NAWCAD awards $109M contract for telecom system support, BAE Systems wins

Contract Overview

Contract Amount: $109,285,282 ($109.3M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2011-07-13

End Date: 2016-01-29

Contract Duration: 1,661 days

Daily Burn Rate: $65.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) SPECIAL COMMUNICATIONS REQUIREMENTS (SCR) DIVISION, CODE 4.5.11, ST. INIGOES HAS A REQUIREMENT TO PERFORM LIFE CYCLE SUPPORT (LCS) SERVICES TO SUPPORT VARIOUS NAVY, ARMY, AIR FORCE, SPECIAL OPERATIONS FORCES, AND OTHER AGENCIES TELECOMMUNICATION AND RELATED COMMUNICATION-ELECTRONIC (C-E) SYSTEMS.

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $109.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) SPECIAL COMMUNICATIONS REQUIREMENTS (SCR) DIVISION, CODE 4.5.11, ST. INIGOES HAS A REQUIREMENT TO PERFORM LIFE CYCLE SUPPORT (LCS) SERVICES TO SUPPORT VARIOUS NAVY, ARMY, AIR FORCE, SPECIAL OPERATIONS FORCES, AND OTHER AGENC… Key points: 1. Contract value: $109.3 million over 4.6 years. 2. Incumbent: BAE Systems Technology Solutions & Services Inc. 3. Risk: Potential for cost overruns with Cost Plus Fixed Fee contract type. 4. Sector: Engineering Services supporting defense telecommunications.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to higher costs if not managed closely. Benchmarking against similar telecom support contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms used are not detailed.

Taxpayer Impact: Taxpayer funds are used for essential defense communication system support, with competition aiming for best value.

Public Impact

Ensures critical communication systems for multiple military branches remain operational. Supports advanced telecommunication technologies vital for national security. Provides employment opportunities within the engineering and technical services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type
  • Long contract duration

Positive Signals

  • Full and open competition
  • Support for multiple agencies

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting telecommunications and communication-electronic systems for defense agencies. Spending benchmarks for this niche are highly variable based on system complexity and support level.

Small Business Impact

The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small business subcontracting opportunities were pursued.

Oversight & Accountability

Awarded by the Naval Air Warfare Center Aircraft Division, oversight would typically involve program managers and contracting officers ensuring performance and adherence to contract terms.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for cost overruns due to CPFF structure
  • Long-term dependency on a single contractor for critical systems
  • Lack of detailed cost transparency
  • Limited visibility into small business participation

Tags

engineering-services, department-of-defense, md, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $109.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) SPECIAL COMMUNICATIONS REQUIREMENTS (SCR) DIVISION, CODE 4.5.11, ST. INIGOES HAS A REQUIREMENT TO PERFORM LIFE CYCLE SUPPORT (LCS) SERVICES TO SUPPORT VARIOUS NAVY, ARMY, AIR FORCE, SPECIAL OPERATIONS FORCES, AND OTHER AGENCIES TELECOMMUNICATION AND RELATED COMMUNICATION-ELECTRONIC (C-E) SYSTEMS.

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $109.3 million.

What is the period of performance?

Start: 2011-07-13. End: 2016-01-29.

What is the specific breakdown of costs within the Cost Plus Fixed Fee structure?

A detailed breakdown of costs within the Cost Plus Fixed Fee structure is not provided in the available data. This would typically include direct labor, indirect costs, materials, and the fixed fee. Understanding this breakdown is crucial for assessing the contractor's efficiency and the government's value for money.

How effectively does the contractor manage cost and schedule given the contract type?

Effectiveness in managing cost and schedule under a Cost Plus Fixed Fee contract relies heavily on robust government oversight and contractor performance metrics. Without specific performance reports or earned value management data, it's difficult to definitively assess effectiveness. Regular reviews and audits are key to ensuring accountability.

What is the long-term strategic value of this life cycle support contract?

The long-term strategic value lies in maintaining the operational readiness and technological relevance of critical communication-electronic systems for multiple defense agencies. This ensures seamless communication capabilities for national security operations, reducing the risk of system obsolescence or failure.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002410R3493

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: $123,238,677

Exercised Options: $111,172,585

Current Obligation: $109,285,282

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

Start Date: 2011-07-13

Current End Date: 2016-01-29

Potential End Date: 2016-01-29 00:00:00

Last Modified: 2023-05-19

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