DoD's $29.5M SOF training support contract awarded to BAE Systems, spanning 5 years

Contract Overview

Contract Amount: $29,465,190 ($29.5M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2013-09-16

End Date: 2018-09-15

Contract Duration: 1,825 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: WORK EFFORTS AND TRAINING AND TRAINING PRESENTATION PRODUCTS IN SUPPORT OF THE JOINT FORCES TRAINING&SUPPORT BRANCH. LEVEL OF EFFORT TASKING WILL PROVIDE TECHNICAL SUPPORT FOR THE TRAINING OF U.S. SPECIAL OPERATING FORCES (SOF).

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: WORK EFFORTS AND TRAINING AND TRAINING PRESENTATION PRODUCTS IN SUPPORT OF THE JOINT FORCES TRAINING&SUPPORT BRANCH. LEVEL OF EFFORT TASKING WILL PROVIDE TECHNICAL SUPPORT FOR THE TRAINING OF U.S. SPECIAL OPERATING FORCES (SOF). Key points: 1. Contract provides essential technical support for U.S. Special Operations Forces training. 2. BAE Systems Technology Solutions & Services Inc. is the primary contractor. 3. The contract was awarded under full and open competition. 4. This is a Level of Effort tasking, indicating a focus on service delivery. 5. The contract duration is 5 years, suggesting a long-term need. 6. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 7. The contract was awarded by the Department of the Navy. 8. The North American Industry Classification System (NAICS) code is 541330 for Engineering Services.

Value Assessment

Rating: fair

The contract's value of approximately $29.5 million over five years for specialized training support appears reasonable given the critical nature of Special Operations Forces (SOF) training. Benchmarking against similar contracts for SOF support services is challenging due to the unique requirements and limited public data. However, the Cost Plus Fixed Fee (CPFF) contract type suggests that costs are reimbursed, plus a negotiated profit. This structure can lead to cost overruns if not managed tightly, but it also allows for flexibility in evolving training needs. Without detailed cost breakdowns, a precise value-for-money assessment is difficult, but the duration and scope indicate a significant investment in SOF readiness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, potentially leading to better pricing and service quality. The presence of 6 offers suggests a healthy level of interest from the market. A competitive bidding process allows the government to select the offer that provides the best value, considering both technical merit and cost. The specific details of the competition, such as the number of bidders and the evaluation criteria, are not fully detailed here, but the 'full and open' designation is a positive indicator for price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers. This process helps prevent inflated costs and promotes efficiency by selecting the most cost-effective solution.

Public Impact

Directly benefits U.S. Special Operations Forces (SOF) by providing essential training support. Enhances the readiness and effectiveness of SOF personnel through specialized training. The services delivered include technical support and training presentation products. The contract is managed by the Department of the Navy, supporting a critical national security function. The workforce implications include employment for individuals with expertise in training and technical support for defense applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, as they are reimbursed, potentially leading to higher overall expenditures if not rigorously monitored.
The specific nature of SOF training is highly sensitive, making public transparency on performance metrics and detailed cost breakdowns difficult, which can obscure true value for money.
Reliance on a single contractor for a significant period (5 years) could lead to vendor lock-in and reduced future competition if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The contract duration of 5 years indicates a stable, long-term requirement, providing consistent support for critical SOF training needs.
The contractor, BAE Systems, is a well-established defense contractor with significant experience, suggesting a higher likelihood of successful performance.
The contract specifies 'Level of Effort' tasking, which focuses on ensuring the required work is completed, aligning with service delivery objectives.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industry. The market for defense training and support services is substantial, driven by the ongoing need for advanced military capabilities and personnel readiness. BAE Systems operates within this competitive landscape, providing specialized solutions. Comparable spending benchmarks are difficult to establish precisely due to the niche nature of SOF support, but overall government spending on defense training and simulation services runs into billions annually, reflecting the high priority placed on maintaining a well-trained military force.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, as indicated by 'sb': false. The primary awardee is BAE Systems, a large defense contractor. While large prime contractors are often required to subcontract a portion of their work to small businesses, the specific subcontracting plan for this contract is not detailed here. The absence of a small business set-aside suggests that the competition was focused on larger, established firms capable of meeting the extensive requirements for SOF training support. This could limit direct opportunities for small businesses to serve as prime contractors on this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring of incurred costs to ensure they align with the fixed fee and the overall contract objectives. Performance metrics and deliverables would be tracked against the contract requirements. While specific Inspector General (IG) involvement is not explicitly stated, the DoD IG has broad jurisdiction over defense contracts, and significant issues could trigger an IG review. Transparency is generally limited for sensitive SOF contracts, but internal government oversight mechanisms are in place.

