DoD Awards BAE Systems $7.4M for GPS Receivers, Lacking Competition
Contract Overview
Contract Amount: $7,393,437 ($7.4M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2024-03-20
End Date: 2026-01-07
Contract Duration: 658 days
Daily Burn Rate: $11.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FOREIGN MILITARY SALES BAE GLOBAL POSITIONING SYSTEM RECEIVERS
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52404
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $7.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: FOREIGN MILITARY SALES BAE GLOBAL POSITIONING SYSTEM RECEIVERS Key points: 1. Contract awarded to BAE Systems for critical GPS receivers. 2. Sole-source award raises concerns about price discovery and competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector: Information Technology/Defense Manufacturing.
Value Assessment
Rating: questionable
The contract value of $7.4 million for GPS receivers is difficult to assess without comparable contract data. The lack of competition suggests potential overpricing compared to a competitive scenario.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these GPS receivers.
Public Impact
Ensures availability of critical GPS technology for military operations. Raises questions about the government's procurement strategy for specialized equipment. Highlights the importance of competitive bidding for cost savings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Procurement of essential military technology
- Established vendor relationship
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area is crucial for maintaining advanced communication and navigation capabilities for defense purposes.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award, as the prime contractor is BAE Systems. Further analysis would be needed to determine if subcontracting opportunities were offered.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government obtained fair value. Oversight should focus on the justification for not seeking competitive proposals.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source procurement
- Limited price competition
- Potential for cost overruns
- Lack of small business participation
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ia, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. FOREIGN MILITARY SALES BAE GLOBAL POSITIONING SYSTEM RECEIVERS
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 $7.4 million.
What is the period of performance?
Start: 2024-03-20. End: 2026-01-07.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's presumed the Department of Defense has determined BAE Systems is the only viable option for these specific GPS receivers, potentially due to specialized technology or integration requirements.
What is the potential cost impact of this sole-source award compared to a competitive process?
Sole-source contracts often result in higher costs for the government because the absence of competition removes the incentive for the contractor to offer the lowest possible price. Without competitive pressure, BAE Systems may not have been compelled to reduce its profit margins or operational costs as aggressively as it might have in a bidding scenario.
How does this procurement align with the Department of Defense's strategy for ensuring technological superiority in navigation systems?
While sole-source awards can ensure access to specific, advanced technologies, they also risk stifling innovation that could arise from a competitive environment. The DoD's strategy likely balances the need for immediate access to critical systems with long-term goals of fostering a robust and competitive defense industrial base.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7825 6TH ST SW, CEDAR RAPIDS, IA, 52404
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,393,437
Exercised Options: $7,393,437
Current Obligation: $7,393,437
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-03-20
Current End Date: 2026-01-07
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-07
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