DoD awards $39M engineering services contract to Ball Aerospace & Technologies Corp

Contract Overview

Contract Amount: $39,035,535 ($39.0M)

Contractor: Ball Aerospace & Technologies Corp.

Awarding Agency: Department of Defense

Start Date: 2005-05-24

End Date: 2009-04-02

Contract Duration: 1,409 days

Daily Burn Rate: $27.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Defense

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80301

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $39.0 million to BALL AEROSPACE & TECHNOLOGIES CORP. for work described as: Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract duration of 1409 days suggests a long-term requirement for these services. 3. Awarded by the Department of Defense, highlighting its role in national security or defense operations. 4. The 'COST NO FEE' contract type implies that the government will reimburse allowable costs up to a ceiling, with no fee. 5. The presence of two bidders suggests a moderate level of competition for this requirement. 6. The contract was awarded under full and open competition, aiming for the best value. 7. The North American Industry Classification System (NAICS) code 541330 points to a focus on engineering services.

Value Assessment

Rating: fair

The contract value of approximately $39 million over nearly four years for engineering services requires careful benchmarking. Without specific deliverables or performance metrics, it's challenging to definitively assess value for money. The 'COST NO FEE' structure means the government bears the cost risk, and the final expenditure could vary. Comparing this to similar engineering service contracts within the DoD or other agencies would provide a clearer picture of whether the pricing is competitive and reflects fair market value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that there were two bidders suggests a reasonable, though not extensive, level of competition. This level of competition generally allows for price discovery and encourages contractors to offer competitive terms, but a higher number of bidders would typically lead to more robust price negotiation and potentially lower costs for the government.

Taxpayer Impact: The full and open competition, with two bidders, suggests that taxpayers likely benefited from a competitive bidding process, though the limited number of bidders may have constrained the extent of potential cost savings.

Public Impact

The Department of Defense benefits from specialized engineering expertise to support its missions. The contract likely supports various defense projects requiring engineering analysis, design, or development. The geographic impact is centered in Colorado, where Ball Aerospace & Technologies Corp. is located. The contract may have implications for the aerospace and defense engineering workforce, providing employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type places the cost risk on the government, which could lead to higher-than-expected expenditures if costs are not well-managed.
With only two bidders, the level of competition might not have driven the absolute lowest price possible.
The lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance and the overall value delivered.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential contractors could participate.
The contract is with a known entity, Ball Aerospace & Technologies Corp., suggesting a degree of established capability.
The duration of the contract indicates a stable, long-term need for the services, providing continuity for the agency.

Sector Analysis

Engineering services are a critical component of the aerospace and defense sector, encompassing design, development, testing, and integration of complex systems. The market for these services is substantial, driven by government procurement and private sector innovation. This contract fits within the broader landscape of defense contracting, where specialized engineering expertise is frequently outsourced to companies like Ball Aerospace & Technologies Corp. Comparable spending benchmarks for engineering services within the DoD can vary widely based on the complexity and scope of the work, but contracts in the tens of millions of dollars for multi-year periods are common for significant projects.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Ball Aerospace & Technologies Corp., may engage small businesses as subcontractors for specialized services or components, contributing to the broader small business ecosystem within the defense industry.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded in the contract's terms and conditions, including reporting requirements and performance standards. Transparency is generally facilitated through contract award databases, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Aerospace and Defense Contracting
Department of Defense Procurement
Cost-Plus Contracts (though this is Cost No Fee, it shares cost reimbursement aspects)

Risk Flags

Cost Risk in Cost-Reimbursement Contracts
Limited Competition May Affect Price Optimization
Lack of Specific Performance Metrics
Potential for Cost Overruns in CNF Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.0 million to BALL AEROSPACE & TECHNOLOGIES CORP.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is BALL AEROSPACE & TECHNOLOGIES CORP..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $39.0 million.

What is the period of performance?

Start: 2005-05-24. End: 2009-04-02.

What is the specific nature of the engineering services provided under this contract?

The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330. However, the specific nature of these services is not detailed. Typically, engineering services in the defense sector can range from research and development support, system design and integration, testing and evaluation, to technical analysis and program management. Given the contractor, Ball Aerospace & Technologies Corp., it is likely related to aerospace systems, satellite technology, or advanced defense platforms. Further details would require access to the contract's statement of work (SOW) or performance work statement (PWS).

How does the awarded amount of approximately $39 million compare to similar engineering service contracts within the DoD?

Benchmarking the $39 million award requires comparing it to contracts with similar scope, duration, and complexity within the Department of Defense. Contracts for specialized engineering services can vary significantly. For a nearly four-year duration (1409 days), $39 million suggests an average annual value of roughly $10 million. This is a substantial amount, indicative of a significant engineering effort. However, without knowing the specific technical requirements, the number of personnel involved, or the criticality of the systems supported, a precise comparison is difficult. Generally, contracts of this magnitude are for major system development or sustainment activities.

What are the potential risks associated with a 'COST NO FEE' contract type for the government?

The 'COST NO FEE' (CNF) contract type, while allowing the government to reimburse allowable costs, places the primary financial risk on the government. The contractor is reimbursed for their incurred costs but does not earn a profit. The main risk for the government is that the total costs could exceed initial estimates, and there is no profit incentive for the contractor to control costs aggressively beyond ensuring allowable expenses are met. Effective oversight and robust cost accounting by the government are crucial to manage this risk and ensure that expenditures remain reasonable and necessary for the contract's objectives.

What does the limited competition (two bidders) imply for the government's ability to secure optimal pricing?

A competition with only two bidders suggests a moderate level of market interest for this specific engineering service requirement. While competition is present, it is less robust than if there were multiple bidders. This limited competition might mean that the government did not receive the full benefit of price discovery that a more crowded field could provide. The government likely secured a competitive price relative to the two offers received, but there is a possibility that a more competitive environment could have driven prices lower. The contracting officer's negotiation skills and the specific structure of the solicitation would also play a role in the final price.

What is Ball Aerospace & Technologies Corp.'s track record with the Department of Defense?

Ball Aerospace & Technologies Corp. has a significant history of contracting with the Department of Defense and other government agencies. They are known for their expertise in aerospace systems, including satellite technology, sensors, and related engineering services. Their track record generally indicates a capability to deliver complex technical solutions. Specific performance details on past DoD contracts would require further research into contract databases and performance reports, but their continued awards suggest a generally positive relationship and demonstrated competence in meeting defense requirements.

How does this contract align with broader trends in federal IT or defense spending?

This contract aligns with the broader trend of federal agencies, particularly the Department of Defense, outsourcing specialized technical and engineering services. As defense systems become more complex and technologically advanced, agencies often rely on private sector expertise for research, development, design, and sustainment. Spending on engineering services is a significant component of the defense budget, supporting the development and maintenance of critical military assets. The trend reflects a strategic decision to leverage industry innovation and capacity rather than solely relying on in-house government capabilities.

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: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corp (UEI: 006419147)

Address: 1600 COMMERCE ST, BOULDER, CO, 02

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations

Parent Contract

Parent Award PIID: F3360001D1017

IDV Type: IDC

Timeline