Navy's Air Traffic Control Systems Contract Reaches $69.3M for Engineering Services

Contract Overview

Contract Amount: $69,284,258 ($69.3M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2013-06-01

End Date: 2018-11-30

Contract Duration: 2,008 days

Daily Burn Rate: $34.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS EFFORT IS COMPOSED OF ENGINEERING PRODUCTS AND TECHNICAL SERVICES. THE PRODUCTS ARE PRODUCED TO SUPPORT THE NAVY'S AIR TRAFFIC CONTROL AND LANDING SYSTEM UNDER THE RESPONSIBILITY OF NAWCAD 4.5.8.2. THESE REQUIREMENTS ARE CONTINOUS AND ONGOING AND ENCOMPASS THE MANY SYSTEMS USED FOR AIR TRAFFIC CONTROL INSTALLED ON THE NAVY'S AIR CAPABLE SHIPS.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $69.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: THIS EFFORT IS COMPOSED OF ENGINEERING PRODUCTS AND TECHNICAL SERVICES. THE PRODUCTS ARE PRODUCED TO SUPPORT THE NAVY'S AIR TRAFFIC CONTROL AND LANDING SYSTEM UNDER THE RESPONSIBILITY OF NAWCAD 4.5.8.2. THESE REQUIREMENTS ARE CONTINOUS AND ONGOING AND ENCOMPASS THE MANY SYSTEMS … Key points: 1. Contract supports critical Navy air traffic control and landing systems on ships. 2. BAE Systems Technology Solutions & Services Inc. is the sole awardee. 3. Ongoing, continuous requirements indicate sustained need for these services. 4. The contract falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services 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 award mechanism (Delivery Order) implies it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit direct price comparison for this specific order.

Taxpayer Impact: Taxpayer funds are utilized for essential defense infrastructure, ensuring operational readiness for naval aviation.

Public Impact

Ensures safe and efficient operations for Navy aircraft carriers and other air-capable ships. Supports the continuous modernization and maintenance of vital air traffic control technology. Contributes to the overall readiness and effectiveness of naval aviation units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost growth due to CPFF contract type.
Limited transparency on specific cost drivers for this delivery order.

Positive Signals

Awarded through full and open competition.
Addresses critical, ongoing operational needs for the Navy.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related systems. Spending benchmarks for similar specialized engineering services for the Department of Defense can vary widely based on complexity and duration.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The Department of the Navy, through NAWCAD, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure proper execution and accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns.
Lack of detailed cost breakdown for the delivery order.
Potential for limited competition if part of a restricted IDIQ.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. THIS EFFORT IS COMPOSED OF ENGINEERING PRODUCTS AND TECHNICAL SERVICES. THE PRODUCTS ARE PRODUCED TO SUPPORT THE NAVY'S AIR TRAFFIC CONTROL AND LANDING SYSTEM UNDER THE RESPONSIBILITY OF NAWCAD 4.5.8.2. THESE REQUIREMENTS ARE CONTINOUS AND ONGOING AND ENCOMPASS THE MANY SYSTEMS USED FOR AIR TRAFFIC CONTROL INSTALLED ON THE NAVY'S AIR CAPABLE SHIPS.

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 $69.3 million.

What is the period of performance?

Start: 2013-06-01. End: 2018-11-30.

What is the total value of all delivery orders under the parent IDIQ contract, if applicable?

The provided data only details a single delivery order valued at $69.3 million. To understand the full scope and total value, information on the parent IDIQ contract, including its ceiling value and the number and value of all awarded delivery orders, would be necessary. This broader context is crucial for assessing the overall investment in the air traffic control systems.

How does the fixed fee component of the CPFF contract compare to industry standards for similar engineering services?

Assessing the fixed fee's reasonableness requires detailed cost data and comparison with industry benchmarks for engineering services contracts of similar complexity and risk. Without such granular data, it's challenging to definitively state if the fee is competitive or excessive. The CPFF structure itself inherently carries risk of cost escalation, making the fee's proportion to total costs a key area for scrutiny.

What specific performance metrics are used to evaluate the effectiveness of BAE Systems' engineering products and technical services?

The provided data does not specify the performance metrics or key performance indicators (KPIs) used to evaluate the contractor's effectiveness. Effective oversight would involve tracking metrics related to system reliability, on-time delivery of products, technical support responsiveness, and adherence to specifications. Understanding these metrics is vital for ensuring the Navy receives optimal value and performance.

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: N0002411R3207

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: $78,391,579

Exercised Options: $74,424,612

Current Obligation: $69,284,258

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $10,426,699

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