DoD Awards BAE Systems $24.3M for Radford Ammunition Plant Solvent Recovery Area
Contract Overview
Contract Amount: $24,321,479 ($24.3M)
Contractor: BAE Systems Ordnance Systems Inc
Awarding Agency: Department of Defense
Start Date: 2012-09-24
End Date: 2017-04-30
Contract Duration: 1,679 days
Daily Burn Rate: $14.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DESIGN AND CONSTRUCTION OF A NEW SOLVENT RECOVERY DISTILLATION AREA AT RADFORD ARMY AMMUNITION PLANT
Place of Performance
Location: RADFORD, RADFORD CITY County, VIRGINIA, 24141
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.3 million to BAE SYSTEMS ORDNANCE SYSTEMS INC for work described as: DESIGN AND CONSTRUCTION OF A NEW SOLVENT RECOVERY DISTILLATION AREA AT RADFORD ARMY AMMUNITION PLANT Key points: 1. Significant investment in critical infrastructure for defense manufacturing. 2. BAE Systems, a major defense contractor, secured the award. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type is Firm Fixed Price, providing cost certainty.
Value Assessment
Rating: good
The contract value of $24.3 million for facilities support services appears reasonable given the scope of designing and constructing a new distillation area. Benchmarking against similar large-scale industrial construction projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The investment supports national defense readiness, with taxpayer funds allocated to modernize critical industrial facilities.
Public Impact
Enhances the operational capacity and safety of a key ammunition production facility. Supports the long-term viability and efficiency of defense manufacturing processes. Contributes to environmental compliance by improving solvent recovery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex construction projects.
- Dependence on a single large contractor for critical infrastructure.
Positive Signals
- Modernization of essential defense industrial base.
- Use of competitive bidding process.
- Firm Fixed Price contract provides cost control.
Sector Analysis
This contract falls under Facilities Support Services, a broad category often involving significant construction and maintenance for industrial sites. Spending in this sector is driven by the need to maintain and upgrade aging infrastructure and meet evolving operational requirements.
Small Business Impact
The data indicates this contract was not awarded to small businesses. While large prime contractors are essential for major projects, opportunities for small businesses may exist further down the subcontracting chain.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects and contract performance would be in place.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns.
- Long project duration.
- Dependence on a single large contractor.
- Complexity of construction and integration.
Tags
facilities-support-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.3 million to BAE SYSTEMS ORDNANCE SYSTEMS INC. DESIGN AND CONSTRUCTION OF A NEW SOLVENT RECOVERY DISTILLATION AREA AT RADFORD ARMY AMMUNITION PLANT
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 $24.3 million.
What is the period of performance?
Start: 2012-09-24. End: 2017-04-30.
What was the competitive landscape like during the bidding process, and how did it influence the final price?
The contract was awarded under full and open competition, suggesting multiple bids were received. While specific bid details are not provided, this method typically fosters price competition, leading to a more favorable outcome for the government compared to sole-source or limited competition scenarios. The final price reflects the negotiated terms based on the proposals submitted.
What are the primary risks associated with the construction and implementation of this new distillation area?
Key risks include potential construction delays, unforeseen site conditions, and cost overruns, common in large industrial projects. There's also a risk related to the long-term operational effectiveness and maintenance costs of the new system. Ensuring robust project management and contingency planning is crucial to mitigate these risks.
How does this investment contribute to the overall effectiveness and modernization of the Radford Ammunition Plant's operations?
This investment is crucial for modernizing the plant's solvent recovery capabilities, directly impacting operational efficiency, environmental compliance, and safety. An upgraded distillation area can lead to reduced waste, lower operating costs, and improved production output, thereby enhancing the plant's overall effectiveness and readiness.
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
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: $24,321,479
Exercised Options: $24,321,479
Current Obligation: $24,321,479
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J11G0002
IDV Type: BOA
Timeline
Start Date: 2012-09-24
Current End Date: 2017-04-30
Potential End Date: 2017-04-30 12:04:00
Last Modified: 2016-07-06
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