DoD awards BAE Systems $36.7M for Navigation System Tech, despite no small business participation
Contract Overview
Contract Amount: $36,726,784 ($36.7M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2019-05-16
End Date: 2021-12-31
Contract Duration: 960 days
Daily Burn Rate: $38.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DEMONSTRATION OF EXISTING TECHNOLOGIES
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060
Plain-Language Summary
Department of Defense obligated $36.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: DEMONSTRATION OF EXISTING TECHNOLOGIES Key points: 1. Contract awarded to a large, established defense contractor. 2. Full and open competition was utilized. 3. No small business participation noted. 4. Firm-fixed-price contract type suggests cost certainty.
Value Assessment
Rating: fair
The contract value of $36.7M for a 960-day duration appears reasonable for technology demonstration. Benchmarking against similar navigation system development contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive sign for price discovery. However, the absence of small business participation might indicate a missed opportunity for innovation or cost savings.
Taxpayer Impact: Taxpayer funds are being used for technology demonstration, which can lead to future efficiencies, but the lack of small business involvement warrants scrutiny.
Public Impact
Enhances national defense capabilities through advanced navigation systems. Supports technological advancement within the defense sector. Potential for spin-off technologies benefiting civilian applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation
- Potential for sole-source follow-on work
Positive Signals
- Full and open competition
- Firm fixed price contract
Sector Analysis
This contract falls within the Defense sector, specifically focusing on navigation and guidance systems. Spending in this area is critical for maintaining technological superiority, with benchmarks varying widely based on system complexity.
Small Business Impact
The contract explicitly states no small business participation. This is a missed opportunity to leverage the agility and innovation often found in small businesses within the defense technology supply chain.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, indicating standard oversight procedures. Further review of performance reports and milestones would be necessary to assess accountability.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of small business participation
- Potential for sole-source follow-on
- Limited transparency on specific technologies demonstrated
- Contract duration is significant
Tags
search-detection-navigation-guidance-aer, department-of-defense, nh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. DEMONSTRATION OF EXISTING TECHNOLOGIES
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 $36.7 million.
What is the period of performance?
Start: 2019-05-16. End: 2021-12-31.
What specific technologies are being demonstrated and what is the expected impact on future defense capabilities?
The contract is for the 'DEMONSTRATION OF EXISTING TECHNOLOGIES' related to search, detection, navigation, guidance, aeronautical, and nautical systems. The expected impact is to validate and potentially integrate advanced capabilities that could enhance the effectiveness and precision of military operations, improving situational awareness and mission success rates.
Given the full and open competition, why did no small businesses participate in this contract?
The lack of small business participation despite full and open competition could stem from several factors. The technical requirements may have been highly specialized, favoring large contractors with established infrastructure and expertise. Alternatively, the bidding process or contract terms might have inadvertently discouraged smaller firms from submitting proposals.
What is the potential for this contract to lead to sole-source follow-on awards, and how will that be managed?
Contracts for technology demonstration often serve as precursors to larger production or integration efforts. There is a potential for sole-source follow-on awards if the demonstrated technology proves uniquely effective and BAE Systems is the sole provider. Robust oversight will be crucial to ensure any subsequent sole-source awards are justified and competitively priced.
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: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001918R0086
Offers Received: 3
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: $36,726,784
Exercised Options: $36,726,784
Current Obligation: $36,726,784
Actual Outlays: $10,200,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-05-16
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2024-01-30
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