DoD's $512M BAE Systems Contract for Maritime Solutions: A Decade of Spending
Contract Overview
Contract Amount: $512,590,195 ($512.6M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2000-06-13
End Date: 2010-09-30
Contract Duration: 3,761 days
Daily Burn Rate: $136.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92186
Plain-Language Summary
Department of Defense obligated $512.6 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: Key points: 1. The contract awarded to BAE Systems Maritime Solutions for $512.5 million spans over a decade, indicating a long-term commitment. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The contract type is Cost Plus Award Fee (CPAF), which can incentivize contractor performance but also carries inherent cost risks. 4. The significant duration and value suggest a substantial impact on the defense sector, specifically naval operations.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure allows for costs plus an incentive fee based on performance. Without specific award fee data, it's difficult to definitively assess value, but CPAF contracts can sometimes lead to higher costs than fixed-price agreements if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and ensures the government receives the best value. The price discovery process is likely robust due to this competitive approach.
Taxpayer Impact: The $512.5 million awarded over 10 years represents a significant taxpayer investment in naval maritime solutions, the ultimate value of which depends on the effectiveness and efficiency of the services provided.
Public Impact
Naval readiness and capability enhancement through specialized maritime solutions. Potential for technological advancements and innovation in naval systems. Economic impact on the defense industry and associated supply chains. Long-term commitment to a single contractor may limit future flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overrun potential with CPAF contract type.
- Long contract duration may not adapt to evolving needs.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Contractor has a long-term relationship with the Navy.
- Potential for performance incentives through award fees.
Sector Analysis
This contract falls within the defense sector, specifically focusing on naval maritime solutions. Spending benchmarks for similar long-term, high-value contracts in this specialized area are typically substantial, reflecting the complexity and critical nature of naval operations.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (sb: false). This suggests that the prime contractor, BAE Systems, likely handled the majority of the work internally or through other large subcontractors, potentially missing opportunities to leverage small business innovation and capacity.
Oversight & Accountability
The contract's long duration and CPAF structure necessitate robust oversight to ensure cost control and performance targets are met. Regular reviews of award fee determinations and cost expenditures are crucial for accountability.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Long contract duration may lead to vendor lock-in.
- Limited visibility into specific performance metrics and award fee justifications.
- Absence of small business participation.
Tags
department-of-defense, ca, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $512.6 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO 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 $512.6 million.
What is the period of performance?
Start: 2000-06-13. End: 2010-09-30.
What specific maritime solutions were provided under this contract, and how did they contribute to naval capabilities?
The contract likely encompassed a range of services such as ship maintenance, repair, modernization, systems integration, and potentially the development of new maritime technologies for the Navy. These solutions would directly contribute to enhancing the operational readiness, effectiveness, and technological superiority of naval assets, ensuring they can meet evolving mission requirements in complex maritime environments.
What were the key performance metrics used to determine the award fees, and how effectively did BAE Systems meet them?
Key performance metrics for a CPAF contract typically include factors like schedule adherence, quality of work, cost control, technical performance, and responsiveness to Navy requirements. Without access to the specific award fee determination documentation, it's impossible to definitively assess how effectively BAE Systems met these metrics. However, the fact that the contract was extended and potentially renewed suggests a level of satisfactory performance.
Given the $512.5 million value and decade-long duration, what was the overall return on investment for the taxpayer?
Assessing the precise return on investment (ROI) for this contract is challenging without detailed performance outcomes and cost-benefit analyses. The ROI would be measured by the enhanced naval capabilities, operational readiness, and mission success achieved due to the services provided by BAE Systems. A positive ROI would imply that the investment significantly improved the Navy's effectiveness and security at a reasonable cost relative to the benefits gained.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: FOOT OF SAMPSON ST, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2000-06-13
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2010-11-08
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