DoD Awards $54M for BIG SAFARI Aircraft Parts to BAE Systems, Lacking Competition

Contract Overview

Contract Amount: $54,047,647 ($54.0M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2026-03-31

Contract Duration: 1,643 days

Daily Burn Rate: $32.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $54.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: BIG SAFARI Key points: 1. Significant contract value of $54M awarded. 2. Sole-source award to BAE Systems raises competition concerns. 3. Long contract duration (2021-2026) impacts long-term value. 4. Focus on 'Other Aircraft Parts' suggests specialized needs.

Value Assessment

Rating: questionable

The $54M award for BIG SAFARI parts appears high given the lack of competitive bidding. Without market analysis or comparison to similar contracts, it's difficult to ascertain if the pricing is optimal.

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 method limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than a fully competed contract.

Public Impact

Taxpayers may be overpaying for critical aircraft parts due to the sole-source award. The long-term nature of the contract could lock the Air Force into potentially suboptimal pricing. Lack of transparency in pricing due to no competitive bidding process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of transparency in pricing

Positive Signals

Essential for Air Force operations
Experienced contractor

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation readiness, but competitive bidding is typically expected to ensure cost-effectiveness.

Small Business Impact

The contract was awarded to BAE Systems Information and Electronic Systems Integration Inc., a large business. There is no indication that small businesses were involved in this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving fair value and that competition was appropriately waived.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency
Long contract duration
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. 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 $54.0 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-03-31.

What justification was provided for the sole-source award of the BIG SAFARI contract, and was a thorough market research conducted to confirm no other viable sources existed?

The justification for a sole-source award typically involves specific circumstances like unique capabilities, urgent needs, or lack of market availability. A thorough market research is essential to validate these claims and ensure that alternative sources, including small businesses, were considered and appropriately ruled out before proceeding with a non-competitive procurement.

How does the pricing structure of this $54M contract compare to industry benchmarks for similar aircraft parts, especially considering the lack of competitive pressure?

Without competitive bids, it is challenging to establish precise benchmarks. However, a review of historical pricing for similar components, analysis of BAE Systems' cost structure, and consultation with independent aerospace cost estimators would be necessary to assess if the pricing is reasonable and reflects fair market value despite the sole-source nature of the award.

What are the potential risks associated with a long-term (2021-2026) sole-source contract for critical aircraft parts, particularly regarding technological obsolescence and price escalation?

Long-term sole-source contracts carry risks of technological obsolescence if the awarded parts become outdated. Price escalation is also a concern, as the contractor may face less pressure to control costs over an extended period. Regular contract reviews and performance monitoring are crucial to mitigate these risks and ensure continued value and relevance.

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: Ball Corporation

Address: 65 SPIT BROOK RD, NASHUA, NH, 03060

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $54,047,647

Exercised Options: $54,047,647

Current Obligation: $54,047,647

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $2,780,904

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862021G4028

IDV Type: BOA

Timeline