DoD Awards BAE Systems $1.65 Billion for BIG SAFARI Aircraft Parts, Ending August 2027
Contract Overview
Contract Amount: $16,546,913 ($16.5M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2025-06-17
End Date: 2027-08-31
Contract Duration: 805 days
Daily Burn Rate: $20.6K/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
Plain-Language Summary
Department of Defense obligated $16.5 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: BIG SAFARI Key points: 1. Significant contract value of $1.65 billion awarded to a single large business. 2. Sole-source award raises questions about competition and potential price discovery. 3. Contract duration of 805 days suggests a substantial, ongoing requirement. 4. Focus on 'Other Aircraft Parts' indicates a critical but potentially niche sector.
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 specific unit costs, but the overall value is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a sole-source award, meaning there was no open competition. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about the efficient use of taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on this sole-source provider for critical aircraft parts. Potential for cost overruns exists with a Cost Plus Fixed Fee contract structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of small business participation
Positive Signals
- Clear contract end date
- Specific agency requirement
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, but competitive sourcing is generally preferred to ensure value.
Small Business Impact
The data indicates no small business participation in this contract. Larger contracts often favor established large businesses, potentially excluding smaller, innovative firms from contributing.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and the government receives fair value. Robust auditing of the Cost Plus Fixed Fee elements 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 Fixed Fee contract type can lead to cost overruns.
- No small business participation.
- High contract value increases financial risk.
- Long contract duration requires sustained oversight.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, nh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.5 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 $16.5 million.
What is the period of performance?
Start: 2025-06-17. End: 2027-08-31.
What justification was provided for the sole-source award, and were alternatives explored?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically need to demonstrate that only one source can meet the requirement due to unique capabilities, urgency, or other specific factors. Exploring alternatives, even if ultimately deemed unsuitable, is a key part of responsible procurement and ensures the government isn't unnecessarily limiting its options.
How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns?
Managing a Cost Plus Fixed Fee (CPFF) contract requires stringent oversight. The agency must closely monitor all incurred costs to ensure they are reasonable, allocable, and allowable. Establishing clear performance metrics and milestones, coupled with regular audits and progress reviews, is crucial. The fixed fee component provides some incentive for the contractor to control costs, but vigilant management is still paramount to protect taxpayer interests.
What is the long-term strategy for ensuring competitive sourcing for these aircraft parts?
Given the significant value and duration, a long-term strategy should focus on fostering competition for future requirements. This could involve market research to identify potential new sources, breaking down the requirement into smaller, more accessible contract vehicles, or incentivizing existing suppliers to develop more cost-effective solutions. Proactive planning can help transition away from sole-source arrangements over time.
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: $16,546,913
Exercised Options: $16,546,913
Current Obligation: $16,546,913
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: FA862021G4028
IDV Type: BOA
Timeline
Start Date: 2025-06-17
Current End Date: 2027-08-31
Potential End Date: 2027-08-31 00:00:00
Last Modified: 2026-01-07
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