DoD awards $89.4M for FWS-I systems, with a significant portion allocated for spare parts and batteries

Contract Overview

Contract Amount: $89,445,138 ($89.4M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-18

End Date: 2024-08-30

Contract Duration: 1,808 days

Daily Burn Rate: $49.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE FOLLOWING ORDER IS FOR 10,747 FWS-I SYSTEMS W/O BATTERY PACK AND SPARE PARTS.

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75243

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $89.4 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: THE FOLLOWING ORDER IS FOR 10,747 FWS-I SYSTEMS W/O BATTERY PACK AND SPARE PARTS. Key points: 1. The contract value of $89.4 million for 10,747 FWS-I systems indicates a per-unit cost of approximately $8,300, excluding batteries and spare parts. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (1808 days) points to a long-term need for these specialized optical instruments. 4. The primary contractor, DRS Network & Imaging Systems LLC, is a significant player in the defense optics market. 5. The contract is a firm fixed-price delivery order, which shifts cost risk to the contractor. 6. The absence of battery packs in the base order suggests a separate procurement strategy or user-provided equipment.

Value Assessment

Rating: good

The per-unit cost of approximately $8,300 for the FWS-I systems, excluding batteries and spare parts, appears reasonable given the specialized nature of optical instruments for defense applications. Benchmarking against similar advanced electro-optical systems used by military branches suggests this pricing is within an expected range. The firm fixed-price structure further supports value by capping potential cost overruns for the government.

Cost Per Unit: Approximately $8,300 per system (excluding batteries and spare parts).

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which can lead to more favorable pricing and better terms for the government. The open competition suggests that the market for these specialized optical systems is robust enough to support multiple capable vendors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is expected to drive down costs through market forces and ensure the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize the FWS-I systems for enhanced situational awareness and operational capabilities. The contract delivers 10,747 FWS-I systems, crucial for surveillance, reconnaissance, and targeting operations. The contract has a geographic impact primarily within the United States, with potential deployment to various operational theaters globally. The contract supports jobs within the defense manufacturing sector, specifically in optical instrument and lens manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if spare parts and battery packs are procured separately at higher prices.
Dependence on a single contractor for specialized systems could pose supply chain risks.
The long contract duration might lead to technological obsolescence if not managed proactively.

Positive Signals

Firm fixed-price contract structure protects the government from cost overruns.
Full and open competition suggests a healthy market and potential for competitive pricing.
The contract is for a significant quantity of systems, indicating a standardized and validated requirement.

Sector Analysis

The contract falls within the Optical Instrument and Lens Manufacturing sector, a niche but critical part of the broader defense industrial base. This sector is characterized by high technological barriers to entry and specialized expertise. Spending in this area is driven by military modernization efforts and the need for advanced surveillance and targeting equipment. Comparable spending benchmarks would involve other electro-optical and infrared (EO/IR) systems procurements for military applications.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, DRS Network & Imaging Systems LLC, may engage small businesses as subcontractors for components or services, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price delivery order structure, requiring the contractor to meet specifications and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics are typically not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Night Vision Systems
Electro-Optical Systems
Targeting Systems
Surveillance Equipment
Military Optics

Risk Flags

Potential for technological obsolescence due to long contract duration.
Supply chain risks for specialized components.
Dependence on contractor's ability to maintain production quality over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $89.4 million to DRS NETWORK & IMAGING SYSTEMS LLC. THE FOLLOWING ORDER IS FOR 10,747 FWS-I SYSTEMS W/O BATTERY PACK AND SPARE PARTS.

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 $89.4 million.

What is the period of performance?

Start: 2019-09-18. End: 2024-08-30.

What is the specific capability of the FWS-I system and how does it compare to previous generations or competitor systems?

The FWS-I (Forward Looking Infrared - Integrated) system is an advanced electro-optical sensor designed to provide soldiers with enhanced situational awareness, particularly in low-light or adverse weather conditions. It typically integrates thermal imaging (infrared) capabilities with other sensor modalities for improved target detection, identification, and tracking. Compared to older generations, FWS-I systems often feature higher resolution, increased range, digital interfaces, and reduced size, weight, and power (SWaP) requirements. Competitor systems in this space include various integrated helmet-mounted displays and weapon-mounted sights from manufacturers like L3Harris, BAE Systems, and FLIR Systems, each offering unique feature sets and performance characteristics tailored to specific military roles and platforms.

How does the $8,300 per-unit cost benchmark against similar defense optics procurements?

The benchmark of approximately $8,300 per FWS-I system (excluding batteries and spare parts) appears competitive when considering the complexity and advanced technology inherent in modern military electro-optical systems. For instance, advanced helmet-mounted displays or weapon sights with comparable infrared and integrated display capabilities can range from $5,000 to over $20,000 per unit, depending on features, performance, and manufacturer. Given that this contract is for a large quantity (10,747 units) and was awarded under full and open competition, the price suggests a favorable negotiation or a mature production process for this specific system. However, a precise comparison would require detailed specifications of the FWS-I system and direct benchmarking against other specific, recently awarded contracts for similar capabilities.

What are the primary risks associated with this contract, considering its long duration and specialized nature?

The primary risks associated with this long-duration contract for specialized FWS-I systems include technological obsolescence, supply chain disruptions, and potential cost growth if not managed effectively. As military technology evolves rapidly, there's a risk that the FWS-I systems could become outdated before the contract's end date, potentially diminishing their operational value. The specialized nature of the components and manufacturing processes could also lead to supply chain vulnerabilities, especially if reliant on a limited number of suppliers. While the firm fixed-price structure mitigates direct cost overrun risk for the government, the contractor might face challenges in maintaining profitability if component costs rise unexpectedly or if production issues arise, potentially impacting delivery schedules or system quality.

What is the historical spending pattern for FWS-I systems or similar optical equipment by the Department of Defense?

Historical spending on Forward Looking Infrared (FLIR) systems and similar advanced optical and electro-optical/infrared (EO/IR) equipment by the Department of Defense has been substantial and consistent, reflecting the critical role these technologies play in modern warfare. Over the past decade, DoD has invested billions of dollars in various generations of night vision, thermal imaging, and integrated sensor systems across all branches. This includes programs for individual soldier systems (like helmet-mounted sights), vehicle-mounted sensors, and airborne platforms. Spending often fluctuates based on modernization cycles, specific operational needs (e.g., deployments in certain theaters), and technological advancements. The $89.4 million awarded here represents a significant, but not unprecedented, investment within this broader category of defense optics procurement.

How does the contractor, DRS Network & Imaging Systems LLC, perform on similar government contracts?

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a significant track record of performing on large defense contracts, particularly in the realm of electro-optical and infrared systems. Publicly available contract data indicates numerous awards from the Department of Defense and other federal agencies for similar technologies, including night vision devices, targeting systems, and surveillance equipment. Performance reviews and past performance ratings on these contracts are typically assessed during the bidding process for new awards. While specific details of past performance are often proprietary, the company's continued success in securing large-value contracts suggests a generally positive performance history and capability to meet government requirements, although like any large contractor, specific contract outcomes can vary.

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: 1

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: $89,445,138

Exercised Options: $89,445,138

Current Obligation: $89,445,138

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $657,684

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