DoD Awards BAE Systems $29.8M for Aircraft Parts, Raising Oversight Concerns
Contract Overview
Contract Amount: $29,833,624 ($29.8M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-06
End Date: 2026-03-31
Contract Duration: 1,302 days
Daily Burn Rate: $22.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: BIG SAFARI
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060
Plain-Language Summary
Department of Defense obligated $29.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: BIG SAFARI Key points: 1. Significant contract value of $29.8 million awarded. 2. Sole-source award to BAE Systems limits competition. 3. Potential for inflated costs due to lack of competitive bidding. 4. Contract falls under 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can incentivize higher spending. Without competitive benchmarking, it's difficult to assess if the $29.8 million price is reasonable for the scope of work.
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 lack of competition limits price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Taxpayers may be overpaying due to a lack of competitive bidding. The Department of Defense relies on BAE Systems for critical aircraft components. The long contract duration (over 3 years) extends potential cost inefficiencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
- Long contract duration
Positive Signals
- Award to established contractor
Sector Analysis
This contract is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely based on defense needs and technological advancements. Benchmarks are difficult without specific part details.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award (sb: false). There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. The Department of Defense should justify the lack of competition and monitor expenditures closely.
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
- Cost-plus contract type
- Potential for inflated pricing
- Limited transparency on specific parts
- Long contract duration
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 $29.8 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 $29.8 million.
What is the period of performance?
Start: 2022-09-06. End: 2026-03-31.
What specific aircraft parts are being procured under this contract, and how does their necessity justify a sole-source award?
The specific parts are not detailed in the provided data. A sole-source award typically requires a strong justification, such as unique technical capabilities, proprietary technology, or urgent need where only one source can fulfill the requirement. Without this information, it's difficult to assess the validity of the sole-source decision and its impact on value for money.
What are the potential risks associated with a Cost Plus Fixed Fee contract for aircraft parts, especially without competition?
Cost Plus Fixed Fee contracts can incentivize contractors to increase costs, as their fee is a percentage of the total cost. Without competitive pressure, the government has less leverage to negotiate favorable pricing. This combination increases the risk of cost overruns and potentially paying a premium for the parts, impacting overall program budget and taxpayer funds.
How effective is the Department of Defense in ensuring fair pricing and accountability for sole-source contracts in the aerospace sector?
The effectiveness can vary. While agencies have mechanisms for sole-source justifications and price negotiation, the inherent lack of competition makes robust oversight crucial. Regular audits, detailed cost analyses, and strong contract management are essential to mitigate risks. The long duration of this contract underscores the need for continuous monitoring to ensure continued effectiveness and value.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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 and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $29,833,624
Exercised Options: $29,833,624
Current Obligation: $29,833,624
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $21,509,939
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: FA862021G4028
IDV Type: BOA
Timeline
Start Date: 2022-09-06
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-12-17
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