DoD awards $5.37M for Ukraine F-16 support equipment to BAE Systems

Contract Overview

Contract Amount: $5,373,919 ($5.4M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2025-08-21

End Date: 2027-01-20

Contract Duration: 517 days

Daily Burn Rate: $10.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UKRAINE F-16 SUPPORT EQUIPMENT

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76107

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $5.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: UKRAINE F-16 SUPPORT EQUIPMENT Key points: 1. Contract awarded for critical support equipment for F-16 aircraft vital to Ukraine's defense efforts. 2. BAE Systems, a major defense contractor, secured this award. 3. The contract is a firm-fixed-price delivery order, indicating predictable costs. 4. Performance period extends over two years, ensuring sustained support. 5. The award is categorized under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 6. Geographic location of performance is Texas.

Value Assessment

Rating: fair

The contract value of $5.37 million for specialized support equipment appears reasonable given the critical nature of the F-16 program for Ukraine. Without specific benchmarks for this exact type of support equipment, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure suggests cost certainty for the government. Comparisons to similar international F-16 sustainment contracts would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed and was awarded on a sole-source basis. This limits the opportunity for price discovery through competitive bidding. The justification for a sole-source award would typically involve unique capabilities, urgent need, or lack of alternative sources. The absence of competition may lead to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive pressure. The government did not leverage market forces to secure the best possible price for this essential equipment.

Public Impact

The primary beneficiaries are the Ukrainian Air Force, receiving crucial support for their F-16 fleet. The services delivered include the provision of specialized support equipment necessary for F-16 aircraft maintenance and operation. The geographic impact is primarily in Texas, where the contractor is located, but the ultimate impact is on the defense of Ukraine. Workforce implications are within BAE Systems' facilities in Texas, supporting skilled labor in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-source award.
Dependence on a single contractor for critical support equipment.

Positive Signals

Award supports a critical national security objective related to aiding Ukraine.
Firm-fixed-price contract provides cost predictability.
Contract awarded to an established defense contractor with relevant experience.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and support equipment. The global market for military aircraft sustainment is substantial, driven by ongoing geopolitical needs and modernization efforts. This contract represents a small but significant component of the broader F-16 sustainment ecosystem, which involves numerous suppliers and service providers globally. Comparable spending benchmarks are difficult to ascertain without more specific details on the equipment type.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. The award to a large prime contractor like BAE Systems suggests that opportunities for small businesses would likely be through lower-tier subcontracts, if at all.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Ukraine Security Assistance Initiative
Foreign Military Sales
F-16 Sustainment Programs
Defense Production Act Purchases

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. UKRAINE F-16 SUPPORT EQUIPMENT

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 $5.4 million.

What is the period of performance?

Start: 2025-08-21. End: 2027-01-20.

What is the specific nature of the 'Ukraine F-16 Support Equipment' being procured?

The provided data does not specify the exact type of support equipment. However, given the context of F-16 aircraft operations, this could include ground support equipment (GSE), specialized tools, maintenance kits, training simulators, or specific spare parts crucial for the operational readiness and sustainment of the F-16 fleet. The classification 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' suggests components or systems rather than complete aircraft. Further details would be required from the contract's statement of work to ascertain the precise nature of the equipment.

What is BAE Systems' track record with F-16 support or similar international defense contracts?

BAE Systems is a major global defense contractor with extensive experience in aerospace, electronics, and defense systems. They have a significant presence in supporting various military aircraft platforms, including components and systems related to fighter jets. While specific details on their F-16 support contracts for international clients are not provided in this data snippet, their broad capabilities in areas like avionics, electronic warfare, and aircraft sustainment suggest they are well-positioned to fulfill this requirement. Their history includes numerous contracts with the U.S. Department of Defense and allied nations, indicating a proven ability to manage complex defense procurements.

How does the $5.37 million contract value compare to typical F-16 support equipment procurements?

Benchmarking the $5.37 million value is challenging without knowing the specific type and quantity of support equipment. F-16 support can range from individual spare parts costing thousands of dollars to complex ground support systems costing millions. Given this is a delivery order for 'support equipment' and not a full sustainment contract, the value seems plausible for a defined set of specialized items. However, without access to the contract's detailed line items or comparable international procurements for similar F-16 support packages, a precise value comparison is not feasible. The sole-source nature also complicates direct price efficiency assessments.

What are the primary risks associated with this sole-source contract for Ukraine's F-16 program?

The primary risk associated with this sole-source contract is the potential for inflated costs due to the lack of competitive bidding. Taxpayers may not be receiving the best possible value for the funds expended. Another risk is the potential for delays if BAE Systems encounters unforeseen production or delivery issues, as there are no immediate alternative suppliers readily available under this specific award. Furthermore, a sole-source award can sometimes indicate a lack of readily available alternatives or a highly specialized requirement, which could pose a long-term risk if the contractor faces significant business challenges.

What is the historical spending pattern for F-16 support equipment by the Department of Defense?

Historical spending on F-16 support equipment by the Department of Defense is substantial and spans decades, reflecting the long service life of the F-16 aircraft. This spending encompasses a wide array of items, including spare parts, maintenance equipment, training systems, and upgrades. Annual expenditures can fluctuate significantly based on fleet readiness requirements, modernization programs, and international sales/support packages. While this specific $5.37 million award is for Ukraine, the DoD consistently invests in F-16 sustainment for its own fleet and allies, often through complex, multi-year contracts and numerous individual delivery orders. Tracking precise historical figures for 'support equipment' specifically requires detailed analysis of defense budget allocations and contract databases.

What are the implications of the contract's end date (January 2027) for ongoing F-16 support for Ukraine?

The contract's end date of January 20, 2027, indicates that this specific award covers support equipment provision for a defined period, approximately two years from the estimated start date. This timeline suggests that the procurement is intended to meet immediate or near-term needs for the F-16s being supplied to Ukraine. It implies that further contracting actions will likely be necessary to ensure sustained support beyond this period. The DoD and its partners will need to plan for future procurements of equipment and services to maintain the operational capability of the F-16 fleet in Ukraine as these aircraft continue to be a critical asset.

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: $5,373,919

Exercised Options: $5,373,919

Current Obligation: $5,373,919

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