DoD's $25M BIG SAFARI Buyback Production Contract Awarded to BAE Systems
Contract Overview
Contract Amount: $24,975,421 ($25.0M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2016-10-25
End Date: 2018-11-30
Contract Duration: 766 days
Daily Burn Rate: $32.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACAT III BIG SAFARI FY16 MBL2 GROUP B BUYBACK PRODUCTION
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060
Plain-Language Summary
Department of Defense obligated $25.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: ACAT III BIG SAFARI FY16 MBL2 GROUP B BUYBACK PRODUCTION Key points: 1. Significant contract value of $24.98M for aircraft parts. 2. Sole-source award to BAE Systems raises competition concerns. 3. Potential for taxpayer savings through competitive bidding. 4. Sector context: Defense manufacturing, specifically aircraft components.
Value Assessment
Rating: questionable
The contract value of $24.98M is substantial for aircraft parts. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Impacts the defense supply chain for aircraft components. Raises questions about the justification for a sole-source award. Potential for future sole-source awards if not properly scrutinized.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Specific contract for aircraft parts
Sector Analysis
This contract falls within the Defense sector, specifically related to the manufacturing of aircraft parts. Benchmarks for similar sole-source contracts in this area are difficult to establish without competitive data.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to compete.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure the justification is sound and that competitive opportunities are pursued in the future.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for inflated pricing due to no competition.
- Limited transparency in the procurement process.
- No small business participation indicated.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, nh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. ACAT III BIG SAFARI FY16 MBL2 GROUP B BUYBACK PRODUCTION
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 $25.0 million.
What is the period of performance?
Start: 2016-10-25. End: 2018-11-30.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific documentation from the Department of Defense, it's impossible to definitively state the reason. However, sole-source awards often bypass the price discovery benefits of competition, potentially leading to higher costs for taxpayers.
What is the risk associated with awarding a $25M contract without competition?
The primary risk of awarding a large contract without competition is the potential for overpayment. Without competing offers, the government may not secure the best possible price or value. This can also set a precedent for future sole-source awards, reducing overall market competition and potentially stifling innovation.
How effective is this contract likely to be in meeting the Department of the Air Force's needs?
The effectiveness of the contract in meeting needs is difficult to assess solely on award data. Assuming BAE Systems possesses the necessary technical capabilities, the contract should fulfill the requirements. However, the lack of competition raises concerns about the *efficiency* and *cost-effectiveness* of meeting those needs compared to a competitive scenario.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment 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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $24,975,421
Exercised Options: $24,975,421
Current Obligation: $24,975,421
Subaward Activity
Number of Subawards: 30
Total Subaward Amount: $12,255,549
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862016G3028
IDV Type: BOA
Timeline
Start Date: 2016-10-25
Current End Date: 2018-11-30
Potential End Date: 2018-11-30 00:00:00
Last Modified: 2018-10-30
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