DoD's $76M Engineering Services Contract Awarded to DRS Network & Imaging Systems Lacks Competition

Contract Overview

Contract Amount: $76,346,354 ($76.3M)

Contractor: DRS Network & Imaging Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2012-04-13

End Date: 2019-11-05

Contract Duration: 2,762 days

Daily Burn Rate: $27.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF DSESTS/ ED STS AND REPAIR

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $76.3 million to DRS NETWORK & IMAGING SYSTEMS, LLC for work described as: IGF::OT::IGF DSESTS/ ED STS AND REPAIR Key points: 1. Significant spending on engineering services for DSESTS/ED STS and repair. 2. Sole awardee, DRS Network & Imaging Systems, LLC, raises competition concerns. 3. Contract duration of 2762 days suggests long-term reliance. 4. Lack of small business participation noted.

Value Assessment

Rating: questionable

The total award amount of $76.3 million over approximately 7.6 years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar engineering services contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded as 'NOT COMPETED', indicating a sole-source or limited competition scenario. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a fully competitive process, impacting taxpayer value.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. The long contract duration raises questions about ongoing need and potential for future sole-source awards. Limited transparency into the justification for not competing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
No Small Business Participation
Long Contract Duration
Cost Plus Fixed Fee Structure

Positive Signals

Definitive Contract Awarded
Specific Engineering Services Provided

Sector Analysis

Engineering services, particularly within the defense sector, are critical for complex system development and maintenance. Spending benchmarks vary widely based on the specific nature of the services and the agency involved.

Small Business Impact

The contract data indicates that small businesses were not involved in this award (ss: false, sb: false). This represents a missed opportunity to support small business growth and potentially leverage specialized capabilities.

Oversight & Accountability

The 'NOT COMPETED' status warrants further investigation by oversight bodies to ensure the justification for sole-source procurement was valid and that taxpayer funds were used efficiently.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of Competition
Sole-Source Award
No Small Business Participation
Cost-Plus Fixed Fee Structure
Long Contract Duration (2762 days)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.3 million to DRS NETWORK & IMAGING SYSTEMS, LLC. IGF::OT::IGF DSESTS/ ED STS AND REPAIR

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 $76.3 million.

What is the period of performance?

Start: 2012-04-13. End: 2019-11-05.

What was the specific justification for awarding this significant engineering services contract on a sole-source basis?

The provided data does not include the specific justification for awarding this contract on a sole-source basis. Typically, sole-source awards require a documented justification, such as the unavailability of other sources, urgent and compelling needs, or specific national security requirements. Further review of the contract file would be necessary to ascertain the official reason.

How does the cost-plus-fixed-fee structure impact the risk and potential for cost overruns in this contract?

A Cost Plus Fixed Fee (CPFF) contract shares risk between the government and the contractor. While the contractor is incentivized to control costs to maximize their fixed fee, the government bears the risk of cost overruns if the actual costs exceed the estimate. This structure can be less cost-effective than fixed-price contracts if not carefully managed and monitored.

What is the long-term strategic value of this engineering services contract for the Department of the Army?

The long-term strategic value hinges on the criticality of the DSESTS/ED STS and repair services to the Army's operational readiness and technological advancement. If these services are essential and unique, the contract's value is high. However, the lack of competition and the CPFF structure raise questions about the efficiency and adaptability of this long-term investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV11R0196

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA

Address: 110 WYNN DR NW, HUNTSVILLE, AL, 35805

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

Financial Breakdown

Contract Ceiling: $126,903,649

Exercised Options: $126,631,313

Current Obligation: $76,346,354

Actual Outlays: $2,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline