DoD's $12.8M contract for wireless communications equipment manufacturing awarded to BAE Systems

Contract Overview

Contract Amount: $12,800,576 ($12.8M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2008-12-17

End Date: 2010-12-16

Contract Duration: 729 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TACP-M VCS

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: TACP-M VCS Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns. 3. The contract duration of 729 days (2 years) provides a defined period for service delivery. 4. The award was made by the Department of the Air Force, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 334220 points to the manufacturing of radio and television broadcasting and wireless communications equipment. 6. The contract was not set aside for small businesses, indicating it was open to all eligible bidders.

Value Assessment

Rating: fair

Benchmarking the value of this $12.8 million contract is challenging without specific performance metrics or comparable contract data. However, the firm-fixed-price structure suggests a defined cost expectation. The contract's duration of two years implies a moderate scale of work. Further analysis would require understanding the specific wireless communications equipment procured and its market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 4 bidders (indicated by 'no': 4) suggests a reasonable level of competition for this requirement. This competitive process is generally expected to lead to more favorable pricing for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are likely components of the Department of Defense requiring advanced wireless communications equipment. The services delivered involve the manufacturing of radio and television broadcasting and wireless communications equipment. The geographic impact is primarily within the United States, where the manufacturing and potential deployment of this equipment would occur. Workforce implications include employment in manufacturing, engineering, and logistics related to wireless communications technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value for money.
The specific type and capabilities of the wireless communications equipment are not detailed, hindering a full understanding of its necessity and potential obsolescence.
The contract's value, while not excessively large, could represent a significant investment in potentially specialized equipment.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type shifts cost risk to the contractor.
The contract specifies a clear duration, providing a defined timeframe for delivery and performance.

Sector Analysis

The wireless communications equipment manufacturing sector is a critical component of the broader telecommunications and defense industries. This contract falls under NAICS code 334220, which encompasses the production of equipment used for broadcasting and transmitting wireless signals. The defense sector frequently procures such equipment for command, control, and communication systems. Market size for this sector is substantial, driven by both commercial and governmental demand for advanced networking and communication technologies.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. Therefore, small businesses were not specifically targeted for this award. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the primary contractor, BAE Systems, is expected to fulfill the contract requirements directly or through larger supply chains.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Inspector General (IG) jurisdiction would apply in cases of suspected fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, which provide basic award details.

Related Government Programs

Department of Defense Procurement
Air Force Communications Systems
Wireless Technology Manufacturing
Radio and Television Broadcasting Equipment

Risk Flags

Potential for technology obsolescence in rapidly evolving wireless communications sector.
Dependence on a single contractor for critical communication equipment.
Need for detailed performance metrics to fully assess value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. TACP-M VCS

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES 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 $12.8 million.

What is the period of performance?

Start: 2008-12-17. End: 2010-12-16.

What is the specific type of wireless communications equipment manufactured under this contract and its intended use within the Department of Defense?

The provided data indicates the contract falls under NAICS code 334220, 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.' While the specific equipment is not detailed, this classification suggests the production of devices such as transmitters, receivers, antennas, and related components essential for wireless communication networks. Within the Department of Defense, such equipment could be utilized for tactical communications, command and control systems, intelligence gathering, or base infrastructure. The firm-fixed-price nature of the contract implies a defined set of specifications and deliverables for the manufactured goods.

How does the awarded amount of $12.8 million compare to similar contracts for wireless communications equipment within the DoD or other federal agencies?

Direct comparison of the $12.8 million award to similar contracts is difficult without more specific details on the equipment's capabilities and quantities. However, for large-scale defense procurements, this amount represents a moderate investment. Contracts for advanced communication systems can range from a few million to hundreds of millions of dollars, depending on technological sophistication and scale. The fact that this was competed among 4 bidders suggests it was a significant enough requirement to attract multiple interested parties, but perhaps not a program of record-level magnitude that would draw dozens of competitors.

What are the key performance indicators (KPIs) or quality assurance measures associated with this contract to ensure the delivered equipment meets DoD standards?

The provided data does not specify the key performance indicators (KPIs) or quality assurance measures for this contract. However, for firm-fixed-price contracts, especially within the defense sector, stringent quality control and acceptance testing protocols are typically established. These would likely include detailed technical specifications, inspection points during manufacturing, and final acceptance testing to verify functionality, reliability, and compliance with military standards. The contracting officer's representative (COR) would be responsible for overseeing adherence to these quality requirements.

What is the track record of BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. in delivering wireless communications equipment to the federal government?

BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. is a significant defense contractor with a broad portfolio of services and products. While specific details on their track record for manufacturing wireless communications equipment under this particular NAICS code are not provided in the summary data, the company has extensive experience in defense systems integration, technology development, and manufacturing. Their history with the Department of Defense suggests a capacity to handle complex technical requirements and large-scale contracts. A deeper dive into their contract history would reveal specific past performance on similar items.

What is the historical spending pattern for wireless communications equipment manufacturing by the Department of the Air Force over the past five years?

The provided data is for a single contract awarded in 2008. To analyze historical spending patterns for wireless communications equipment manufacturing by the Department of the Air Force, a broader dataset covering multiple years and contracts would be necessary. This would involve querying federal procurement databases for contracts under NAICS code 334220 and related codes awarded by the Air Force. Such an analysis would reveal trends in spending, identify major suppliers, and highlight the evolution of technology requirements over time.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

Address: 1601 RESEARCH BLVD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $237,914,583

Exercised Options: $17,722,350

Current Obligation: $12,800,576

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline