DoD Awards $338M Facilities Support Services Contract to BAE Systems for 2nd Quarter FY17
Contract Overview
Contract Amount: $338,218,555 ($338.2M)
Contractor: BAE Systems Ordnance Systems Inc
Awarding Agency: Department of Defense
Start Date: 2016-12-30
End Date: 2024-09-30
Contract Duration: 2,831 days
Daily Burn Rate: $119.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::CL,CT::IGF PERFORMANCE WORK STATEMENTS (PWS) 1 - 13 FUNDED FOR 2ND QUARTER FY 17.
Place of Performance
Location: RADFORD, RADFORD CITY County, VIRGINIA, 24141
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $338.2 million to BAE SYSTEMS ORDNANCE SYSTEMS INC for work described as: IGF::CL,CT::IGF PERFORMANCE WORK STATEMENTS (PWS) 1 - 13 FUNDED FOR 2ND QUARTER FY 17. Key points: 1. Contract awarded to BAE Systems for facilities support services. 2. Significant funding of $338M allocated for Q2 FY17. 3. Contract duration extends through September 2024. 4. Services fall under Facilities Support Services sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms and their effectiveness are not detailed.
Taxpayer Impact: Taxpayer funds are being used for essential facilities support services, with the expectation of value derived from the competitive award.
Public Impact
Ensures continued operation of critical facilities. Supports military readiness and personnel. Potential for long-term service provision impacting local economies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may not reflect current market prices.
Positive Signals
- Awarded through full and open competition.
- Essential services for defense operations.
Sector Analysis
This contract falls within the Facilities Support Services sector, which is crucial for maintaining government infrastructure. Spending benchmarks for this sector vary widely based on the scope and location of services.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to BAE Systems. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
Oversight is critical for Cost Plus Fixed Fee contracts to ensure costs are reasonable and allocable. The Department of Defense's Inspector General may conduct audits to ensure accountability.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Long-term contract may not adapt to changing market conditions.
- Lack of specific performance metrics in provided data.
- Limited insight into subcontractor involvement.
Tags
facilities-support-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $338.2 million to BAE SYSTEMS ORDNANCE SYSTEMS INC. IGF::CL,CT::IGF PERFORMANCE WORK STATEMENTS (PWS) 1 - 13 FUNDED FOR 2ND QUARTER FY 17.
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 $338.2 million.
What is the period of performance?
Start: 2016-12-30. End: 2024-09-30.
What is the estimated cost savings achieved through the full and open competition for this contract?
The provided data does not specify the estimated cost savings from the full and open competition. While this method generally aims for competitive pricing, quantifying the exact savings requires comparing the awarded price against a baseline or alternative scenarios, which are not detailed here.
What are the key performance indicators (KPIs) used to measure the effectiveness of BAE Systems' facilities support services?
The data does not explicitly list the Key Performance Indicators (KPIs) for this contract. Typically, performance work statements for facilities support services would include metrics related to response times, maintenance completion rates, safety compliance, and customer satisfaction, which are subject to oversight.
How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar services?
The data does not provide enough detail to benchmark the fixed fee component against industry standards. Determining if the fixed fee is reasonable would require analyzing the scope of work, the complexity of services, and typical profit margins for facilities support contracts of this nature.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
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: $421,548,937
Exercised Options: $421,548,937
Current Obligation: $338,218,555
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: W52P1J11G0002
IDV Type: BOA
Timeline
Start Date: 2016-12-30
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 12:09:00
Last Modified: 2025-09-22
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