DoD awards BAE Systems $23.8M for TALON SPITBALL Phase III, a sole-source contract for electronic computer manufacturing
Contract Overview
Contract Amount: $23,850,944 ($23.9M)
Contractor: BAE Systems Space & Mission Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2017-12-21
End Date: 2021-09-30
Contract Duration: 1,379 days
Daily Burn Rate: $17.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TALON SPITBALL PHASE III
Place of Performance
Location: BOULDER, BOULDER County, COLORADO, 80301
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $23.9 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: TALON SPITBALL PHASE III Key points: 1. Significant award to a single contractor, BAE Systems, for specialized electronic computer manufacturing. 2. The contract's sole-source nature raises questions about potential price discovery and competition. 3. Long duration (1379 days) suggests a complex, multi-year project with inherent risks. 4. The 'CO' contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not closely monitored.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a sole-source award, makes it difficult to benchmark pricing against similar contracts. Without competitive bids, the government may not be achieving the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to BAE Systems. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to reduce bids.
Taxpayer Impact: The lack of competition for this $23.8 million contract means taxpayers may have paid a premium compared to what could have been achieved through a competitive bidding process.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lead to scope creep and increased costs over time. Dependence on a single contractor for critical electronic computer manufacturing capabilities poses a potential supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
- Lack of small business participation
Positive Signals
- Award to established contractor
- Clear project definition (Phase III)
Sector Analysis
This contract falls within the Defense sector, specifically electronic computer manufacturing. Spending in this area is critical for national security, but often involves specialized components and R&D, which can lead to higher costs and limited competition.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the scope of work may not have been conducive to small business involvement, or that opportunities were not actively sought.
Oversight & Accountability
The 'CO' (Cost Plus Fixed Fee) contract type requires robust oversight from the Defense Contract Management Agency (DCMA) to ensure costs are reasonable and the fixed fee is earned. The long duration necessitates continuous monitoring.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee structure
- Long contract duration
- No small business participation
- Potential for cost overruns
- Contractor dependency
Tags
electronic-computer-manufacturing, department-of-defense, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.9 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. TALON SPITBALL PHASE III
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS SPACE & MISSION SYSTEMS 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 $23.9 million.
What is the period of performance?
Start: 2017-12-21. End: 2021-09-30.
What specific factors justified the sole-source award for TALON SPITBALL Phase III, and were alternatives explored?
Justification for sole-source awards typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Exploring alternatives would involve market research to confirm no other capable sources exist or could be developed within the required timeframe. Without this information, it's difficult to assess if the government truly received the best value.
How effectively has the DCMA managed the Cost Plus Fixed Fee structure to control costs and prevent overruns on this long-term contract?
Effective management of a CPFF contract relies on stringent cost tracking, regular audits, and clear performance metrics. The DCMA's role is crucial in verifying incurred costs, ensuring the fixed fee is tied to performance milestones, and negotiating any necessary contract modifications. The long duration of this contract implies a sustained effort in oversight is required to mitigate risks associated with cost escalation.
What is the strategic importance of the TALON SPITBALL Phase III system, and how does this sole-source award impact long-term defense capabilities?
The strategic importance likely relates to advanced electronic warfare, intelligence gathering, or command and control systems. A sole-source award can ensure continuity and access to specialized expertise but may also create a dependency on BAE Systems. This could limit future innovation from other companies and potentially increase long-term sustainment costs if competition is stifled.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA862018R3000
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1600 COMMERCE ST UNIT 1, BOULDER, CO, 80301
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: $24,349,490
Exercised Options: $24,349,490
Current Obligation: $23,850,944
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-12-21
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2024-11-27
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