DoD's $56.8M Big Safari contract to BAE Systems for aircraft parts shows limited competition

Contract Overview

Contract Amount: $56,809,563 ($56.8M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-31

End Date: 2024-01-31

Contract Duration: 31 days

Daily Burn Rate: $1.8M/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 $56.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: BIG SAFARI Key points: 1. The contract value of $56.8 million represents a significant investment in specialized aircraft components. 2. BAE Systems, a major defense contractor, is the sole awardee, indicating a lack of broader market engagement. 3. The short duration of 31 days suggests a focused, potentially urgent, need for these specific parts. 4. The 'Other Aircraft Parts' category points to a niche requirement within the broader aerospace sector. 5. Fixed-price contract type aims to control costs, but the limited competition raises questions about optimal pricing. 6. The absence of small business involvement warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the limited information on the specific 'BIG SAFARI' components. However, the $56.8 million award to a single, large contractor for a 31-day period suggests a high per-unit cost or a substantial quantity of specialized items. Without comparable contract data for similar niche aircraft parts, it's difficult to definitively assess value for money. The firm fixed-price structure provides some cost certainty, but the lack of competition may have prevented a more competitive price discovery process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, BAE Systems, was solicited. This approach is typically used when a unique capability or proprietary technology is required, or in cases of urgent and compelling need where competition is not feasible. The lack of competition means that taxpayers did not benefit from a bidding process that could have potentially driven down prices through market forces.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competitive bidding, potentially leading to higher costs for taxpayers.

Public Impact

The primary beneficiaries are likely the Department of the Air Force, receiving critical aircraft parts for its operations. The contract supports the maintenance and operational readiness of specific aircraft platforms under the 'BIG SAFARI' program. The geographic impact is concentrated where the BAE Systems facility is located and where the aircraft are deployed. This contract may indirectly support a specialized segment of the aerospace manufacturing workforce involved in producing these components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Lack of transparency regarding the specific 'BIG SAFARI' components and their necessity.
Short contract duration may indicate a reactive procurement rather than strategic planning.
No indication of small business participation or subcontracting goals.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Award to a known, established defense contractor like BAE Systems suggests reliability in delivery.
The 'BIG SAFARI' program itself may represent a critical capability for national security.

Sector Analysis

The aerospace parts manufacturing sector is highly specialized, with significant barriers to entry due to technological expertise, regulatory compliance, and established relationships with prime contractors. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector. The total market for aerospace parts is substantial, driven by military and commercial aviation demand. Contracts like this, especially those tied to specific defense programs like 'BIG SAFARI', often involve unique specifications and require specialized manufacturing capabilities, leading to limited competition.

Small Business Impact

This contract does not appear to have a small business set-aside, nor is there any indication of subcontracting requirements for small businesses. The award to a large prime contractor like BAE Systems suggests that the focus was on acquiring the specific capability rather than promoting small business participation. This could limit opportunities for small businesses within the aerospace supply chain for this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The firm fixed-price nature provides some cost control, but the sole-source award necessitates close monitoring of performance and delivery to ensure value. Transparency is limited due to the sole-source nature and the proprietary aspects often associated with defense programs. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

BIG SAFARI Program
Aircraft Parts Procurement
Defense Logistics Agency Contracts
BAE Systems Contracts
Sole-Source Defense Procurements

Risk Flags

Sole-source award
Lack of competition
High value for short duration
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.8 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 $56.8 million.

What is the period of performance?

Start: 2023-12-31. End: 2024-01-31.

What specific components or services are being procured under the 'BIG SAFARI' program for this contract?

The provided data indicates the contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' under the 'BIG SAFARI' program. The 'BIG SAFARI' program is known to be an Air Force intelligence, surveillance, and reconnaissance (ISR) initiative that focuses on rapidly developing and fielding specialized aircraft and associated technologies. Specific components procured under this contract are not detailed in the provided data but likely relate to the unique modifications, sensors, or operational equipment required for these ISR platforms. The sole-source award to BAE Systems suggests these parts are either proprietary to BAE, require highly specialized manufacturing capabilities they possess, or are critical to a specific, ongoing ISR mission where competition was deemed impractical or detrimental to mission success.

Why was this contract awarded on a sole-source basis instead of being competed?

The contract was awarded on a sole-source basis, as indicated by 'CT: NOT COMPETED'. This typically occurs when the government determines that only one responsible source can provide the required supplies or services. Common justifications include urgent and compelling needs, unique capabilities or proprietary technology held by a single vendor, or when the cost of competition would outweigh the benefits. For a program like 'BIG SAFARI,' which involves specialized ISR aircraft and rapid fielding, it's plausible that BAE Systems possesses unique expertise, intellectual property, or existing infrastructure essential for producing these specific aircraft parts, making competition infeasible or detrimental to program timelines and objectives.

How does the $56.8 million contract value compare to historical spending on similar aircraft parts or 'BIG SAFARI' program components?

Without access to historical spending data specifically for 'BIG SAFARI' program components or comparable 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' contracts, a direct comparison is difficult. However, $56.8 million for a 31-day delivery order suggests a high unit cost or a significant quantity of specialized items. Large defense contractors like BAE Systems often command premium pricing for unique or technologically advanced components. The sole-source nature of this award also implies that competitive pricing benchmarks may not be applicable. Further analysis would require access to a broader database of defense procurements for similar niche aerospace components and program-specific spending history.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risk associated with a sole-source award of $56.8 million is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible value for its expenditure. Other risks include vendor lock-in, where the government becomes overly reliant on a single supplier, potentially limiting future flexibility and innovation. There's also a risk that the sole-source justification might not be as robust as claimed, potentially indicating a missed opportunity for competition. Ensuring rigorous oversight, performance monitoring, and fair pricing negotiations becomes even more critical in sole-source scenarios to mitigate these risks.

What is BAE Systems' track record with the Department of Defense, particularly on 'BIG SAFARI' or similar ISR programs?

BAE Systems is a major global defense contractor with a long-standing and extensive track record of performing contracts for the Department of Defense across various sectors, including aerospace, electronics, and intelligence systems. They are a significant player in the ISR domain, often involved in developing and integrating advanced sensor systems, communication platforms, and specialized aircraft modifications. While specific details on their involvement with the 'BIG SAFARI' program for this particular contract are not provided, BAE Systems' general profile suggests they possess the technical capabilities and experience necessary for such specialized procurements. Their history with the DoD includes numerous large-value contracts, indicating a capacity to manage complex defense projects.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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

Financial Breakdown

Contract Ceiling: $57,049,087

Exercised Options: $57,049,087

Current Obligation: $56,809,563

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,481,810

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