costs.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution. Without competing the requirement, there is a risk that the price paid is higher than it would have been in a competitive environment.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) units requiring advanced FS-LIDS and M-LIDS capabilities. The contract will deliver ten Increment 2.1 systems for M-LIDS and six for FS-LIDS. These systems are crucial for enhancing situational awareness and operational effectiveness in defense missions. The contract supports specialized manufacturing jobs within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the sole-source justification requires careful review.
The specific technical capabilities of Increment 2.1 systems are not detailed, making independent value assessment challenging.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to SRC Inc. leverages existing expertise in specialized sensor systems.
Defined delivery schedule ensures timely provision of critical defense technology.

Sector Analysis

This contract falls within the defense sector, specifically the manufacturing of advanced sensor and navigation systems. The market for such specialized equipment is often characterized by high barriers to entry due to technological complexity and stringent performance requirements. Comparable spending benchmarks are difficult to establish without more detailed system specifications, but investments in advanced ISR (Intelligence, Surveillance, and Reconnaissance) technologies are a significant component of defense budgets.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to SRC Inc., a likely larger entity, suggests that the focus was on specialized capabilities rather than small business participation. Further investigation into subcontracting plans would be needed to assess any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm-fixed-price nature of the award simplifies some aspects of financial oversight, but performance monitoring remains critical. Transparency regarding the sole-source justification and any subsequent modifications will be key indicators of accountability.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) programs
Intelligence, Surveillance, and Reconnaissance (ISR) systems
Tactical sensor technology development
Department of Defense procurement vehicles

Risk Flags

Sole-source award raises concerns about price reasonableness and competition.
Lack of detailed technical specifications hinders independent value assessment.
Potential for vendor lock-in due to specialized nature of the technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to SRC INC. THE PURPOSE OF THIS TASK ORDER W31P4Q24F0200 IS TO PROVIDE SIX (6) INCREMENT (INC.) 2.1 SYSTEMS FOR FS-LIDS & TEN (10) INC. 2.1 SYSTEMS FOR M-LIDS.

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 $23.6 million.

What is the period of performance?

Start: 2024-09-03. End: 2025-09-06.

What is the specific technical capability difference between Increment 2.1 systems and previous versions?

The provided data does not detail the specific technical advancements of Increment 2.1 systems for FS-LIDS (Forward-Looking Infrared Landing Gear Systems) and M-LIDS (Mobile-Light Integrated Defense Systems). Increment 2.1 likely represents an upgrade or a specific configuration of existing systems, potentially offering enhanced resolution, processing power, or new functionalities. Without further documentation, such as technical specifications or a system description document, it is impossible to quantify the precise improvements. Typically, incremented versions in defense systems signify iterative development, addressing evolving threats, operational feedback, or technological maturation. Understanding these specific upgrades is crucial for assessing the necessity of the sole-source award and the value proposition of the investment.

How does the $23.6 million award compare to historical spending on similar sensor systems by the DoD?

Direct comparison of the $23.6 million award for 16 Increment 2.1 systems is challenging without specific details on the system's capabilities and the historical pricing of comparable systems. The North American Industry Classification System (NAICS) code 334511 covers a broad range of 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' Historical spending data for similar sole-source awards for advanced sensor suites within the DoD could provide a benchmark. However, the unique nature of specialized defense technology, especially sole-sourced items, often means that direct historical comparisons are not readily available or may not accurately reflect current market conditions or technological advancements. A thorough analysis would require access to detailed contract histories for SRC Inc. and its competitors for similar systems.

What are the risks associated with a sole-source award for critical defense technology?

Sole-source awards for critical defense technology carry several inherent risks. Primarily, the lack of competition can lead to inflated prices, as the contractor faces no market pressure to offer the most cost-effective solution. This can result in taxpayers paying a premium for the equipment. Secondly, it can stifle innovation, as potential competitors are excluded from the market and may not develop alternative or superior technologies. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single supplier, making future procurements or transitions more difficult and expensive. Finally, without competitive proposals to evaluate, the government may have less assurance that it is acquiring the best possible technology or that the contractor's proposed costs are reasonable.

What is SRC Inc.'s track record with the Department of Defense for similar systems?

SRC Inc. has a documented history of providing defense systems and technologies to the Department of Defense. While the specific data provided does not detail their entire contract history, their selection for this sole-source award suggests they possess the necessary specialized capabilities and have likely performed satisfactorily on previous DoD contracts. To fully assess their track record for these specific FS-LIDS and M-LIDS Increment 2.1 systems, a deeper dive into their past performance reviews, contract awards, and any reported issues or successes with similar sensor or navigation systems would be necessary. Their established presence in the defense sector indicates a level of experience and capability that the DoD deemed essential for this requirement.

What are the potential implications of this contract on future defense spending in the sensor technology sector?

This contract, representing a significant investment in advanced sensor systems, signals the Department of Defense's continued focus on enhancing intelligence, surveillance, and reconnaissance capabilities. The sole-source nature of this award might indicate a perceived gap in the market or a reliance on SRC Inc.'s unique expertise for this specific Increment 2.1 technology. If these systems prove highly effective and become standard, future spending could involve follow-on sole-source orders or potentially a competitive process if other companies develop comparable technologies. It also highlights the ongoing trend of investing in sophisticated, integrated systems rather than standalone components, which could shape future procurement strategies and R&D priorities within the defense 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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

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: $23,583,305

Exercised Options: $23,583,305

Current Obligation: $23,583,305

Subaward Activity

Number of Subawards: 50

Total Subaward Amount: $11,989,384

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