DHS awards $13.4M for engineering, technical, and logistics support to BAE Systems

Contract Overview

Contract Amount: $13,390,669 ($13.4M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-10-01

End Date: 2025-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENGINEERING, TECHNICAL AND LOGISTICS SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: ENGINEERING, TECHNICAL AND LOGISTICS SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years indicates a long-term need for these services. 3. Fixed-price contract type may offer cost certainty for the government. 4. The award is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contractor, BAE Systems, is a large, established defense and aerospace company.

Value Assessment

Rating: good

Benchmarking the value of this specific delivery order is challenging without knowing the scope of work and the parent IDIQ contract. However, BAE Systems is a major defense contractor, and their pricing is generally competitive within that market. The firm fixed-price nature of the award provides a degree of cost control for the government. Further analysis would require comparing the specific services rendered against industry standards and the pricing structure of the parent IDIQ.

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 3 bids suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery, the actual level of competition can vary significantly depending on the specific requirements and the number of capable bidders in the market.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, ensuring the government receives the best value for its investment.

Public Impact

This contract supports U.S. Customs and Border Protection (CBP) operations. Services provided include engineering, technical, and logistics support, crucial for agency functions. The contract's impact is likely concentrated within the Department of Homeland Security's operational framework. The workforce implications are tied to the employment of personnel by BAE Systems to fulfill these support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for all potential expenses.
Risk of vendor lock-in if the services are highly specialized and difficult to transition to another provider.
Dependence on a single large contractor could limit flexibility in adapting to changing requirements.

Positive Signals

Award to an established contractor with a proven track record in defense and technical services.
Firm fixed-price contract provides budget certainty.
Long-term contract duration (5 years) suggests a stable and ongoing need for critical support services.

Sector Analysis

The engineering services sector is a significant component of the broader professional, scientific, and technical services industry. This contract falls under NAICS code 541330, which encompasses establishments primarily engaged in providing architectural, engineering, and related services. The federal government is a major consumer of these services, particularly for defense, infrastructure, and technology projects. Spending in this sector is often driven by national security needs, technological advancements, and infrastructure modernization efforts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, BAE Systems, is a large corporation. There is no explicit information on subcontracting plans for small businesses within this specific delivery order, though large prime contractors often engage small businesses for specialized support. The absence of a set-aside means opportunities for small businesses are likely limited to subcontracting roles, if any.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and U.S. Customs and Border Protection. As a delivery order under a potential IDIQ, oversight would involve monitoring performance against the specific task orders issued. The firm fixed-price nature provides some financial oversight by capping costs. Transparency would be enhanced through contract award databases and performance reporting requirements, though specific details of ongoing oversight are not provided.

Related Government Programs

Department of Homeland Security Contracts
Customs and Border Protection Support Services
Engineering Services Contracts
Logistics Support Contracts
BAE Systems Federal Contracts

Risk Flags

Long-term contract duration
Firm Fixed Price contract type
Delivery Order under IDIQ

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. ENGINEERING, TECHNICAL AND LOGISTICS SUPPORT

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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

Start: 2020-10-01. End: 2025-09-30.

What is the historical spending pattern for engineering, technical, and logistics support by U.S. Customs and Border Protection?

Analyzing historical spending patterns for engineering, technical, and logistics support by U.S. Customs and Border Protection (CBP) requires examining contract data over several fiscal years. CBP, as a major component of the Department of Homeland Security (DHS), relies heavily on such services for border security, technology deployment, and operational efficiency. Historically, CBP has awarded numerous contracts in these categories to both large and small businesses. Spending can fluctuate based on new technology initiatives, infrastructure upgrades, and evolving security threats. For instance, significant investments might be seen in areas like surveillance technology, data analytics platforms, or physical infrastructure maintenance along the border. The total annual expenditure can range from tens of millions to hundreds of millions of dollars, depending on the scale of ongoing projects and the competitive landscape for service providers. Examining specific contract vehicles, such as IDIQ contracts, can reveal patterns of task order awards and the distribution of funds across different service providers and functional areas.

How does the pricing of this BAE Systems contract compare to similar engineering support contracts awarded by other federal agencies?

Comparing the pricing of this BAE Systems contract to similar engineering support contracts requires access to detailed pricing data for comparable services across different federal agencies. This specific contract is a delivery order with a total award of $13.4 million over five years, under a firm fixed-price (FFP) structure. FFP contracts aim to provide cost certainty. To benchmark, one would need to identify other FFP contracts for engineering, technical, and logistics support awarded by agencies like the Department of Defense (DoD) or NASA, with similar scopes of work and contractor capabilities. Key metrics for comparison would include the average hourly rates for different labor categories, the total contract value relative to the estimated level of effort, and the contractor's overhead and profit margins. Given BAE Systems' status as a major defense contractor, their rates might be at the higher end of the market spectrum, reflecting their expertise and established infrastructure. However, the competitive bidding process for this award suggests that the pricing was deemed acceptable and competitive within the market for these specific services at the time of award.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns if the fixed-price scope is not precisely defined or if unforeseen technical challenges arise, vendor lock-in due to the specialized nature of engineering and technical support, and performance issues if the contractor fails to meet service level agreements. Mitigation strategies typically involve robust contract management by the U.S. Customs and Border Protection (CBP), including detailed performance monitoring, regular progress reviews, and clear communication channels. For cost risks, the FFP structure itself acts as a mitigation by capping the government's liability. Vendor lock-in can be addressed by ensuring clear deliverables and intellectual property rights are defined, and by planning for potential future competition or transition. Performance risks are managed through defined Key Performance Indicators (KPIs) and potential penalties or incentives tied to contract clauses. The long-term nature of the contract also implies a need for proactive risk management throughout its duration.

What is the track record of BAE Systems Technology Solutions & Services Inc. in delivering similar engineering and technical support to the federal government?

BAE Systems Technology Solutions & Services Inc. has a substantial track record of delivering engineering, technical, and logistics support to various U.S. federal government agencies, including significant work with the Department of Defense and Homeland Security. They are known for providing a wide range of services, from systems engineering and integration to cybersecurity, software development, and sustainment support. Their past performance often includes large-scale, complex projects requiring deep technical expertise and adherence to stringent security and quality standards. Government contract databases and past performance reviews generally indicate a capability to meet demanding requirements. However, like any large contractor, specific project outcomes can vary, and scrutiny of performance on individual contracts is always warranted. Their extensive experience suggests a strong understanding of federal procurement processes and operational environments, positioning them as a capable provider for this DHS contract.

How does the level of competition (3 bidders) for this delivery order impact the overall value for taxpayers?

A competition with three bidders for this delivery order suggests a moderate level of market interest and capability for the specific requirements. While more bidders generally lead to more intense price competition, three bidders indicate that the requirement was sufficiently defined and attractive to multiple capable firms. This level of competition is often sufficient to drive reasonable pricing, preventing a situation where a sole-source or single-bid scenario could lead to inflated costs. Taxpayers benefit from this moderate competition by likely receiving services at a price that reflects market rates, rather than a premium that might be charged in a less competitive environment. However, it's important to note that the 'value' is also determined by the quality and effectiveness of the services delivered, not just the price. A competitive process, even with three bidders, encourages contractors to propose solutions that balance cost with performance to win the award.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70B02C20Q00000035

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $15,882,622

Exercised Options: $13,390,669

Current Obligation: $13,390,669

Actual Outlays: $8,520,636

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU103

IDV Type: IDC

Timeline