DoD's $83.6M contract for TYCOM BASE ITEMS awarded to BAE Systems faces scrutiny over value and competition
Contract Overview
Contract Amount: $83,566,997 ($83.6M)
Contractor: BAE Systems Maritime Solutions SAN Diego Inc.
Awarding Agency: Department of Defense
Start Date: 2018-12-03
End Date: 2020-03-05
Contract Duration: 458 days
Daily Burn Rate: $182.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TYCOM BASE ITEMS (1B4B)
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $83.6 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC. for work described as: TYCOM BASE ITEMS (1B4B) Key points: 1. The contract's value of $83.6 million raises questions about cost-effectiveness for ship building and repair. 2. BAE Systems Maritime Solutions secured the award, but the extent of competition needs further examination. 3. Potential risks include cost overruns and the long-term impact on naval readiness. 4. The IT sector is not directly involved; this falls under Ship Building and Repair.
Value Assessment
Rating: questionable
The contract's $83.6 million value for TYCOM BASE ITEMS requires deeper analysis against industry benchmarks for ship building and repair services. Without detailed cost breakdowns, it's difficult to assess if this represents a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the bidding and the number of participants are crucial to understanding the price discovery achieved.
Taxpayer Impact: The impact on taxpayers hinges on whether the competitive process resulted in the best possible price for the goods and services procured.
Public Impact
Naval readiness and operational capabilities may be directly impacted by the services rendered under this contract. Taxpayer funds are allocated to this significant contract, necessitating transparency in its execution and outcomes. The defense industrial base, specifically ship building and repair, is a critical sector for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost justification
- Potential for cost creep in long-term contracts
- Limited transparency on competition effectiveness
Positive Signals
- Awarded under full and open competition
- Firm fixed price contract type can limit cost risk
Sector Analysis
This contract falls within the Ship Building and Repair sector, a critical component of the defense industrial base. Spending in this area is substantial and directly tied to national security and naval power projection.
Small Business Impact
The data indicates that small businesses were not primary awardees for this specific contract. Further analysis is needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
Oversight by the Department of the Navy is essential to ensure the contractor, BAE Systems, meets all contractual obligations and that taxpayer funds are used efficiently and effectively throughout the contract's duration.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns despite FFP
- Lack of detailed cost justification
- Limited insight into competition effectiveness
- Long-term implications for naval readiness
Tags
ship-building-and-repairing, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.6 million to BAE SYSTEMS MARITIME SOLUTIONS SAN DIEGO INC.. TYCOM BASE ITEMS (1B4B)
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 $83.6 million.
What is the period of performance?
Start: 2018-12-03. End: 2020-03-05.
What specific 'TYCOM BASE ITEMS' were procured, and how do their costs compare to similar items in the market?
The specific 'TYCOM BASE ITEMS' are not detailed in the provided data. A thorough review of the contract's statement of work and itemized costs is necessary to compare them against market benchmarks. Without this granular detail, assessing the value for money is challenging, potentially leading to overpayment if costs are not competitive.
What were the key factors that led to BAE Systems being awarded this contract under full and open competition?
Under full and open competition, the award typically goes to the offeror providing the best value, considering factors like price, technical capability, past performance, and delivery timelines. Understanding the specific evaluation criteria and how BAE Systems' proposal excelled in those areas would clarify the rationale behind the award decision.
How does the firm fixed price structure mitigate risks for the government in this $83.6 million contract?
A firm fixed price (FFP) contract shifts most of the cost risk to the contractor. This means BAE Systems is obligated to complete the work for the agreed-upon price, regardless of unforeseen cost increases. This structure provides budget certainty for the government and incentivizes the contractor to manage costs efficiently.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002418R4407
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 2205 E BELT ST, SAN DIEGO, CA, 92113
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $87,054,772
Exercised Options: $83,566,997
Current Obligation: $83,566,997
Actual Outlays: $1,269,309
Subaward Activity
Number of Subawards: 126
Total Subaward Amount: $33,961,731
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-12-03
Current End Date: 2020-03-05
Potential End Date: 2020-03-05 00:00:00
Last Modified: 2021-03-25
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