Department of the Army awards $106.8M contract for logistics support services to BAE Systems Technical Services

Contract Overview

Contract Amount: $106,868,214 ($106.9M)

Contractor: BAE Systems Technical Services

Awarding Agency: Department of Defense

Start Date: 2003-11-03

End Date: 2013-09-16

Contract Duration: 3,605 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 200411!000004!2100!W912CN!ACA, FORT SHAFTER !DABQ0603C0041 !A!N! !Y! !P00001!20031103!20040930!150805703!876861790!217304393!N!BAE SYSTEMS TECHNICAL SERVICES!557 MARY ESTHER CUT-OFF !FORT WALTON BE !FL!32548!69050!003!15!SCHOFIELD BARRACKS !HONOLULU !HAWAII !+000000953711!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !3! ! !C! ! !99990909!B! ! !A! !A!U!R!2!001!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!D!N! ! ! !Y! ! !0001! !

Place of Performance

Location: SCHOFIELD BARRACKS, HONOLULU County, HAWAII, 96857

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $106.9 million to BAE SYSTEMS TECHNICAL SERVICES for work described as: 200411!000004!2100!W912CN!ACA, FORT SHAFTER !DABQ0603C0041 !A!N! !Y! !P00001!20031103!20040930!150805703!876861790!217304393!N!BAE SYSTEMS TECHNICAL SERVICES!557 MARY ESTHER CUT-OFF !FORT WALTON BE !FL!32548!69050!003!15!SCHOFIELD BARRACKS !HONO… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 3600 days (approx. 10 years) indicates a long-term need for these services. 3. The contract type is Cost Plus Award Fee (CPAF), which can incentivize contractor performance but also carries inherent cost risks. 4. The base contract value is substantial, highlighting the scale of logistics support required. 5. The awardee, BAE Systems Technical Services, is a large defense contractor with a significant presence in the industry. 6. The services are categorized under Facilities Support Services, a broad category encompassing various operational needs.

Value Assessment

Rating: good

The total award amount of $106.8 million over approximately 10 years suggests a significant investment in logistics support. While a direct per-unit cost comparison is not feasible without more granular data on the services provided, the contract's duration and scope indicate a substantial commitment. Benchmarking against similar long-term, comprehensive logistics support contracts would be necessary for a more precise value assessment. The Cost Plus Award Fee (CPAF) structure implies that performance metrics are tied to potential fee adjustments, aiming for value, but also requires careful oversight to manage costs effectively.

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 a bid. The number of bidders is not specified in the provided data, but the designation suggests a competitive process was intended. Full and open competition generally promotes price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value through an open process.

Public Impact

The primary beneficiaries are the U.S. Army units and personnel requiring logistics support at Schofield Barracks, Hawaii. Services delivered include a broad range of logistics support, crucial for maintaining operational readiness. The geographic impact is concentrated at Schofield Barracks in Honolulu, Hawaii. This contract likely supports a significant number of jobs, both directly with the contractor and indirectly through its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Cost Plus Award Fee (CPAF) contract type if not managed diligently.
Long contract duration may lead to complacency or reduced innovation if performance incentives are not robustly structured.
Dependence on a single large contractor for critical logistics functions could pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should drive value.
The extensive duration indicates a stable, long-term requirement, allowing for efficient planning and resource allocation.
The CPAF structure, if well-implemented with clear performance metrics, can incentivize high-quality service delivery.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by a wide range of services supporting the operations and maintenance of government and commercial facilities. The market size for facilities support services is substantial, with significant government spending allocated annually. This particular contract represents a large-scale engagement within this sector, likely supporting a major military installation.

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 requirement. However, the prime contractor, BAE Systems Technical Services, may engage small businesses as subcontractors to fulfill parts of the contract, depending on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring, financial audits, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract reporting systems, though specific details of performance and spending may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Logistics Support Services
Facilities Management Contracts
Base Operations Support
Department of Defense Services Contracts
Army Installation Support

Risk Flags

Long-term contract duration
Cost Plus Award Fee (CPAF) contract type
Potential for cost overruns
Geographic remoteness (Hawaii)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $106.9 million to BAE SYSTEMS TECHNICAL SERVICES. 200411!000004!2100!W912CN!ACA, FORT SHAFTER !DABQ0603C0041 !A!N! !Y! !P00001!20031103!20040930!150805703!876861790!217304393!N!BAE SYSTEMS TECHNICAL SERVICES!557 MARY ESTHER CUT-OFF !FORT WALTON BE !FL!32548!69050!003!15!SCHOFIELD BARRACKS !HONOLULU !HAWAII !+000000953711!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !3! ! !C! ! !999

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNICAL SERVICES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $106.9 million.

