DoD's $44.3M Radford Arsenal Tenant Support Services Contract Awarded to BAE Systems

Contract Overview

Contract Amount: $44,293,964 ($44.3M)

Contractor: BAE Systems Ordnance Systems Inc

Awarding Agency: Department of Defense

Start Date: 2012-01-23

End Date: 2026-12-31

Contract Duration: 5,456 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TENANT SUPPORT SERVICES AT RADFORD

Place of Performance

Location: RADFORD, RADFORD CITY County, VIRGINIA, 24141

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $44.3 million to BAE SYSTEMS ORDNANCE SYSTEMS INC for work described as: TENANT SUPPORT SERVICES AT RADFORD Key points: 1. Contract value represents significant investment in facilities support. 2. BAE Systems, a major defense contractor, holds this award. 3. The contract duration extends over several years, indicating long-term needs. 4. Facilities support services are critical for operational readiness. 5. The contract is structured as Firm Fixed Price, providing cost certainty. 6. This award is a Delivery Order under a larger contract vehicle.

Value Assessment

Rating: good

The total contract value of $44.3 million over its period of performance appears reasonable for comprehensive tenant support services at a large facility like the Radford Arsenal. Benchmarking against similar facilities support contracts is challenging without more specific service details, but the fixed-price nature suggests a degree of cost control. The contract's duration and scope imply a substantial operational requirement, and the pricing is likely competitive given the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a competitive bidding process generally leads to better pricing and service offerings for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces and encouraging a wide range of potential providers to compete for the business.

Public Impact

Provides essential facilities support services to the Radford Arsenal, ensuring operational continuity. Supports the Department of the Army's mission by maintaining critical infrastructure. The services likely impact the workforce at the Radford Arsenal by ensuring a functional and safe working environment. Geographic impact is concentrated at the Radford Arsenal in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price structure.
Reliance on a single contractor for critical support services could pose a risk if performance issues arise.

Positive Signals

Firm Fixed Price contract type provides cost predictability.
Long-term contract duration allows for stable service provision and potential for economies of scale.
Award to a large, established defense contractor like BAE Systems suggests a high likelihood of meeting performance requirements.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, is a significant sector within government contracting. This contract represents a substantial portion of spending within this niche, focusing on the maintenance and operation of government facilities. The market for these services is competitive, with many firms offering specialized solutions. This contract fits within the broader defense industrial base, supporting the operational needs of military installations.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). While BAE Systems is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on BAE Systems' procurement practices and the specific requirements of the tenant support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational oversight details are not publicly detailed.

Related Government Programs

Department of Defense Facilities Maintenance
Army Base Operations Support
Government Facilities Management Contracts
Defense Logistics Agency Support Services

Risk Flags

Long contract duration may not adapt to future technological changes.
Potential for performance degradation over extended contract period.
Reliance on a single provider for critical infrastructure support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.3 million to BAE SYSTEMS ORDNANCE SYSTEMS INC. TENANT SUPPORT SERVICES AT RADFORD

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS ORDNANCE SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $44.3 million.

What is the period of performance?

Start: 2012-01-23. End: 2026-12-31.

What is the historical spending trend for tenant support services at the Radford Arsenal?

Analyzing historical spending for tenant support services at the Radford Arsenal requires access to detailed contract databases and budget allocations over multiple fiscal years. Without specific historical data for this particular contract vehicle or similar preceding contracts at Radford, it's difficult to establish a precise trend. However, general trends in defense spending on base operations and facilities support suggest a consistent need for these services, often influenced by modernization efforts, force protection requirements, and overall defense budgets. Fluctuations may occur due to changes in operational tempo, infrastructure investment cycles, or shifts in contracting strategies. The current award of $44.3 million indicates a significant, ongoing investment in these services.

How does the performance of BAE Systems on similar contracts compare to industry benchmarks?

Evaluating BAE Systems' performance on similar contracts requires a detailed review of past performance evaluations, contract award histories, and any documented disputes or corrective actions. BAE Systems is a large, established defense contractor with a broad portfolio of services. Benchmarking their performance in facilities support would involve comparing metrics such as on-time delivery, quality of service, adherence to budget, and customer satisfaction against other major providers in the sector. Publicly available data often includes past performance ratings (e.g., CPARS), which can provide insights. Generally, large contractors like BAE Systems are expected to meet high performance standards due to their experience and resources, but specific contract performance can vary based on the complexity of the requirements and the effectiveness of government oversight.

What are the key performance indicators (KPIs) for this tenant support services contract?

Key Performance Indicators (KPIs) for a tenant support services contract typically focus on the reliability, responsiveness, and quality of the services provided. While the specific KPIs for this contract are not detailed in the provided data, common examples include response times for maintenance requests (e.g., HVAC, plumbing, electrical), preventative maintenance completion rates, facility cleanliness and upkeep standards, energy efficiency targets, and safety compliance metrics. The contract likely includes a performance-based payment structure or incentive clauses tied to achieving these KPIs, ensuring that the contractor is financially motivated to meet or exceed performance expectations. Government quality assurance personnel would monitor these KPIs throughout the contract duration.

What is the potential risk associated with the long duration of this contract (ending in 2026)?

The long duration of this contract, ending in December 2026, presents several potential risks. Firstly, technological advancements or changes in operational requirements at the Radford Arsenal could render some aspects of the current service scope obsolete or less efficient, leading to potential inefficiencies or the need for costly modifications. Secondly, market conditions for facilities support services could change significantly over this period, potentially offering better value through newer providers or technologies that are not captured by the current fixed-price agreement. Thirdly, there's a risk of contractor complacency or performance degradation over an extended period if oversight is not consistently rigorous. Finally, unforeseen geopolitical or budgetary shifts within the Department of Defense could impact the long-term necessity or funding levels for these services, although the fixed-price nature offers some budget predictability.

How does the 'Facilities Support Services' category compare in size to other major spending categories within the Department of the Army?

The 'Facilities Support Services' category, represented by NAICS code 561210, is a significant but generally smaller component compared to major defense spending categories such as weapons systems procurement, personnel costs, research and development, or large-scale construction projects. Within the Department of the Army's overall budget, facilities maintenance and operations are essential operational expenses that ensure readiness and functionality of installations. While specific dollar figures for this category across the entire Army are not provided, it typically represents a substantial portion of the 'Operations and Maintenance' (O&M) budget. Compared to the acquisition of major platforms like aircraft or ships, facilities support is a recurring operational cost rather than a capital investment, though crucial for enabling those other activities.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: STATE RT 114, RADFORD, VA, 24141

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,293,964

Exercised Options: $44,293,964

Current Obligation: $44,293,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J11G0002

IDV Type: BOA

Timeline