Related Government Programs

Special Operations Forces (SOF) Training Programs
Department of Defense Training and Simulation Contracts
Engineering and Technical Support Services
Naval Special Warfare Command Support
Defense Contractor Performance Management

Risk Flags

Cost Overrun Potential (CPFF Contract Type)
Performance Measurement Challenges (Sensitive SOF Requirements)
Long-Term Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. WORK EFFORTS AND TRAINING AND TRAINING PRESENTATION PRODUCTS IN SUPPORT OF THE JOINT FORCES TRAINING&SUPPORT BRANCH. LEVEL OF EFFORT TASKING WILL PROVIDE TECHNICAL SUPPORT FOR THE TRAINING OF U.S. SPECIAL OPERATING FORCES (SOF).

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 Navy).

What is the total obligated amount?

The obligated amount is $29.5 million.

What is the period of performance?

Start: 2013-09-16. End: 2018-09-15.

What is BAE Systems' track record with similar Department of Defense training support contracts?

BAE Systems Technology Solutions & Services Inc. has a substantial track record with the Department of Defense, including numerous contracts for training, simulation, and technical support services. They have supported various branches and special operations units, delivering complex solutions tailored to military requirements. Their experience often involves providing integrated training systems, curriculum development, and operational support. While specific performance data for every contract is not publicly available, their continued success in winning competitive bids for critical defense programs suggests a generally positive performance history. However, like any large contractor, they may have faced past performance challenges or disputes on specific contracts, which would be detailed in government source selection documents if they impacted the award decision.

How does the $29.5 million contract value compare to other SOF training support contracts?

Comparing the $29.5 million value of this contract to other SOF training support contracts is challenging due to the specialized and often classified nature of SOF requirements, which leads to limited public data on comparable procurements. However, for a five-year duration, this value suggests a moderate-sized contract within the broader defense training sector. Larger, more comprehensive SOF training initiatives, especially those involving advanced simulation or extensive infrastructure development, could easily exceed this amount, potentially reaching hundreds of millions of dollars. Conversely, smaller, more focused support tasks might be valued in the single-digit millions. The Cost Plus Fixed Fee (CPFF) structure also means the final cost could fluctuate based on actual effort expended, making direct comparisons to fixed-price contracts less straightforward.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract for SOF training?

The primary risks associated with this CPFF contract for SOF training revolve around cost control and contractor performance. CPFF contracts reimburse the contractor for allowable costs plus a fixed fee, which can incentivize the contractor to incur costs, potentially leading to expenditures exceeding initial estimates if not managed diligently. For sensitive SOF training, ensuring the contractor maintains the highest levels of security and operational integrity is paramount. Risks also include potential scope creep, where the requirements evolve beyond the initial agreement, leading to cost increases. Furthermore, the effectiveness of the training delivered is critical; a failure to meet performance standards could impact SOF readiness, representing a significant program risk. Robust government oversight and clear performance metrics are essential to mitigate these risks.

How effective is the 'full and open competition' approach for specialized defense services like SOF training?

The 'full and open competition' approach is generally considered the most effective method for procuring specialized defense services like SOF training, as it maximizes the pool of potential offerors and encourages robust competition. This process allows the government to solicit proposals from all responsible sources, fostering innovation and driving down costs by pitting multiple companies against each other. For SOF training, where requirements can be highly technical and unique, this broad competition increases the likelihood of finding a contractor with the specific expertise and capabilities needed. While it can be a more complex and time-consuming acquisition process, the benefits of potentially better pricing, superior technical solutions, and enhanced accountability typically outweigh these challenges for taxpayers and national security.

What are the historical spending patterns for engineering and training support services within the Department of the Navy?

Historical spending patterns for engineering and training support services within the Department of the Navy (DoN) show a consistent and significant investment in these areas, driven by the need to maintain a technologically advanced fleet and highly skilled personnel. The DoN procures a vast array of services, including complex engineering solutions, simulation and training systems, curriculum development, and technical support. Spending in these categories often fluctuates based on new platform acquisitions, modernization programs, and evolving operational requirements. While specific figures for engineering and training support are aggregated within broader service categories, the overall trend indicates a sustained demand, with annual obligations often in the billions of dollars across the DoN for related services. Contracts like the one awarded to BAE Systems represent a portion of this ongoing investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002413R3171

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $38,002,225

Exercised Options: $38,002,225

Current Obligation: $29,465,190

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4018

IDV Type: IDC

Timeline