DoD Awards $12.2M for F-16 Aircraft Maintenance Equipment to BAE Systems for Ukraine

Contract Overview

Contract Amount: $12,228,697 ($12.2M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2024-06-27

End Date: 2026-05-31

Contract Duration: 703 days

Daily Burn Rate: $17.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SUPPORT EQUIPMENT (AIRCRAFT MAINTENANCE EQUIPMENT) FOR F-16S IN UKRAINE.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76107

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: SUPPORT EQUIPMENT (AIRCRAFT MAINTENANCE EQUIPMENT) FOR F-16S IN UKRAINE. Key points: 1. Contract awarded to BAE Systems for critical F-16 maintenance equipment. 2. Supports ongoing efforts to maintain F-16 aircraft for Ukraine. 3. Limited competition raises questions about price discovery and value. 4. Spending falls within the broader 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: fair

The contract value of $12.2M for specialized aircraft maintenance equipment appears reasonable given the nature of the items. However, without specific details on the equipment or comparable contract data, a precise valuation is difficult. The lack of competition limits the ability to confirm optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not available for competition, suggesting a sole-source or limited-source award. This significantly restricts the opportunity for competitive bidding, potentially leading to higher prices than if multiple vendors had participated. The price discovery mechanism is therefore compromised.

Taxpayer Impact: Taxpayer funds are being used to procure essential equipment for a foreign military partner, impacting the overall defense budget and potentially increasing costs due to limited competition.

Public Impact

Enhances Ukraine's capability to maintain F-16 aircraft, crucial for ongoing defense operations. Directly supports U.S. foreign policy objectives and military aid to Ukraine. Procurement of specialized equipment may have long-term implications for aircraft readiness and operational lifespan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of detailed pricing justification
Potential for cost overruns due to non-competitive award

Positive Signals

Supports critical foreign policy and national security interests
Addresses an urgent need for military equipment
Awarded to a known defense contractor

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is often driven by specific platform needs and geopolitical events. Benchmarks are difficult to establish without more granular data on the specific equipment being procured.

Small Business Impact

The contract was awarded to BAE Systems, a large defense contractor, and there is no indication that small businesses were involved in this specific award. Efforts to ensure small business participation in subcontracts would be beneficial.

Oversight & Accountability

Oversight is crucial for non-competitive awards to ensure fair pricing and effective use of funds. The Department of the Air Force is responsible for managing this contract, and regular reviews of performance and costs are necessary.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency on specific equipment details
Dependence on contractor performance reporting

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. SUPPORT EQUIPMENT (AIRCRAFT MAINTENANCE EQUIPMENT) FOR F-16S IN UKRAINE.

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 $12.2 million.

What is the period of performance?

Start: 2024-06-27. End: 2026-05-31.

What specific maintenance equipment is being procured, and how does its cost compare to similar items or previous procurements?

The specific maintenance equipment is not detailed in the provided data. A thorough review would require access to the contract's line item details and specifications. Comparing costs would necessitate benchmarking against similar equipment procured competitively or through other limited-source agreements, considering factors like quantity, specifications, and vendor.

What is the justification for awarding this contract on a limited-competition basis, and what steps were taken to ensure a fair price?

The justification for limited competition is not provided. Typically, such awards occur when only one source can meet the requirement due to unique capabilities, urgency, or specific government needs. To ensure a fair price, the government should have conducted a price analysis based on historical data, commercial pricing, or other available cost information.

How will the effectiveness of this equipment in supporting F-16 maintenance in Ukraine be measured and verified?

Effectiveness will likely be measured through reports from the end-users (Ukrainian forces) and potentially through contractor performance metrics. Verification could involve tracking aircraft readiness rates, maintenance turnaround times, and the successful deployment and operation of the equipment itself. Regular performance reviews by the Department of the Air Force are essential.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA823218R3013

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6100 WESTERN PLACE, SUITE 200, FORT WORTH, TX, 76107

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

Financial Breakdown

Contract Ceiling: $12,228,697

Exercised Options: $12,228,697

Current Obligation: $12,228,697

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $8,951,477

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA823221D0004

IDV Type: IDC

Timeline