Air Force awards $62M contract to BAE Systems for BIG SAFARI program, impacting aircraft parts manufacturing

Contract Overview

Contract Amount: $62,068,647 ($62.1M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-07

End Date: 2026-12-31

Contract Duration: 1,364 days

Daily Burn Rate: $45.5K/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 $62.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: BIG SAFARI Key points: 1. Significant contract value of $62M awarded to a single vendor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract focuses on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a critical defense sector. 4. The duration of the contract extends over three years, indicating a long-term need.

Value Assessment

Rating: questionable

The contract value of $62M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar aircraft parts and auxiliary equipment.

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 result in higher costs for taxpayers as there was no market pressure to achieve the best possible price.

Taxpayer Impact: The lack of competition for a $62M contract means taxpayers may not be receiving the best value for their investment in aircraft parts and auxiliary equipment.

Public Impact

Taxpayers may be overpaying for essential aircraft components due to the absence of competitive bidding. The defense sector relies on a steady supply of these parts, making the sole-source nature of this contract a potential bottleneck. Future procurements in this category might be influenced by this non-competitive award, potentially setting a precedent.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source award

Positive Signals

Addresses critical defense need
Long-term contract provides stability

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is vital for national defense. Spending in this area is typically high due to the specialized nature and stringent quality requirements of aerospace components.

Small Business Impact

The awardee, BAE Systems, is a large corporation. There is no indication that small businesses were involved in this specific sole-source procurement, missing an opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable, despite the lack of competition. Transparency in the justification for the sole-source award is crucial.

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
Potential for inflated costs
Limited transparency in price justification
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.1 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 $62.1 million.

What is the period of performance?

Start: 2023-04-07. End: 2026-12-31.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. Agencies are expected to conduct market research and negotiate pricing rigorously to ensure fair and reasonable costs, even without competition. Documentation of these efforts is key to accountability.

What is the potential risk to the Air Force if BAE Systems is the only provider for these specific aircraft parts?

The primary risk is a lack of leverage in pricing and potential supply chain disruptions if BAE Systems faces production issues or decides to increase prices significantly. Dependence on a single supplier can also hinder innovation and the adoption of newer, potentially more cost-effective technologies.

How does this $62M contract contribute to the overall effectiveness of the Air Force's aircraft maintenance and operational readiness?

This contract is likely crucial for maintaining the operational readiness of specific Air Force aircraft by ensuring the availability of necessary parts and auxiliary equipment. The timely delivery and quality of these components directly impact aircraft serviceability and mission capability.

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: $62,068,647

Exercised Options: $62,068,647

Current Obligation: $62,068,647

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $11,477,006

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