DoD's $27.7M contract for PEO IWS 5 engineering support awarded to BAE Systems without competition

Contract Overview

Contract Amount: $27,747,267 ($27.7M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2013-11-05

End Date: 2015-06-30

Contract Duration: 602 days

Daily Burn Rate: $46.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::CL::IGF TRAVEL AND ODCS FOR PROFESSIONAL AND ENGINEERING SUPPORT SERVICES IN SUPPORT OF PROGRAM EXECUTIVE OFFICE, INTEGRATED WARFARE SYSTEMS 5 (PEO IWS 5).

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IGF::CL::IGF TRAVEL AND ODCS FOR PROFESSIONAL AND ENGINEERING SUPPORT SERVICES IN SUPPORT OF PROGRAM EXECUTIVE OFFICE, INTEGRATED WARFARE SYSTEMS 5 (PEO IWS 5). Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. Engineering services sector is critical for defense programs, but lack of competition limits price discovery. 3. Potential risk of overpayment due to non-competitive award. 4. Small business participation is not indicated, potentially missing opportunities for smaller firms.

Value Assessment

Rating: questionable

The contract's total value is $27.7M. Without competitive bids, it's difficult to assess if this price is reasonable compared to similar engineering support services contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to higher costs and reduced price discovery.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these engineering services.

Public Impact

Taxpayers may be overpaying for essential engineering support services. Lack of transparency in the procurement process due to sole-source award. Missed opportunity to foster competition and innovation within the engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Supports critical defense program (PEO IWS 5)

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for defense program development and sustainment. Spending in this area is significant, and competitive procurement is crucial for cost efficiency.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award. This suggests a missed opportunity to engage smaller, specialized firms and potentially achieve cost savings through diverse sourcing.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further review of the justification for not competing the contract is needed to ensure accountability and responsible use of funds.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns due to lack of competition.
Limited transparency in the procurement process.
Missed opportunity for small business engagement.
Questionable value for taxpayer money without competitive benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IGF::CL::IGF TRAVEL AND ODCS FOR PROFESSIONAL AND ENGINEERING SUPPORT SERVICES IN SUPPORT OF PROGRAM EXECUTIVE OFFICE, INTEGRATED WARFARE SYSTEMS 5 (PEO IWS 5).

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES 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 $27.7 million.

What is the period of performance?

Start: 2013-11-05. End: 2015-06-30.

What was the justification for awarding this contract on a sole-source basis instead of conducting a full and open competition?

The justification for a sole-source award typically involves specific circumstances, such as the existence of only one responsible source, urgent and compelling needs, or specific government requirements that only one contractor can meet. Without further documentation, it's impossible to determine the exact reason, but it's a critical factor in assessing the value and fairness of the procurement.

How can the Department of Defense ensure fair pricing and value for money when awarding large contracts without competition?

Ensuring fair pricing without competition often relies on robust internal cost analysis, benchmarking against similar historical contracts, and independent government cost estimates. Strong oversight and justification requirements are also key. However, the inherent nature of sole-source awards means that the potential for higher costs compared to competitive bids remains a significant risk.

What is the potential long-term impact on program effectiveness and innovation when key support services are consistently awarded non-competitively?

Consistently awarding contracts non-competitively can stifle innovation by reducing the incentive for contractors to propose novel solutions or cost-saving measures. It may also limit the program's access to the best available talent and technologies if other capable firms are excluded from consideration. Over time, this can lead to decreased program effectiveness and increased costs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002413R5299

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $48,739,020

Exercised Options: $28,994,115

Current Obligation: $27,747,267

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $9,686,858

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline