DoD awards $8.4M for MK 110 MOD 0 components to BAE Systems, with no competition
Contract Overview
Contract Amount: $8,395,382 ($8.4M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2026-07-31
Contract Duration: 1,765 days
Daily Burn Rate: $4.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MK 110 MOD 0 GM COMPONENTS AND SPARES
Place of Performance
Location: OSSEO, HENNEPIN County, MINNESOTA, 55369
Plain-Language Summary
Department of Defense obligated $8.4 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: MK 110 MOD 0 GM COMPONENTS AND SPARES Key points: 1. Significant award to a single vendor, BAE Systems, for critical components. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract spans nearly five years, indicating a long-term need for these parts. 4. The sector is defense manufacturing, specifically small arms and ordnance.
Value Assessment
Rating: questionable
The contract's value of $8.4 million over 1765 days suggests a substantial per-day cost. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar components.
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 may result in higher costs for taxpayers as there was no opportunity for other vendors to offer competitive pricing.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these components, as market forces were not leveraged to secure the best possible price.
Public Impact
Taxpayers may be overpaying for essential defense components due to the absence of competitive bidding. The long duration of the contract could lock in potentially inflated prices for an extended period. Reliance on a single supplier for critical parts could pose supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Award to established defense contractor
- Addresses a specific military need
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on small arms and ordnance components. Spending in this area is critical for national security, but competitive procurement is essential to ensure cost-effectiveness.
Small Business Impact
The contract was awarded to BAE Systems Land & Armaments L.P., a large defense contractor. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable. A review of the justification for not competing the award is crucial.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for overpayment due to lack of price discovery.
- Long contract duration may lock in unfavorable pricing.
- Limited transparency on pricing justification.
- No apparent small business participation.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, mn, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.4 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. MK 110 MOD 0 GM COMPONENTS AND SPARES
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 $8.4 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-07-31.
What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves factors such as unique capabilities of the contractor, urgent need, or lack of adequate competition. Without further details, it's impossible to ascertain the specific reasons. However, a thorough review by the Department of Defense is necessary to ensure this was the most appropriate procurement method and that taxpayer funds are being used efficiently.
How does the pricing of these MK 110 MOD 0 components compare to similar items procured competitively?
Direct comparison is challenging without access to pricing data from competitive contracts for similar components. However, the absence of competition inherently limits the ability to benchmark pricing against market alternatives. The government should have conducted a price analysis to ensure the negotiated price was fair and reasonable, but this analysis is not publicly available.
What are the potential risks associated with a sole-source contract for critical defense components?
Sole-source contracts carry risks of inflated pricing due to the lack of competitive pressure. They can also lead to vendor lock-in, making it difficult to switch suppliers or negotiate better terms in the future. Furthermore, it limits opportunities for innovation from other potential suppliers and can create a perception of unfairness in the procurement process.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002420R5308
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 4800 E RIVER RD, MINNEAPOLIS, MN, 55421
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,163,148
Exercised Options: $8,395,382
Current Obligation: $8,395,382
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $307,134
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0002419G5306
IDV Type: BOA
Timeline
Start Date: 2021-09-30
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-12-22
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