DoD Awards BAE Systems $14.7M for Digital Electronic Warfare System, Limited Competition
Contract Overview
Contract Amount: $14,774,153 ($14.8M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2025-12-18
End Date: 2026-08-17
Contract Duration: 242 days
Daily Burn Rate: $61.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DIGITAL ELECTRONICS WARFARE SYSTEM
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060
Plain-Language Summary
Department of Defense obligated $14.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: DIGITAL ELECTRONICS WARFARE SYSTEM Key points: 1. Contract value of $14.7 million for a critical defense system. 2. Sole-source award to BAE Systems raises competition concerns. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. System supports Air Force electronic warfare capabilities.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which offers less price certainty than fixed-price contracts. Without a competitive benchmark, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this essential defense system.
Public Impact
Enhances Air Force's electronic warfare capabilities. Supports national security by modernizing defense systems. Potential impact on future defense contracting strategies due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type.
- Lack of publicly available pricing data.
- Potential for cost overruns.
Positive Signals
- Supports critical Air Force mission.
- Award to established defense contractor.
Sector Analysis
This contract falls within the defense sector, specifically for electronic warfare systems. Spending in this area is crucial for maintaining technological superiority, but often involves complex, high-value procurements.
Small Business Impact
The contract was awarded to BAE Systems, a large defense contractor. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Cost Plus Fixed Fee structure necessitates close monitoring to control costs and ensure performance.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competitive pricing
- Potential for cost escalation
- Limited transparency on justification
Tags
other-electronic-and-precision-equipment, department-of-defense, nh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. DIGITAL ELECTRONICS WARFARE SYSTEM
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 $14.8 million.
What is the period of performance?
Start: 2025-12-18. End: 2026-08-17.
What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs that only one contractor can meet. Agencies are expected to conduct market research to confirm this and negotiate the best possible price, even without competition. Without detailed documentation, it's difficult to assess if fair pricing was achieved.
What are the specific risks associated with the Cost Plus Fixed Fee contract type for this system?
The primary risk of a Cost Plus Fixed Fee (CPFF) contract is that the government bears the cost risk. While the contractor has a fixed fee, the actual costs can escalate, leading to a higher total contract price than anticipated. This requires robust government oversight to manage expenditures and prevent cost overruns.
How does this contract contribute to the overall effectiveness of the Air Force's electronic warfare capabilities?
This contract is for a Digital Electronic Warfare System, which is crucial for detecting, identifying, and countering enemy electronic threats. Its effectiveness will depend on the system's technological sophistication, integration with existing platforms, and the training provided to Air Force personnel. Successful deployment enhances situational awareness and operational freedom.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA852317R0009
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 65 SPIT BROOK RD, NASHUA, NH, 02
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: $14,774,153
Exercised Options: $14,774,153
Current Obligation: $14,774,153
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852319D0001
IDV Type: IDC
Timeline
Start Date: 2025-12-18
Current End Date: 2026-08-17
Potential End Date: 2026-08-17 00:00:00
Last Modified: 2025-12-24
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