What is the period of performance?

Start: 2003-11-03. End: 2013-09-16.

What is the historical spending pattern for logistics support services at Schofield Barracks?

Analyzing historical spending patterns for logistics support at Schofield Barracks requires access to detailed procurement data beyond this single award. This contract, awarded in 2003 with an end date in 2013, represents a significant portion of spending during its active period. To understand the full pattern, one would need to examine prior contracts for similar services at the installation, including their values, durations, and awardees. It would also be beneficial to look at subsequent contracts awarded after 2013 to see if the requirement continued and with whom. Trends in spending could reveal increasing or decreasing costs, shifts in service providers, or changes in the scope of services required over time, providing context for the $106.8 million awarded here.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for similar services?

Cost Plus Award Fee (CPAF) contracts are used when the government needs flexibility and wants to incentivize contractor performance beyond basic requirements. Unlike Firm-Fixed-Price (FFP) contracts, CPAF allows for reimbursement of actual costs incurred, plus a base fee and an additional award fee based on performance against specific criteria. This contrasts with Cost-Plus-Fixed-Fee (CPFF), where the fee is fixed regardless of performance. For logistics support, FFP contracts might be used for clearly defined, stable services, offering the government maximum price certainty. However, CPAF is often chosen for complex, evolving requirements where performance quality is paramount and difficult to define precisely upfront. The key difference lies in the performance incentive: CPAF offers a variable award fee tied to exceeding expectations, whereas FFP focuses on delivering a defined scope at a set price.

What is BAE Systems Technical Services' track record with similar large-scale logistics contracts?

BAE Systems Technical Services, as a subsidiary of BAE Systems, has a substantial track record in providing a wide array of technical and support services to government agencies, including the Department of Defense. Their experience often encompasses complex logistics, base operations support, and systems integration for large military installations. Reviewing their past performance on similar contracts, particularly those involving extensive logistics operations and long durations, would provide insight into their capabilities, reliability, and cost management. Publicly available contract databases and performance reports can offer details on their success rates, any past performance issues, and their ability to manage large budgets and complex operational requirements effectively. This specific contract award suggests they met the government's criteria for such a significant undertaking.

What are the potential risks associated with a contract of this duration (approx. 10 years)?

Contracts spanning approximately 10 years, like this logistics support award, carry several potential risks. Firstly, there's the risk of cost escalation over such a long period due to inflation, changes in labor costs, or unforeseen market fluctuations, especially with a CPAF structure. Secondly, the long duration might lead to contractor complacency if performance incentives aren't continuously robust and well-monitored, potentially resulting in a decline in service quality over time. Thirdly, technological advancements or changes in military strategy could render the contracted services less relevant or efficient, requiring costly modifications or early termination. Finally, there's the risk associated with the contractor's long-term viability; financial instability or shifts in the company's strategic focus could impact their ability to fulfill the contract.

How does the geographic location (Hawaii) potentially impact the cost and logistics of this contract?

The geographic location of Schofield Barracks in Hawaii presents unique logistical challenges and potential cost implications for this contract. Hawaii's island status means that transportation of personnel, equipment, and supplies is primarily dependent on air and sea freight, which is generally more expensive and time-consuming than mainland transport. This can increase the cost of materials, spare parts, and potentially labor if specialized personnel need to be brought in. Furthermore, local labor market conditions in Hawaii might differ from the mainland, potentially affecting wage rates and the availability of skilled workers. The remoteness can also impact response times for urgent needs, requiring higher levels of on-site inventory and preparedness, thus influencing the overall cost structure of the logistics support services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 557 MARY ESTHER CUT OFF NW, FORT WALTON BEACH, FL, 01

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline