DoD's $11.8M contract for electronic computer manufacturing services awarded to BAE Systems

Contract Overview

Contract Amount: $11,800,426 ($11.8M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2020-05-20

End Date: 2025-11-19

Contract Duration: 2,009 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: COMMON AUTOROUTER BASELINE MAINTENANCE

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: COMMON AUTOROUTER BASELINE MAINTENANCE Key points: 1. Contract value appears reasonable given the duration and scope of electronic computer manufacturing services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract's duration of over 2000 days indicates a long-term need for these services. 4. Performance is being monitored by the Department of the Air Force. 5. This contract falls within the broader IT and Defense sectors. 6. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: good

The contract value of approximately $11.8 million over its period of performance (May 2020 - November 2025) suggests a moderate annual spend. Benchmarking against similar contracts for electronic computer manufacturing requires access to a broader dataset of comparable procurements. However, the Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs if not managed closely compared to fixed-price contracts. The baseline maintenance aspect implies ongoing support rather than new development, which can be a more predictable cost center.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders, though not explicitly stated in the provided data, is generally expected in such a scenario. This competitive environment is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that the awarded contract represents a competitive market rate for the services provided.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving essential electronic computer manufacturing and maintenance services. This contract supports the operational readiness and technological infrastructure of the Air Force. The services are likely delivered within the United States, supporting domestic manufacturing and technical expertise. The contract may indirectly support a workforce skilled in electronic manufacturing and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not strictly managed and monitored.
The long duration of the contract (over 2000 days) necessitates ongoing vigilance to ensure continued value and performance.
Lack of specific performance metrics or award fee structure details could limit performance incentives.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contract addresses a critical need for baseline maintenance of electronic computer systems.
The contractor, BAE Systems, is a well-established entity in the defense and aerospace sector.

Sector Analysis

This contract falls within the broader Information Technology (IT) and Defense industrial sectors, specifically focusing on the manufacturing and maintenance of electronic computer systems. The market for defense-related IT and electronic systems is substantial, driven by continuous modernization and sustainment needs of military branches. Comparable spending benchmarks would involve analyzing other contracts for similar electronic component manufacturing, repair, and baseline maintenance services awarded by the Department of Defense and other federal agencies.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, there are no direct small business set-aside implications. However, the prime contractor, BAE Systems, may engage small businesses as subcontractors to fulfill portions of the contract requirements, contributing to the broader small business ecosystem. Analysis of subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the Department of the Air Force, the awarding agency. Accountability measures are typically embedded within the contract's terms and conditions, including delivery schedules, quality standards, and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Information Technology Contracts
Electronic Systems Maintenance
Computer Hardware Manufacturing
Department of Defense Procurement
Air Force Sustainment Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration requires sustained oversight.
Scope of 'baseline maintenance' needs clear definition to ensure adequate coverage.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. COMMON AUTOROUTER BASELINE MAINTENANCE

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 $11.8 million.

What is the period of performance?

Start: 2020-05-20. End: 2025-11-19.

What is the track record of BAE Systems in delivering similar electronic computer manufacturing and maintenance services to the Department of Defense?

BAE Systems is a major defense contractor with extensive experience in electronic systems, including manufacturing, integration, and sustainment. They have a long history of supporting various military platforms and IT infrastructure. While specific performance data for this particular contract is not detailed here, BAE Systems generally has a significant presence and a broad portfolio of contracts within the DoD. Their track record typically involves complex projects requiring high reliability and adherence to stringent military specifications. Evaluating their past performance on similar contracts, including any past performance reviews or award fee determinations, would provide a more granular understanding of their capabilities and reliability in this domain.

How does the $11.8 million contract value compare to similar baseline maintenance contracts for electronic computer systems within the DoD?

The $11.8 million contract value, spread over approximately 5.5 years (May 2020 to November 2025), translates to an average annual value of roughly $2.15 million. This figure needs to be contextualized by the specific type and complexity of the electronic computer systems being maintained. Baseline maintenance can range from routine checks and minor repairs to more involved component replacements. Without knowing the exact systems covered (e.g., servers, specialized computing hardware, network infrastructure) and the scope of 'baseline maintenance' (e.g., preventative vs. corrective, parts included), a direct comparison is challenging. However, for sustainment and maintenance of critical IT infrastructure, this annual spend appears moderate, suggesting it might cover a defined set of systems or a specific geographic region rather than an enterprise-wide solution.

What are the primary risks associated with a Time and Materials (T&M) contract for electronic computer manufacturing and maintenance?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred, plus a fixed fee or profit margin. If the contractor's labor hours are higher than anticipated, or if material costs escalate unexpectedly, the total cost to the government can exceed initial estimates. This necessitates robust oversight from the contracting officer and technical team to ensure that the hours charged are reasonable and allocable to the contract, and that material costs are fair and reasonable. Without diligent management, T&M contracts can become less cost-effective than other contract types.

What is the expected effectiveness of this contract in ensuring the operational readiness of Air Force electronic computer systems?

The effectiveness of this contract in ensuring operational readiness hinges on several factors. Firstly, the 'baseline maintenance' scope must adequately cover the critical functions and potential failure points of the targeted electronic computer systems. Secondly, the performance of BAE Systems is crucial; timely and high-quality repairs and preventative actions are essential. Thirdly, the oversight provided by the Department of the Air Force must be diligent in monitoring performance, managing costs under the T&M structure, and ensuring that the contractor meets all contractual obligations. If these elements are effectively managed, the contract should contribute positively to maintaining the availability and reliability of Air Force systems.

How has federal spending on electronic computer manufacturing and maintenance evolved over the past few years, and where does this contract fit in?

Federal spending on electronic computer manufacturing and maintenance has generally remained substantial, driven by the continuous need to update and sustain IT infrastructure across various agencies, particularly within the Department of Defense. While specific aggregate data for 'electronic computer manufacturing and maintenance' can be fragmented across different NAICS codes and contract descriptions, the overall trend reflects ongoing investment in defense modernization and operational capabilities. This $11.8 million contract with BAE Systems represents a specific instance of this broader spending pattern. Its duration and value place it as a mid-tier sustainment contract, contributing to the Air Force's overall IT and hardware lifecycle management efforts, rather than a large-scale procurement or development initiative.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA873020R0015

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie DE Developpement DE L'eau S.A.

Address: 10920 TECHNOLOGY PL, SAN DIEGO, CA, 92127

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: $15,586,809

Exercised Options: $15,586,809

Current Obligation: $11,800,426

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F351DA

IDV Type: FSS

Timeline