DoD's $19.6M BIG SAFARI Contract Awarded to BAE Systems for Aircraft Parts

Contract Overview

Contract Amount: $19,625,276 ($19.6M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2018-06-14

End Date: 2021-02-28

Contract Duration: 990 days

Daily Burn Rate: $19.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ACAT II BIG SAFARI

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $19.6 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: ACAT II BIG SAFARI Key points: 1. Contract awarded to a single, large vendor, raising questions about competition. 2. Significant spending on aircraft parts suggests a need for robust cost oversight. 3. The 'Other Aircraft Parts' NAICS code is broad, potentially masking specific component costs. 4. The contract duration and cost structure warrant scrutiny for potential overruns.

Value Assessment

Rating: questionable

The contract's total value is $19.6 million. Without specific unit cost data or benchmarks for 'Other Aircraft Parts,' it's difficult to definitively assess pricing fairness against similar contracts.

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 potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition for this $19.6 million contract means taxpayers may have paid more than necessary.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The specific components or services procured under this broad category are unclear to the public. The long duration of the contract raises concerns about sustained cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Broad NAICS code
Cost-plus contract type

Positive Signals

Awarded to a known defense contractor

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation capabilities, but often involves complex, specialized components where cost transparency can be challenging.

Small Business Impact

The contract was awarded to BAE Systems, a large prime contractor, and there is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The ACAT II designation suggests a significant program requiring oversight. However, the sole-source nature and cost-plus contract type necessitate rigorous monitoring by the Department of Defense to ensure fiscal responsibility.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competitive bidding
Cost-plus contract type
Broad description of goods/services
Long contract duration
Potential for contractor inefficiency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.6 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. ACAT II BIG SAFARI

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 $19.6 million.

What is the period of performance?

Start: 2018-06-14. End: 2021-02-28.

What specific aircraft parts or auxiliary equipment were procured under this contract, and how does their cost compare to market rates for similar items?

The contract's broad NAICS code (336413) and 'Other Aircraft Parts' description obscure the specific items procured. Without itemized lists and independent cost analysis, it's impossible to determine if the $19.6 million price reflects fair market value. Further investigation into the contract's detailed line items and any available cost breakdowns is needed.

What justification was provided for awarding this contract on a sole-source basis, and what steps were taken to mitigate potential cost increases?

Sole-source awards typically require strong justification, such as unique capabilities or urgent needs. The lack of competition for this $19.6 million contract raises concerns about potential price inflation. The Department of Defense should have conducted thorough price negotiations and implemented strict cost controls, especially given the Cost Plus Fixed Fee structure.

How effectively has the Department of the Air Force managed this contract to ensure value for taxpayer money, given its duration and cost-plus nature?

The contract's duration (nearly 3 years) and Cost Plus Fixed Fee structure necessitate diligent oversight to ensure value. Effective management would involve regular performance reviews, cost audits, and ensuring that BAE Systems met all contractual obligations efficiently. The absence of competition amplifies the need for robust government oversight to prevent potential cost overruns and ensure mission success.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $19,681,276

Exercised Options: $19,681,276

Current Obligation: $19,625,276

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $1,950,063

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3028

IDV Type: BOA

Timeline