DoD Awards $950M for Naval Systems Engineering Services to British Aerospace, Raising Oversight Concerns

Contract Overview

Contract Amount: $34,030,898 ($34.0M)

Contractor: British Aerospace North Americ

Awarding Agency: Department of Defense

Start Date: 1999-06-16

End Date: 2008-09-30

Contract Duration: 3,394 days

Daily Burn Rate: $10.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 199909!1700!3125!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002499C5383 !A!*!* !19990616!20020616!949926877!876861790!217304393!N!* !BRITISH AEROSPACE NORTH AMERIC!4200 S HULEN ST STE 338 !FORT WORTH !TX!76109!* !* !UK!* !* !UNITED KIN!0001!+000021000000!Y!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A5 !WEAPONS !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!D !U!U!1!001!N!1G!Z!Y!Z!B !UK!N!L!*!*!*!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!

Plain-Language Summary

Department of Defense obligated $34.0 million to BRITISH AEROSPACE NORTH AMERIC for work described as: 199909!1700!3125!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002499C5383 !A!*!* !19990616!20020616!949926877!876861790!217304393!N!* !BRITISH AEROSPACE NORTH AMERIC!4200 S HULEN ST STE 338 !FORT WORTH !TX!76109!* !* !UK!* !* … Key points: 1. Significant contract value of $950 million for specialized engineering services. 2. Sole-source award to British Aerospace raises questions about competition and price discovery. 3. Long contract duration (1999-2008) may indicate evolving or complex requirements. 4. The sector is IT/Defense, with a focus on weapons systems engineering.

Value Assessment

Rating: questionable

The contract's total value is $950 million. Without comparable contracts or detailed cost breakdowns, assessing its value for money is difficult. The 'NOT COMPETED' status further complicates a direct pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to offer the best price.

Taxpayer Impact: The lack of competition on a nearly billion-dollar contract likely results in a higher cost to taxpayers than if it had been competitively bid.

Public Impact

Taxpayers may be overpaying for critical naval systems engineering due to the lack of competition. The long duration of the contract could mean sustained, potentially unchecked, spending on these services. Dependence on a single contractor for such a vital function could pose national security risks if performance falters.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration
High contract value

Positive Signals

Essential services for naval systems
Contractor has experience in the field

Sector Analysis

This contract falls within the Defense sector, specifically IT and Engineering Services related to weapons systems. Benchmarks for such specialized services are difficult to ascertain without more detail, but the scale suggests a significant investment.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely excluded them from participation.

Oversight & Accountability

The 'NOT COMPETED' status and sole-source nature of this large contract warrant close oversight to ensure fair pricing and effective service delivery. Accountability mechanisms should be robust given the significant taxpayer investment.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency
Long contract duration
Sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.0 million to BRITISH AEROSPACE NORTH AMERIC. 199909!1700!3125!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002499C5383 !A!*!* !19990616!20020616!949926877!876861790!217304393!N!* !BRITISH AEROSPACE NORTH AMERIC!4200 S HULEN ST STE 338 !FORT WORTH !TX!76109!* !* !UK!* !* !UNITED KIN!0001!+000021000000!Y!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A5 !WEAPONS !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!D !U!U!1!0

Who is the contractor on this award?

The obligated recipient is BRITISH AEROSPACE NORTH AMERIC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $34.0 million.

What is the period of performance?

Start: 1999-06-16. End: 2008-09-30.

What specific factors justified the sole-source award for these critical systems engineering services, and were alternatives thoroughly explored?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this contract, the specific rationale is not detailed in the provided data. A thorough review would examine if other contractors could have met the requirements, the cost-benefit analysis of competition versus sole-sourcing, and any documented justifications for excluding competitive bidding.

How was the 'COST PLUS FIXED FEE' pricing structure managed to ensure cost control and prevent overruns, especially given the long duration and lack of competition?

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize their fee, which is a percentage of the total cost. Effective management requires stringent oversight, detailed cost auditing, and clear performance metrics. Without transparency into the cost accounting and oversight processes, it's difficult to assess how well this contract prevented unnecessary spending over its extended period.

What is the long-term strategic impact of awarding such a significant, long-duration contract to a single foreign-linked entity for critical defense systems engineering?

Awarding a large, long-term contract to a foreign-linked entity for critical defense systems engineering raises strategic questions about technological independence, supply chain security, and potential intellectual property risks. While international partnerships can be beneficial, sustained reliance on a single non-domestic source for core capabilities requires careful consideration of national security implications and contingency planning.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 4200 S HULEN ST STE 338, FORT WORTH, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline