DoD awards $50M+ Engineering Services contract to BAE Systems, no competition

Contract Overview

Contract Amount: $50,187,722 ($50.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2001-12-06

End Date: 2002-10-15

Contract Duration: 313 days

Daily Burn Rate: $160.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $50.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: Key points: 1. Significant award value of over $50 million. 2. Sole-source award to BAE Systems. 3. Contract duration of 313 days. 4. Engineering services sector.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the fixed fee represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a $50M+ contract raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Taxpayers may have paid a premium due to the absence of competition. Limited transparency into the justification for a sole-source award. Potential for reduced innovation without market pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in justification

Positive Signals

Award to established contractor

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for defense operations. Spending benchmarks for similar sole-source engineering contracts are often higher than competed ones.

Small Business Impact

The data indicates this contract was not awarded to a small business, and the sole-source nature further limits opportunities for small business participation.

Oversight & Accountability

Oversight is critical for Cost Plus Fixed Fee contracts, especially sole-source awards, to ensure costs are reasonable and the government receives good value. The Defense Contract Management Agency's role is key here.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for inflated costs
Limited transparency
Cost Plus Fixed Fee structure risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. See the official description on USAspending.

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 $50.2 million.

What is the period of performance?

Start: 2001-12-06. End: 2002-10-15.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided in the data. Typically, such justifications are required for non-competitive procurements and might include factors like unique capabilities, urgent needs, or lack of available alternatives. Without this information, it's impossible to assess the validity of the sole-source decision.

How does the Cost Plus Fixed Fee structure impact potential cost overruns and value for money?

Cost Plus Fixed Fee contracts reimburse the contractor for allowable costs plus a fixed fee. While the fee is fixed, the total cost can escalate if allowable costs increase significantly. This structure can incentivize cost control, but without competition, the baseline cost and the fixed fee itself may not be optimized, potentially impacting overall value for money.

What is the potential impact of this sole-source award on future competition for similar engineering services?

Sole-source awards can discourage future competition by signaling that the agency may favor non-competitive routes. This can reduce the incentive for other firms to invest in developing capabilities or bidding on future solicitations, potentially leading to a less competitive market and higher prices in the long run.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 08

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline