DoD's $36M CONUS Integration Contract Awarded to BAE Systems for Military Vehicles

Contract Overview

Contract Amount: $36,075,184 ($36.1M)

Contractor: BAE Systems Tactical Vehicle Systems LP

Awarding Agency: Department of Defense

Start Date: 2012-01-19

End Date: 2014-03-31

Contract Duration: 802 days

Daily Burn Rate: $45.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONUS INTEGRATION - INTEGRATION

Place of Performance

Location: SEALY, COLORADO County, TEXAS, 77474

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $36.1 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP for work described as: CONUS INTEGRATION - INTEGRATION Key points: 1. The contract, valued at $36.08 million, was awarded to BAE Systems Tactical Vehicle Systems LP. 2. This represents a significant investment in military armored vehicle manufacturing. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract duration is 802 days, indicating a medium-term project.

Value Assessment

Rating: good

The contract's total value of $36.08 million for integration services appears reasonable given the scope of military vehicle components. Benchmarking against similar defense contracts for specialized vehicle integration would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically leads to more competitive pricing and ensures the government receives the best value. The use of a delivery order under a larger contract structure suggests a structured procurement process.

Taxpayer Impact: Taxpayer funds are being utilized for the enhancement and integration of military vehicles, contributing to national defense capabilities.

Public Impact

Enhances the capabilities of the U.S. Navy's armored vehicle fleet. Supports the defense industrial base and manufacturing sector in Texas. Contributes to the readiness and effectiveness of military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for cost overruns in complex integration projects.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type limits cost risk to the government.
BAE Systems is a well-established defense contractor.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on military armored vehicle manufacturing and integration. Spending in this area is critical for national security and often involves substantial investments in specialized technologies and production capabilities.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as BAE Systems is a large prime contractor. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

The Department of the Navy, as the awarding agency, is responsible for overseeing this contract. Standard government oversight mechanisms for defense contracts would apply to ensure performance and compliance.

Related Government Programs

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

Risk Flags

Contract awarded to a single large prime contractor.
Specific performance metrics not detailed in the provided summary.
Potential for scope creep in complex integration projects.
Reliance on a specific contractor for critical vehicle integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.1 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP. CONUS INTEGRATION - INTEGRATION

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 $36.1 million.

What is the period of performance?

Start: 2012-01-19. End: 2014-03-31.

What specific integration tasks are included in this contract, and how do they contribute to overall vehicle performance?

The contract likely involves integrating various subsystems, such as communication, navigation, power, and weapon systems, into the armored vehicle platforms. These integration efforts are crucial for ensuring seamless operation of all components, enhancing the vehicle's combat effectiveness, survivability, and mission capability. Detailed specifications would be found in the contract's statement of work.

What are the potential risks associated with the integration of complex military vehicle systems, and how are they mitigated?

Risks include technical challenges, interoperability issues between different systems, schedule delays, and cost overruns. Mitigation strategies typically involve rigorous testing and validation, clear technical requirements, experienced project management, and contingency planning. The firm fixed price nature of this contract also shifts some cost risk to the contractor.

How does this contract contribute to the long-term technological advancement and readiness of the U.S. military's armored vehicle fleet?

This contract supports the modernization and sustainment of critical military assets. By ensuring effective integration of advanced technologies, it enhances the operational capabilities and lifespan of armored vehicles, contributing to the overall readiness and technological superiority of the U.S. armed forces in the field.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military 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

Offers Received: 10

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: $36,075,184

Exercised Options: $36,075,184

Current Obligation: $36,075,184

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $2,680,269

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5030

IDV Type: IDC

Timeline