DoD awards $12.1M for USMC MOTV Front Panel, BAE Systems secures contract via full and open competition

Contract Overview

Contract Amount: $12,130,976 ($12.1M)

Contractor: BAE Systems Information & Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2007-03-05

End Date: 2007-07-31

Contract Duration: 148 days

Daily Burn Rate: $82.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USMC MOTV FRONT PANEL MD 181 1061-MD

Place of Performance

Location: JEFFERSON CITY, JEFFERSON County, TENNESSEE, 37760

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: USMC MOTV FRONT PANEL MD 181 1061-MD Key points: 1. Contract awarded to BAE Systems for a critical USMC component. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is substantial, indicating significant material requirements. 4. The sector is primarily defense manufacturing, with potential for related supply chain impacts.

Value Assessment

Rating: fair

The contract value of $12.1M for a front panel is difficult to benchmark without specific technical details. However, the award amount suggests a significant investment in this component.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of firm fixed price indicates that the price was determined upfront.

Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently for necessary defense equipment.

Public Impact

Ensures operational readiness for USMC vehicles. Supports a major defense contractor and its supply chain. Highlights the ongoing investment in military vehicle modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited duration of the delivery order (approx. 5 months).
  • Lack of specific performance metrics or detailed cost breakdown.
  • Potential for obsolescence of the component over time.

Positive Signals

  • Awarded through full and open competition.
  • Firm fixed price contract type.
  • Supports critical military equipment.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically for vehicle components. Spending benchmarks in this area are highly variable based on the specific technology and quantity required.

Small Business Impact

The data indicates the prime contractor is BAE Systems, a large corporation. There is no direct information on small business participation in this specific delivery order.

Oversight & Accountability

The Department of the Navy awarded this delivery order, implying oversight from the DoD. Further oversight details would require examination of contract management and performance reports.

Related Government Programs

  • Other Apparel Accessories and Other Apparel Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for supply chain disruption.
  • Risk of component obsolescence.
  • Limited duration of the specific award.
  • Lack of detailed cost breakdown for transparency.

Tags

other-apparel-accessories-and-other-appa, department-of-defense, tn, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC.. USMC MOTV FRONT PANEL MD 181 1061-MD

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 Navy).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2007-03-05. End: 2007-07-31.

What is the specific function and criticality of the USMC MOTV Front Panel MD 181?

The USMC MOTV Front Panel MD 181 is a component for the Medium Tactical Vehicle Replacement (MTVR) system. Its criticality lies in providing essential protection and housing for various vehicle systems, directly impacting the operational effectiveness and survivability of the vehicle in diverse combat and logistical environments.

What are the potential risks associated with a single delivery order for a critical vehicle component?

A single delivery order, even under full and open competition, carries risks such as potential supply chain disruptions if the sole awardee faces production issues. There's also a risk of price escalation in future orders if competition is not re-established, and potential for the component to become obsolete if not regularly reviewed against evolving military requirements.

How does the firm fixed price contract type impact the overall value and effectiveness of this award?

The firm fixed price (FFP) contract type locks in the price, providing cost certainty for the government and mitigating the risk of cost overruns for the buyer. This enhances the effectiveness of the award by ensuring predictable spending. However, it places the cost risk on the contractor, potentially leading them to build in higher contingencies if they perceive significant unknowns.

Industry Classification

NAICS: ManufacturingApparel Accessories and Other Apparel ManufacturingOther Apparel Accessories and Other Apparel Manufacturing

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 6500 TRACOR LANE, AUSTIN, TX, 78725

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: $12,130,976

Exercised Options: $12,130,976

Current Obligation: $12,130,976

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS07F5778P

IDV Type: FSS

Timeline

Start Date: 2007-03-05

Current End Date: 2007-07-31

Potential End Date: 2007-07-31 00:00:00

Last Modified: 2021-12-07

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