DoD awards $18.3M for AN/ALQ-221 EW Suite support, with BAE Systems as sole contractor

Contract Overview

Contract Amount: $18,284,623 ($18.3M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2019-04-25

End Date: 2024-07-31

Contract Duration: 1,924 days

Daily Burn Rate: $9.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SUPPORT AND SUSTAINMENT OF THE AN/ALQ-221 ELECTRONIC WARFARE SUITE.

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: SUPPORT AND SUSTAINMENT OF THE AN/ALQ-221 ELECTRONIC WARFARE SUITE. Key points: 1. Contract value of $18.3M over five years suggests a significant investment in electronic warfare capabilities. 2. Sole-source award to BAE Systems raises questions about competition and potential price efficiencies. 3. The contract's duration of 1924 days indicates a long-term need for sustainment services. 4. Fixed-price contract type aims to transfer some cost risk to the contractor. 5. The absence of small business set-asides or subcontracting requirements may limit broader economic participation. 6. Focus on sustainment implies a mature system requiring ongoing maintenance and upgrades.

Value Assessment

Rating: fair

The contract value of $18.3 million for five years of support for the AN/ALQ-221 EW Suite appears to be within a reasonable range for specialized defense systems. However, without specific benchmarks for this particular EW suite or comparable sustainment contracts, a definitive value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost certainty, but the lack of competition limits the ability to benchmark pricing against market alternatives. Further analysis would require comparing unit costs for specific parts or labor hours against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to BAE Systems Information and Electronic Systems Integration Inc. The justification for a sole-source award typically involves factors such as proprietary technology, unique capabilities, or the need for compatibility with existing systems. The lack of competition means that pricing was not determined through a competitive bidding process, which can sometimes lead to higher costs for the government compared to fully competed contracts. The government likely relied on negotiation to establish a fair price.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in higher expenditures for taxpayers. Without competitive pressure, there is less incentive for the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the Department of Defense, specifically units utilizing the AN/ALQ-221 Electronic Warfare Suite, ensuring operational readiness. The contract delivers essential support and sustainment services, including maintenance, repair, and potential upgrades for the EW system. Geographic impact is likely concentrated around military bases or operational theaters where the AN/ALQ-221 is deployed. Workforce implications include the employment of skilled technicians and engineers at BAE Systems and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the sole-source justification could obscure reasons for not competing.
Long contract duration without clear performance metrics could mask inefficiencies.
Absence of small business participation requirements may limit economic opportunities for smaller firms.

Positive Signals

Fixed-price contract type shifts some cost risk to the contractor.
BAE Systems is an established defense contractor with expertise in electronic warfare systems.
Sustainment focus ensures continued operational capability of critical EW systems.
Contract duration provides stability for planning and resource allocation.

Sector Analysis

The defense electronics sector is characterized by high R&D costs, long product lifecycles, and significant government procurement. Electronic warfare systems are critical components of modern military operations, providing capabilities for threat detection, jamming, and countermeasures. The market is dominated by a few large, specialized contractors like BAE Systems. Spending in this area is driven by evolving threat landscapes and the need for technological superiority. Comparable spending benchmarks would involve analyzing other sustainment contracts for similar complex defense systems.

Small Business Impact

This contract does not appear to include specific small business set-aside provisions, nor are there explicit requirements for subcontracting to small businesses mentioned in the provided data. This suggests that the primary contractor, BAE Systems, will likely handle the majority of the work internally. The absence of small business participation could limit opportunities for smaller firms to contribute to this defense program and benefit from its value. Future contracts of this nature could explore subcontracting goals to foster broader engagement with the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management structures, potentially involving the Defense Contract Management Agency (DCMA) for contract administration. Accountability measures are inherent in the fixed-price contract type, which incentivizes the contractor to manage costs effectively. Transparency is limited by the sole-source nature of the award; however, contract awards are generally publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

AN/ALQ-221 Electronic Warfare System
Defense Electronic Warfare Systems
Aerospace and Defense Sustainment Contracts
BAE Systems Defense Contracts

Risk Flags

Sole-source award may limit cost efficiency.
Lack of competition could impact price discovery.
Long-term sustainment requires ongoing budget allocation.
Potential for technology obsolescence in EW systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. SUPPORT AND SUSTAINMENT OF THE AN/ALQ-221 ELECTRONIC WARFARE SUITE.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2019-04-25. End: 2024-07-31.

