DoD's $81.4M BAE Systems Contract for DEWS/CMWS Spares Lacks Competition, Raises Value Concerns
Contract Overview
Contract Amount: $81,389,729 ($81.4M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2015-11-10
End Date: 2018-12-31
Contract Duration: 1,147 days
Daily Burn Rate: $71.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DEWS/CMWS SPARE LRMS AND LRUS
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060
Plain-Language Summary
Department of Defense obligated $81.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: DEWS/CMWS SPARE LRMS AND LRUS Key points: 1. Contract awarded to BAE Systems for $81.4M for spare parts. 2. Lack of competition raises questions about price reasonableness. 3. Potential for overpayment due to sole-source award. 4. Sector: Defense - specifically aircraft electronic systems.
Value Assessment
Rating: questionable
The contract value of $81.4M for spare parts is significant. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar components or alternative suppliers.
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 negotiation leverage, potentially leading to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential spare parts.
Public Impact
Ensures availability of critical spare parts for Air Force aircraft. Potential for extended aircraft downtime if parts are not readily available. Lack of transparency in pricing could impact future defense procurement strategies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Provides critical spare parts
- Firm fixed price contract limits cost overruns
Sector Analysis
This contract falls within the Defense sector, specifically for electronic warfare and missile warning system spare parts. Spending benchmarks for such specialized components can vary widely, but competitive pricing is generally expected.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small businesses were excluded or if the nature of the requirement precluded their participation.
Oversight & Accountability
The 'NOT COMPETED' status warrants further investigation by oversight bodies to ensure the justification for a sole-source award was robust and that fair pricing was pursued.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for price gouging
- Limited transparency in pricing
- No small business participation indicated
Tags
search-detection-navigation-guidance-aer, department-of-defense, nh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $81.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. DEWS/CMWS SPARE LRMS AND LRUS
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 $81.4 million.
What is the period of performance?
Start: 2015-11-10. End: 2018-12-31.
What was the justification for awarding this contract on a sole-source basis, and were alternative sources considered?
The justification for a sole-source award is not provided in the data. Typically, such justifications require demonstrating that only one responsible source can provide the required supplies or services. Oversight bodies should review the procurement file to validate the necessity of this approach and ensure no viable competitive alternatives were overlooked.
How does the per-unit cost of these spare parts compare to industry benchmarks or previous procurements?
Without access to specific part numbers and quantities, a direct per-unit cost comparison is not possible. However, given the sole-source nature of the award, there is a heightened risk that the pricing may exceed competitive market rates. Benchmarking would require detailed cost data and comparison with similar government or commercial contracts.
What is the long-term impact on the Air Force's readiness and budget due to the lack of competition for these critical spares?
The long-term impact could include higher sustainment costs for the DEWS/CMWS systems, potentially diverting funds from other critical readiness initiatives. If prices are inflated, it could also set a precedent for future sole-source procurements, negatively affecting the overall defense budget and potentially leading to reduced operational availability due to cost constraints.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
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: $81,389,729
Exercised Options: $81,389,729
Current Obligation: $81,389,729
Subaward Activity
Number of Subawards: 72
Total Subaward Amount: $18,330,142
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-11-10
Current End Date: 2018-12-31
Potential End Date: 2018-12-31 00:00:00
Last Modified: 2020-09-21
More Contracts from BAE Systems Information and Electronic Systems Integration Inc.
- Limited Interim Missile Warning System (limws) A-Kits and B-Kits — $493.3M (Department of Defense)
- ALR 56C — $453.3M (Department of Defense)
- ALE-70 Production — $379.6M (Department of Defense)
- Digital Electronic Warfare System (dews) — $364.5M (Department of Defense)
- Global Positioning System Military Users Equipment Miniature Serial Interface Receiver Card Program With Next Generation Application Specific Integrated Circuit Increment 2 — $360.0M (Department of Defense)
View all BAE Systems Information and Electronic Systems Integration Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)