DoD Awards BAE Systems $24.3M for Indonesia Support Equipment, Lacking Competition

Contract Overview

Contract Amount: $24,340,959 ($24.3M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2012-10-29

End Date: 2015-12-31

Contract Duration: 1,158 days

Daily Burn Rate: $21.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UNDEFINITIZED CONTRACT ACTION (UCA) FOR THE PURCHASE OF SUPPORT EQUIPMENT FOR THE COUNTRY OF INDONESIA.

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: UNDEFINITIZED CONTRACT ACTION (UCA) FOR THE PURCHASE OF SUPPORT EQUIPMENT FOR THE COUNTRY OF INDONESIA. Key points: 1. Significant award to BAE Systems for specialized support equipment. 2. Lack of competition raises concerns about price discovery and value. 3. Contract duration of nearly 3 years suggests substantial project scope. 4. Sector focus on aircraft parts manufacturing aligns with defense needs.

Value Assessment

Rating: questionable

The contract value of $24.3 million for support equipment is difficult to assess without comparable data. The lack of competition suggests potential for overpricing compared to a competitive environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not available for competition, indicating a sole-source or limited source justification. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for this equipment, as market forces were not leveraged to secure the best possible price.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The specific support equipment's necessity and cost-effectiveness are unclear. Dependence on a single contractor for critical equipment could pose future risks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Limited transparency on pricing
Potential for cost overruns

Positive Signals

Award to established defense contractor
Clear end date for contract performance

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a key component of the aerospace and defense industry. Spending in this area is often driven by specific military needs and can be subject to less price competition due to specialized requirements.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a large, established entity.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further scrutiny to ensure the justification for limited competition was robust and that appropriate oversight was in place to manage costs and performance.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency on cost justification
No small business participation identified

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. UNDEFINITIZED CONTRACT ACTION (UCA) FOR THE PURCHASE OF SUPPORT EQUIPMENT FOR THE COUNTRY OF INDONESIA.

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION 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 $24.3 million.

What is the period of performance?

Start: 2012-10-29. End: 2015-12-31.

What was the specific justification for limiting competition on this contract, and were alternative solutions explored?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review would be needed to understand the specific justification, such as unique technical requirements or urgent needs. Without this information, it's impossible to determine if alternative solutions were adequately explored or if competition was unnecessarily restricted, potentially impacting overall value for the government.

How does the per-unit cost of this support equipment compare to similar items purchased competitively by the DoD or allied nations?

Benchmarking the per-unit cost is crucial for assessing value, especially given the limited competition. Without access to specific unit cost data and comparable contract information, it is impossible to determine if this pricing is reasonable. A detailed cost analysis comparing this contract to similar, competitively procured items would be necessary to identify potential overpricing.

What are the long-term implications of procuring specialized support equipment through a non-competitive process for future sustainment and upgrades?

Procuring specialized equipment through a limited competition can create vendor lock-in, making future sustainment, upgrades, and repairs more expensive and less flexible. The government might be tied to the original contractor, potentially at higher prices, and may face challenges integrating newer technologies or finding alternative support providers down the line.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 65 SPIT BROOK RD, NASHUA, NH, 03060

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $24,340,959

Exercised Options: $24,340,959

Current Obligation: $24,340,959

Subaward Activity

Number of Subawards: 87

Total Subaward Amount: $15,694,457

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline