Army awards $44M for LRIP weapon systems to DRS Network & Imaging Systems, impacting optical instrument manufacturing
Contract Overview
Contract Amount: $43,996,180 ($44.0M)
Contractor: DRS Network & Imaging Systems LLC
Awarding Agency: Department of Defense
Start Date: 2018-08-31
End Date: 2024-09-30
Contract Duration: 2,222 days
Daily Burn Rate: $19.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FAMILY OF WEAPON SITES - INDIVIDUAL LRIP SYSTEMS PY 2018
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75243
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $44.0 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: FAMILY OF WEAPON SITES - INDIVIDUAL LRIP SYSTEMS PY 2018 Key points: 1. Spending is concentrated with a single contractor, DRS Network & Imaging Systems. 2. The contract is for Low Rate Initial Production (LRIP) systems, suggesting early-stage development. 3. The sector is Optical Instrument and Lens Manufacturing, a specialized defense area. 4. The contract duration is significant, spanning over 2200 days.
Value Assessment
Rating: fair
The total award is $43,996,179.6. Without specific unit details or historical pricing for similar LRIP systems, a direct per-unit cost comparison is difficult. The benchmark of $1,980,000 per unit suggests a high-value, complex system.
Cost Per Unit: $1,980,000
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes competitive pricing, though the specific price discovery achieved is not detailed.
Taxpayer Impact: Taxpayer funds are being used for advanced weapon system development and production, with the aim of acquiring critical defense capabilities.
Public Impact
Supports the development and initial production of advanced weapon systems for the Army. Invests in specialized manufacturing capabilities within the optical instrument sector. Contributes to national defense readiness through the acquisition of new technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2222 days) may lead to cost overruns or scope creep.
- LRIP phase can be subject to significant changes before full-rate production.
- Reliance on a single contractor for this specific system.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type helps control costs.
- Supports critical defense modernization efforts.
Sector Analysis
This contract falls within the Optical Instrument and Lens Manufacturing sector, which is crucial for defense applications. Spending benchmarks in this niche area are highly dependent on the specific technology and system complexity.
Small Business Impact
The data indicates the prime contractor is DRS Network & Imaging Systems LLC, a large business. There is no explicit information provided regarding subcontracting to small businesses on this particular award.
Oversight & Accountability
The Department of the Army is the procuring agency. Oversight would typically involve program management, quality assurance, and contract administration to ensure delivery and performance standards are met.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration
- LRIP phase uncertainty
- Potential for cost growth
- Single prime contractor dependency
Tags
optical-instrument-and-lens-manufacturin, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.0 million to DRS NETWORK & IMAGING SYSTEMS LLC. FAMILY OF WEAPON SITES - INDIVIDUAL LRIP SYSTEMS PY 2018
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 $44.0 million.
What is the period of performance?
Start: 2018-08-31. End: 2024-09-30.
What is the projected value of subsequent production runs after this LRIP phase?
The current award covers the Low Rate Initial Production (LRIP) phase, totaling $43,996,179.6. Information regarding the full-rate production quantities, schedule, and associated costs is not provided in this data. Future contract actions will determine the overall program value and taxpayer investment beyond this initial phase.
What are the key performance metrics and acceptance criteria for these LRIP systems?
Specific performance metrics and acceptance criteria for the LRIP systems are not detailed in the provided data. Typically, these would be outlined in the contract's Statement of Work (SOW) and technical specifications. The Army's program office would be responsible for monitoring adherence to these standards during testing and acceptance.
How does the per-unit cost benchmark compare to similar defense optics programs?
The per-unit cost benchmark of $1,980,000 is substantial, reflecting the likely complexity and advanced nature of these weapon systems. A comprehensive comparison would require access to pricing data for comparable LRIP systems within the defense sector, considering factors like technological maturity and production scale.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W91CRB13R0028
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,996,180
Exercised Options: $43,996,180
Current Obligation: $43,996,180
Actual Outlays: $2,036,097
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $63,863
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W91CRB14D0011
IDV Type: IDC
Timeline
Start Date: 2018-08-31
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-12-31
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