DoD Awards BAE Systems $30.4M for Joint Targeting Toolbox Legacy Sustainment Through 2026

Contract Overview

Contract Amount: $30,374,804 ($30.4M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2022-06-20

End Date: 2026-06-20

Contract Duration: 1,461 days

Daily Burn Rate: $20.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: JOINT TARGETING TOOLBOX LEGACY SUSTAINMENT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $30.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: JOINT TARGETING TOOLBOX LEGACY SUSTAINMENT Key points: 1. Significant contract value for sustainment of a critical defense system. 2. Sole-source award raises questions about competition and potential cost efficiencies. 3. Long-term contract duration (4 years) indicates ongoing need and potential for future spending. 4. Focus on legacy system sustainment may indicate a need for modernization or replacement.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not closely managed. Benchmarking against similar sustainment contracts for complex software systems is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $30.4M contract means taxpayers may not be receiving the best possible price for the sustainment services.

Public Impact

Ensures continued operation of a vital military targeting system. Potential for cost overruns due to sole-source, cost-plus contract type. Long-term sustainment may delay or prevent investment in more advanced solutions. Impacts readiness and operational effectiveness of forces relying on the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Legacy system sustainment

Positive Signals

Critical system sustainment
Long-term contract provides stability

Sector Analysis

The Department of Defense frequently awards large contracts for software sustainment. This contract falls within the typical range for maintaining complex, specialized software systems critical to military operations.

Small Business Impact

This contract was awarded to BAE Systems Technology Solutions & Services Inc., a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of the Air Force to ensure costs are reasonable and performance meets requirements. Tracking expenditures and deliverables will be crucial.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Cost-plus contract type
Potential for cost overruns
Reliance on legacy technology
Limited transparency on pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. JOINT TARGETING TOOLBOX LEGACY SUSTAINMENT

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 $30.4 million.

What is the period of performance?

Start: 2022-06-20. End: 2026-06-20.

What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or urgent needs. Without further details, it's difficult to assess the fairness of the pricing. A thorough review of the contractor's proposed costs against independent government estimates and market research would be necessary to validate the price.

What are the risks associated with sustaining a legacy system versus investing in a modern replacement?

Sustaining legacy systems can be costly due to outdated technology, limited vendor support, and potential security vulnerabilities. Investing in modernization can lead to improved efficiency, reduced long-term costs, and enhanced capabilities. However, modernization projects carry their own risks, including integration challenges and potential schedule delays.

How does the sustainment of this legacy system impact the development and adoption of next-generation targeting capabilities?

Continued investment in legacy system sustainment can divert resources and attention away from developing and fielding next-generation capabilities. This can create a technological gap and prolong reliance on potentially less effective or more vulnerable systems. A strategic plan is needed to balance sustainment with modernization efforts.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

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: 520 GAITHER RD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $31,742,322

Exercised Options: $31,742,322

Current Obligation: $30,374,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline