DoD Awards BAE Systems $11.3M for Avionics Intermediate Shop Sustaining Engineering

Contract Overview

Contract Amount: $11,345,375 ($11.3M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2025-01-01

End Date: 2026-02-28

Contract Duration: 423 days

Daily Burn Rate: $26.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AVIONICS INTERMEDIATE SHOP SUSTAINING ENGINEERING

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: AVIONICS INTERMEDIATE SHOP SUSTAINING ENGINEERING Key points: 1. Contract awarded to BAE Systems for critical avionics engineering services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract duration suggests a sustained need for these services. 4. Engineering services sector is vital for maintaining complex defense systems.

Value Assessment

Rating: fair

The contract value of $11.3M over 14 months appears reasonable for specialized engineering services. However, without a competitive bidding process, it's difficult to definitively assess if this represents the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive environment.

Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition means there's a risk of overpayment, impacting the efficient use of public money.

Public Impact

Ensures continued operational readiness of Air Force avionics systems. Supports critical maintenance and sustainment for advanced aircraft. Potential for higher costs due to sole-source nature impacts taxpayer value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Long contract duration

Positive Signals

Ensures critical system sustainment
Supports Air Force readiness

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for the defense industry. Spending benchmarks for similar specialized engineering services can vary widely based on complexity and duration.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, which could be an opportunity missed for small business participation.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of Defense should monitor expenditures closely throughout the contract's life.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of small business participation.
Long contract duration may mask inefficiencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. AVIONICS INTERMEDIATE SHOP SUSTAINING ENGINEERING

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 $11.3 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-02-28.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met through competition. Without further details, it's difficult to ascertain the specific rationale. Agencies are generally required to document why competition is not feasible. Exploring alternative competitive strategies, even for specialized services, is often mandated to ensure the government obtains the best value.

How does the awarded price compare to industry benchmarks for similar avionics sustaining engineering services?

Benchmarking this contract's price requires detailed analysis of the specific services provided, the complexity of the avionics systems, and the contractor's overhead structure. Given the sole-source nature, a direct comparison to competitively bid contracts is challenging. Independent cost estimates and market research would be necessary to validate the fairness of the price against industry standards.

What mechanisms are in place to ensure the effectiveness and efficiency of the engineering services provided under this contract?

Effectiveness and efficiency are typically ensured through performance metrics, service level agreements, and regular progress reviews outlined in the contract. The Air Force should actively monitor BAE Systems' performance against these metrics, ensuring timely delivery of quality engineering support and adherence to technical requirements. Any deviations or deficiencies should be addressed promptly through contract management channels.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA825124R0011

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie DE Developpement DE L'eau S.A.

Address: 10920 TECHNOLOGY PL, SAN DIEGO, CA, 92127

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: $11,835,583

Exercised Options: $11,835,583

Current Obligation: $11,345,375

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline