DoD Awards $42.6M for BIG SAFARI Aircraft Parts, Sole-Source to BAE Systems

Contract Overview

Contract Amount: $42,566,540 ($42.6M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-28

End Date: 2027-03-31

Contract Duration: 761 days

Daily Burn Rate: $55.9K/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

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $42.6 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: BIG SAFARI Key points: 1. Significant contract value of $42.6 million for specialized aircraft parts. 2. Sole-source award to BAE Systems raises questions about competition and potential price inflation. 3. Contract duration of over two years suggests a substantial, ongoing need. 4. The 'Other Aircraft Parts' sector is critical for defense readiness, but lacks transparency in this award.

Value Assessment

Rating: questionable

The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking is difficult without more detailed cost breakdowns, but the award method suggests limited price discovery.

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 potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this significant award may result in taxpayers paying more than necessary for these aircraft parts.

Public Impact

Taxpayers may be overpaying due to the sole-source nature of the contract. Lack of transparency in the procurement process hinders public understanding of defense spending. The specific nature of 'BIG SAFARI' and its components is not publicly detailed, limiting insight into the necessity and value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition
Limited public detail on 'BIG SAFARI'

Positive Signals

Supports critical defense needs
Long-term contract provides stability

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a crucial but often opaque segment of defense spending. Benchmarks are difficult to establish due to the specialized nature and sole-source award.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting missed opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants closer oversight to ensure fair pricing and justification for the lack of competition. Transparency regarding the 'BIG SAFARI' program's specific needs and cost drivers is essential.

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 limits competition.
Cost-plus contract type can inflate costs.
Lack of transparency regarding program details.
Potential for overpayment due to limited price discovery.
Missed opportunities for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.6 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 $42.6 million.

What is the period of performance?

Start: 2025-02-28. End: 2027-03-31.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without detailed documentation, it's difficult to assess the validity of this justification. Agencies should provide evidence of market research and price analysis to demonstrate that the negotiated price is fair and reasonable, especially when competition is precluded.

How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness of this contract, given the lack of competition?

Cost Plus Fixed Fee contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While this structure can incentivize cost control, the absence of competition means there's less external pressure to minimize costs. The fixed fee might not be adequately adjusted for risk or efficiency without competitive benchmarking, potentially leading to higher overall expenditures than a competitively bid contract.

What specific components or services does 'BIG SAFARI' encompass, and how critical are they to Air Force operations to warrant a sole-source procurement?

The specific details of the 'BIG SAFARI' program and the components procured under this contract are not publicly disclosed. Understanding the criticality of these components to Air Force operations is essential to justify the sole-source award and the associated expenditure. Further transparency is needed to assess the true value and necessity of this procurement for national security.

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: $42,566,540

Exercised Options: $42,566,540

Current Obligation: $42,566,540

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