DoD awards $8.2M for long lead materials, with BAE Systems as the sole contractor

Contract Overview

Contract Amount: $8,221,585 ($8.2M)

Contractor: BAE Systems Protection Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2022-11-22

End Date: 2027-02-18

Contract Duration: 1,549 days

Daily Burn Rate: $5.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LONG LEAD MATERIAL FOR PSE

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85044

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $8.2 million to BAE SYSTEMS PROTECTION SYSTEMS INC. for work described as: LONG LEAD MATERIAL FOR PSE Key points: 1. Contract awarded for long lead materials, indicating a need for specialized components. 2. Sole-source award to BAE Systems suggests limited market availability or unique capabilities. 3. The contract duration of over 4 years points to a long-term requirement. 4. Fixed-price contract type aims to control costs for the government. 5. Awarded by the Department of the Navy, indicating a defense-related need. 6. The contract is for textile products, a niche area within defense procurement.

Value Assessment

Rating: questionable

The contract value of $8.2 million for long lead materials is difficult to benchmark without knowing the specific components. As a sole-source award, there's an inherent risk of overpayment due to a lack of competitive pricing. Further analysis would require understanding the unit costs and comparing them to industry standards for similar specialized textile materials. The fixed-price nature provides some cost certainty, but the absence of competition limits the government's ability to secure the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, BAE Systems Protection Systems Inc., was solicited. This typically occurs when a product or service is available only from a single source, or in cases of urgent need where competition is not feasible. The lack of competition means the government did not benefit from a bidding process that could have driven down prices or offered alternative solutions.

Taxpayer Impact: Taxpayers may be paying a premium for this contract due to the absence of competitive pressure. Without multiple bids, there's less assurance that the price reflects the most economical option available in the market.

Public Impact

The Department of Defense benefits from securing essential long lead materials for its operations. BAE Systems Protection Systems Inc. is the primary beneficiary, receiving a significant contract award. The contract supports specialized manufacturing within the textile product mills sector. The geographic impact is concentrated in Arizona, where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition raises questions about whether the most innovative or cost-effective solutions were considered.
The specific nature of 'long lead material' for textile products warrants further investigation into its criticality and availability.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Award to an established contractor like BAE Systems may indicate reliability and proven capability.
The contract duration suggests a stable, long-term need being met.

Sector Analysis

The contract falls within the 'Other Miscellaneous Textile Product Mills' sector, a niche area within manufacturing. This sector often supplies specialized materials for defense and industrial applications. The market size for such specialized defense-related textiles can be limited, often leading to fewer potential suppliers and a higher likelihood of sole-source or limited competition awards. Benchmarking spending in this specific sub-sector is challenging due to its specialized nature.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large corporation like BAE Systems suggests that the primary focus was on specialized capabilities rather than fostering small business participation. This contract does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a fixed-price contract, the focus of oversight would be on delivery schedule adherence and material quality. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Production Act Purchases
Long Lead Time Materials Procurement
Specialty Textile Manufacturing Contracts
BAE Systems Defense Contracts

Risk Flags

Sole-source award
Potential for inflated pricing
Lack of competitive benchmarking
Supply chain dependency on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.2 million to BAE SYSTEMS PROTECTION SYSTEMS INC.. LONG LEAD MATERIAL FOR PSE

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS PROTECTION SYSTEMS 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 $8.2 million.

What is the period of performance?

Start: 2022-11-22. End: 2027-02-18.

What specific 'long lead materials' are being procured under this contract, and why are they considered long lead?

The data provided does not specify the exact nature of the 'long lead materials.' However, in a defense procurement context, 'long lead materials' typically refer to components or raw materials that require a significant amount of time to manufacture or procure, often due to complex production processes, specialized tooling, or limited supplier availability. For textile products, this could include specialized fibers, dyes, or woven materials with unique performance characteristics (e.g., flame resistance, specific tensile strength) that take considerable time to produce. The 'long lead' designation implies that ordering these materials early is crucial to avoid delaying the overall production schedule of the end item.

What is BAE Systems Protection Systems Inc.'s track record with similar textile product contracts for the Department of the Navy?

Without access to a comprehensive contract database beyond the provided data, a detailed analysis of BAE Systems Protection Systems Inc.'s specific track record with similar textile product contracts for the Department of the Navy is not possible. The provided data indicates this is a sole-source award for 'All Other Miscellaneous Textile Product Mills.' This suggests BAE Systems may have unique capabilities or is the sole provider for these specific materials. Further investigation would involve searching federal procurement databases (like FPDS or SAM.gov) for historical awards to this contractor in the textile sector, particularly with the Navy, to assess their performance, past issues, and overall reliability in delivering such goods.

How does the $8.2 million contract value compare to other DoD procurements for specialized textile materials?

Benchmarking the $8.2 million contract value against other Department of Defense (DoD) procurements for specialized textile materials is challenging without more specific details on the materials themselves. The category 'All Other Miscellaneous Textile Product Mills' is broad. However, for context, DoD spending on textiles can range from basic uniform materials to highly technical fabrics for protective gear, camouflage, or specialized equipment. Larger contracts for advanced materials or large-scale production runs can easily reach tens or hundreds of millions of dollars. An $8.2 million award for 'long lead materials' suggests a significant quantity or a highly specialized, costly component, but its relative value depends heavily on the specific technical requirements and the number of suppliers capable of meeting them.

What are the primary risks associated with a sole-source award for long lead materials in the defense sector?

The primary risks associated with a sole-source award for long lead materials in the defense sector include: 1. **Higher Costs:** Without competition, the contractor has less incentive to offer the lowest possible price, potentially leading to inflated costs for taxpayers. 2. **Limited Innovation:** The government may miss out on innovative solutions or alternative materials that other suppliers could offer. 3. **Supply Chain Vulnerability:** Reliance on a single supplier creates a vulnerability. Any disruption in that supplier's operations (e.g., production issues, financial instability, geopolitical events) could halt the delivery of critical materials and delay defense programs. 4. **Reduced Transparency:** Sole-source awards often involve less public scrutiny compared to competed contracts, making it harder to verify the fairness of the pricing and terms.

What is the historical spending pattern for 'All Other Miscellaneous Textile Product Mills' by the Department of the Navy?

The provided data does not offer historical spending patterns for the specific category 'All Other Miscellaneous Textile Product Mills' by the Department of the Navy. To analyze this, one would need to query historical federal procurement databases (e.g., FPDS) using the relevant Product Service Code (PSC) or North American Industry Classification System (NAICS) code associated with this category and filter by the Department of the Navy. Such an analysis would reveal the total spending in this category over time, identify major contractors, and indicate whether sole-source awards are common or if this is an outlier. Without this historical context, it's difficult to determine if this $8.2 million award represents a typical level of spending or a significant deviation.

Industry Classification

NAICS: Manufacturing › Other Textile Product Mills › All Other Miscellaneous Textile Product Mills

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

Address: 7822 S 46TH ST, PHOENIX, AZ, 85044

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

Financial Breakdown

Contract Ceiling: $14,774,856

Exercised Options: $8,221,585

Current Obligation: $8,221,585

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $2,802,925

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001918G0018

IDV Type: BOA

Timeline