DoD awards $41.2M for aircraft manufacturing support, with BAE Systems as prime contractor

Contract Overview

Contract Amount: $41,246,088 ($41.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2006-05-02

End Date: 2024-01-26

Contract Duration: 6,478 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200608!000313!5700!FA8509!WR-ALC/LUK !F0960301D0209 !A!N! !N!0048 ! !20060502!20070501!110341133!110341133!110341133!N!MTC TECHNOLOGIES, INC !4032 LINDEN AVE !DAYTON !OH!45432!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000002725688!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336411!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!J!2!010!B! !Z!N!Z! ! !N!B!N!N! ! !C! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HAUPPAUGE, SUFFOLK County, NEW YORK, 11788

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $41.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: 200608!000313!5700!FA8509!WR-ALC/LUK !F0960301D0209 !A!N! !N!0048 ! !20060502!20070501!110341133!110341133!110341133!N!MTC TECHNOLOGIES, INC !4032 LINDEN AVE !DAYTON !OH!45432!24475!091!12!FORT WALTON BEACH !OKAL… Key points: 1. Contract focuses on aircraft manufacturing and support services, indicating a need for specialized technical expertise. 2. The prime contractor, BAE Systems, has a significant presence in the defense sector, suggesting established capabilities. 3. The contract duration of over 5 years implies a long-term requirement for these services. 4. The award was made under full and open competition, suggesting a competitive bidding process. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The North American Industry Classification System (NAICS) code 336411 points to Aircraft Manufacturing, a critical defense sub-sector.

Value Assessment

Rating: good

The contract value of $41.2 million over its period of performance appears reasonable for specialized aircraft manufacturing support services. Benchmarking against similar contracts is challenging without more detailed service descriptions, but the firm fixed-price nature suggests a degree of cost certainty for the government. The contract's duration and scope indicate a substantial investment in maintaining or developing aircraft manufacturing capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders, implied by the competitive nature, generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not detailed, but the designation suggests a robust competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, ensuring the government receives the best value for its investment in critical defense manufacturing support.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically units requiring aircraft manufacturing and support. Services delivered include technical expertise and support related to aircraft manufacturing processes. The geographic impact is centered around the contractor's operations, likely within the United States, supporting defense industrial base capabilities. Workforce implications include employment opportunities for skilled engineers, technicians, and manufacturing personnel within the prime contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract does not adequately account for unforeseen technical challenges in aircraft manufacturing.
Dependence on a single prime contractor, BAE Systems, could limit flexibility if performance issues arise.
The long contract duration may not fully adapt to rapidly evolving aerospace technologies without modification.

Positive Signals

Firm fixed-price contract structure provides cost predictability for the government.
Full and open competition suggests a competitive environment that should yield good value.
BAE Systems' established presence in defense manufacturing indicates a high likelihood of successful performance.
The contract supports critical defense industrial base capabilities.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, a significant segment of the U.S. industrial base. Spending in this area is crucial for national security and technological advancement. Comparable spending benchmarks would typically involve other large-scale manufacturing support contracts for military aircraft, often running into tens or hundreds of millions of dollars over several years.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract likely involving complex aircraft manufacturing support, there may be opportunities for small businesses to participate as subcontractors to BAE Systems. The extent of small business subcontracting will depend on the prime contractor's strategy and contractual requirements, which are not detailed here.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures are inherent in the firm fixed-price contract type, which places cost risk on the contractor. Transparency is generally facilitated through contract award databases, though specific performance metrics and detailed oversight reports may not be publicly available.

Related Government Programs

Aircraft Manufacturing
Aerospace Support Services
Defense Industrial Base
BAE Systems Contracts
Department of Defense Procurement

Risk Flags

Long contract duration may not align with rapidly evolving technology.
Firm Fixed Price shifts cost risk to contractor, potentially impacting performance if unforeseen issues arise.
Lack of specific performance metrics in public data limits detailed assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. 200608!000313!5700!FA8509!WR-ALC/LUK !F0960301D0209 !A!N! !N!0048 ! !20060502!20070501!110341133!110341133!110341133!N!MTC TECHNOLOGIES, INC !4032 LINDEN AVE !DAYTON !OH!45432!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000002725688!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336411!E! !5!B!M! !A! !999

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $41.2 million.

What is the period of performance?

Start: 2006-05-02. End: 2024-01-26.

What is the specific nature of the aircraft manufacturing support services being provided under this contract?

The provided data indicates the contract is associated with NAICS code 336411 (Aircraft Manufacturing) and PSC code R414 (Systems Engineering Services). While the exact nature of the services isn't detailed, it likely encompasses engineering support, technical assistance, process improvement, quality assurance, or other specialized expertise required throughout the lifecycle of aircraft production or sustainment. This could range from design support and manufacturing process optimization to testing and integration of aircraft components or systems.

How does the $41.2 million award compare to historical spending on similar aircraft manufacturing support contracts?

Without specific historical data points for identical services, a direct comparison is difficult. However, $41.2 million over approximately 5 years (based on the award date and end date, though the duration field suggests longer) is a substantial but not unusual figure for complex defense manufacturing support. Large prime contractors like BAE Systems often manage contracts of this magnitude. Annual spending would average around $8 million, which is within the typical range for specialized support on major defense platforms.

What are the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a firm fixed-price contract involving systems engineering and aircraft manufacturing support, typical KPIs would likely include on-time delivery of services or milestones, adherence to technical specifications and quality standards, cost control (within the fixed price), and overall customer satisfaction from the requiring military or civilian agency within the Department of Defense. Performance would be monitored by the contracting officer's representative (COR).

What is the track record of BAE Systems Technology Solutions & Services Inc. in delivering similar defense manufacturing contracts?

BAE Systems is a major global defense contractor with a long history and extensive experience in aerospace and defense manufacturing. While this specific entity 'BAE Systems Technology Solutions & Services Inc.' may represent a particular division or subsidiary, the parent company has a well-established track record of successfully executing large, complex contracts for various military branches. Their performance on similar contracts would generally be considered strong, though specific contract histories can vary.

Are there any identified risks associated with this contract, such as technical challenges, schedule delays, or cost overruns?

The primary risks inherent in this contract, given its firm fixed-price nature and focus on aircraft manufacturing support, include potential technical challenges that could exceed the contractor's initial cost estimates, leading to performance issues if not managed effectively. Schedule delays are also a risk in complex manufacturing environments. While the fixed price shifts cost overrun risk to the contractor, significant performance failures could still impact the government's program objectives. The long duration also presents a risk of technological obsolescence if not managed proactively.

How does this contract contribute to the overall readiness and capability of the U.S. Air Force or other relevant military branches?

This contract directly supports the Department of Defense's (DoD) need for specialized expertise in aircraft manufacturing. By ensuring the availability of skilled support services, it helps maintain and potentially enhance the production lines or sustainment capabilities for critical aircraft platforms. This contributes to the overall readiness of the Air Force or other branches by ensuring that the necessary technical knowledge and support are in place to build, maintain, or upgrade their aviation assets, thereby safeguarding operational capabilities.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

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: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: F0960301D0209

IDV Type: IDC

Timeline