DoD Awards BAE Systems $53M for TRIDENT D5LE2 Systems Engineering Over 3 Years

Contract Overview

Contract Amount: $53,041,672 ($53.0M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2027-09-30

Contract Duration: 1,094 days

Daily Burn Rate: $48.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TRIDENT D5LE2 SYSTEMS ENGINEERING

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $53.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: TRIDENT D5LE2 SYSTEMS ENGINEERING Key points: 1. Significant contract value of $53M for specialized engineering services. 2. Sole-source award to BAE Systems indicates limited competition. 3. Potential risk associated with single-vendor reliance for critical systems. 4. Engineering services sector sees substantial investment in defense programs.

Value Assessment

Rating: fair

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. The awarded amount of $53M for a 3-year period needs to be benchmarked against similar complex systems engineering contracts to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

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

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these specialized engineering services.

Public Impact

Ensures continued development and support for the critical TRIDENT D5LE2 missile system. Impacts national security by maintaining advanced strategic weapon system capabilities. Supports high-skilled jobs within the defense technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Cost-plus contract type can incentivize higher spending.
Long-term contract duration may reduce flexibility.

Positive Signals

Supports a critical national defense program.
Leverages specialized expertise from a known contractor.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense systems. Spending in this area is often characterized by high complexity, specialized knowledge, and significant R&D investment, with limited contractor pools.

Small Business Impact

The contract was awarded to BAE Systems, a large defense contractor. There is no indication of small business participation in this specific award, suggesting missed opportunities for SMBs in the supply chain.

Oversight & Accountability

As a sole-source award for a critical defense system, this contract warrants close oversight to ensure cost control and performance. The Department of the Navy's contracting activity should be monitored for adherence to procurement regulations.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Cost-plus contract type
Lack of small business participation
Potential for cost overruns
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. TRIDENT D5LE2 SYSTEMS ENGINEERING

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $53.0 million.

What is the period of performance?

Start: 2024-10-01. End: 2027-09-30.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities or proprietary technology held by a single contractor. Agencies must document why full and open competition is not feasible. Without this documentation, it's difficult to assess if taxpayers received fair value or if alternative competitive strategies, such as phased procurements or partnerships, were explored to foster competition.

How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure efficient resource allocation?

Effective management of a Cost Plus Fixed Fee (CPFF) contract requires robust government oversight, including detailed cost tracking, performance metrics, and regular audits. The agency must establish clear performance standards and milestones, and actively monitor contractor expenditures against the fixed fee. Incentives for efficiency and penalties for cost overruns should be clearly defined and enforced to protect taxpayer interests.

What are the long-term implications of relying on a single contractor for the TRIDENT D5LE2 systems engineering?

Long-term reliance on a single contractor can create vendor lock-in, reduce bargaining power, and potentially stifle innovation. It also poses a risk if the contractor experiences financial difficulties or strategic shifts. Agencies should consider strategies for knowledge transfer, developing alternative sources, or planning for future competition to mitigate these risks and ensure program continuity.

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

Solicitation ID: N0003025R6304

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $123,194,598

Exercised Options: $65,680,284

Current Obligation: $53,041,672

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $1,939,761

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline