DoD Awards BAE Systems $24.3M for U-2 Electronic Warfare Suite Support

Contract Overview

Contract Amount: $24,301,110 ($24.3M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2020-06-23

End Date: 2024-04-30

Contract Duration: 1,407 days

Daily Burn Rate: $17.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SUPPORT AND SUSTAINMENT OF THE U-2 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 $24.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: SUPPORT AND SUSTAINMENT OF THE U-2 AN/ALQ-221 ELECTRONIC WARFARE SUITE. Key points: 1. Contract awarded to a single, established provider for specialized EW suite sustainment. 2. High value contract for critical defense technology, indicating significant program investment. 3. Sole-source award raises questions about price discovery and potential competition. 4. Focus on engineering services for a specific, long-standing military platform.

Value Assessment

Rating: fair

The contract value of $24.3M for engineering services is substantial. Without specific per-unit cost data or benchmarks for similar EW suite sustainment contracts, a precise value assessment is difficult. The cost-plus-fixed-fee structure allows for cost reimbursement plus a predetermined profit, which can lead to higher costs if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach is often used for specialized systems where only one vendor possesses the necessary expertise or proprietary knowledge. However, the lack of competition limits price discovery and may result in higher costs for the government.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.

Public Impact

Ensures continued operational readiness of the U-2 aircraft's electronic warfare capabilities. Supports a critical intelligence, surveillance, and reconnaissance (ISR) platform. Maintains national security by sustaining advanced defense technology. Impacts a specialized segment of the defense contracting industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost-plus-fixed-fee contract type can incentivize higher spending.
Long contract duration (1407 days) increases exposure to cost overruns.

Positive Signals

Supports critical U-2 ISR platform.
Awarded to an established defense contractor with relevant expertise.
Ensures sustainment of advanced electronic warfare capabilities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense systems. Spending benchmarks for EW suite sustainment can vary widely based on system complexity and platform. The $24.3M award for a 1407-day period suggests a significant investment in maintaining specialized electronic warfare capabilities for the U-2.

Small Business Impact

The contract was awarded to BAE Systems, a large defense contractor. There is no indication that small businesses were involved as subcontractors on this specific award. The focus on specialized electronic warfare sustainment often favors large, established prime contractors.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The cost-plus-fixed-fee structure necessitates robust oversight to ensure costs are reasonable and the fixed fee is earned appropriately. Tracking performance and expenditures will be key to accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition may lead to inflated costs.
Cost-plus-fixed-fee contracts can incentivize spending.
Long contract duration increases risk of cost overruns.
Dependence on a single supplier for critical EW capability.
Potential for scope creep without strict oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. SUPPORT AND SUSTAINMENT OF THE U-2 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 $24.3 million.

What is the period of performance?

Start: 2020-06-23. End: 2024-04-30.

What is the total cost of ownership for the U-2 AN/ALQ-221 EW suite over its lifecycle, and how does this sustainment contract contribute to it?

Determining the total cost of ownership requires analyzing initial procurement, sustainment, upgrades, and eventual decommissioning. This $24.3M contract represents a significant portion of the sustainment phase. Understanding the lifecycle costs helps justify ongoing investments and informs future platform decisions, ensuring long-term value and strategic alignment.

What specific technical expertise or proprietary knowledge does BAE Systems possess that justifies a sole-source award for the U-2 AN/ALQ-221 EW suite sustainment?

Sole-source awards typically stem from unique intellectual property, highly specialized manufacturing processes, or deep historical knowledge of a complex system. For the U-2 EW suite, BAE likely holds patents, proprietary software, or has unique diagnostic and repair capabilities developed over years of integration and support, making them the only viable option.

How will the government ensure cost-effectiveness and prevent potential overruns within the cost-plus-fixed-fee structure for this long-duration contract?

Effective oversight is crucial. This includes rigorous auditing of BAE's incurred costs, performance monitoring against defined milestones, and regular reviews of the contractor's management of resources. Establishing clear ceilings and incentives for efficiency, alongside strong communication channels, can help mitigate risks associated with cost-plus contracts.

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: COST PLUS FIXED FEE (U)

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: $26,151,049

Exercised Options: $26,151,049

Current Obligation: $24,301,110

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $1,025,887

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA852820D0009

IDV Type: IDC

Timeline