Technology Insertion Hardware (TIH) 26

Laurel Technologies Parternship, dba DRS Laurel Technologies, Johnstown, Pennsylvania, was awarded a maximum $417,221,175 fixed-price-incentive fee, cost-plus-incentive fee, cost-plus-fixed fee, and cost reimbursable indefinite-delivery/indefinite-quantity contract for development, integration, and production of hardware solutions.

This contract will provide design, procurement, production, sparing, test, installation, and support of displays, workstations, processors, and network systems; the production of subsequent systems, kits and enclosures; and engineering and technical services. Work will be performed in Johnstown, Pennsylvania, Burnsville, Minnesota, and Largo, Florida and is expected to be completed in July 2029. This contract was competitively procured via the System for Award Management website, with one offer received.

CPIF is selected for core capability development, design services, and in-service legacy support in order to provide flexibility required for rapid technology insertion. CPIF is considered appropriate due to the magnitude of the scope of work and complexity, as well as schedule uncertainty. The solicitation requirements are difficult to define to the degree of certainty necessary for fixed price contracting, making cost reimbursable the appropriate choice.

As the Government is able to define labor categories and costs to the extent that we can incentivize cost performance, a CPIF contracting vehicle is the proper choice. The incentive fee component will incentivize cost control and a cost reimbursement contract allows the needed flexibility on these CLINs. A CPFF CLIN type was selected to procure material associated with items such as advanced production units, engineering development models, and end of life requirements.

For these items, the requirements are anticipated to be of nominal complexity where incentive fee would not be required to incentivize performance. It is, however, still appropriate to pay a fixed fee for contractor oversight and management of the tasks.