DoD Awards BAE Systems $195M for Radar Equipment, Lacking Competition

Contract Overview

Contract Amount: $19,406,860 ($19.4M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2001-08-24

End Date: 2011-06-30

Contract Duration: 3,597 days

Daily Burn Rate: $5.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200111!004015!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701CB014 !A!N!*!N! !20010824!20030331!194956751!876861790!217304393!N!BAE SYSTEMS AEROSPACE INC -CNI!164 TOTOWA ROAD !WAYNE !NJ!07474!77870!031!34!WAYNE !PASSAIC !NEW JERSEY!+000001400000!N!N!000000000000!5841!RADAR EQUIPMENT, AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334511!*!*!3! ! ! !*!*!*!B!*!*!A! !D !N!J!1!001!N!1A!A!Y!C! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: WAYNE, PASSAIC County, NEW JERSEY, 07470

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $19.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: 200111!004015!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701CB014 !A!N!*!N! !20010824!20030331!194956751!876861790!217304393!N!BAE SYSTEMS AEROSPACE INC -CNI!164 TOTOWA ROAD !WAYNE !NJ!07474!77870!031!34!WAYNE !PASSA… Key points: 1. Significant award to a major defense contractor for critical radar equipment. 2. Sole-source procurement raises concerns about price discovery and potential overspending. 3. The contract duration is substantial, spanning over 9 years. 4. Sector focus is on defense electronics and communication systems.

Value Assessment

Rating: questionable

The contract value of $195 million over 9 years is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value for airborne radar equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition suggests taxpayers may be paying a premium for this essential defense equipment.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock in potentially inflated prices. Dependence on a single contractor for critical radar systems poses a long-term risk. The award impacts the defense electronics manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Long contract duration
Lack of price competition

Positive Signals

Award to established contractor
Supports critical defense capability

Sector Analysis

This contract falls within the Defense sector, specifically for radar equipment, which is a key component of military electronics and communication systems. Spending in this area is substantial and often involves specialized, high-cost components.

Small Business Impact

The data indicates this contract was awarded to BAE Systems, a large prime contractor. There is no information suggesting subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving fair value and that the necessity for non-competition is well-justified.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for overpricing
Long contract duration
Limited transparency on justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. 200111!004015!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701CB014 !A!N!*!N! !20010824!20030331!194956751!876861790!217304393!N!BAE SYSTEMS AEROSPACE INC -CNI!164 TOTOWA ROAD !WAYNE !NJ!07474!77870!031!34!WAYNE !PASSAIC !NEW JERSEY!+000001400000!N!N!000000000000!5841!RADAR EQUIPMENT, AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334511!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION 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 $19.4 million.

What is the period of performance?

Start: 2001-08-24. End: 2011-06-30.

What is the justification for awarding this contract on a sole-source basis, and has a thorough market analysis been conducted to ensure no viable competitive alternatives exist?

The provided data lists the contract type as 'NOT COMPETED,' indicating a sole-source award. A comprehensive justification for this approach, including market research and a determination of why other sources were not solicited, is crucial for accountability. Without this, it's impossible to ascertain if taxpayer funds are being used efficiently or if a more competitive process could have yielded better pricing.

How does the unit cost of this radar equipment compare to similar systems procured competitively by the DoD or other government agencies?

Benchmarking the per-unit cost against competitively procured, similar radar systems is essential for assessing value. Given this is a sole-source award, such a comparison is critical to identify potential overpricing. Without access to detailed cost breakdowns and comparative data, it's difficult to definitively state if the $195 million represents a fair price.

What are the long-term implications of a sole-source award for critical radar technology, particularly regarding innovation and potential supply chain vulnerabilities?

Sole-source contracts can stifle innovation by reducing the incentive for the awarded contractor to improve technology or reduce costs. It also creates a dependency on a single supplier, potentially leading to supply chain vulnerabilities if that contractor faces production issues or business disruptions. This long-term risk needs to be weighed against the immediate need for the equipment.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 164 TOTOWA ROAD, WAYNE, NJ, 11

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline