DoD Awards BAE Systems $29.6M for Airborne Pods and Navigation Systems

Contract Overview

Contract Amount: $29,645,064 ($29.6M)

Contractor: BAE Systems Information & Electronic Systems Integration Inc

Awarding Agency: Department of Defense

Start Date: 2015-04-22

End Date: 2017-09-08

Contract Duration: 870 days

Daily Burn Rate: $34.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AWARDING DO KZ01 TO ACQUIRE (18) TSP AIRBORNE PODS, EIGHTEEN (18) EXTERNAL ANTENNA, SIXTEEN (16) AIRBORNE POD TRANSIT CASES, AND SEVENTEEN (17) MAINTENANCE LAPTOPS.

Place of Performance

Location: HUDSON, HILLSBOROUGH County, NEW HAMPSHIRE, 03051

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC for work described as: AWARDING DO KZ01 TO ACQUIRE (18) TSP AIRBORNE PODS, EIGHTEEN (18) EXTERNAL ANTENNA, SIXTEEN (16) AIRBORNE POD TRANSIT CASES, AND SEVENTEEN (17) MAINTENANCE LAPTOPS. Key points: 1. The award covers specialized airborne pods, antennas, transit cases, and maintenance laptops. 2. BAE Systems is a major defense contractor, indicating established capabilities. 3. The contract is a delivery order under a larger contract, suggesting potential for follow-on work. 4. The sector is focused on advanced navigation and guidance systems for military applications.

Value Assessment

Rating: fair

The total award amount is $29.6 million. Without a clear baseline or comparison to similar systems, assessing the value is difficult. The firm fixed-price contract type provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating 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 specialized equipment could lead to higher expenditures than if multiple vendors had vied for the contract.

Public Impact

Enhances military reconnaissance and navigation capabilities. Supports advanced airborne systems for the Department of the Army. Procurement of specialized electronic systems for defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns due to sole-source award

Positive Signals

Acquisition of critical defense technology
Firm fixed-price contract

Sector Analysis

This award falls within the defense sector, specifically focusing on advanced navigation and guidance systems. Spending in this area is critical for maintaining technological superiority but can be prone to high costs due to specialized requirements and limited competition.

Small Business Impact

The prime contractor, BAE Systems, is a large business. There is no indication of small business participation in this specific delivery order.

Oversight & Accountability

As a delivery order under a larger contract, oversight may be embedded within the parent contract's framework. However, the sole-source nature warrants scrutiny to ensure fair pricing.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing without competitive bidding.
Lack of transparency on justification for sole-source.
No clear indication of small business involvement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC. AWARDING DO KZ01 TO ACQUIRE (18) TSP AIRBORNE PODS, EIGHTEEN (18) EXTERNAL ANTENNA, SIXTEEN (16) AIRBORNE POD TRANSIT CASES, AND SEVENTEEN (17) MAINTENANCE LAPTOPS.

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $29.6 million.

What is the period of performance?

Start: 2015-04-22. End: 2017-09-08.

What was 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 a lack of viable alternatives. Without further documentation, it's difficult to ascertain the specific reasons. However, such awards necessitate rigorous justification to ensure taxpayer funds are used efficiently and that no competitive opportunities were overlooked.

What is the expected operational lifespan and upgrade path for these airborne pods and systems?

The operational lifespan and upgrade path are crucial for understanding the long-term value and total cost of ownership. Specialized defense systems often have extended lifecycles, but require ongoing maintenance and modernization. Information on these aspects would clarify the strategic investment and potential future sustainment costs beyond the initial procurement.

How does the cost of these pods compare to similar systems acquired competitively by other military branches or allied nations?

Benchmarking the cost against similar systems acquired competitively is essential for assessing value for money. If this sole-source acquisition is significantly more expensive, it highlights potential inefficiencies. Such comparisons would inform future procurement strategies and negotiations, aiming to secure better pricing through competition or robust cost analysis.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems Land & Armaments, L.P.

Address: 65 RIVER RD, HUDSON, NH, 03051

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $29,645,064

Exercised Options: $29,645,064

Current Obligation: $29,645,064

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $10,750,111

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T14DC015

IDV Type: IDC

Timeline