DoD's $12.7M Contract for Metal Container Manufacturing Awarded to BAE Systems Container Solutions Inc

Contract Overview

Contract Amount: $12,697,895 ($12.7M)

Contractor: BAE Systems Container Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2008-03-31

End Date: 2009-11-30

Contract Duration: 609 days

Daily Burn Rate: $20.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ENGINEERING AND TECHNICAL SUPPORT (USN)

Place of Performance

Location: BERTHOUD, LARIMER County, COLORADO, 80513

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to BAE SYSTEMS CONTAINER SOLUTIONS INC for work described as: ENGINEERING AND TECHNICAL SUPPORT (USN) Key points: 1. The contract value is $12.7 million, awarded to a single vendor. 2. Competition was limited, with the contract being 'NOT COMPETED'. 3. The award date was March 31, 2008, with an end date of November 30, 2009. 4. The NAICS code 332439 indicates 'Other Metal Container Manufacturing'.

Value Assessment

Rating: questionable

The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The lack of competition raises concerns about whether the government received the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition suggests taxpayers may have paid more than necessary for these engineering and technical support services.

Public Impact

Taxpayers funded a significant contract for specialized metal containers. The Department of the Navy utilized these services for engineering and technical support. The contract duration spanned over a year and a half.

Waste & Efficiency Indicators

Waste Risk Score: 30 / 10

Warning Flags

Lack of competition
Time and Materials pricing
No small business participation

Positive Signals

Specific technical support provided to the Navy

Sector Analysis

The contract falls under the 'Other Metal Container Manufacturing' sector. Spending in this sector can vary widely based on defense needs and industrial capacity. Benchmarks are difficult without more specific product details.

Small Business Impact

This contract did not involve small businesses, as indicated by 'sb': false. There is no indication that small business participation was a consideration in this award.

Oversight & Accountability

The 'aw' field indicates 'DCA', which might refer to a contracting activity or office. Further investigation into the specific oversight mechanisms for this sole-source award would be beneficial.

Related Government Programs

Other Metal Container Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
Time and Materials contract type
No small business participation
Limited transparency on justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to BAE SYSTEMS CONTAINER SOLUTIONS INC. ENGINEERING AND TECHNICAL SUPPORT (USN)

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS CONTAINER SOLUTIONS 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 $12.7 million.

What is the period of performance?

Start: 2008-03-31. End: 2009-11-30.

What was the justification for not competing this contract, and did it align with federal procurement regulations?

The provided data states the contract was 'NOT COMPETED' and awarded sole-source. Without further documentation, the specific justification is unknown. Federal regulations typically require competition unless specific exceptions apply, such as a single source being capable of providing the required goods or services. The lack of competition raises concerns about potential price inflation.

What were the specific engineering and technical support services provided under this contract, and how critical were they to naval operations?

The contract is categorized under 'Other Metal Container Manufacturing' (NAICS 332439) and refers to 'ENGINEERING AND TECHNICAL SUPPORT (USN)'. The exact nature of the support and its criticality are not detailed. It could range from design and testing of specialized containers to maintenance and integration support, directly impacting naval readiness or logistics.

What was the total cost per unit or per hour for the services rendered, and how does it compare to market rates for similar services?

The contract was awarded on a Time and Materials (T&M) basis, making a fixed per-unit cost difficult to ascertain from the provided data. The 'br' (base price) of $2,085,000 might represent an initial estimate or ceiling. Without detailed labor rates and hours, a direct comparison to market benchmarks is challenging, but T&M contracts inherently carry higher risk of cost escalation.

Industry Classification

NAICS: Manufacturing › Boiler, Tank, and Shipping Container Manufacturing › Other Metal Container Manufacturing

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001907R0094

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 19750 COUNTY ROAD 7, BERTHOUD, CO, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,039,575

Exercised Options: $13,039,575

Current Obligation: $12,697,895

Contract Characteristics

Cost or Pricing Data: YES

Timeline