Naval Air Systems Command awards $11.8M contract for electronic countermeasures, with BAE Systems as sole source

Contract Overview

Contract Amount: $11,820,964 ($11.8M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-19

End Date: 2012-09-26

Contract Duration: 2,564 days

Daily Burn Rate: $4.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200512!481446!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0078 !A!N! !N! ! !20050919!20070715!005149120!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!65 SPIT BROOK RD !NASHUA !NH!03060!37860!011!33!HUDSON !HILLSBOROUGH !N.H. !+000004750000!N!N!000009500000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !334419!E! !1! ! ! ! ! !20200930!B!D! !N!A!D!U!J!1!001!N!2A!Z!Y!Z! ! !N!C!N! ! ! !B!Z!A!A!000!A!C!N! ! ! ! !1700!N00019!0001! !

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: 200512!481446!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0078 !A!N! !N! ! !20050919!20070715!005149120!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!65 SPIT BROOK RD !NASHUA !NH!03060!37860!011!33!HUDSON !HILL… Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. Significant duration of over 7 years suggests a long-term need for these specialized components. 3. The contract's value, while substantial, needs benchmarking against similar sole-source procurements. 4. Focus on electronic countermeasures indicates a critical defense capability area. 5. The award to a single, established contractor may limit opportunities for emerging technology providers.

Value Assessment

Rating: fair

The contract value of $11.8 million for electronic countermeasures and related equipment over a period of approximately 7 years appears reasonable for specialized defense systems. However, without comparable sole-source awards or detailed cost breakdowns, a definitive value-for-money assessment is challenging. The fixed-price nature of the contract shifts some risk to the contractor, which is a positive indicator. Benchmarking against similar sole-source procurements for electronic warfare components would provide a clearer picture of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or when urgency dictates. The lack of competition means that taxpayers did not benefit from potential price reductions that could arise from a competitive bidding process. The justification for sole-source procurement would need to be thoroughly reviewed to ensure it was appropriate.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competition, potentially leading to higher costs for taxpayers. It also bypasses opportunities to foster innovation and cost savings from a broader market.

Public Impact

The primary beneficiaries are likely naval aviation units requiring advanced electronic countermeasures for aircraft survivability. The contract delivers critical electronic countermeasure systems and related capabilities, enhancing operational effectiveness. Geographic impact is national, supporting naval operations across various theaters. Workforce implications include specialized engineering, manufacturing, and technical support roles within BAE Systems and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Long contract duration may not reflect evolving technological needs.
Lack of transparency in sole-source justification could mask inefficiencies.

Positive Signals

Award to established contractor BAE Systems suggests reliability and proven capability.
Firm Fixed Price contract shifts cost overrun risk to the contractor.
Focus on critical defense technology like electronic countermeasures.

Sector Analysis

This contract falls within the broader defense electronics sector, specifically focusing on electronic warfare (EW) and countermeasures. The market for EW systems is highly specialized, often dominated by a few large defense contractors due to high R&D costs and proprietary technology. Spending in this area is driven by the need to maintain technological superiority and protect military assets from evolving threats. Comparable spending benchmarks would involve analyzing other contracts for similar EW systems or components within the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, nor is there information indicating significant subcontracting opportunities for small businesses. As a sole-source award to a large prime contractor, it is less likely to directly benefit the small business ecosystem unless BAE Systems actively engages them in its supply chain. Further investigation into subcontracting plans would be needed to assess any potential impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Naval Air Systems Command (NAVAIR) and the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified goods within the agreed price. Transparency is limited due to the sole-source nature, but contract modifications and performance reports would be subject to internal review and potentially Inspector General oversight if performance issues arise.

