DoD Awards $61.6M for MK45 Mod-0 5.54 Gun Mounts, BAE Systems Selected
Contract Overview
Contract Amount: $61,627,579 ($61.6M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 1996-11-04
End Date: 2011-07-27
Contract Duration: 5,378 days
Daily Burn Rate: $11.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 199708!1700!0157!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002496C5432 !A!*!P00007 !19961104!19970930!006481543!006481543!824825459!N!44114!UNITED DEFENSE !4800 E RIVER RD !MINNEAPOLIS !MN!55421!48000!111!21!LOUISVILLE !JEFFERSON !KENTUCKY !0001!+000000071288!Y!N!000000000000!1020!GUNS, OVER 125 MM THROUGH 150 MM !A5 !WEAPONS !2EBJ!MK45 MOD-O 5.54 GUN MOUNT !8711!3!*!*!C!B!B!*!D !N!U!1!001!N!7A!A!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!D!N!*!*!*!*!*!
Place of Performance
Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40214
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $61.6 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: 199708!1700!0157!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002496C5432 !A!*!P00007 !19961104!19970930!006481543!006481543!824825459!N!44114!UNITED DEFENSE !4800 E RIVER RD !MINNEAPOLIS !MN!55421!48000!111!21!LOUISVILLE !JEFFER… Key points: 1. Significant contract value for a specialized weapon system. 2. BAE Systems is a major defense contractor, indicating potential market concentration. 3. Sole-source award raises questions about price discovery and competition. 4. Defense sector spending on large caliber weapon systems.
Value Assessment
Rating: fair
The contract value of $61.6M for the MK45 Mod-0 5.54 Gun Mount is substantial. Without specific per-unit cost data or comparable contract benchmarks, a precise value assessment is difficult. However, the nature of specialized military hardware often involves high unit costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and may result in higher costs for taxpayers compared to a competitive procurement.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the lack of competitive bidding.
Public Impact
Taxpayers fund the development and procurement of advanced weaponry. The contract supports jobs within the defense manufacturing sector. This procurement contributes to the U.S. Navy's operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for cost overruns in cost-plus contracts.
- Long contract duration (over 5000 days) increases risk.
Positive Signals
- Supports critical defense capabilities.
- Contract awarded to a known, established defense contractor.
Sector Analysis
This contract falls within the Defense sector, specifically for weapons systems. Spending on large caliber gun mounts is a niche but critical area for naval power projection. Benchmarks for such specialized equipment are difficult to establish publicly.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Large defense contracts are often dominated by prime contractors, with small business involvement typically occurring at the subcontracting level.
Oversight & Accountability
The contract was awarded by the Naval Sea Systems Command, part of the Department of Defense. Oversight would typically involve contract administration by the Defense Contract Management Agency to ensure compliance with terms and conditions.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award.
- Cost-plus contract type.
- Long contract duration.
- Lack of small business participation noted.
- No clear per-unit cost benchmark available.
Tags
department-of-defense, ky, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.6 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. 199708!1700!0157!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002496C5432 !A!*!P00007 !19961104!19970930!006481543!006481543!824825459!N!44114!UNITED DEFENSE !4800 E RIVER RD !MINNEAPOLIS !MN!55421!48000!111!21!LOUISVILLE !JEFFERSON !KENTUCKY !0001!+000000071288!Y!N!000000000000!1020!GUNS, OVER 125 MM THROUGH 150 MM !A5 !WEAPONS !2EBJ!MK45 MOD-O 5.54 GUN MOUNT !8711!3!*!*!C!B!B!*!D !N!U!1!0
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 $61.6 million.
What is the period of performance?
Start: 1996-11-04. End: 2011-07-27.
What is the total lifecycle cost of the MK45 Mod-0 5.54 Gun Mount system, including sustainment and upgrades?
The provided data only covers the initial procurement cost of $61.6 million for the gun mounts. The total lifecycle cost, encompassing research, development, production, sustainment, upgrades, and eventual disposal, is not detailed here. Such costs can significantly exceed the initial acquisition price for complex military hardware.
What specific justifications were provided for awarding this contract on a sole-source basis?
The data indicates the contract was 'NOT COMPETED'. Specific justifications for sole-source awards typically involve unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, the precise reasons for bypassing full and open competition remain unclear.
How does the unit cost of this gun mount compare to similar systems procured competitively?
A direct comparison is challenging due to the sole-source nature of this award and the lack of specific unit cost breakdowns. Competitive procurements generally yield lower prices. The 'COST PLUS FIXED FEE' contract type also introduces variability that makes direct comparison difficult without detailed cost data.
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 4800 E RIVER RD, MINNEAPOLIS, MN, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $163,680,516
Exercised Options: $163,013,339
Current Obligation: $61,627,579
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 1996-11-04
Current End Date: 2011-07-27
Potential End Date: 2011-07-27 00:00:00
Last Modified: 2010-07-29
More Contracts from BAE Systems Land & Armaments L.P.
- Letter Contract for Early Procurement Material to Support the M109a7/M992a3 Vehicle Production — $2.9B (Department of Defense)
- Early Order Material in Support of the Future Purchase of 197 Ampvs and Facility Capacity Expansion Efforts to Increase the Ampv Production Rate to 197 Vehicles PER Year. Supports Ukraine Efforts — $2.5B (Department of Defense)
- 200612!007793!2100!w56hzv!tacom - Warren !w56hzv05g0005 !A!N! !N!0009 ! !20060726!20081231!834476079!824825459!217304393!n!bae Systems Land & Armaments I!1100 Bairs RD !york !pa!17404!87048!133!42!york !york !penn !+000192628556!n!n!000000000000!2350!combat Assault & Tactical VEH, Tracked !a4a!combat Vehicles !000 !NOT Discernable !336992!E! !4! ! ! ! ! !99990909!B! ! !A! !d!n!j!1!001!n!1g!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!y! ! ! ! ! ! !0001! ! — $1.6B (Department of Defense)
- 200112!001338!2100!AE07 !tacom - Warren !daae0701cm016 !A!N!*!N! !20010502!20041231!834476079!824825459!175406842!n!united Defense, L P !1100 Bairs Road !york !pa!17405!87048!133!42!york !york !penn !+000228044944!n!y!000681605313!2350!combat Assault & Tactical VEH, Tracked !a4a!combat Vehicles !1000!NOT Discernable or Classified !336992!*!*!3! ! ! !*!*!*!B!*!*!A! !D !n!j!1!001!n!1g!a!y!f! ! !N!C!N! ! ! !a!a!a!a!000!a!b!n! ! ! ! ! ! !0001! — $1.3B (Department of Defense)
- System Technical Support for Bradley Family of Vehicles, M113, M109, M992 Family of Vehicles, M9 ACE, Mlrs — $1.3B (Department of Defense)
View all BAE Systems Land & Armaments L.P. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)