DoD's $34.6M BIG SAFARI Contract Awarded to BAE Systems for Aircraft Parts

Contract Overview

Contract Amount: $34,633,046 ($34.6M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2018-08-30

End Date: 2021-10-06

Contract Duration: 1,133 days

Daily Burn Rate: $30.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

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 $34.6 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: ACAT II BIG SAFARI Key points: 1. Significant contract value of $34.6 million for aircraft parts. 2. BAE Systems is a major defense contractor, indicating potential market concentration. 3. The contract was not competed, raising questions about price discovery and value. 4. Spending falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.

Value Assessment

Rating: questionable

The contract value of $34.6 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for aircraft parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may result in higher costs for taxpayers compared to a competitive procurement.

Taxpayer Impact: The lack of competition for a $34.6 million contract could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The Department of Defense relies on BAE Systems for critical aircraft components. Lack of transparency in sole-source awards can erode public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Award to established contractor
Supports critical defense needs

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for maintaining military aviation capabilities. Spending benchmarks for this sector can vary widely based on the specific components and technologies involved.

Small Business Impact

The contract was awarded to BAE Systems, a large defense contractor, and there is no indication that small businesses were involved in this specific award. Further analysis would be needed to determine if subcontracting opportunities were provided.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the justification for not competing the contract was robust and that the final price is reasonable.

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 transparency.
Potential for inflated pricing due to no competition.
Limited opportunity for small business participation.
Risk of vendor lock-in.
Questionable value for taxpayer money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 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 $34.6 million.

What is the period of performance?

Start: 2018-08-30. End: 2021-10-06.

What was the specific 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 the unavailability of other sources. Without specific documentation, it's impossible to determine the exact reason. However, the absence of competition for a $34.6 million contract raises concerns about whether alternative solutions were adequately explored and if taxpayers received the best possible value.

How does the $34.6 million contract price compare to industry benchmarks for similar aircraft parts, given it was not competed?

Without competitive bids, establishing a precise benchmark is challenging. However, the lack of competition inherently removes the downward pressure on pricing that typically occurs in an open market. A thorough review would involve comparing the awarded price to historical data for similar sole-source contracts or, if possible, to prices from commercial equivalents, while accounting for any unique military specifications.

What is the potential long-term impact on defense readiness and cost-effectiveness if critical aircraft parts are consistently procured through sole-source contracts?

Consistent sole-source procurement can stifle innovation and competition within the defense industrial base, potentially leading to higher costs and reduced technological advancement over time. This can impact long-term readiness by limiting the availability of diverse suppliers and potentially increasing reliance on a single entity, which could be a vulnerability. It also raises concerns about the efficient use of taxpayer funds.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

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: $34,633,046

Exercised Options: $34,633,046

Current Obligation: $34,633,046

Subaward Activity

Number of Subawards: 64

Total Subaward Amount: $19,856,412

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