DoD awards $64.8M contract for Trident II missile engineering services to BAE Systems

Contract Overview

Contract Amount: $66,049,537 ($66.0M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2004-12-15

End Date: 2007-09-30

Contract Duration: 1,019 days

Daily Burn Rate: $64.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 200505!00A112!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0022 !A!N! !N! ! !20041215!20050930!103933453!876861790!217304393!N!BAE SYSTEMS APPLIED TECHONOLGI!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!67675!031!24!ROCKVILLE !MONTGOMERY !MARYLAND !+000009466117!Y!N!000000000000!L099!TECH REP SVCS/MISCELLANEOUS EQUIPMENT !A2 !MISSILE AND SPACE SYSTEMS !178 !TRIDENT II MISSILE !541330!E! !3! ! ! ! ! !20200930!B! ! !A! !D!N!V!1!001!N!1A!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00030!0001! !!TAS::17 1804::TAS!

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $66.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: 200505!00A112!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0022 !A!N! !N! ! !20041215!20050930!103933453!876861790!217304393!N!BAE SYSTEMS APPLIED TECHONOLGI!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!67675!031!24!ROCKVILLE !MONT… Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery. 2. Engineering services for the Trident II missile system are critical for national defense. 3. The contract duration of over 3 years suggests a significant, ongoing need. 4. Performance risk appears low given the specialized nature of the services. 5. BAE Systems is a major defense contractor with extensive experience in missile systems. 6. The contract's value is substantial within the engineering services sector for defense.

Value Assessment

Rating: fair

The contract value of $64.8 million for engineering services is significant. Without comparable sole-source contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, given the specialized nature of Trident II missile systems and BAE Systems' established role, the pricing may reflect unique expertise and development costs. Further benchmarking against similar sole-source defense contracts would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency precludes a full competition. The lack of competition means that taxpayers did not benefit from potential price reductions that could arise from a bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Strategic Systems Programs office. Services delivered include engineering support and related technical services for the Trident II missile system. The geographic impact is primarily within the United States, supporting national defense infrastructure. Workforce implications include employment for specialized engineers and technical personnel at BAE Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to non-competitive nature.
Potential for cost overruns if not closely monitored due to lack of competitive pressure.

Positive Signals

Award to an established contractor with proven expertise in missile systems.
Contract supports a critical national defense asset (Trident II missile).
Long-term contract indicates a stable and ongoing requirement, ensuring program continuity.

Sector Analysis

This contract falls within the Defense sector, specifically supporting strategic missile systems. The engineering services market for defense is highly specialized, with a few key players like BAE Systems dominating. Spending in this niche is driven by national security priorities and the lifecycle management of complex weapon systems. Comparable spending benchmarks are difficult to establish due to the unique nature of the Trident II program.

Small Business Impact

This contract does not appear to have a small business set-aside component. Given the specialized nature of the work on the Trident II missile system, it is unlikely that significant subcontracting opportunities would be directed towards small businesses unless they possess highly niche capabilities. The focus is on specialized engineering expertise, which is typically found within larger, established defense contractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contract management and inspection agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures would include performance reviews, milestone tracking, and financial audits. Transparency is limited due to the sole-source nature of the award, but reporting requirements for cost and performance are standard.

Related Government Programs

Trident II D5 Life Extension Program
Strategic Weapons Systems
Ballistic Missile Defense Systems
Naval Nuclear Propulsion Program

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost overruns
Specialized defense technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. 200505!00A112!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0022 !A!N! !N! ! !20041215!20050930!103933453!876861790!217304393!N!BAE SYSTEMS APPLIED TECHONOLGI!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!67675!031!24!ROCKVILLE !MONTGOMERY !MARYLAND !+000009466117!Y!N!000000000000!L099!TECH REP SVCS/MISCELLANEOUS EQUIPMENT !A2 !MISSILE AND SPACE SYSTEMS !178 !TRIDENT II MISSILE !541330!E! !3! ! ! ! ! !202

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 $66.0 million.

What is the period of performance?

Start: 2004-12-15. End: 2007-09-30.

What is BAE Systems' track record with the Trident II missile program and similar defense contracts?

BAE Systems has a long-standing relationship with the Department of Defense and has been a key contractor for various aspects of strategic weapons systems, including the Trident II missile program. Their track record includes providing engineering, manufacturing, and support services for complex defense platforms. Historically, BAE Systems has demonstrated the capability to deliver on large, technically demanding contracts. However, like many large defense contractors, they have also faced scrutiny regarding contract performance and cost management on specific projects. For the Trident II program specifically, their involvement suggests a deep understanding of the system's requirements and a proven ability to meet those needs, as evidenced by this sole-source award.

How does the $64.8 million contract value compare to similar engineering services contracts for strategic missile systems?

Benchmarking this $64.8 million contract is challenging due to its sole-source nature and the highly specialized domain of strategic missile systems like the Trident II. However, engineering services for major defense platforms can range from tens of millions to hundreds of millions of dollars over their lifecycle. Contracts for system upgrades, sustainment, and advanced development for similar strategic assets often involve significant investment. Without access to detailed cost breakdowns or comparable sole-source awards for competing systems, it's difficult to definitively state if this represents excellent or questionable value. The duration of the contract (over 3 years) suggests a substantial scope of work that aligns with the complexity and criticality of the Trident II program.

What are the primary risks associated with this sole-source contract, and how are they mitigated?

The primary risk with this sole-source contract is the potential for inflated costs due to the lack of competitive bidding, which can reduce price discovery and value for taxpayers. Another risk is contractor performance; while BAE Systems is experienced, any large contract carries inherent performance risks. Mitigation strategies would include robust government oversight, detailed performance metrics, milestone tracking, and potentially incentive fee structures (as indicated by the 'COST PLUS INCENTIVE FEE' type). The government would also likely conduct thorough cost analyses and audits to ensure the pricing is fair and reasonable, despite the absence of competition. The criticality of the Trident II program also implies a high level of government attention to ensure program success.

What is the expected effectiveness of the engineering services provided under this contract for the Trident II missile system?

The engineering services provided under this contract are expected to ensure the continued operational effectiveness, reliability, and safety of the Trident II missile system. This includes addressing obsolescence, incorporating necessary upgrades, providing technical support for maintenance and operations, and potentially contributing to future enhancements. Given that the Trident II is a cornerstone of the U.S. strategic deterrent, the effectiveness of these engineering services is paramount. The contract's focus on 'TECH REP SVCS/MISCELLANEOUS EQUIPMENT' suggests a broad scope of support critical for maintaining the system's readiness and technological relevance over its extended service life.

What are the historical spending patterns for engineering services related to the Trident II missile program?

Historical spending on engineering services for the Trident II missile program has been substantial, reflecting the system's complexity and its long operational lifespan. The U.S. Navy has consistently invested in sustainment, modernization, and support for its strategic weapons systems. While specific historical figures for engineering services alone are not readily available in this data snippet, the overall budget for the Trident II program runs into billions of dollars over decades. This $64.8 million award represents a segment of that ongoing investment, likely focused on specific technical support or development phases. Past spending patterns indicate a continuous need for specialized engineering expertise to maintain the system's effectiveness.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 1601 RESEARCH BLVD, ROCKVILLE, MD, 20850

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline