DoD awards $41M for MK 13/25 canisters to BAE Systems, impacting guided missile parts manufacturing
Contract Overview
Contract Amount: $41,091,369 ($41.1M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2009-08-20
End Date: 2011-05-31
Contract Duration: 649 days
Daily Burn Rate: $63.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MK 13 AND MK 25 CANISTERS FOR US, FMS, MOU AND NSPO REQUIREMENTS.
Place of Performance
Location: ABERDEEN, BROWN County, SOUTH DAKOTA, 57401
Plain-Language Summary
Department of Defense obligated $41.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: MK 13 AND MK 25 CANISTERS FOR US, FMS, MOU AND NSPO REQUIREMENTS. Key points: 1. The contract is for MK 13 and MK 25 canisters, crucial components for guided missiles. 2. BAE Systems Land & Armaments L.P. is the sole awardee, indicating a lack of competition. 3. The award was made under the Department of the Navy, with a significant value of $41,091,369. 4. The contract spans from August 2009 to May 2011, covering a period of 649 days.
Value Assessment
Rating: questionable
The contract value of $41,091,369 for MK 13 and MK 25 canisters appears high given the lack of competition. Without comparable contract data or a clear justification for sole-source procurement, assessing its pricing fairness is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to BAE Systems. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these essential missile components.
Public Impact
Ensures supply of critical components for guided missile systems. Supports BAE Systems' role as a key defense contractor. Potential for increased costs due to sole-source nature. Impacts the 'Other Guided Missile and Space Vehicle Parts' manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Ensures critical component availability
- Supports established defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of guided missile parts. Spending benchmarks for such specialized components are difficult to ascertain without detailed market analysis, but sole-source awards often deviate from competitive norms.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this contract. As a sole-source award to a large prime contractor, opportunities for small businesses may be limited unless subcontracted.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lack of robust oversight in exploring competitive alternatives. Further review of the justification for sole-source procurement and the negotiation process would be necessary to assess accountability.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency in price discovery
- Dependency on a single supplier
- No indication of small business participation
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, sd, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. MK 13 AND MK 25 CANISTERS FOR US, FMS, MOU AND NSPO REQUIREMENTS.
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $41.1 million.
What is the period of performance?
Start: 2009-08-20. End: 2011-05-31.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data states the contract was 'NOT COMPETED,' implying a sole-source award. A thorough review would require accessing the contract file to understand the specific justification (e.g., unique capabilities, urgent need) and documentation of any market research or attempts to foster competition. Without this, it's difficult to assess if taxpayer funds were used efficiently.
How does the unit cost of these canisters compare to similar components or previous procurements, if available?
Benchmarking the unit cost is challenging without access to comparable contract data or historical pricing for the MK 13 and MK 25 canisters. Given the sole-source nature, there's a heightened risk that the price may not reflect market value. Independent cost analysis or review of past performance data would be needed for a proper assessment.
What is the long-term strategic impact of relying on a single supplier for these critical missile components?
Sole-source reliance on BAE Systems for these canisters creates a dependency that could pose strategic risks, including potential supply chain disruptions, price escalation, and reduced innovation. Diversifying the supplier base or developing alternative components could mitigate these risks and ensure long-term program security and cost-effectiveness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002409R5307
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 4800 E RIVER RD, MINNEAPOLIS, MN, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $41,091,369
Exercised Options: $41,091,369
Current Obligation: $41,091,369
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-08-20
Current End Date: 2011-05-31
Potential End Date: 2011-05-31 00:00:00
Last Modified: 2009-10-22
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