DoD's $4.98M Instrumentation Range Support Program III contract awarded to BAE Systems for navigation and guidance systems

Contract Overview

Contract Amount: $4,977,624 ($5.0M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2024-10-25

End Date: 2026-06-12

Contract Duration: 595 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INSTRUMENTATION RANGE SUPPORT PROGRAM III

Place of Performance

Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $5.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: INSTRUMENTATION RANGE SUPPORT PROGRAM III Key points: 1. Contract awarded to a large, established defense contractor, indicating a focus on proven capabilities. 2. The contract type (Cost Plus Fixed Fee) suggests potential for cost overruns if not closely managed. 3. Limited publicly available data on performance metrics makes a direct value-for-money assessment challenging. 4. The duration of 595 days (approx. 20 months) is moderate for a support program of this nature. 5. Sector positioning within 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' is highly specialized. 6. The contract is a delivery order under a larger program, implying a pre-existing framework and potentially streamlined competition.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is difficult without access to the parent contract details and performance history. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if cost controls are not robust. However, CPFF is often used when the scope of work is not precisely defined, allowing for flexibility. Without comparable delivery orders for similar instrumentation range support, a precise value-for-money assessment is limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this competition level generally fosters price discovery and encourages competitive pricing. As a delivery order under a larger program, the initial competition for the parent contract likely established the competitive landscape.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers, driving down costs.

Public Impact

The primary beneficiaries are the Department of Defense (specifically the Air Force) and its operational units requiring advanced instrumentation for testing and training. Services delivered likely include maintenance, calibration, upgrades, and technical support for complex navigation, guidance, and related systems. Geographic impact is likely concentrated at Air Force ranges and testing facilities, primarily in Florida (ST) where the contractor is located. Workforce implications include employment for skilled technicians, engineers, and support staff at BAE Systems, particularly in specialized fields related to aerospace instrumentation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation if not managed diligently.
Lack of specific performance metrics in the provided data makes it difficult to assess the efficiency and effectiveness of the support.
The specialized nature of the instrumentation may lead to limited competition for future support needs if only a few firms possess the required expertise.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield reasonable pricing.
BAE Systems is a large, established defense contractor with a significant track record, implying a lower risk of contractor failure.
The contract is a delivery order under an existing program, which can indicate a level of established processes and oversight.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on the manufacturing and support of advanced navigation, guidance, and control systems. This is a highly specialized niche within the defense industrial base, characterized by high barriers to entry due to technological complexity and stringent quality requirements. Comparable spending benchmarks would typically involve other contracts for similar system support, calibration, and maintenance for military platforms.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a delivery order under a larger program, it's possible that subcontracting opportunities for small businesses may exist, particularly for specialized components or services. However, without further details on subcontracting plans or the parent contract's small business goals, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, a component of the Department of Defense. Accountability measures are typically embedded within the Cost Plus Fixed Fee contract structure, requiring detailed reporting of costs and progress. Transparency is often limited for defense contracts due to national security considerations, but contract awards and basic details are generally made public through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Instrumentation Range Support Programs
Aerospace Navigation and Guidance Systems
Defense Logistics and Maintenance Support
Air Force Test and Training Range Operations

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited public data on performance metrics hinders a comprehensive value assessment.
Specialized nature of instrumentation may limit future competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. INSTRUMENTATION RANGE SUPPORT PROGRAM III

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 Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2024-10-25. End: 2026-06-12.

What is the historical spending pattern for the Instrumentation Range Support Program III or similar programs managed by the Department of the Air Force?

Analyzing historical spending for the 'INSTRUMENTATION RANGE SUPPORT PROGRAM III' specifically is challenging without direct access to its full contract history. However, the Department of Defense, and the Air Force in particular, consistently allocates significant budgets towards range support, instrumentation, and system maintenance. These expenditures are crucial for maintaining readiness, conducting realistic training exercises, and testing new weapon systems. Spending in this category often fluctuates based on modernization efforts, geopolitical demands, and the lifecycle of existing platforms. For instance, investments may increase during periods of new system development or when upgrades to existing testing infrastructure are prioritized. Without specific data on this program's predecessors or comparable efforts, it's difficult to establish a precise trend, but it aligns with a broader, sustained investment in maintaining advanced military testing and evaluation capabilities.

