DoD's $25.9M BIG SAFARI contract awarded to BAE Systems for aircraft parts, lacking competition

Contract Overview

Contract Amount: $25,938,179 ($25.9M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2018-06-14

End Date: 2022-02-28

Contract Duration: 1,355 days

Daily Burn Rate: $19.1K/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 $25.9 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 $25.9 million awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract falls under the 'Other Aircraft Parts' manufacturing sector. 4. Awarded as a delivery order, suggesting it might be part of a larger program.

Value Assessment

Rating: questionable

The contract value of $25.9 million is substantial. Without competitive bidding, it's difficult to assess if this price is fair compared to similar aircraft parts contracts. The lack of transparency makes benchmarking challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The absence of competition likely resulted in a higher price than a competed contract, meaning taxpayers may have overpaid for these aircraft parts.

Public Impact

Taxpayers may be paying a premium due to the lack of competitive bidding. Limited visibility into the specific aircraft parts procured and their necessity. Potential for reduced innovation in aircraft parts manufacturing due to sole-source awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Potential for overpricing
  • Limited transparency

Positive Signals

  • Awarded to established contractor
  • Supports existing aircraft programs

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can be significant, especially for defense applications, making competitive sourcing crucial for cost efficiency.

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. This represents a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price paid was reasonable and that future procurements in this category are competed whenever possible.

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
  • Lack of price competition
  • Potential for cost overruns
  • Limited transparency on specific items
  • Missed small business opportunities

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 $25.9 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 $25.9 million.

What is the period of performance?

Start: 2018-06-14. End: 2022-02-28.

What specific aircraft parts were procured under this contract, and what is their criticality to Air Force operations?

The data does not specify the exact aircraft parts. Understanding the specific components and their role in Air Force operations is crucial for assessing the necessity and value of this $25.9 million expenditure. Without this detail, it's hard to confirm if the funds were optimally allocated for mission readiness.

What justification was provided for not competing this ACAT II contract, and were alternative sources considered?

The provided data states the contract was 'NOT COMPETED' but offers no justification. For an ACAT II program, a strong rationale, such as a critical need or lack of viable alternatives, is typically required. Investigating the procurement history and justification is essential to ensure fair and efficient use of taxpayer funds.

How does the unit cost of these parts compare to industry benchmarks, given the lack of competitive pricing?

Without competitive bids, establishing a reliable benchmark for unit cost is challenging. The absence of competition suggests the price may not reflect market value. A post-award audit or comparison with similar non-competed contracts could provide some insight, but a true benchmark would require a competed process.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther 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: Compagnie DE Developpement DE L'eau S.A.

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: $25,938,179

Exercised Options: $25,938,179

Current Obligation: $25,938,179

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $10,676,096

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

Start Date: 2018-06-14

Current End Date: 2022-02-28

Potential End Date: 2022-02-28 00:00:00

Last Modified: 2024-01-09

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