DoD's $21.1M BAE Systems Contract for Navigation Systems: Full and Open Competition

Contract Overview

Contract Amount: $21,166,309 ($21.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2015-12-17

End Date: 2016-12-31

Contract Duration: 380 days

Daily Burn Rate: $55.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF:CT:IGF FUNDING FOR CLINS 0007,0008,0009, AND 0014

Place of Performance

Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IGF:CT:IGF FUNDING FOR CLINS 0007,0008,0009, AND 0014 Key points: 1. Contract awarded to BAE Systems for navigation system components. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is $21.1 million over a 380-day period. 4. The North American Industry Classification System (NAICS) code is 334511, related to instrument manufacturing.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee (CPFF), which can lead to higher costs if not managed carefully. Without specific cost breakdowns or benchmarks for similar navigation system components, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by fostering a competitive environment.

Public Impact

Ensures the Air Force has necessary navigation and guidance systems. Supports a large defense contractor, potentially impacting employment. The spending contributes to the broader aerospace and defense manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize overspending.
Limited duration may indicate a need for future contracts.
No specific mention of small business participation.

Positive Signals

Full and open competition utilized.
Contract supports critical defense capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically related to the manufacturing of navigation and guidance systems. Spending in this area is crucial for military readiness and technological advancement.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if small businesses were excluded from the bidding process or if the contract scope was not suitable for them.

Oversight & Accountability

The contract was awarded as a delivery order under a larger framework, suggesting some level of pre-existing oversight. However, the CPFF structure necessitates diligent monitoring to control costs.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Limited contract duration.
No small business participation indicated.
Lack of detailed cost breakdown for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IGF:CT:IGF FUNDING FOR CLINS 0007,0008,0009, AND 0014

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $21.2 million.

What is the period of performance?

Start: 2015-12-17. End: 2016-12-31.

What was the competitive landscape like for this full and open competition, and how did it influence the final price?

While the award states 'full and open competition,' the specific number of bids received and the details of the bidding process are not provided. A robust competitive landscape typically drives down prices. Without this information, it's difficult to definitively state how competition impacted the final price, though the method itself is designed to achieve this.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this navigation system acquisition?

The primary risk with CPFF contracts is that the contractor may have less incentive to control costs, as the government agrees to cover all allowable costs plus a fixed fee. This can lead to cost overruns if not rigorously monitored by the contracting officer. For navigation systems, unexpected technical challenges could escalate costs.

How effectively does this contract contribute to the Department of the Air Force's long-term navigation system needs?

This contract addresses specific navigation system components for a defined period. Its effectiveness in meeting long-term needs depends on whether it's part of a broader strategy or a standalone solution. The short duration suggests it might be a component of a larger, ongoing program, but without more context, its long-term strategic contribution is unclear.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA252113R0008

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $21,166,309

Exercised Options: $21,166,309

Current Obligation: $21,166,309

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA252116D0010

IDV Type: IDC

Timeline