DoD's $378.8M Facilities Support Contract Awarded to BAE Systems in 1999
Contract Overview
Contract Amount: $378,778,848 ($378.8M)
Contractor: BAE Systems Technical Services
Awarding Agency: Department of Defense
Start Date: 1999-11-05
End Date: 2006-03-31
Contract Duration: 2,338 days
Daily Burn Rate: $162.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Place of Performance
Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $378.8 million to BAE SYSTEMS TECHNICAL SERVICES for work described as: Key points: 1. Significant contract value of $378.8 million over its duration. 2. BAE Systems secured this award through full and open competition. 3. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. Services fall under Facilities Support, a broad operational category.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure allows for potential overruns but incentivizes performance. Without specific cost breakdowns or benchmarks for similar facilities support services, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition suggests a robust price discovery process. However, the Cost Plus Award Fee structure can lead to higher final costs compared to fixed-price contracts if performance targets are consistently met or exceeded.
Taxpayer Impact: Taxpayer funds are utilized for facilities support services, with the potential for cost efficiencies driven by performance incentives.
Public Impact
Ensures operational readiness and maintenance of critical facilities for the Department of the Air Force. Supports a large contract workforce, contributing to employment in the sector. The long duration of the contract (nearly 7 years) implies a stable, ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can be less predictable in final cost.
- Lack of specific performance metrics makes it hard to gauge award fee effectiveness.
- Long contract duration might limit opportunities for newer, potentially more innovative providers.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Incentivizes contractor performance through award fees.
- Provides essential facilities support services for a major government agency.
Sector Analysis
Facilities Support Services are crucial for maintaining government infrastructure and operational capabilities. Spending in this sector is generally stable, driven by the need for ongoing maintenance and upkeep of physical assets.
Small Business Impact
The contract was awarded through full and open competition, and there is no indication of specific set-asides for small businesses. This suggests that small businesses may have had limited direct opportunities to bid on the prime contract.
Oversight & Accountability
The Cost Plus Award Fee structure requires diligent oversight from the Department of Defense to ensure that award fees are justified by actual performance and that costs remain reasonable.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost creep due to Cost Plus Award Fee structure.
- Lack of transparency on specific performance metrics and award fee payouts.
- Long contract duration may not reflect current market efficiencies or technological advancements.
- Limited visibility into small business participation as a subcontractor.
Tags
facilities-support-services, department-of-defense, fl, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $378.8 million to BAE SYSTEMS TECHNICAL SERVICES. See the official description on USAspending.
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 Air Force).
What is the total obligated amount?
The obligated amount is $378.8 million.
What is the period of performance?
Start: 1999-11-05. End: 2006-03-31.
How does the performance of BAE Systems under this contract compare to industry benchmarks for facilities support services, considering the award fee structure?
Assessing BAE Systems' performance against industry benchmarks is challenging without detailed performance data and the specific criteria for award fees. Cost Plus Award Fee contracts aim to align contractor performance with agency goals, but the ultimate value depends on how effectively those goals were defined and measured, and whether the awarded fees truly reflect superior service beyond standard expectations.
What were the primary risks associated with this Cost Plus Award Fee contract, and how were they mitigated by the Department of Defense?
Key risks included potential cost overruns if award criteria were too lenient or poorly defined, and the possibility of the contractor focusing on maximizing award fees rather than overall cost efficiency. Mitigation likely involved rigorous oversight, clear performance metrics tied to award fees, and regular audits to ensure costs were reasonable and allocable.
To what extent did the full and open competition ensure the most effective and cost-efficient facilities support services for the Air Force?
Full and open competition generally promotes cost-effectiveness by allowing a wide range of qualified contractors to bid. However, the Cost Plus Award Fee structure introduces complexity. While competition sets a baseline, the final cost-effectiveness is heavily influenced by the clarity and fairness of the award fee criteria and the government's oversight in managing the contract.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 557 MARY ESTHER CUTOFF N, FORT WALTON BE, FL
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 1999-11-05
Current End Date: 2006-03-31
Potential End Date: 2006-03-31 00:00:00
Last Modified: 2010-11-24
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