DoD Awards $557M for Non-Combat Vehicles, Primarily to Stewart & Stevenson Services

Contract Overview

Contract Amount: $42,396,008 ($42.4M)

Contractor: BAE Systems Tactical Vehicle Systems LP

Awarding Agency: Department of Defense

Start Date: 1999-09-16

End Date: 2006-12-31

Contract Duration: 2,663 days

Daily Burn Rate: $15.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 199912!2100!2252!AE07 !USA TANK-AUTOMOTIVE & ARMAMENTS !DAAE0799CS030 !A!*!* !19990916!20000731!557414000!007932783!007932783!N!0FW39!STEWART & STEVENSON SERVICES, !5000 INTERSTATE 10 W !SEALY !TX!77474!66464!015!48!SEALY !AUSTIN !TEXAS !0001!+000003143500!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !A4B!NON-COMBAT VEHICLES !1DAF!TRUCKS 5T !8711!3!*!*!*!B!A!*!D !Y!U!1!001!N!1A!Z!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: SEALY, AUSTIN County, TEXAS, 77474

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $42.4 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP for work described as: 199912!2100!2252!AE07 !USA TANK-AUTOMOTIVE & ARMAMENTS !DAAE0799CS030 !A!*!* !19990916!20000731!557414000!007932783!007932783!N!0FW39!STEWART & STEVENSON SERVICES, !5000 INTERSTATE 10 W !SEALY !TX!77474!66464!015!48!SEALY !AUSTIN… Key points: 1. The contract, valued at $557.4 million, was awarded to Stewart & Stevenson Services. 2. The primary product service code is R499 (Other Professional Services), with a focus on non-combat vehicles. 3. The contract was not competed, raising questions about potential price discovery and value. 4. The sector is Defense, with a significant portion allocated to vehicle procurement.

Value Assessment

Rating: questionable

The contract value of $557.4 million for non-combat vehicles is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach. This lack of competition may have hindered effective price discovery and potentially led to a higher overall cost for the government.

Taxpayer Impact: The non-competitive nature of this large contract raises concerns about taxpayer value and whether a more competitive process could have secured better pricing.

Public Impact

Taxpayers may be paying a premium due to the lack of competition for these essential military vehicles. The award to a single vendor for a large sum could impact the broader defense industrial base by limiting opportunities for other suppliers. Transparency in the procurement process is crucial for ensuring public trust and accountability in defense spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited vendor options

Positive Signals

Award to a known entity
Addresses specific vehicle needs

Sector Analysis

This contract falls within the Defense sector, specifically focusing on vehicle procurement. Spending benchmarks in this area can vary widely based on vehicle type, quantity, and technological sophistication.

Small Business Impact

The data does not explicitly indicate the extent of small business participation in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The non-competitive award warrants scrutiny. Oversight should focus on the justification for sole-sourcing and ensure that the pricing reflects fair market value and that contract performance is rigorously monitored.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Non-competitive award
Lack of transparency in justification
Potential for inflated costs
Limited market access for other vendors

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.4 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP. 199912!2100!2252!AE07 !USA TANK-AUTOMOTIVE & ARMAMENTS !DAAE0799CS030 !A!*!* !19990916!20000731!557414000!007932783!007932783!N!0FW39!STEWART & STEVENSON SERVICES, !5000 INTERSTATE 10 W !SEALY !TX!77474!66464!015!48!SEALY !AUSTIN !TEXAS !0001!+000003143500!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !A4B!NON-COMBAT VEHICLES !1DAF!TRUCKS 5T !8711!3!*!*!*!B!A!*!D !Y!U!1!0

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $42.4 million.

What is the period of performance?

Start: 1999-09-16. End: 2006-12-31.

What was the specific justification for not competing this large vehicle procurement contract?

The justification for not competing this contract is not provided in the data. Typically, non-competitive awards require a detailed justification, such as a sole-source provider with unique capabilities or an urgent need that precludes competition. Without this information, it's impossible to assess the validity of the non-competitive approach.

How does the per-unit cost of these non-combat vehicles compare to similar vehicles procured competitively?

A direct comparison of per-unit cost is not possible with the provided data, as it lacks specific unit pricing and details on the vehicle specifications. However, the non-competitive nature of the award raises a red flag, suggesting that the price may be higher than what could have been achieved through a competitive bidding process.

What is the long-term strategic impact of awarding such a large contract without competition on the defense vehicle manufacturing sector?

Awarding a large contract without competition can stifle innovation and reduce market dynamism within the defense vehicle sector. It may limit opportunities for emerging companies and entrench existing players, potentially leading to less competitive pricing and slower technological advancement in the long run.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 5000 INTERSTATE 10 W, SEALY, TX, 77474

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline