DoD Awards $564.5M Contract to BAE Systems for Radar/Navigational Facilities Services
Contract Overview
Contract Amount: $564,521,075 ($564.5M)
Contractor: BAE Systems Technical Services
Awarding Agency: Department of Defense
Start Date: 2006-05-22
End Date: 2016-09-30
Contract Duration: 3,784 days
Daily Burn Rate: $149.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other Telecommunications
Official Description: 200609!000917!5700!FA2517!21CONS/LGC !FA251706C8001 !A!N! !Y! ! !20060522!20060930!150805703!876861790!217304393!N!BAE SYSTEMS TECHNICAL SERVICES!557 MARY ESTHER CUT OFF NW!FORT WALTON BE !FL!32548!58620!041!08!PETERSON AFB !EL PASO !COLORADO !+000000776454!N!N!000508831433!M123!OPERATION/RADAR&NAVIGATIONAL FACILITIES !S1 !SERVICES !000 !NOT DISCERNABLE !517910!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!L!2!002!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! ! ! !Y! ! !0001! !
Place of Performance
Location: CLEAR, DENALI County, ALASKA, 99704
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $564.5 million to BAE SYSTEMS TECHNICAL SERVICES for work described as: 200609!000917!5700!FA2517!21CONS/LGC !FA251706C8001 !A!N! !Y! ! !20060522!20060930!150805703!876861790!217304393!N!BAE SYSTEMS TECHNICAL SERVICES!557 MARY ESTHER CUT OFF NW!FORT WALTON BE !FL!32548!58620!041!08!PETERSON AFB !EL PASO !COLORADO !+000000776454!N!N!000508831433!M123!… Key points: 1. The contract value of $564.5 million is substantial, indicating a significant investment in critical infrastructure. 2. BAE Systems Technical Services is the sole awardee, raising questions about the extent of competition. 3. The contract's duration of over 12 years (2006-2016) suggests a long-term need for these services. 4. The 'Other Telecommunications' PSC code suggests a broad scope of services, potentially impacting various defense operations.
Value Assessment
Rating: questionable
The contract value of $564.5 million over 10 years is difficult to benchmark without specific service details. However, for long-term, specialized technical services, this figure could be within a reasonable range if the scope is extensive and complex.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded to a single contractor, the contract was competed full and open. This suggests that while BAE Systems was the selected vendor, multiple entities had the opportunity to bid, potentially leading to competitive pricing.
Taxpayer Impact: The competitive bidding process, even for a single awardee, aims to ensure taxpayer funds are used efficiently. The final price reflects the outcome of this competition.
Public Impact
Ensures continued operation and maintenance of vital radar and navigational systems for the Air Force. Supports national security by maintaining critical communication and guidance infrastructure. Potential for technological advancements and upgrades within the radar and navigation sector. Impacts personnel relying on these systems for mission success and safety.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to price escalation or outdated technology.
- Lack of ongoing competition could reduce pressure on contractor efficiency.
- Scope of 'Other Telecommunications' is broad and may lack specific performance metrics.
Positive Signals
- Awarded through full and open competition, suggesting a fair process.
- BAE Systems is a reputable defense contractor with relevant expertise.
- Contract supports critical national security infrastructure.
Sector Analysis
This contract falls under the 'Other Telecommunications' sector, which is broad and encompasses a range of services related to communication and navigation systems. Spending in this area is crucial for military operations, and benchmarks vary widely based on the specific technologies and services involved.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation from small businesses in this contract. Further investigation would be needed to determine if small businesses were involved or had opportunities.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, implying oversight from this branch of the DoD. The long duration necessitates ongoing monitoring to ensure performance and cost-effectiveness.
Related Government Programs
- Other Telecommunications
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration potentially leading to cost inefficiencies.
- Lack of detailed service scope makes performance assessment difficult.
- Potential for technology obsolescence over the contract's lifespan.
- Limited visibility into small business participation.
Tags
other-telecommunications, department-of-defense, ak, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $564.5 million to BAE SYSTEMS TECHNICAL SERVICES. 200609!000917!5700!FA2517!21CONS/LGC !FA251706C8001 !A!N! !Y! ! !20060522!20060930!150805703!876861790!217304393!N!BAE SYSTEMS TECHNICAL SERVICES!557 MARY ESTHER CUT OFF NW!FORT WALTON BE !FL!32548!58620!041!08!PETERSON AFB !EL PASO !COLORADO !+000000776454!N!N!000508831433!M123!OPERATION/RADAR&NAVIGATIONAL FACILITIES !S1 !SERVICES !000 !NOT DISCERNABLE !517910!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!L!2!002!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! ! ! !Y! ! !0001! !
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 $564.5 million.
What is the period of performance?
Start: 2006-05-22. End: 2016-09-30.
What specific radar and navigational facilities are covered under this contract, and what are the key performance indicators?
The provided data categorizes the service under 'Other Telecommunications' and 'Operation/Radar&Navigational Facilities' but lacks specific details on the exact systems or facilities. Key performance indicators (KPIs) are also not disclosed. Understanding these specifics is crucial for assessing the true value and effectiveness of the contract beyond its monetary value.
Given the 10-year duration, what mechanisms are in place to ensure the technology remains current and cost-effective?
Long-term contracts like this often include provisions for technical refresh or contract modifications to incorporate new technologies. However, without explicit details on such clauses, there's a risk of the technology becoming outdated or costs increasing due to lack of competitive pressure over time. Periodic reviews and potential re-competition are vital.
How does the pricing structure of this Fixed Price Incentive contract align with industry standards for similar long-term telecommunications and navigation support services?
A Fixed Price Incentive (FPI) contract aims to share cost risks and rewards between the government and contractor. Assessing its alignment with industry standards requires detailed cost breakdowns and performance data, which are not available here. The significant value and long duration suggest a need for robust cost analysis to ensure fair pricing.
Industry Classification
NAICS: Information › Other Telecommunications › Other Telecommunications
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: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC
Address: 557 MARY ESTHER CUT OFF NW, FORT WALTON BE, FL, 32548
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $565,264,387
Exercised Options: $129,590,027
Current Obligation: $564,521,075
Actual Outlays: $488,155
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-05-22
Current End Date: 2016-09-30
Potential End Date: 2018-10-31 00:00:00
Last Modified: 2023-08-14
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