DoD Awards $67.9M for CHPP Powerhouse Design to BAE Systems, Full and Open Competition

Contract Overview

Contract Amount: $67,911,587 ($67.9M)

Contractor: BAE Systems Ordnance Systems Inc

Awarding Agency: Department of Defense

Start Date: 2013-12-19

End Date: 2020-11-13

Contract Duration: 2,521 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TO AWARD THE COMBINED HEATING AND POWER PLANT (CHPP) POWERHOUSE PHASE I DESIGN EFFORT.

Place of Performance

Location: RADFORD, RADFORD CITY County, VIRGINIA, 24141

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $67.9 million to BAE SYSTEMS ORDNANCE SYSTEMS INC for work described as: TO AWARD THE COMBINED HEATING AND POWER PLANT (CHPP) POWERHOUSE PHASE I DESIGN EFFORT. Key points: 1. Significant investment in critical infrastructure for military facilities. 2. BAE Systems secured a large contract, indicating strong capabilities in this niche. 3. Potential for cost overruns or schedule delays in complex design projects. 4. Facilities Support Services sector sees substantial contract activity.

Value Assessment

Rating: good

The contract value of $67.9M for a design effort appears reasonable given the scope of a Combined Heating and Power Plant Powerhouse Phase I. Benchmarking against similar large-scale facility design contracts 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, suggesting a robust price discovery process. This method generally leads to more competitive pricing for the government.

Taxpayer Impact: The competitive award process is expected to yield good value for taxpayer dollars on this significant infrastructure project.

Public Impact

Enhances energy resilience and operational capabilities at military installations. Supports long-term infrastructure modernization efforts within the Department of Defense. Potential for job creation in engineering and design sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Complexity of CHPP design may lead to unforeseen costs.
Long contract duration increases risk of scope creep or market changes.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type limits government cost risk.
BAE Systems is a reputable defense contractor.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically related to the design of critical energy infrastructure. Spending in this area is often driven by modernization needs and energy resilience goals for government facilities.

Small Business Impact

While the prime contractor is BAE Systems, a large corporation, the subcontracting opportunities for small businesses in specialized design or support roles are not detailed in this award data. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of the Army's oversight of this design contract is crucial to ensure adherence to specifications, budget, and schedule. Regular progress reviews and quality assurance checks are standard oversight mechanisms.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Contract duration is lengthy (2521 days).
CHPP design is technically complex.
Potential for scope creep over the design period.
Reliance on a single prime contractor for critical design.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.9 million to BAE SYSTEMS ORDNANCE SYSTEMS INC. TO AWARD THE COMBINED HEATING AND POWER PLANT (CHPP) POWERHOUSE PHASE I DESIGN EFFORT.

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 $67.9 million.

What is the period of performance?

Start: 2013-12-19. End: 2020-11-13.

What is the estimated total project cost for the full CHPP construction, and how does this design contract fit into that larger budget?

The provided data only covers the Phase I design effort, totaling $67.9M. The full construction cost is not specified. Understanding the total lifecycle cost is essential for evaluating the long-term value and financial commitment required for the complete CHPP project. This design contract represents an initial, albeit significant, investment.

What are the specific performance metrics or milestones for this design contract, and how will BAE Systems' performance be evaluated?

Performance evaluation for this design contract would typically involve adherence to technical specifications, timely delivery of design documents, and compliance with budget constraints. Key milestones would likely include preliminary design reviews, final design approval, and submission of all necessary construction-ready plans. The government contracting officer would monitor these aspects.

Are there any identified risks associated with BAE Systems' ability to deliver this complex design, given their past performance or the project's technical challenges?

While BAE Systems is a large and experienced contractor, the complexity of a CHPP design presents inherent technical risks. The data does not specify any particular performance concerns with BAE Systems for this contract. However, thorough risk management by the Army, including contingency planning for potential design challenges or delays, is vital.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

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: $67,911,587

Exercised Options: $67,911,587

Current Obligation: $67,911,587

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J11G0002

IDV Type: BOA

Timeline