DoD Awards BAE Systems $10.3M for Navigation Systems, Sole-Source Contract Raises Oversight Questions
Contract Overview
Contract Amount: $10,282,908 ($10.3M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2025-11-19
End Date: 2027-07-01
Contract Duration: 589 days
Daily Burn Rate: $17.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MPE-M CARD (MAPS)DELIVERY ORDER 11
Place of Performance
Location: CEDAR RAPIDS, LINN County, IOWA, 52404
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $10.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: MPE-M CARD (MAPS)DELIVERY ORDER 11 Key points: 1. Contract awarded to BAE Systems for navigation system components. 2. Sole-source award limits competition and potentially impacts price discovery. 3. Risk of higher costs due to lack of competitive bidding. 4. Sector: Defense Information Systems, specifically navigation and guidance instruments.
Value Assessment
Rating: fair
The award value of $10.3M for a 589-day duration appears reasonable for specialized navigation systems. However, without competitive benchmarking, it's difficult to definitively assess if this price is optimal compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, which can lead to less favorable pricing for the government and taxpayers as market forces are not leveraged.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these navigation system components compared to what could have been achieved through a competitive process.
Public Impact
Military readiness may be impacted if navigation systems are critical for operations. Taxpayers may bear higher costs due to the absence of competitive pricing. Dependence on a single contractor for essential components could pose supply chain risks. The Defense Information Systems Agency's procurement practices are under scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Award to established defense contractor
- Specific system components identified
Sector Analysis
This contract falls within the Defense Information Systems Agency's purview, specifically concerning the manufacturing of navigation, guidance, and control systems. Spending in this niche sector is critical for military operations but often involves specialized, high-cost components.
Small Business Impact
The contract was awarded to BAE Systems, a large defense contractor, and there is no indication that small businesses were involved in this specific delivery order. The sole-source nature likely precluded small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable. The Defense Information Systems Agency should provide justification for the lack of competition and demonstrate accountability in managing this contract.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award lacks transparency
- Potential for inflated pricing
- Limited oversight on competition justification
- Risk of contractor lock-in
- No small business participation evident
Tags
search-detection-navigation-guidance-aer, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. MPE-M CARD (MAPS)DELIVERY ORDER 11
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 (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $10.3 million.
What is the period of performance?
Start: 2025-11-19. End: 2027-07-01.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing without competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. The agency should have conducted a price analysis, possibly using historical data or independent cost estimates, to validate the pricing. Transparency regarding this justification and analysis is crucial for accountability.
What are the potential risks associated with relying on a single contractor for these critical navigation system components, especially concerning long-term availability and technological upgrades?
Sole-sourcing can create a dependency on one supplier, leading to risks in supply chain disruptions, price escalations, and slower adoption of technological advancements. The government might have limited leverage to push for innovation or secure favorable terms if the contractor faces challenges or decides to discontinue the product line.
How does the pricing of this contract compare to industry benchmarks for similar navigation system components, and what is the estimated impact on taxpayer funds?
Without access to specific component details and market data, a precise benchmark is difficult. However, sole-source contracts are generally expected to be less cost-effective than competitive ones. The estimated taxpayer impact could be a premium of 10-30% or more, depending on the criticality and uniqueness of the components.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC108422R0005
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: $10,282,908
Exercised Options: $10,282,908
Current Obligation: $10,282,908
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC108423D0005
IDV Type: IDC
Timeline
Start Date: 2025-11-19
Current End Date: 2027-07-01
Potential End Date: 2027-07-01 00:00:00
Last Modified: 2025-12-16
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