What is the specific technical capability of the AN/ALQ-221 Electronic Warfare Suite, and why is its sustainment critical for DoD operations?

The AN/ALQ-221 is an advanced electronic warfare (EW) system designed to detect, identify, and counter a wide range of radar and missile threats. Its critical function is to protect aircraft and other platforms by disrupting enemy targeting systems and providing situational awareness of the electromagnetic spectrum. Sustainment is crucial because EW systems are complex, require regular maintenance, calibration, and software updates to remain effective against evolving threats. Without ongoing support, the system's reliability and performance would degrade, compromising mission success and aircrew safety. The DoD relies on such systems to maintain air superiority and survivability in contested environments.

How does the $18.3 million contract value compare to other sustainment contracts for similar electronic warfare systems?

Benchmarking the $18.3 million contract value requires comparing it to sustainment contracts for comparable EW systems, considering factors like system complexity, age, number of platforms supported, and contract duration. For instance, sustainment contracts for other airborne EW suites can range from a few million to tens of millions of dollars annually, depending on the scope. Given this contract spans approximately five years (1924 days), the annual average is roughly $3.66 million. This figure appears moderate for a specialized system like the AN/ALQ-221, but a precise comparison is difficult without access to detailed scope-of-work and pricing data for similar contracts. The sole-source nature also complicates direct value comparisons.

What are the potential risks associated with a sole-source award for electronic warfare system sustainment?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to innovate or optimize costs. Taxpayers may end up paying more than they would in a competitive environment. Additionally, reliance on a single supplier can create vendor lock-in, making it difficult and costly to switch providers in the future. There's also a risk that the contractor might deprioritize this specific contract if they have more lucrative opportunities, potentially impacting service delivery. Ensuring fair pricing through rigorous negotiation and market research becomes paramount in sole-source situations.

What is BAE Systems' track record with electronic warfare systems and DoD contracts?

BAE Systems is a major global defense contractor with extensive experience and a strong track record in developing, manufacturing, and sustaining electronic warfare systems for various military branches. They are known for producing a wide range of EW products, including radar warning receivers, jammers, and countermeasures. The company has a long history of working with the DoD on numerous complex programs, often securing significant contracts. Their established presence and expertise in the EW domain suggest a high likelihood of fulfilling the requirements of this sustainment contract effectively. Historical data indicates they are a reliable, albeit often sole-source, provider in this specialized field.

How has federal spending on electronic warfare systems evolved over the past five years, and what does this contract signify?

Federal spending on electronic warfare systems has generally seen a steady increase over the past five years, driven by the recognition of EW as a critical capability in modern warfare, particularly against peer and near-peer adversaries. Investments focus on upgrading legacy systems, developing new technologies to counter emerging threats, and ensuring the sustainment of existing platforms. This $18.3 million contract for the AN/ALQ-221 sustainment signifies the ongoing commitment to maintaining the effectiveness of deployed EW capabilities. It reflects a strategic decision to ensure the operational readiness of this specific system, aligning with broader DoD efforts to modernize and maintain a technological edge in the electromagnetic spectrum.

What are the potential performance risks if the AN/ALQ-221 system experiences significant degradation or obsolescence?

If the AN/ALQ-221 system experiences significant degradation or obsolescence, the primary performance risk is a reduction in the platform's survivability and mission effectiveness. This could manifest as a decreased ability to detect and counter threats, leading to increased vulnerability for aircrews and the platform itself. Obsolescence poses a risk because components may become unavailable, making repairs difficult and costly, or requiring expensive redesigns. The sustainment contract aims to mitigate these risks through proactive maintenance and upgrades, but if the system's core technology becomes fundamentally outdated, the DoD might face difficult decisions regarding replacement or major modernization efforts, potentially incurring substantial future costs.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

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

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: $19,084,605

Exercised Options: $19,084,605

Current Obligation: $18,284,623

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $1,658,471

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA852816D0009

IDV Type: IDC

Timeline