DoD Awards BAE Systems $2.7M for Military Vehicle Parts, Lacking Competition
Contract Overview
Contract Amount: $2,711,283 ($2.7M)
Contractor: BAE Systems Land and Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2026-01-08
End Date: 2026-01-31
Contract Duration: 23 days
Daily Burn Rate: $117.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR PARTS UNDER CLIN 0001 IN THE AMOUNT OF $2,711,283.06.
Place of Performance
Location: STAFFORD, STAFFORD County, VIRGINIA, 22556
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $2.7 million to BAE SYSTEMS LAND AND ARMAMENTS L.P. for work described as: DELIVERY ORDER FOR PARTS UNDER CLIN 0001 IN THE AMOUNT OF $2,711,283.06. Key points: 1. Significant award for specialized military vehicle components. 2. Sole source award to BAE Systems, raising competition concerns. 3. Short performance period suggests urgent need or specific task. 4. High value for a delivery order indicates critical part requirement.
Value Assessment
Rating: fair
The $2.7 million award for vehicle parts is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to market rates for similar specialized components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to BAE Systems. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher price than if multiple vendors had bid, impacting taxpayer value.
Public Impact
Ensures continued operational readiness of armored vehicles. Supports a major defense contractor, potentially impacting jobs. Highlights reliance on specific manufacturers for critical components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Limited transparency on pricing
Positive Signals
- Supports critical defense needs
- Award to established prime contractor
Sector Analysis
This award falls under the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this niche area is often characterized by long lead times and specialized production capabilities, with significant government contracts awarded to a few key players.
Small Business Impact
The award went to BAE Systems Land and Armaments L.P., a large prime contractor. There is no indication that small businesses were involved as subcontractors in this specific delivery order.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and justification for bypassing competitive procedures. Further review of the justification for other than full and open competition is recommended.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Limited small business participation
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.7 million to BAE SYSTEMS LAND AND ARMAMENTS L.P.. DELIVERY ORDER FOR PARTS UNDER CLIN 0001 IN THE AMOUNT OF $2,711,283.06.
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND AND ARMAMENTS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $2.7 million.
What is the period of performance?
Start: 2026-01-08. End: 2026-01-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. Without access to the specific justification documentation, it's impossible to confirm the exact reasons, but it's crucial for ensuring taxpayer value and fair competition.
What is the risk associated with a sole-source award for critical vehicle parts?
The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Additionally, it can create a dependency on a single supplier, potentially leading to supply chain vulnerabilities and reduced leverage for the government in future negotiations or in addressing quality issues.
How does this award contribute to the overall effectiveness of armored vehicle maintenance and readiness?
This award directly contributes to the effectiveness of armored vehicles by ensuring the availability of necessary parts for maintenance and repair. Timely access to these components is crucial for maintaining operational readiness, minimizing downtime, and ensuring that military assets are prepared for deployment and mission accomplishment.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: M6785420R0026
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 34201 VAN DYKE AVE, STERLING HEIGHTS, MI, 48312
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,711,283
Exercised Options: $2,711,283
Current Obligation: $2,711,283
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: M6785421D0001
IDV Type: IDC
Timeline
Start Date: 2026-01-08
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2026-01-08
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