DoD Awards BAE Systems $94.6M for Systems Engineering & Evaluation, Ending 2025
Contract Overview
Contract Amount: $94,581,613 ($94.6M)
Contractor: BAE Systems Technology Solutions & Services Inc.
Awarding Agency: Department of Defense
Start Date: 2020-05-20
End Date: 2025-11-19
Contract Duration: 2,009 days
Daily Burn Rate: $47.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SYSTEMS ENGINEERING AND EVALUATION, SYSTEMS ANALYSIS WORLDWI
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $94.6 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: SYSTEMS ENGINEERING AND EVALUATION, SYSTEMS ANALYSIS WORLDWI Key points: 1. Significant contract value of $94.6 million awarded to a major defense contractor. 2. BAE Systems is a well-established player in the defense technology sector. 3. Potential risk associated with long-term contracts and cost-plus pricing models. 4. Focus on systems engineering and evaluation suggests critical program support.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee. While common in complex R&D, it can lead to higher costs if not managed tightly. Benchmarking CPFF contracts requires detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by allowing all eligible vendors to participate.
Public Impact
Supports critical Air Force systems engineering and evaluation efforts. Ensures continued technological advancement and operational readiness for defense systems. Impacts the defense industrial base through significant contract awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus pricing can incentivize higher spending.
- Long contract duration may reduce flexibility.
- Reliance on a single contractor for critical services.
Positive Signals
- Awarded through full and open competition.
- Experienced contractor with a strong track record.
- Supports essential defense capabilities.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on systems engineering and evaluation for defense applications. Spending in this area is crucial for maintaining technological superiority and program execution within the Department of Defense.
Small Business Impact
The data indicates this contract was awarded to BAE Systems, a large prime contractor. There is no explicit information on small business subcontracting participation within this specific award notice.
Oversight & Accountability
The Department of the Air Force is the awarding agency, responsible for oversight. The contract type (CPFF) necessitates robust financial oversight to manage costs and ensure the fixed fee remains appropriate.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost-plus contract type can lead to cost overruns.
- Long contract duration (over 5 years) may limit adaptability.
- Potential for contractor lock-in on critical systems.
- Lack of specific small business participation details.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $94.6 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. SYSTEMS ENGINEERING AND EVALUATION, SYSTEMS ANALYSIS WORLDWI
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 $94.6 million.
What is the period of performance?
Start: 2020-05-20. End: 2025-11-19.
What is the typical profit margin for Cost Plus Fixed Fee contracts in the defense sector, and how does BAE's fixed fee compare?
Profit margins for CPFF contracts in defense typically range from 7-15%, depending on contract complexity and risk. Without specific details on BAE's fixed fee, a direct comparison is difficult. However, the 'fixed' nature aims to provide a predictable profit for the contractor while controlling overall cost escalation for the government.
What specific systems or programs does this 'Systems Engineering and Evaluation' contract support within the Air Force?
The provided data does not specify the exact systems or programs supported by this contract. 'Systems Engineering and Evaluation' is a broad category encompassing the design, integration, testing, and assessment of complex defense systems. Further investigation into specific Air Force program offices or contract details would be needed to identify the supported platforms.
How does the $94.6 million value compare to other similar systems engineering contracts awarded by the DoD in recent years?
A $94.6 million contract for systems engineering and evaluation is a substantial award, reflecting the complexity and importance of the services. Benchmarking requires comparing it against contracts with similar scope, duration, and agency. Larger, more complex programs often see multi-billion dollar contracts, while smaller, specialized efforts might be in the tens of millions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA875020R0007
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Compagnie DE Developpement DE L'eau S.A.
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: $111,722,223
Exercised Options: $111,722,223
Current Obligation: $94,581,613
Actual Outlays: $5,029,187
Subaward Activity
Number of Subawards: 249
Total Subaward Amount: $28,286,579
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU335
IDV Type: IDC
Timeline
Start Date: 2020-05-20
Current End Date: 2025-11-19
Potential End Date: 2025-11-19 00:00:00
Last Modified: 2025-07-28
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