DoD's $19.7M Engineering Services Contract Awarded to BAE Systems
Contract Overview
Contract Amount: $19,681,742 ($19.7M)
Contractor: BAE Systems Technology Solutions & Services Inc.
Awarding Agency: Department of Defense
Start Date: 2012-01-26
End Date: 2015-08-01
Contract Duration: 1,283 days
Daily Burn Rate: $15.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROFESSIONAL SERVICES
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: PROFESSIONAL SERVICES Key points: 1. Contract awarded to BAE Systems for engineering services. 2. Full and open competition was utilized. 3. The contract duration was 1283 days. 4. The contract was awarded by the Department of the Navy. 5. The total value of the award was $19,681,741.82.
Value Assessment
Rating: good
The contract value of $19.7 million over approximately 3.5 years suggests a reasonable annual spend for specialized engineering services. Benchmarking against similar large-scale engineering support contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified vendors to bid, fostering a competitive environment that should drive down costs and ensure fair market pricing.
Taxpayer Impact: Taxpayer funds were likely used efficiently due to the competitive bidding process, ensuring the government received competitive pricing for the engineering services.
Public Impact
Ensures continued engineering support for naval operations. Supports a major defense contractor, potentially impacting jobs. Funds advanced technological development within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long, potentially leading to scope creep or outdated technology if not managed well.
- No small business participation noted, missing opportunities for smaller innovative firms.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type helps control costs.
- Awarded by a major agency (DoD).
Sector Analysis
This contract falls within the professional services sector, specifically engineering services, which are critical for defense applications. Spending benchmarks for similar engineering support contracts within the DoD can vary significantly based on scope and duration.
Small Business Impact
The contract was not awarded to small businesses, indicating a missed opportunity to support the small business industrial base. Future solicitations could consider set-asides or subcontracting requirements to increase small business involvement.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The firm fixed price contract type provides some cost control, but ongoing monitoring of performance and deliverables is crucial to ensure accountability and value.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration.
- No small business participation.
- Potential for scope creep.
- Reliance on a single large contractor.
Tags
engineering-services, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. PROFESSIONAL SERVICES
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $19.7 million.
What is the period of performance?
Start: 2012-01-26. End: 2015-08-01.
What specific engineering services were provided under this contract, and how did they align with the Department of the Navy's strategic objectives?
The contract, NAICS code 541330 (Engineering Services), likely encompassed a range of technical support, design, analysis, and testing for naval systems. Alignment with strategic objectives would depend on the specific projects undertaken, such as modernization of existing platforms, development of new technologies, or operational support.
What were the key performance indicators (KPIs) used to evaluate BAE Systems' performance, and were there any penalties for non-compliance?
While specific KPIs are not detailed in the provided data, typical performance metrics for such contracts include on-time delivery, quality of work, adherence to technical specifications, and cost control. Penalties for non-compliance under a firm fixed price contract often involve withholding payment, requiring corrective actions, or termination for default.
How does the per-unit cost or hourly rate for these engineering services compare to industry averages for similar skill sets and experience levels?
Without detailed labor categories and rates, a direct per-unit cost comparison is difficult. However, the total award value of $19.7 million over 1283 days (approx. 3.5 years) suggests an average annual spend of roughly $5.6 million. This figure, when divided by an estimated number of personnel and hours, would need to be benchmarked against industry rates for specialized engineering talent.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 1601 RESEARCH BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,681,742
Exercised Options: $19,681,742
Current Obligation: $19,681,742
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785402A9015
IDV Type: IDC
Timeline
Start Date: 2012-01-26
Current End Date: 2015-08-01
Potential End Date: 2015-08-01 00:00:00
Last Modified: 2015-06-17
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