DoD Awards BAE Systems $40.2M for BIG SAFARI Aircraft Parts, Raising Oversight Concerns

Contract Overview

Contract Amount: $40,233,105 ($40.2M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-28

End Date: 2027-06-30

Contract Duration: 1,736 days

Daily Burn Rate: $23.2K/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

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $40.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: BIG SAFARI Key points: 1. Significant contract value of $40.2 million awarded to a single vendor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The 'Other Aircraft Parts' sector is broad, making direct benchmarks difficult. 4. Potential for taxpayer funds to be used inefficiently due to sole-source award.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can incentivize higher costs. Without competitive bidding, it's difficult to assess if the $40.2 million price is reasonable compared to market rates for similar aircraft parts.

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 may lead to higher costs for the government as there is no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best value for their money, potentially leading to inflated costs.

Public Impact

Taxpayers may be overpaying for critical aircraft parts due to the absence of competitive bidding. The Department of Defense's reliance on sole-source contracts can stifle innovation and reduce market competition. Transparency in defense spending is crucial, and non-competed contracts warrant closer scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in pricing justification

Positive Signals

Supports critical defense needs
Long-term contract duration provides stability

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area can vary widely based on aircraft type and technological complexity. Benchmarking is challenging without specific part details.

Small Business Impact

The awardee, BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC., is a large business. There is no indication that small businesses were involved in this specific contract, potentially missing opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the government is receiving fair value. The Department of the Air Force should provide clear justification for the lack of competition and monitor costs closely.

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 competitive pricing pressure.
Cost Plus Fixed Fee contract type may incentivize higher spending.
No indication of small business participation.
Broad 'Other Aircraft Parts' category makes specific value assessment difficult.
Long contract duration increases exposure to potential cost increases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.2 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 $40.2 million.

What is the period of performance?

Start: 2022-09-28. End: 2027-06-30.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without this specific justification, it's impossible to assess the validity of the sole-source decision. Robust price analysis, including market research and comparison to similar procurements, should have been conducted to ensure fair and reasonable pricing despite the lack of competition.

How does the Cost Plus Fixed Fee structure impact the government's risk and the contractor's incentive to control costs for these aircraft parts?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While the fee is fixed, the contractor has less incentive to control costs compared to fixed-price contracts, as higher costs still result in the same profit margin. This shifts more cost risk to the government, necessitating strong oversight to prevent cost overruns.

What is the potential impact on future competition and innovation in the aircraft parts manufacturing sector if sole-source awards become prevalent?

A pattern of sole-source awards can stifle competition and innovation by limiting market access for other capable firms. If companies perceive that large contracts are consistently awarded without competition, they may be less inclined to invest in developing new technologies or improving their offerings. This can lead to a less dynamic market, potentially higher prices, and reduced technological advancement in the long run.

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

Financial Breakdown

Contract Ceiling: $40,233,105

Exercised Options: $40,233,105

Current Obligation: $40,233,105

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,251,216

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