How does the awarded amount of $4.98 million compare to the total value or duration of the parent contract, if applicable?

The provided data indicates that this $4.98 million award is a 'DELIVERY ORDER' (aw: 'DELIVERY ORDER'). This means it is a specific task order issued under a larger, pre-existing contract vehicle. The total value and duration of the parent contract are not specified in the provided data. Delivery orders are typically used to procure specific goods or services incrementally as needed. Therefore, this $4.98 million represents only a portion of the potential total value of the overarching contract. The parent contract likely has a significantly larger ceiling value and a longer overall period of performance, encompassing multiple delivery orders over its lifetime. To compare this amount meaningfully, one would need to access the details of the indefinite-delivery/indefinite-quantity (IDIQ) contract or basic ordering agreement under which this delivery order was placed.

What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this program?

The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility for undefined scopes, presents specific risks. The primary risk for the government is cost overrun. Since the contractor is reimbursed for allowable costs plus a fixed fee, there is less incentive for the contractor to control costs aggressively compared to fixed-price contracts. If the contractor's costs exceed initial estimates, the government pays the actual costs, potentially leading to a final price higher than anticipated. This necessitates robust government oversight to ensure that all claimed costs are reasonable, allocable, and allowable. Another risk is scope creep; if the project's requirements evolve, the contractor may incur additional costs that, while reimbursed, increase the overall expenditure. The fixed fee, however, provides the contractor with a predictable profit margin, which can be a positive aspect for ensuring contractor engagement.

What is BAE Systems Technology Solutions & Services Inc.'s track record with similar instrumentation support contracts for the Department of Defense?

BAE Systems Technology Solutions & Services Inc. is a subsidiary of BAE Systems, a major global defense contractor with extensive experience in providing technology solutions and support services to government agencies, including the Department of Defense. They have a well-established track record in areas such as systems engineering, integration, testing, and sustainment for complex defense platforms and equipment. While specific details on their past performance for 'INSTRUMENTATION RANGE SUPPORT PROGRAM III' are not provided, their general profile suggests they possess the technical expertise and capacity to handle such contracts. Historical contract awards data would typically show their involvement in numerous similar programs, often involving sophisticated electronic systems, simulation, and testing infrastructure. Their long-standing presence in the defense sector implies a history of managing complex projects, though performance can vary across individual contracts.

What are the potential implications of this contract on the broader market for navigation and guidance system manufacturing and support?

This contract, awarded to BAE Systems, reinforces their position in the specialized market for navigation and guidance system manufacturing and support within the defense sector. For competitors, it signifies the continued importance of these capabilities for military readiness and the significant role large, established contractors play. The full and open competition aspect suggests that other qualified firms could bid on similar future contracts, fostering a competitive environment. However, the high technical barriers to entry in this niche mean that the number of potential competitors may be limited. The demand for such systems is driven by defense modernization programs and the need to maintain existing fleets, suggesting a stable, albeit specialized, market. This contract contributes to the overall revenue stream for this segment of the defense industry, supporting innovation and workforce development in advanced electronics and aerospace technologies.

Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract that are publicly available?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. For most government contracts, especially those involving complex technical support, performance standards are defined within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These metrics typically relate to factors such as system uptime, response times for technical support, calibration accuracy, delivery schedules for parts or services, and adherence to safety protocols. Without access to the full contract documentation, it is not possible to ascertain the specific KPIs for the 'INSTRUMENTATION RANGE SUPPORT PROGRAM III' delivery order. Such information is often considered sensitive or proprietary and is not always made public.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $4,977,624

Exercised Options: $4,977,624

Current Obligation: $4,977,624

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $267,254

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA252120D0005

IDV Type: IDC

Timeline