DoD Awards BAE Systems $165M for Identification Systems Division Support Services Over 16 Years

Contract Overview

Contract Amount: $164,912,210 ($164.9M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2008-05-01

End Date: 2024-01-26

Contract Duration: 5,748 days

Daily Burn Rate: $28.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IDENTIFICATION SYSTEMS DIVISION SUPPORT SERVICES

Place of Performance

Location: HAUPPAUGE, SUFFOLK County, NEW YORK, 11788

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $164.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IDENTIFICATION SYSTEMS DIVISION SUPPORT SERVICES Key points: 1. Significant contract value of $165 million awarded to BAE Systems. 2. Competition method was 'Full and Open', suggesting a competitive bidding process. 3. Contract duration is extensive (over 16 years), raising potential concerns about long-term value and adaptability. 4. Engineering Services sector, NAICS 541330, indicates specialized technical support.

Value Assessment

Rating: fair

The contract's long duration and Cost Plus Fixed Fee structure may lead to cost overruns if not closely managed. Benchmarking against similar long-term engineering support contracts is difficult due to the extended period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the extended duration could allow for price escalation over time.

Taxpayer Impact: Taxpayer funds are committed for a significant period, necessitating ongoing scrutiny to ensure value for money and prevent cost creep.

Public Impact

Ensures continuity of critical identification systems support for the Department of Defense. Long-term commitment may impact budget flexibility for future technological advancements. Potential for sustained employment for BAE Systems personnel involved in the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (over 16 years)
Cost Plus Fixed Fee pricing structure
Lack of specific performance metrics in provided data

Positive Signals

Full and open competition utilized
Established contractor with a history of defense support

Sector Analysis

This contract falls within the Engineering Services sector, characterized by specialized technical expertise. Spending in this sector is crucial for maintaining complex defense systems, but long-term contracts require careful oversight to ensure they remain cost-effective and aligned with evolving technological needs.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as BAE Systems is a large corporation. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The extensive duration of this contract necessitates robust oversight from the Defense Contract Management Agency to ensure performance standards are met and costs are controlled. Regular reviews and audits are critical for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Extended contract duration may lead to obsolescence or reduced value over time.
Cost Plus Fixed Fee structure can incentivize higher spending if not tightly managed.
Lack of transparency on specific deliverables and performance metrics.
Potential for contractor lock-in due to long-term relationship.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $164.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IDENTIFICATION SYSTEMS DIVISION SUPPORT SERVICES

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $164.9 million.

What is the period of performance?

Start: 2008-05-01. End: 2024-01-26.

What specific identification systems are being supported, and how critical are they to national security?

The specific identification systems supported are not detailed in the provided data. However, given the Department of Defense context, these likely relate to personnel identification, access control, or tracking of assets crucial for operational security and national defense. Understanding the criticality would require further investigation into the system's function and dependencies within DoD operations.

How has the Cost Plus Fixed Fee structure impacted the final cost compared to initial estimates over the contract's lifespan?

The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover allowable costs plus a predetermined fixed fee. Over a long contract duration like this (over 16 years), the potential for cost overruns exists if initial estimates are inaccurate or if scope creep occurs without proper change management. Without access to the contract's cost history and performance reviews, it's impossible to definitively assess the impact on the final cost relative to estimates.

Are there plans to re-evaluate or re-compete this contract to incorporate newer technologies or ensure continued best value?

The contract's end date is in early 2024, suggesting a re-evaluation or re-competition is imminent or has recently occurred. Given the rapid pace of technological advancement, especially in identification systems, it is standard practice for the DoD to assess whether existing solutions remain optimal or if new technologies offer better performance or value. Future solicitations would likely incorporate updated requirements.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002408R3096

Offers Received: 1

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: $193,931,771

Exercised Options: $193,931,771

Current Obligation: $164,912,210

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