DoD Awards $51.6M for ITDS Retrofit Kits to BAE Systems, Lacking Competition
Contract Overview
Contract Amount: $51,595,894 ($51.6M)
Contractor: BAE Systems Tactical Vehicle Systems LP
Awarding Agency: Department of Defense
Start Date: 2012-09-19
End Date: 2014-10-24
Contract Duration: 765 days
Daily Burn Rate: $67.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR 7,500 ITDS RETROFIT KITS
Place of Performance
Location: SEALY, AUSTIN County, TEXAS, 77474
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $51.6 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP for work described as: DELIVERY ORDER FOR 7,500 ITDS RETROFIT KITS Key points: 1. Significant award to a single vendor, BAE Systems, for ITDS retrofit kits. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract is for military vehicle components, a sector with specialized manufacturing needs. 4. Long performance period of 765 days suggests a substantial project scope.
Value Assessment
Rating: questionable
The award of $51.6 million for 7,500 kits at approximately $6,879 per unit appears high without competitive benchmarking. The listed 'br' value of 67446 suggests a potential discrepancy or a different unit of measure, requiring further investigation.
Cost Per Unit: $6,879
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This approach bypasses competitive bidding, potentially leading to higher prices and reduced value for taxpayer money as market forces are not leveraged.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these ITDS retrofit kits, as BAE Systems was the sole provider without market pressure to offer the best price.
Public Impact
Military readiness may be impacted if the retrofit kits are critical for vehicle upgrades. Taxpayers may be overpaying for essential military equipment due to a lack of competitive bidding. The long duration of the contract could indicate a complex integration process or potential delays.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Potential Overpricing
- Sole-Source Award
Positive Signals
- Award to established defense contractor
- Specific need for ITDS retrofit kits
Sector Analysis
This contract falls under the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this area is often characterized by high unit costs due to specialized engineering, R&D, and stringent quality requirements, but competition is crucial to ensure value.
Small Business Impact
The contract was awarded directly to BAE Systems Tactical Vehicle Systems LP and there is no indication of subcontracting to small businesses. This award does not appear to support small business participation.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to understand the justification for bypassing the standard competitive procurement process. Accountability for the pricing and value received is essential given the significant award amount.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Absence of small business participation
- Unclear cost benchmarking ('br' value)
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.6 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP. DELIVERY ORDER FOR 7,500 ITDS RETROFIT KITS
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $51.6 million.
What is the period of performance?
Start: 2012-09-19. End: 2014-10-24.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's unclear why this contract was not competed. Agencies must demonstrate that competition was not feasible or would be detrimental to national security or mission requirements.
How does the per-unit cost of $6,879 compare to similar ITDS retrofit kits or components, and is the 'br' value of 67446 a relevant benchmark?
The per-unit cost of $6,879 requires careful comparison with industry benchmarks for similar military vehicle retrofits. The provided 'br' value of 67446 is ambiguous; if it represents a benchmark, its relevance and source need clarification. Without a clear benchmark, assessing cost-effectiveness is difficult.
What is the expected impact of these ITDS retrofit kits on the operational effectiveness and longevity of the military vehicles they are intended for?
The ITDS retrofit kits are presumably designed to enhance specific functionalities, upgrade outdated systems, or extend the service life of military vehicles. Their successful implementation is critical for maintaining fleet readiness and ensuring vehicles meet evolving operational demands and technological standards.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 9113 LE SAINT DR, FAIRFIELD, OH, 08
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,595,894
Exercised Options: $51,595,894
Current Obligation: $51,595,894
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV11D0131
IDV Type: IDC
Timeline
Start Date: 2012-09-19
Current End Date: 2014-10-24
Potential End Date: 2014-10-24 00:00:00
Last Modified: 2014-09-29
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