DoD Awards $24.2M for BIG SAFARI Aircraft Parts to BAE Systems, Limited Competition

Contract Overview

Contract Amount: $24,245,769 ($24.2M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-30

End Date: 2026-08-30

Contract Duration: 1,065 days

Daily Burn Rate: $22.8K/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 $24.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: BIG SAFARI Key points: 1. Significant contract value of $24.2M awarded to a single vendor. 2. Limited competition raises questions about price discovery and potential overspending. 3. Contract duration of nearly three years suggests a long-term need. 4. Focus on 'Other Aircraft Parts' indicates a specialized, potentially critical, supply chain component.

Value Assessment

Rating: questionable

The contract value of $24.2M for BIG SAFARI parts appears high given the limited competition. Without benchmarks or competitive bids, it's difficult to assess if this price is reasonable compared to similar specialized aircraft components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed, indicating a sole-source or limited competition award. This lack of competitive pressure may lead to higher prices and reduced innovation, as the vendor faces no direct market challenge.

Taxpayer Impact: The absence of competition could result in taxpayers paying a premium for these aircraft parts, as the government may not have secured the best possible price.

Public Impact

Potential for increased costs for the Air Force due to lack of competition. Impact on the broader aerospace supply chain if this is a critical component. Questions about the justification for not opening this contract to a wider range of suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Positive Signals

Specific vendor selected for a critical need
Long-term contract provides stability

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. Benchmarks for specialized parts are often difficult to establish due to unique specifications and limited suppliers.

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 specific award, either as prime contractors or subcontractors.

Oversight & Accountability

The limited competition nature of this award warrants closer oversight to ensure the price paid is fair and reasonable. The Department of Defense should provide a clear justification for the non-competitive award to ensure accountability.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency into program needs
Reliance on a single supplier for critical components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 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 $24.2 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-08-30.

What is the specific nature of the 'BIG SAFARI' program and why is BAE Systems the sole provider?

The 'BIG SAFARI' program is a classified initiative within the Air Force focused on rapid acquisition and modification of aircraft. The sole-source nature of this contract likely stems from highly specialized, proprietary technology or unique integration requirements that only BAE Systems can fulfill, necessitating a limited competition approach for national security reasons.

What is the justification for the $24.2M contract value given the lack of competition?

The justification for the $24.2M contract value, despite the lack of competition, would typically involve detailed cost analyses, historical pricing data for similar specialized components, and potentially data from previous sole-source awards. The government likely conducted a price negotiation with BAE Systems to arrive at this figure, aiming for reasonableness.

What is the potential impact on future aircraft part procurements if this limited competition model is standard?

If limited competition becomes a standard model for such procurements, it could lead to consistently higher prices for specialized aircraft parts and reduce the incentive for innovation among potential competitors. This could also limit the government's ability to leverage market forces for cost savings and potentially restrict the pool of qualified suppliers over time.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: $24,245,769

Exercised Options: $24,245,769

Current Obligation: $24,245,769

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $6,392,989

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