DoD Awards BAE Systems $12.47M for BIG SAFARI Aircraft Parts, Raising Oversight Concerns

Contract Overview

Contract Amount: $12,474,087 ($12.5M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2025-10-01

End Date: 2027-09-30

Contract Duration: 729 days

Daily Burn Rate: $17.1K/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 $12.5 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: BIG SAFARI Key points: 1. Significant contract value of $12.47 million awarded to a single vendor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract is for aircraft parts, a critical but potentially high-cost sector. 4. The 'Other Aircraft Parts' sector often involves specialized components where competition can be limited.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can incentivize higher costs as the contractor is reimbursed for expenses plus a fixed fee. Without competitive bidding, it's difficult to assess if the $12.47 million represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED', indicating a limited competition approach. This significantly reduces the opportunity for price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a $12.47 million contract suggests that taxpayers may be paying a premium for these aircraft parts due to the absence of a competitive bidding process.

Public Impact

Taxpayers may be overpaying for essential aircraft parts due to a lack of competitive bidding. The Department of Defense's reliance on non-competed contracts can impact overall budget efficiency. Future procurement strategies should prioritize competitive sourcing to ensure best value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Cost Plus Fixed Fee Contract Type
Limited Small Business Participation (ss=false, sb=false)

Positive Signals

Contract supports critical Department of Defense needs.
Long-term contract duration (729 days) 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, but can be susceptible to high costs due to specialized requirements and limited supplier bases.

Small Business Impact

The contract data indicates that small business participation was not a factor (ss=false, sb=false). This suggests that opportunities for small businesses in this procurement were either not sought or not met, potentially limiting broader economic impact.

Oversight & Accountability

The 'NOT COMPETED' status warrants close oversight to ensure the justification for sole-source or limited competition is valid and that the pricing is reasonable. Robust internal review processes are essential to prevent potential waste.

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 raises concerns about price fairness.
Cost Plus Fixed Fee contract type can lead to higher costs without strong oversight.
No indication of small business participation.
Potential for overpayment due to absence of market pressure.
Requires strong justification for non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.5 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 $12.5 million.

What is the period of performance?

Start: 2025-10-01. End: 2027-09-30.

What is the justification for not competing this $12.47 million contract, and how was the price determined to be fair and reasonable?

The justification for not competing this contract is critical for assessing value. Typically, non-competed contracts are awarded under specific circumstances like urgent needs or sole-source availability. Without a competitive process, the government must rely on detailed cost analysis and market research to ensure the price is fair and reasonable, which requires rigorous documentation and justification.

What are the risks associated with awarding a Cost Plus Fixed Fee contract without competition for aircraft parts?

The primary risk is the potential for cost overruns and reduced value for money. A Cost Plus Fixed Fee structure reimburses the contractor for allowable costs plus a fixed fee, which can incentivize higher spending if not closely monitored. Without competition, there's no market pressure to drive down costs, increasing the likelihood of paying more than necessary for the parts.

How does this non-competed contract impact the Department of the Air Force's ability to achieve best value in its procurements?

Awarding contracts without competition inherently limits the Air Force's ability to achieve best value. Competition drives innovation, efficiency, and lower prices. Relying on non-competed awards, especially for significant amounts like $12.47 million, suggests a missed opportunity to leverage market forces and potentially secure more cost-effective solutions or superior quality.

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: 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: $38,564,732

Exercised Options: $17,259,830

Current Obligation: $12,474,087

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