Department of Defense awards BAE Systems $688M contract for MK90 Grain production
Contract Overview
Contract Amount: $687,940,601 ($687.9M)
Contractor: BAE Systems Ordnance Systems Inc
Awarding Agency: Department of Defense
Start Date: 2014-04-30
End Date: 2027-02-19
Sector: Defense
Official Description: AWARD FOR PRODUCTION OF MK90 GRAIN
Plain-Language Summary
Department of Defense obligated $687.9 million to BAE SYSTEMS ORDNANCE SYSTEMS INC for work described as: AWARD FOR PRODUCTION OF MK90 GRAIN Key points: 1. Significant contract awarded to a single, established defense contractor. 2. Long-term contract spanning over a decade indicates sustained demand. 3. Potential for cost overruns or production delays given the contract's duration. 4. Focus on a specific munition component suggests specialized production needs.
Value Assessment
Rating: good
The award value of approximately $688 million represents a substantial investment in munition production. The contract's extended duration suggests a consistent need for the MK90 Grain.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award to BAE Systems Ordnance Systems Inc. for the production of MK90 Grain. The specific nature of the munition likely necessitates a specialized manufacturer.
Taxpayer Impact: Taxpayer funds are committed to a long-term, specialized defense production contract.
Public Impact
Ensures continued availability of a critical munition component. Supports jobs within the defense manufacturing sector. Contributes to national defense readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term commitment could lock in costs if market prices decrease.
- Reliance on a single supplier poses supply chain risks.
- Potential for scope creep or changes in munition requirements over time.
Positive Signals
- Guarantees supply of a necessary defense material.
- Leverages existing expertise of a known contractor.
- Provides predictable demand for the supplier.
Sector Analysis
This contract falls within the defense industrial base, specifically focusing on the production of ordnance components. The Department of Defense relies on specialized contractors to maintain its munition stockpiles.
Small Business Impact
The contract was awarded to BAE Systems Ordnance Systems Inc., a large defense contractor. There is no indication of small business participation or set-aside provisions in this award.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is the awarding agency. Oversight will likely focus on production timelines, quality control, and adherence to specifications throughout the contract's duration.
Related Government Programs
- MK90 Grain Production
- Ordnance Systems
- Munitions Manufacturing
Risk Flags
- Sole-source award
- Long contract duration
Tags
defense-spending, department-of-defense, bae-systems, ordnance, munitions, mk90-grain, sole-source, long-term-contract, army
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $687.9 million to BAE SYSTEMS ORDNANCE SYSTEMS INC. AWARD FOR PRODUCTION OF MK90 GRAIN
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 $687.9 million.
What is the period of performance?
Start: 2014-04-30. End: 2027-02-19.
Analysis insight 1
The contract's length suggests a strategic, long-term need for this specific munition component.
Analysis insight 2
Further analysis could explore the competitive landscape for this type of ordnance production.
Analysis insight 3
Understanding the specific application of MK90 Grain would provide greater context for its importance.