DoD Awards $5.29M for F-16 Support Equipment to BAE Systems, Limited Competition

Contract Overview

Contract Amount: $5,291,264 ($5.3M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-05

End Date: 2026-06-30

Contract Duration: 694 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-16 SUPPORT EQUIPMENT FOR UKRAINE.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76107

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: F-16 SUPPORT EQUIPMENT FOR UKRAINE. Key points: 1. Contract value of $5.29M for F-16 support equipment. 2. Sole-source award to BAE Systems Information and Electronic Systems Integration Inc. 3. Potential risk due to limited competition and lack of price discovery. 4. Spending falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.

Value Assessment

Rating: questionable

The contract value of $5.29M is for specialized F-16 support equipment. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts or market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not available for competition, indicating a sole-source or limited-source award. This significantly restricts price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive process.

Public Impact

Ensures continued operational readiness of F-16 aircraft for Ukraine. Supports critical defense infrastructure and foreign military sales. Potential for increased costs due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Sole-source award
Potential for overpricing

Positive Signals

Supports critical defense needs
Ensures operational readiness

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for maintaining aerospace capabilities. Benchmarks for this specific type of support equipment are not readily available due to its specialized nature.

Small Business Impact

The awardee, BAE Systems Information and Electronic Systems Integration Inc., is a large business. There is no indication that small businesses were involved in this specific contract, nor is there a stated effort to include them.

Oversight & Accountability

The Department of the Air Force awarded this contract. Oversight will be crucial to ensure the equipment is delivered on time and meets specifications, especially given the limited competition.

Related Government Programs

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

Risk Flags

Limited competition
Sole-source award
Lack of price transparency
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. F-16 SUPPORT EQUIPMENT FOR 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 $5.3 million.

What is the period of performance?

Start: 2024-08-05. End: 2026-06-30.

What is the justification for the limited competition on this F-16 support equipment contract?

The justification for limited competition is not provided in the data. Typically, such justifications are based on factors like unique technical requirements, urgent needs, or the unavailability of other sources. Further investigation would be needed to understand the specific reasons behind this procurement approach.

What are the potential risks associated with a sole-source award for defense equipment?

Sole-source awards carry risks of inflated prices due to the absence of competitive pressure, potentially lower quality if the contractor faces no market alternatives, and a lack of innovation. It also limits opportunities for new or smaller businesses to enter the market and provide alternative solutions.

How does this spending contribute to the overall effectiveness of F-16 operations for Ukraine?

This spending is critical for ensuring the operational readiness and sustainment of F-16 aircraft. Support equipment is essential for maintenance, repair, and deployment, directly impacting the effectiveness and longevity of the aircraft in their intended mission.

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

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: $5,291,264

Exercised Options: $5,291,264

Current Obligation: $5,291,264

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,009,305

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