DoD's $25.4M Engineering Services Contract Awarded to BAE Systems
Contract Overview
Contract Amount: $25,436,035 ($25.4M)
Contractor: BAE Systems Space & Mission Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2003-12-17
End Date: 2008-07-31
Contract Duration: 1,688 days
Daily Burn Rate: $15.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433, UNITED STATES OF AMERICA
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $25.4 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: Key points: 1. Significant contract value of $25.4 million awarded. 2. BAE Systems, a major defense contractor, secured the award. 3. The contract falls under Engineering Services (NAICS 541330). 4. Awarded by the Department of the Air Force, indicating a specific military need.
Value Assessment
Rating: fair
The contract was awarded under a 'COST NO FEE' (CPFF) type, which can lead to higher costs for the government as the contractor is reimbursed for actual costs plus a fixed fee. Without more data on the specific services and deliverables, it's difficult to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the 'COST NO FEE' contract type might not always yield the most cost-effective outcome compared to fixed-price contracts.
Taxpayer Impact: The use of a 'COST NO FEE' contract type means taxpayers bear the direct cost of the contractor's expenses, plus a fee. The effectiveness of competition in driving down costs under this structure is a key consideration.
Public Impact
Supports critical engineering services for the Department of the Air Force. BAE Systems' involvement suggests a focus on advanced aerospace or defense technologies. The long duration (nearly 5 years) indicates a substantial and ongoing requirement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-reimbursable contract type (COST NO FEE) can lead to cost overruns.
- Lack of specific performance metrics or deliverables makes value assessment challenging.
- Long contract duration may not adapt well to evolving technological needs.
Positive Signals
- Awarded through full and open competition.
- BAE Systems is a reputable defense contractor.
- Contract addresses a clear need within the Department of the Air Force.
Sector Analysis
This contract falls within the Engineering Services sector, specifically for aerospace and defense applications. Spending in this sector is often driven by complex R&D, system design, and technical support for military platforms, with significant government investment.
Small Business Impact
The awardee, BAE SYSTEMS SPACE & MISSION SYSTEMS INC., is a large business. There is no indication that small businesses were subcontracted or involved in this specific award, which is common for large, complex defense contracts.
Oversight & Accountability
The 'COST NO FEE' contract type necessitates robust oversight from the Department of the Air Force to ensure costs are reasonable and allocable to the contract. Auditing and performance monitoring are crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost-reimbursable contract type (COST NO FEE).
- Potential for cost overruns and lack of strong price incentives.
- Limited transparency on specific deliverables and performance metrics.
- Long contract duration may not align with rapidly evolving technological needs.
- No explicit mention of small business participation.
Tags
engineering-services, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.4 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS SPACE & MISSION SYSTEMS INC..
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 $25.4 million.
What is the period of performance?
Start: 2003-12-17. End: 2008-07-31.
What specific engineering services were provided under this contract, and how did they contribute to the Air Force's mission objectives?
The contract likely encompassed a range of specialized engineering services, potentially including design, development, testing, and integration of complex systems for the Air Force. Without detailed statements of work, it's hard to pinpoint exact contributions, but these services are fundamental to maintaining and advancing military capabilities, ensuring operational readiness and technological superiority.
How effectively did the full and open competition process ensure a competitive price for a cost-reimbursable contract?
While full and open competition is a positive indicator, its effectiveness in securing a competitive price is diminished with cost-reimbursable contract types like 'COST NO FEE'. The government agrees to pay actual costs plus a fee, shifting much of the cost risk to the agency. True price competition is more evident in fixed-price arrangements where bidders must accurately estimate costs and profit margins upfront.
What mechanisms were in place to manage and control costs given the 'COST NO FEE' structure over the contract's nearly five-year duration?
Effective cost control under a 'COST NO FEE' contract relies heavily on stringent government oversight, including regular audits of contractor expenses, detailed cost reporting requirements, and clear criteria for allowable costs. The Air Force would need to actively monitor expenditures against budgeted amounts and ensure all costs are directly related to contract performance to prevent unnecessary spending.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE (S)
Contractor Details
Parent Company: Ball Corp (UEI: 006419147)
Address: 1600 COMMERCE STREET, BOULDER, CO, 80306
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: GS35F5431F
IDV Type: FSS
Timeline
Start Date: 2003-12-17
Current End Date: 2008-07-31
Potential End Date: 2008-07-31 00:00:00
Last Modified: 2015-05-22
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