DoD awards $19.7M for Guided Missile Manufacturing to BAE Systems, citing no competition

Contract Overview

Contract Amount: $19,713,987 ($19.7M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2011-02-10

End Date: 2013-09-27

Contract Duration: 960 days

Daily Burn Rate: $20.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FW APKWS II JCTD

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: FW APKWS II JCTD Key points: 1. Significant contract value of $19.7 million awarded. 2. Sole-source award to BAE Systems raises competition concerns. 3. Contract duration of 960 days suggests a substantial project. 4. Guided Missile and Space Vehicle Manufacturing sector.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the $19.7 million price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these guided missile components.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Potential for cost overruns with a Cost Plus Fixed Fee contract. Limited transparency into the justification for a sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in justification

Positive Signals

Awarded to a known entity (BAE Systems)

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector. Spending in this defense-related area is often characterized by high R&D costs and specialized manufacturing capabilities, making competition sometimes challenging but crucial for cost control.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or considered.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and managing costs effectively. The Defense Contract Management Agency's role is critical here.

Related Government Programs

Guided Missile and Space Vehicle Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award lacks competition.
Cost Plus Fixed Fee contract type increases risk of overruns.
Potential for inflated pricing due to lack of market pressure.
Limited transparency on justification for sole-sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. FW APKWS II JCTD

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 $19.7 million.

What is the period of performance?

Start: 2011-02-10. End: 2013-09-27.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically require detailed documentation outlining the necessity for a single source, such as unique capabilities or urgent needs. Without this information, it's impossible to assess if taxpayer funds were used efficiently or if a more competitive approach could have yielded better pricing and innovation.

How does the Cost Plus Fixed Fee structure impact cost control and contractor performance in this specific contract?

Cost Plus Fixed Fee contracts incentivize contractors to control costs to maximize their fixed fee profit. However, they can also lead to cost overruns if the initial cost estimates are inaccurate or if the government's oversight is insufficient. For this $19.7 million contract, effective monitoring by the Defense Contract Management Agency is essential to ensure BAE Systems manages expenses prudently and meets performance expectations within the agreed-upon parameters.

What is the benchmark pricing for similar guided missile components, and how does this contract's value compare?

Establishing a benchmark price for similar guided missile components is challenging without access to detailed market data and specific technical requirements. However, given the sole-source nature and the Cost Plus Fixed Fee structure, there's a heightened risk that the $19.7 million awarded may exceed what could have been achieved through competitive bidding. Independent cost analysis or comparison with historical data for comparable systems would be necessary for a definitive assessment.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie DE Developpement DE L'eau S.A.

Address: 65 SPIT BROOK RD, NASHUA, NH, 03060

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: $19,713,987

Exercised Options: $19,713,987

Current Obligation: $19,713,987

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $3,930,576

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline