Navy Awards $38M for MK45 Mod-O 5.54 Gun Mounts to United Defense, L.P
Contract Overview
Contract Amount: $38,054,767 ($38.1M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2001-08-23
End Date: 2008-09-30
Contract Duration: 2,595 days
Daily Burn Rate: $14.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200111!017579!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002401C4101 !A!N!*!N!BASIC !20010823!20040228!006481543!824825459!175406842!N!UNITED DEFENSE, L P !4800 EAST RIVER ROAD !MINNEAPOLIS !MN!55421!43000!053!27!MINNEAPOLIS !HENNEPIN !MINNESOTA !+000003293188!N!N!000000000000!1020!GUNS, OVER 125 MM THROUGH 150 MM !A5 !WEAPONS !2EBJ!MK45 MOD-O 5.54 GUN MOUNT !332995!*!*!3! ! !C!*!*!*!B!*!*!N!Z!D !N!U!1!001!N!1A!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55421
Plain-Language Summary
Department of Defense obligated $38.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: 200111!017579!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002401C4101 !A!N!*!N!BASIC !20010823!20040228!006481543!824825459!175406842!N!UNITED DEFENSE, L P !4800 EAST RIVER ROAD !MINNEAPOLIS !MN!55421!43000!053!27!MINNEAPOLIS !HENNE… Key points: 1. Contract awarded for specialized naval gun mounts, indicating a need for specific ordnance capabilities. 2. Sole-source award suggests limited competition, potentially impacting price discovery and taxpayer value. 3. Significant contract value of $38M highlights substantial investment in naval weaponry. 4. The Defense sector continues to be a major area of government spending, particularly in advanced weaponry.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar naval gun mount contracts is difficult due to the specialized nature of the MK45 Mod-O 5.54.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, limiting competitive bidding. This approach may have resulted in a higher price than if multiple vendors had competed, potentially reducing price discovery.
Taxpayer Impact: The sole-source nature of this award raises concerns about whether taxpayers received the best possible price for these specialized gun mounts.
Public Impact
Enhances naval combat capabilities with advanced gun systems. Supports specialized defense manufacturing and associated supply chains. Potential for long-term sustainment and upgrade contracts for the awarded systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus-fixed-fee contract type can incentivize higher costs.
- Lack of clear competition raises value for money concerns.
Positive Signals
- Addresses a specific and critical naval requirement.
- Awarded to a known defense contractor with relevant expertise.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on ordnance manufacturing. Defense spending on advanced weaponry is a significant portion of the federal budget, with benchmarks varying widely based on system complexity and quantity.
Small Business Impact
The prime contractor, United Defense, L.P., is not a small business. There is no information provided on subcontracting goals or achievements for small businesses in this award.
Oversight & Accountability
The contract was managed by the Naval Sea Systems Command, with oversight from the Defense Contract Management Agency. The sole-source nature warrants close monitoring to ensure fair pricing and effective execution.
Related Government Programs
- Other Ordnance and Accessories Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus-fixed-fee contract type.
- Potential for cost overruns.
- Lack of transparency in price discovery.
- Limited information on small business participation.
Tags
other-ordnance-and-accessories-manufactu, department-of-defense, mn, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. 200111!017579!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002401C4101 !A!N!*!N!BASIC !20010823!20040228!006481543!824825459!175406842!N!UNITED DEFENSE, L P !4800 EAST RIVER ROAD !MINNEAPOLIS !MN!55421!43000!053!27!MINNEAPOLIS !HENNEPIN !MINNESOTA !+000003293188!N!N!000000000000!1020!GUNS, OVER 125 MM THROUGH 150 MM !A5 !WEAPONS !2EBJ!MK45 MOD-O 5.54 GUN MOUNT !332995!*!*!3! ! !C!*!*!*!B!*!*!N!
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND & ARMAMENTS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $38.1 million.
What is the period of performance?
Start: 2001-08-23. End: 2008-09-30.
What was the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without specific documentation, it's difficult to ascertain the precise reasons. However, the government should have explored all potential sources to ensure competition was maximized or that the sole-source justification was robust and documented.
How does the per-unit cost of the MK45 Mod-O 5.54 compare to similar naval gun systems, considering the contract type?
Direct per-unit cost comparison is challenging due to the specialized nature of the MK45 Mod-O 5.54 and the cost-plus-fixed-fee contract. This contract type allows for actual costs plus a fixed fee, meaning the final price can fluctuate. Benchmarking would require access to detailed cost breakdowns and data from comparable, recently awarded contracts for similar systems.
What measures are in place to ensure the effectiveness and long-term value of these gun mounts?
Effectiveness is likely ensured through rigorous testing and performance specifications outlined in the contract. Long-term value depends on the system's operational lifespan, maintenance requirements, and potential for upgrades. Oversight by the Naval Sea Systems Command and the Defense Contract Management Agency should monitor performance and cost efficiency throughout the contract duration.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Ordnance and Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 4800 EAST RIVER ROAD, MINNEAPOLIS, MN, 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: 2001-08-23
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2014-09-09
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