DoD Awards $57.5M Contract for OE-120B/UPX Antenna Group to BAE Systems

Contract Overview

Contract Amount: $57,533,236 ($57.5M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2019-03-26

End Date: 2025-05-30

Contract Duration: 2,257 days

Daily Burn Rate: $25.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF OE-120B/UPX ANTENNA GROUP AND RETROFIT KITS

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $57.5 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: PROCUREMENT OF OE-120B/UPX ANTENNA GROUP AND RETROFIT KITS Key points: 1. Contract awarded to a single, established vendor. 2. Focus on specialized antenna systems for naval applications. 3. Potential for cost overruns due to fixed-price structure and long duration. 4. Limited visibility into competitive pricing due to sole-source nature.

Value Assessment

Rating: fair

The contract value of $57.5M over 2257 days suggests a significant investment. Without comparable contracts for similar specialized antenna systems, a precise pricing assessment is difficult. The fixed-price nature aims to control costs, but the long duration introduces risk.

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 may result in higher costs for taxpayers compared to a competitive procurement. The rationale for sole-sourcing is not provided.

Taxpayer Impact: The lack of competition likely results in a higher cost to taxpayers than if the contract had been awarded through a competitive process.

Public Impact

Ensures continued operational capability for naval vessels requiring specific antenna systems. Supports a major defense contractor, potentially impacting regional employment. Funds advanced technology in search and navigation systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Long contract duration increases risk of cost escalation.
No small business participation indicated.

Positive Signals

Procurement of critical defense equipment.
Award to an established prime contractor with relevant expertise.

Sector Analysis

This procurement falls within the defense sector, specifically related to electronic systems and instrumentation. Spending benchmarks for specialized antenna groups are highly variable and depend on technological complexity and quantity.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the prime contractor, BAE Systems, will likely handle the entire scope of work without subcontracting to small businesses.

Oversight & Accountability

The Department of the Navy is the contracting agency. Oversight would typically involve contract management reviews, performance monitoring, and financial audits to ensure compliance and proper use of funds, especially given the sole-source nature.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Long contract duration
No small business participation
Lack of competitive pricing data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.5 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. PROCUREMENT OF OE-120B/UPX ANTENNA GROUP AND RETROFIT KITS

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $57.5 million.

What is the period of performance?

Start: 2019-03-26. End: 2025-05-30.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies typically require detailed documentation, such as a Justification and Approval (J&A), to support sole-source procurements. This documentation should outline why only one source can meet the requirement. Regarding pricing, agencies must still ensure it is fair and reasonable, often through cost analysis, price analysis of historical data, or comparison to independent government cost estimates.

What are the potential risks associated with a fixed-price contract spanning over 2257 days, particularly concerning cost overruns and scope creep?

A long-duration fixed-price contract presents significant risks. For the government, the primary risk is that the contractor may incur higher costs than anticipated due to inflation, material price increases, or unforeseen technical challenges, without a mechanism to adjust the price upwards. Conversely, the contractor bears the risk of cost overruns. Scope creep, where additional requirements are added without a formal change order and price adjustment, can also erode profit margins for the contractor or lead to disputes.

How does the procurement of this specific antenna group contribute to the overall operational effectiveness and technological advancement of naval systems?

The OE-120B/UPX antenna group likely plays a critical role in the search, detection, and navigation capabilities of naval platforms. Its procurement signifies a commitment to maintaining or enhancing these essential functions. The specific technological advancements embedded within this antenna system could improve signal clarity, range, or resistance to electronic warfare, thereby directly impacting the mission effectiveness and situational awareness of the vessels it equips.

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: N0001918R1001

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: $57,533,236

Exercised Options: $57,533,236

Current Obligation: $57,533,236

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $7,760,956

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline