DoD Awards $117M for 9,754 FWS-I Systems to DRS Network & Imaging

Contract Overview

Contract Amount: $117,138,300 ($117.1M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2024-05-29

End Date: 2025-11-24

Contract Duration: 544 days

Daily Burn Rate: $215.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER TO DRS NETWORK AND IMAGING FOR A QUANTITY OF 9,754 FWS-I SYSTEMS AGAINST CLIN 0005

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $117.1 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: DELIVERY ORDER TO DRS NETWORK AND IMAGING FOR A QUANTITY OF 9,754 FWS-I SYSTEMS AGAINST CLIN 0005 Key points: 1. Significant award for advanced optical systems, indicating demand in defense imaging. 2. DRS Network & Imaging Systems LLC is a key player in this specialized manufacturing sector. 3. The contract's firm-fixed-price structure aims to control costs, but potential risks exist in large-scale production. 4. Spending aligns with broader defense investments in surveillance and reconnaissance technology.

Value Assessment

Rating: good

The award of $117.1M for 9,754 units suggests a per-unit cost of approximately $12,000. This appears reasonable given the specialized nature of FWS-I systems, likely involving advanced optics and electronics. Benchmarking against similar complex electro-optical systems would provide a more precise assessment.

Cost Per Unit: $12,000 (estimated)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery and ensuring the government receives competitive pricing. This method allows all eligible contractors to bid, fostering a market-driven outcome.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by driving down prices through market forces.

Public Impact

Enhances military surveillance and targeting capabilities with advanced imaging systems. Supports technological advancement in the defense optics sector. Potential for job creation within DRS Network & Imaging Systems and its supply chain. Ensures readiness for Army operations requiring sophisticated optical equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for production delays given the quantity and complexity.
Reliance on a single supplier for this specific system.
Risk of obsolescence if technology rapidly advances.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract helps manage cost overruns.
Long-term contract duration allows for stable production planning.

Sector Analysis

This award falls within the Optical Instrument and Lens Manufacturing sector, a critical component of the defense industry. Spending in this area is often driven by modernization efforts and the need for advanced situational awareness technologies. Benchmarks are difficult without specific system details, but large defense contracts for electro-optical systems can range from tens to hundreds of millions.

Small Business Impact

While the prime contractor is DRS Network & Imaging Systems LLC, the contract details do not specify any subcontracting goals for small businesses. Further investigation would be needed to determine the extent of small business participation in this award.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for oversight. The firm-fixed-price contract type provides a degree of cost control. However, ongoing monitoring of performance, quality, and delivery schedules will be crucial for accountability.

Related Government Programs

Optical Instrument and Lens Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Large quantity award
Complex technology
Potential for production challenges
Long-term delivery schedule

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $117.1 million to DRS NETWORK & IMAGING SYSTEMS LLC. DELIVERY ORDER TO DRS NETWORK AND IMAGING FOR A QUANTITY OF 9,754 FWS-I SYSTEMS AGAINST CLIN 0005

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 $117.1 million.

What is the period of performance?

Start: 2024-05-29. End: 2025-11-24.

What is the specific technological advantage offered by the FWS-I systems that justifies the estimated per-unit cost?

The FWS-I (Forward-Looking Weapon System - Infrared) systems likely provide advanced infrared imaging capabilities for target acquisition and tracking in various weather and lighting conditions. Their value lies in enhancing soldier and platform effectiveness, potentially reducing collateral damage, and improving mission success rates. The specific technological advancements, such as sensor resolution, processing power, and integration capabilities, contribute to the estimated per-unit cost.

What are the primary risks associated with the firm-fixed-price contract for such a large quantity of advanced systems?

The primary risks with a firm-fixed-price contract for a large quantity of advanced systems include potential quality compromises if the contractor seeks to reduce costs, or significant contractor losses if unforeseen production challenges arise, potentially leading to delays or contract disputes. Ensuring robust quality assurance and performance monitoring by the Army is critical to mitigate these risks.

How effectively will these FWS-I systems integrate with existing Army platforms and command and control systems?

The effectiveness of integration depends heavily on the system's design specifications and adherence to interoperability standards. Successful integration ensures seamless data flow for improved situational awareness and coordinated action. The Army's program management and testing phases are crucial for verifying that the FWS-I systems function as intended within the broader network, maximizing their operational value.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91CRB21R0012

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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $117,138,300

Exercised Options: $117,138,300

Current Obligation: $117,138,300

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $4,203,494

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB22D0008

IDV Type: IDC

Timeline