DoD awards $18.8M for TAS CLFA Hardware, BAE Systems secures sole-source contract

Contract Overview

Contract Amount: $18,811,221 ($18.8M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2013-10-15

Contract Duration: 1,476 days

Daily Burn Rate: $12.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: TAS::17 1804::TAS CLFA SUBSYSTEM - HARDWARE SHIP SET

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: TAS::17 1804::TAS CLFA SUBSYSTEM - HARDWARE SHIP SET Key points: 1. Significant investment in critical defense hardware. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (1476 days) may indicate complex requirements. 4. Engineering services sector (NAICS 541330) is a common area for defense spending.

Value Assessment

Rating: fair

The contract value of $18.8M over 1476 days suggests a substantial per-day cost. Without comparable contracts or detailed cost breakdowns, assessing value is difficult. The 'cost plus incentive fee' structure aims to control costs but requires careful monitoring.

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 may lead to higher costs for taxpayers compared to a competitive process. Justification for the sole-source award is crucial for accountability.

Taxpayer Impact: The lack of competition in this $18.8M contract could result in a higher price than if multiple vendors had bid, potentially increasing taxpayer burden.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration of the contract could impact the adoption of newer technologies. Dependence on a single contractor for critical hardware raises supply chain risk concerns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration
Cost-plus contract type

Positive Signals

Award to established contractor (BAE Systems)
Potential for specialized hardware development

Sector Analysis

This contract falls within the Engineering Services sector, a critical area for defense procurement. Spending benchmarks in this sector vary widely based on the complexity and nature of the services required.

Small Business Impact

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

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure fair pricing and prevent cost overruns. The Defense Contract Management Agency's role is critical in monitoring performance and costs.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition.
Potential for higher costs due to lack of bidding.
Long contract duration may not reflect current technological advancements.
Lack of transparency regarding justification for sole-source.
No clear indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. TAS::17 1804::TAS CLFA SUBSYSTEM - HARDWARE SHIP SET

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION 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 $18.8 million.

What is the period of performance?

Start: 2009-09-30. End: 2013-10-15.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically cite reasons like unique capabilities, urgent needs, or lack of market availability. Without this justification, it's difficult to assess if taxpayers received fair value or if opportunities for innovation and cost savings through competition were missed.

How does the cost-plus incentive fee structure ensure cost control and contractor performance for this $18.8M contract?

A cost-plus incentive fee (CPIF) contract aims to incentivize the contractor to control costs by sharing savings or overruns with the government based on performance targets. For this $18.8M contract, the effectiveness hinges on clearly defined performance metrics and realistic cost goals. Regular oversight is needed to ensure the incentive structure is driving desired outcomes and not leading to inflated costs.

What is the long-term strategic value of the TAS CLFA SUBSYSTEM - HARDWARE SHIP SET, and how does this contract contribute to it?

The long-term strategic value of the TAS CLFA SUBSYSTEM - HARDWARE SHIP SET is not detailed in the provided data. Understanding its role within the broader Department of Defense strategy is essential to evaluate the effectiveness of this $18.8M investment. This contract likely supports a specific platform or capability, but its ultimate contribution depends on the system's operational importance and lifespan.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003909R0001

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie DE Developpement DE L'eau S.A.

Address: 65 SPIT BROOK RD, NASHUA, NH, 03060

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,846,887

Exercised Options: $19,981,287

Current Obligation: $18,811,221

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline