DOJ's $35M BAE Systems contract for program management and technical support shows fair value with competitive sourcing

Contract Overview

Contract Amount: $35,108,812 ($35.1M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Justice

Start Date: 2005-09-30

End Date: 2011-03-31

Contract Duration: 2,008 days

Daily Burn Rate: $17.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PROGRAM MANAGEMENT, LOGISTICS, AND TECHNICAL SUPPORT FOR THE JOINT PROGRAM OFFICE

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $35.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: PROGRAM MANAGEMENT, LOGISTICS, AND TECHNICAL SUPPORT FOR THE JOINT PROGRAM OFFICE Key points: 1. Contract awarded through a competitive process, suggesting potential for good price discovery. 2. Performance period spanned over five years, indicating a need for sustained support. 3. Services provided are crucial for program management and technical functions within the Joint Program Office. 4. The contract's value is moderate within the context of large federal IT and engineering services. 5. No small business set-aside was utilized, which may limit direct opportunities for smaller firms. 6. The contract was a delivery order under a larger contract vehicle, common for efficient procurement.

Value Assessment

Rating: good

The contract's total value of approximately $35.1 million over its duration suggests a reasonable investment for comprehensive program management and technical support. Benchmarking against similar large-scale support contracts within federal agencies indicates that this pricing falls within expected ranges for specialized services. The use of labor hours as the contract type allows for flexibility, but requires diligent oversight to ensure efficient resource utilization and prevent cost overruns. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award mechanism provides a positive signal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was subject to a full and open competition process. This typically means multiple bidders were invited to propose solutions, and the contract was awarded based on a combination of factors, likely including price, technical merit, and past performance. The competitive nature of the award is a positive indicator for price discovery and ensures that the government received proposals from various qualified vendors.

Taxpayer Impact: A full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment where vendors strive to offer their best value propositions.

Public Impact

The Joint Program Office (JPO) benefits from sustained program management and technical expertise, enabling effective execution of its mission. Essential services supporting critical government programs are delivered, ensuring operational continuity and efficiency. The contract supports a workforce of skilled professionals in program management, engineering, and technical support roles. Geographic impact is primarily concentrated around the agency's operational centers, likely in Virginia where the contractor is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for extended periods can reduce flexibility in adapting to changing needs.
Ensuring consistent quality of service delivery over the contract's duration requires robust performance monitoring.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contract duration suggests a stable need for these services, allowing for focused expertise development.
The contractor, BAE Systems, is a large, established entity with significant experience in government contracting.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering, research, and development services. The federal market for these services is substantial, driven by defense, infrastructure, and technology modernization needs. Contracts like this are common for agencies requiring specialized technical expertise to manage complex programs. Comparable spending benchmarks for program management and technical support services vary widely based on scope, duration, and complexity, but this contract's value is consistent with mid-to-large scale federal support efforts.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses explicitly mentioned in the provided data. As a delivery order under a larger contract vehicle, subcontracting opportunities would depend on the terms of the prime contract. The lack of a direct set-aside means that large businesses like BAE Systems were the primary focus for this procurement, potentially limiting direct prime contracting opportunities for small businesses on this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Justice's contracting officers and program managers responsible for the Joint Program Office. Performance monitoring, invoicing review, and adherence to contract terms are standard oversight mechanisms. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Justice IT Support Services
Federal Program Management Support Contracts
Engineering and Technical Services Contracts
Joint Program Office Support

Risk Flags

Contract duration exceeds 5 years, requiring careful monitoring for sustained relevance and performance.
Labor hour contract type necessitates robust oversight to ensure efficiency and prevent cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $35.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. PROGRAM MANAGEMENT, LOGISTICS, AND TECHNICAL SUPPORT FOR THE JOINT PROGRAM OFFICE

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 Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $35.1 million.

What is the period of performance?

Start: 2005-09-30. End: 2011-03-31.

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

BAE Systems Technology Solutions & Services Inc. has a substantial track record with the federal government, particularly within the Department of Defense and other civilian agencies. They are known for providing a wide range of services including systems engineering, technical support, program management, and IT solutions. Their experience often involves complex, large-scale projects requiring deep technical expertise and robust project management capabilities. Historical data indicates they have successfully managed numerous contracts of similar scope and value, often receiving positive performance reviews. However, like any large contractor, they may have faced scrutiny or performance issues on specific contracts, underscoring the importance of ongoing performance monitoring for any given award.

How does the value of this contract compare to other federal contracts for similar program management and technical support services?

The total contract value of approximately $35.1 million over its duration (roughly 5.5 years) positions this contract as a moderate-sized award within the federal services landscape. For specialized program management and technical support, especially for a Joint Program Office, this value is generally in line with market rates. Larger, more complex programs or those requiring extensive R&D or hardware integration could easily exceed this amount. Conversely, smaller, more focused support tasks would be valued lower. The key comparison point is the scope of work: if BAE Systems provided comprehensive, end-to-end support for a significant program, the value is reasonable. If the scope was narrower, it might indicate a higher per-unit cost or less competitive pricing.

What are the primary risks associated with this type of contract, and how were they potentially mitigated?

Primary risks include scope creep, where requirements expand beyond the original agreement, leading to cost overruns and schedule delays. Another risk is contractor performance, where the quality of services may not meet expectations. For this contract, awarded as a competitive delivery order, the risk of inadequate contractor performance is mitigated by the initial competitive selection process, which theoretically favors capable vendors. The risk of scope creep is managed through clear contract definition, change control processes, and active program oversight by the DOJ. The use of labor hours, while flexible, also introduces a risk of inefficient resource utilization, which requires diligent monitoring of hours worked against deliverables.

How effective has the Joint Program Office been in leveraging this contract to achieve its program objectives?

Assessing the effectiveness of the Joint Program Office (JPO) in leveraging this specific contract requires access to internal JPO performance evaluations, program milestone achievements, and objective outcome data, which are not publicly available. However, the contract's duration and competitive award suggest a sustained need and a potentially effective procurement strategy. The JPO's ability to achieve its objectives would depend on how well the contractor's services aligned with the JPO's strategic goals, the clarity of requirements, and the effectiveness of the JPO's program management and oversight. Positive performance indicators would include meeting program milestones on time and within budget, successful implementation of supported initiatives, and positive feedback from JPO stakeholders.

What are the historical spending patterns for program management and technical support services within the Department of Justice?

The Department of Justice, like many large federal agencies, consistently spends significant amounts on program management and technical support services. These expenditures are driven by the need to manage complex initiatives, maintain IT infrastructure, support law enforcement operations, and implement policy changes. Historical spending patterns show a trend towards outsourcing specialized functions to contractors, particularly in areas requiring specific technical expertise or surge capacity. Spending can fluctuate based on agency priorities, budget allocations, and the lifecycle of major programs. Contracts for services like those provided by BAE Systems are a recurring component of the DOJ's overall procurement portfolio, reflecting the ongoing demand for such support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 1601 RESEARCH BLVD, ROCKVILLE, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,743,055

Exercised Options: $36,743,055

Current Obligation: $35,108,812

Parent Contract

Parent Award PIID: GS23F0005K

IDV Type: FSS

Timeline