DoD's $26.77M BAE Systems Contract for OCONUS Mechanics: Full and Open Competition

Contract Overview

Contract Amount: $26,770,146 ($26.8M)

Contractor: BAE Systems Tactical Vehicle Systems LP

Awarding Agency: Department of Defense

Start Date: 2011-07-15

End Date: 2012-12-31

Contract Duration: 535 days

Daily Burn Rate: $50.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OCONUS MECHANICS

Place of Performance

Location: SEALY, COLORADO County, TEXAS, 77474

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP for work described as: OCONUS MECHANICS Key points: 1. Contract awarded to BAE Systems for OCONUS mechanics services. 2. Significant value of $26.77 million. 3. Full and open competition was utilized. 4. Sector is Defense, specifically military vehicle manufacturing.

Value Assessment

Rating: fair

The contract value of $26.77 million for OCONUS mechanics services is substantial. Without specific benchmarks for this niche service, a direct pricing assessment is difficult, but the firm fixed price suggests cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a broad solicitation process. This method generally promotes competitive pricing and allows for a wide range of potential contractors to bid, leading to potentially better price discovery.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for service providers.

Public Impact

Ensures operational readiness of military vehicles in overseas locations. Supports Department of the Navy's logistical and maintenance capabilities. Potential impact on troop deployment and mission success through vehicle uptime.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Geographic concentration of services (OCONUS) may limit competition.
  • Firm Fixed Price can lead to contractor risk if unforeseen issues arise.

Positive Signals

  • Full and open competition promotes best value.
  • Clear contract end date provides budget predictability.

Sector Analysis

This contract falls within the Defense sector, specifically supporting the maintenance of tactical vehicles. Spending in this area is critical for maintaining military readiness and operational capabilities abroad.

Small Business Impact

The data indicates the awardee is BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP, a large business. There is no explicit indication of small business participation in this specific award, which is common for specialized defense contracts.

Oversight & Accountability

Awarded by the Department of the Navy, oversight would typically involve contract officers and technical representatives ensuring performance and compliance with the firm fixed price terms.

Related Government Programs

  • Military Armored Vehicle, Tank, and Tank Component Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for cost overruns if unforeseen issues arise.
  • Logistical challenges of OCONUS support.
  • Dependence on a single large contractor for critical support.
  • Lack of explicit small business participation.

Tags

military-armored-vehicle-tank-and-tank-c, department-of-defense, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP. OCONUS MECHANICS

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 Navy).

What is the total obligated amount?

The obligated amount is $26.8 million.

What is the period of performance?

Start: 2011-07-15. End: 2012-12-31.

What specific mechanics services are included under this contract, and how do they contribute to overall vehicle readiness?

The contract covers 'OCONUS MECHANICS' services, implying maintenance, repair, and potentially operational support for military vehicles deployed outside the continental United States. These services are crucial for ensuring vehicle uptime and reliability in theater, directly impacting mission effectiveness and troop safety. Specifics would detail the types of repairs, parts management, and response times required.

Given the firm fixed price, what are the potential risks to the government if unforeseen maintenance issues arise in a remote OCONUS location?

With a firm fixed price, the contractor assumes the risk of cost overruns. However, if unforeseen issues require extensive or specialized repairs beyond the contract's scope, the government might face delays or need to negotiate a separate contract or modification. The remoteness of OCONUS locations can exacerbate logistical challenges and increase costs for the contractor, potentially leading to performance issues if not managed proactively.

How does the utilization of full and open competition for this specialized service ensure optimal value for taxpayer dollars?

Full and open competition allows multiple qualified vendors to bid, creating a competitive environment that typically drives down prices and encourages innovation. For specialized services like OCONUS mechanics, this process ensures that the Department of the Navy receives competitive proposals, increasing the likelihood of securing the best possible value and performance for the funds expended, rather than being limited to a single source.

Industry Classification

NAICS: ManufacturingOther Transportation Equipment ManufacturingMilitary Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: M6785407R5000

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 5000 INTERSTATE HWY 10 W, SEALY, TX, 77474

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,770,146

Exercised Options: $26,770,146

Current Obligation: $26,770,146

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5030

IDV Type: IDC

Timeline

Start Date: 2011-07-15

Current End Date: 2012-12-31

Potential End Date: 2012-12-31 00:00:00

Last Modified: 2019-03-22

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