DoD's $32.8M Instrumentation Range Support Program III contract awarded to BAE Systems for range support

Contract Overview

Contract Amount: $32,843,086 ($32.8M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-27

End Date: 2027-02-23

Contract Duration: 788 days

Daily Burn Rate: $41.7K/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 $32.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: INSTRUMENTATION RANGE SUPPORT PROGRAM III Key points: 1. Contract value of $32.8 million over a period of 788 days. 2. BAE Systems Technology Solutions & Services Inc. is the awarded contractor. 3. The contract is for instrumentation range support, falling under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing NAICS code. 4. Awarded as a Delivery Order under a larger program. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. The contract has a duration of approximately 2.16 years. 7. The contract is not set aside for small businesses. 8. The contract was awarded through full and open competition.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure warrants careful monitoring to ensure cost efficiency. Benchmarking against similar range support contracts would be beneficial to assess value for money. The awarded amount of $32.8 million for a duration of 788 days suggests a significant investment in maintaining critical defense infrastructure. Without more detailed cost breakdowns or comparisons to industry standards for similar services, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally fosters competitive pricing. The Air Force's decision to use full and open competition suggests confidence in the market's ability to provide the required services at a reasonable cost.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage innovation among bidders.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, who will receive essential instrumentation range support services. These services are critical for the testing and evaluation of various defense systems, ensuring operational readiness. The contract is geographically focused on Florida (FL), indicating a concentration of defense testing and training activities in that state. The contract supports a specialized workforce in the defense technology and range operations sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee, requiring robust oversight.
Lack of specific bidder numbers makes it difficult to fully assess the intensity of competition.
The duration of the contract (788 days) is substantial, increasing the potential for cost escalation over time.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contractor, BAE Systems, is a well-established defense technology provider.
The contract supports critical defense infrastructure and testing capabilities.

Sector Analysis

This contract falls within the broader defense sector, specifically supporting the operational readiness and testing capabilities of the U.S. Air Force. The NAICS code 334511 covers a niche market for specialized instrumentation and systems manufacturing. Spending in this area is crucial for maintaining technological superiority and ensuring the effectiveness of defense platforms. Comparable spending benchmarks would typically involve other range support contracts or specialized testing and evaluation services within the defense industrial base.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. The award to a large prime contractor like BAE Systems suggests that the primary focus is on leveraging established capabilities. This may limit direct opportunities for small businesses to participate as prime contractors on this specific award, though they may be involved as subcontractors.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Air Force, with specific contract officers and technical representatives responsible for monitoring performance and costs. Transparency will depend on the reporting requirements stipulated in the contract and the agency's commitment to public disclosure. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Instrumentation Systems
Range Operations Support
Defense Testing and Evaluation
Air Force Logistics and Support Contracts
Navigational and Guidance Systems Manufacturing

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Potential for scope creep without adequate cost controls.
Dependence on contractor's efficiency and cost management practices.
Need for robust government oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.8 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 $32.8 million.

What is the period of performance?

Start: 2024-12-27. End: 2027-02-23.

What is the track record of BAE Systems Technology Solutions & Services Inc. with similar instrumentation range support contracts?

BAE Systems Technology Solutions & Services Inc. has a significant track record in providing advanced technology solutions and services to the U.S. Department of Defense and other government agencies. Their experience often includes complex systems integration, engineering support, and sustainment services for critical defense platforms. While specific details on past instrumentation range support contracts are not provided here, the company's broad capabilities suggest they are well-equipped for such a role. A deeper dive into their contract history with the Air Force and other branches for similar services would reveal their performance metrics, past issues, and overall reliability in delivering complex technical support.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar range support services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or involves a high degree of uncertainty, which can be common in complex R&D or specialized support services like instrumentation range support. This structure allows the contractor to recover all allowable costs plus a predetermined fixed fee, which represents their profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but carries a higher risk of cost overruns if not managed diligently. Other contract types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives. For range support, FFP might be preferred for well-defined, routine maintenance, while CPFF or incentive-based cost-plus structures are more likely for evolving technological support.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for an Instrumentation Range Support Program III contract would typically focus on the reliability, availability, and performance of the instrumentation systems. This could include metrics such as system uptime, Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), accuracy and calibration of instrumentation, and successful completion of support tasks within specified timelines. Additionally, KPIs might track adherence to safety protocols, responsiveness to emergent issues, and the effectiveness of technical support provided to range users. The Cost Plus Fixed Fee structure also implies that cost control and efficient resource utilization would be implicitly monitored, though not necessarily tied to a specific performance fee incentive.

What is the historical spending trend for instrumentation range support within the Department of Defense?

Historical spending trends for instrumentation range support within the Department of Defense are generally characterized by consistent, significant investment due to the critical nature of testing and evaluation infrastructure. These programs often involve long-term sustainment, upgrades, and modernization of complex electronic and mechanical systems. Spending can fluctuate based on new platform development, modernization initiatives, and the lifecycle of existing ranges. While specific aggregate data for 'Instrumentation Range Support Program III' is not readily available, the overall defense budget allocated to range operations, test facilities, and associated instrumentation has historically been substantial, reflecting the ongoing need to maintain and advance these capabilities to support national security objectives.

What are the potential risks associated with a Cost Plus Fixed Fee contract for this type of service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for instrumentation range support is the potential for cost escalation. Since the contractor is reimbursed for all allowable costs plus a fixed fee, there is less inherent incentive to control expenses compared to a firm-fixed-price contract. If the government's oversight is not rigorous, or if the scope of work expands without proper adjustments, costs can significantly exceed initial estimates. Another risk is the potential for contractor inefficiency, as the fixed fee does not directly reward cost savings. Furthermore, defining 'allowable costs' and ensuring proper accounting practices requires diligent monitoring by the contracting agency to prevent overcharging.

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: $33,126,461

Exercised Options: $32,843,086

Current Obligation: $32,843,086

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $5,708,794

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