Related Government Programs

Naval Air Systems Command Contracts
Electronic Warfare Systems
Aircraft Survivability Equipment
Department of Defense Procurement
BAE Systems Defense Contracts

Risk Flags

Sole Source Justification
Lack of Competition
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. 200512!481446!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0078 !A!N! !N! ! !20050919!20070715!005149120!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!65 SPIT BROOK RD !NASHUA !NH!03060!37860!011!33!HUDSON !HILLSBOROUGH !N.H. !+000004750000!N!N!000009500000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !334419!E! !1! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION 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 $11.8 million.

What is the period of performance?

Start: 2005-09-19. End: 2012-09-26.

What is the specific nature of the 'ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ' being procured?

The contract description 'ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ' refers to Electronic Countermeasures (ECM), Counter-Countermeasures (ECCM), and Quick Reaction Capability (QRC) equipment. ECM systems are designed to detect, deceive, or neutralize enemy radar and infrared threats, thereby protecting aircraft. ECCM systems are designed to overcome enemy ECM efforts. QRC capabilities imply the ability to rapidly develop and field new or modified systems to counter emerging threats. This indicates a focus on advanced electronic warfare capabilities crucial for modern air combat survivability.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. While the specific justification is not detailed in the abbreviated data, sole-source awards are typically granted when only one responsible source is available. This could be due to proprietary technology, unique capabilities, urgent and compelling needs, or a lack of adequate competition. For a contract of this nature and duration, it's likely that BAE Systems possesses specific intellectual property or a unique manufacturing capability for these electronic countermeasures that cannot be replicated by other vendors in the required timeframe, or that the systems are integral to existing platforms where interoperability is paramount.

How does the $11.8 million contract value compare to similar procurements for electronic countermeasures?

Benchmarking this $11.8 million contract requires comparing it to similar sole-source or competed procurements for electronic countermeasures (ECM) and related capabilities. Given the contract's duration of over 7 years (from September 2005 to September 2012), the annual average value is approximately $1.6 million. This figure needs to be assessed against the complexity and technological sophistication of the systems. Sole-source contracts often carry a price premium compared to competed ones. Without access to a broader database of ECM procurements, especially those with similar sole-source justifications and technical specifications, a precise comparison is difficult. However, for specialized, high-technology defense systems, this value range is not unusual.

What is BAE Systems' track record with the Naval Air Systems Command and in the electronic countermeasures sector?

BAE Systems is a major global defense contractor with a significant and long-standing relationship with the U.S. Department of Defense, including the Naval Air Systems Command (NAVAIR). The company has a well-established presence in the electronic warfare and countermeasures sector, developing and supplying a wide range of systems for various platforms. Their track record typically includes delivering complex technological solutions, though like any large contractor, they may have faced performance reviews or contract disputes on specific programs. This particular contract, awarded in 2005, suggests NAVAIR had confidence in BAE Systems' capabilities for these specific electronic countermeasure systems at that time.

What are the potential risks associated with a sole-source contract for critical defense equipment?

The primary risks associated with a sole-source contract for critical defense equipment include a lack of price competition, which can lead to higher costs for taxpayers. There's also a reduced incentive for the contractor to innovate or improve efficiency beyond contractual requirements, as there is no competitive pressure. Furthermore, reliance on a single supplier can create supply chain vulnerabilities and make it difficult to adapt quickly to changing technological landscapes or threat environments. If the sole-source provider experiences financial difficulties or operational issues, it could significantly disrupt the availability of critical equipment.

How does this contract align with broader trends in defense spending on electronic warfare capabilities?

This contract aligns with the persistent and growing trend in defense spending on electronic warfare (EW) capabilities. As adversaries develop more sophisticated radar, communication, and missile systems, the need for effective electronic countermeasures and electronic attack capabilities becomes increasingly critical for maintaining air superiority and survivability. Defense budgets consistently allocate significant resources to EW research, development, and procurement. Contracts like this one, even if awarded in the mid-2000s, reflect the ongoing investment in protecting air assets through technological means, a trend that has only intensified with advancements in digital warfare and cyber threats.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 65 SPIT BROOK RD, NASHUA, NH, 02

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: YES

Timeline