DoD awards $50.2M for OE-120A Antenna Group, BAE Systems secures sole-source contract

Contract Overview

Contract Amount: $50,244,203 ($50.2M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2015-05-29

End Date: 2020-03-31

Contract Duration: 1,768 days

Daily Burn Rate: $28.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FY15 AND FY15 PRODUCTION UNITSOF OE-120A ANTENNA GROUP AND AN ECP FOR A TECHNICAL REFRESH

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $50.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: FY15 AND FY15 PRODUCTION UNITSOF OE-120A ANTENNA GROUP AND AN ECP FOR A TECHNICAL REFRESH Key points: 1. Contract awarded for antenna groups and technical refresh, indicating ongoing sustainment needs. 2. Sole-source award suggests limited market availability or specific technical requirements. 3. Long contract duration (1768 days) implies a need for sustained support and integration. 4. Firm-fixed-price contract type aims to control costs for the government. 5. The award falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing NAICS code. 6. Contract awarded to BAE Systems, a major defense contractor with extensive experience.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and specific technical components. The award amount of $50.2 million over approximately 4.8 years suggests a significant investment in specialized equipment. Without comparable sole-source awards for similar systems or detailed cost breakdowns, a precise value-for-money assessment is difficult. However, the firm-fixed-price structure provides some cost certainty for the government.

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 typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means the government did not benefit from a bidding process that could drive down prices through market forces.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses and can potentially lead to higher prices for taxpayers compared to a competitive procurement.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical antenna systems for its operations. The contract supports the sustainment and modernization of existing defense systems. The geographic impact is primarily tied to BAE Systems' operations and the deployment locations of the antenna systems. This contract likely supports a specialized workforce within BAE Systems involved in manufacturing and technical support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source awards can limit innovation by excluding potential new entrants.
Dependence on a single contractor can create supply chain risks.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Award to an established contractor like BAE Systems suggests a focus on reliability and proven performance.
Contract addresses a specific, likely critical, operational need for the DoD.

Sector Analysis

This contract falls within the defense electronics sector, specifically focusing on navigation and guidance systems. The market for such specialized components is often dominated by a few large, established defense contractors due to high research and development costs, stringent quality requirements, and long product lifecycles. Spending in this area is driven by the need for advanced military capabilities and the ongoing modernization of defense platforms.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by the 'sb' field being false. Given the sole-source nature and the likely complexity of the OE-120A antenna group, it is probable that the prime contractor, BAE Systems, will handle the majority of the work. Subcontracting opportunities for small businesses may exist but are not explicitly detailed or mandated within the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm-fixed-price contract type provides a degree of financial oversight by establishing a set price. Transparency regarding the specific technical details and cost justifications for the sole-source award would be crucial for full accountability.

Related Government Programs

Defense Communications Systems
Radar and Navigation Systems
Electronic Warfare Systems
Military Aircraft Components
Naval Systems

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns without competitive benchmarking.
Risk of technological obsolescence if refresh is not forward-looking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. FY15 AND FY15 PRODUCTION UNITSOF OE-120A ANTENNA GROUP AND AN ECP FOR A TECHNICAL REFRESH

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 $50.2 million.

What is the period of performance?

Start: 2015-05-29. End: 2020-03-31.

What is the specific technical function and importance of the OE-120A Antenna Group?

The OE-120A Antenna Group is a critical component within various Department of Defense platforms, likely serving functions related to search, detection, navigation, and communication. Its specific role would depend on the platform it's integrated into, but generally, such antenna systems are essential for gathering or transmitting signals necessary for situational awareness, targeting, and operational command and control. The 'technical refresh' aspect of the contract indicates that the system is undergoing upgrades to maintain its effectiveness against evolving threats and technological advancements, ensuring its continued relevance and performance in modern military operations.

Why was this contract awarded on a sole-source basis instead of being competed?

The sole-source award for the OE-120A Antenna Group suggests that BAE Systems is likely the only entity capable of providing the required system or its specific upgrades. This could be due to proprietary technology, unique manufacturing processes, extensive integration with existing DoD systems where BAE Systems holds the intellectual property or design authority, or specific certifications and security clearances required for production and support. The government may have determined that a competitive process would be less efficient, more costly, or technically infeasible given the specialized nature of the equipment and the need for continuity with existing systems.

How does the $50.2 million contract value compare to historical spending on similar antenna systems?

Directly comparing the $50.2 million contract value to historical spending on 'similar' antenna systems is challenging without more specific data on the OE-120A's capabilities and the platforms it supports. However, the award amount over nearly five years indicates a substantial investment. Large, complex defense electronics, especially those requiring technical refreshes and sole-source justification, often represent significant expenditures. Historical data for specialized radar, communication, or navigation antenna systems from major defense contractors can range from tens to hundreds of millions of dollars depending on quantity, technological sophistication, and contract duration. This $50.2M figure appears consistent with a significant, but not exceptionally large, sole-source award for specialized defense hardware.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude is the potential for reduced value for money due to the absence of price competition. Taxpayers may end up paying more than if the contract had been competed. Another risk is contractor lock-in, where the government becomes heavily reliant on a single supplier, potentially limiting future flexibility and negotiation leverage. There's also a risk that without competitive pressure, the contractor might be less incentivized to innovate or improve efficiency. Finally, ensuring the contractor's performance meets all requirements and that costs are reasonable requires robust government oversight.

What is BAE Systems' track record with similar defense electronics contracts?

BAE Systems is a major global defense contractor with a long and extensive track record in developing, manufacturing, and supporting a wide array of defense electronics, including radar, communications, navigation, and electronic warfare systems. They have consistently secured large contracts with the U.S. Department of Defense and other allied nations. Their experience typically involves complex integration, adherence to stringent military specifications, and managing long-term sustainment programs. While specific performance metrics for every contract are not publicly detailed, their continued success in winning significant sole-source and competitive contracts indicates a generally strong performance reputation and capability in delivering advanced defense technologies.

What are the implications of the 1768-day contract duration for system sustainment and obsolescence?

A contract duration of 1768 days (approximately 4.8 years) for the OE-120A Antenna Group and its technical refresh signifies a commitment to long-term sustainment and operational readiness. This extended period suggests the system is considered critical and requires ongoing support, maintenance, and potential upgrades to combat obsolescence. It allows for a stable supply chain and ensures that the necessary technical expertise remains available. However, it also necessitates careful planning to manage technological advancements during the contract period, ensuring that the 'technical refresh' adequately addresses future needs and doesn't become obsolete itself by the end of the contract term.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001914R0030

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $50,244,203

Exercised Options: $50,244,203

Current Obligation: $50,244,203

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $2,966,101

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline