DoD's $25.8M contract for Afloat Networks awarded to BAE Systems, highlighting communication equipment needs

Contract Overview

Contract Amount: $25,784,838 ($25.8M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2019-12-06

End Date: 2022-09-02

Contract Duration: 1,001 days

Daily Burn Rate: $25.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AFLOAT NETWORKS

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: AFLOAT NETWORKS Key points: 1. Value for money appears reasonable given the specialized nature of afloat communication systems. 2. Competition dynamics indicate a full and open process, suggesting a competitive market for these services. 3. Risk indicators are moderate, with contract duration and fixed-price terms being key factors. 4. Performance context is tied to naval operations, where reliable communication is critical. 5. Sector positioning places this contract within the defense communications and IT infrastructure domain.

Value Assessment

Rating: good

The contract value of approximately $25.8 million for Afloat Networks appears to be within a reasonable range for specialized defense communication systems. Benchmarking against similar contracts for naval communication equipment is challenging due to the unique requirements of afloat platforms. However, the fixed-price nature of the contract suggests that the government has a clear understanding of costs and BAE Systems has committed to delivering within that budget, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of three bidders suggests a healthy level of competition for this type of specialized defense communication equipment. A competitive process generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by driving down prices and encouraging vendors to offer their best value propositions.

Public Impact

Naval personnel operating on ships and other afloat platforms will benefit from enhanced communication capabilities. The contract supports the delivery of critical communication equipment essential for maintaining operational readiness. Geographic impact is primarily focused on naval bases and deployment areas globally. Workforce implications include potential employment opportunities within BAE Systems and its subcontractors in the defense technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during implementation.
Dependence on a single contractor for critical communication infrastructure could pose supply chain risks.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type helps to control costs and provides budget certainty.
BAE Systems is a well-established defense contractor with a track record in similar technologies.

Sector Analysis

This contract falls within the defense sector, specifically focusing on communication equipment manufacturing and integration for naval applications. The market for such specialized systems is dominated by a few large defense contractors capable of meeting stringent military specifications. Spending in this area is driven by the need for secure, reliable, and advanced communication networks to support global naval operations, with comparable spending often seen in areas like satellite communications and tactical data links.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large prime contractor, and the direct impact on the small business ecosystem may be limited unless BAE Systems actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded in the contract terms, including delivery schedules and performance specifications. Transparency is facilitated through contract award databases, though detailed operational performance data may be classified or sensitive.

Related Government Programs

Naval Communication Systems
Defense Telecommunications
Afloat Network Infrastructure
Tactical Data Links
Military Communications Equipment

Risk Flags

Potential for integration challenges with existing naval systems.
Cybersecurity vulnerabilities inherent in communication networks.
Risk of technological obsolescence in a rapidly evolving field.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. AFLOAT NETWORKS

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 $25.8 million.

What is the period of performance?

Start: 2019-12-06. End: 2022-09-02.

What is the historical spending trend for Afloat Networks within the Department of Defense?

Analyzing historical spending trends for 'Afloat Networks' specifically is challenging without a precise, standardized category. However, broader spending on naval communication systems and IT infrastructure by the Department of Defense has generally seen consistent investment, often increasing during periods of heightened geopolitical activity or technological advancement. For instance, the Navy's budget allocations for C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems, which include afloat networks, have historically represented a significant portion of its procurement and research & development funds. Fluctuations are often tied to modernization programs and the lifecycle of existing communication platforms. Without more granular data on this specific contract's predecessors, it's difficult to pinpoint a precise trend, but the overall investment in naval communications remains a priority.

How does the awarded price compare to similar contracts for afloat communication systems?

Directly comparing the $25.8 million award for BAE Systems' Afloat Networks to 'similar' contracts is difficult due to the highly specialized nature of naval communication systems and the proprietary details often associated with them. Contracts for afloat platforms must account for unique environmental factors (e.g., vibration, salt spray, electromagnetic interference) and stringent security requirements not present in commercial or land-based systems. While BAE Systems is a reputable provider, the price benchmark would ideally involve comparing it to other awards for similar system integrations on naval vessels of comparable size and mission profile. The 'full and open competition' aspect suggests that the price achieved reflects market conditions for this niche, but without access to detailed technical specifications and performance requirements of other bids or past awards, a precise value-for-money assessment relative to peers remains limited.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

While the specific Key Performance Indicators (KPIs) for this 'Afloat Networks' contract are not publicly detailed, typical performance metrics for such defense communication systems would likely include reliability (uptime percentage), data throughput (bandwidth capacity), latency (signal delay), security compliance (adherence to cybersecurity protocols), and successful integration with existing naval command and control systems. Performance measurement would be conducted through a combination of contractor self-reporting, government acceptance testing upon delivery and installation, and ongoing operational assessments by the end-users (naval personnel). Contractual milestones, such as on-time delivery of equipment and successful system integration, would also serve as critical performance checkpoints.

What is BAE Systems' track record with similar Department of Defense communication contracts?

BAE Systems has a substantial and long-standing track record of delivering complex communication, C4ISR, and IT solutions to the Department of Defense across various branches, including the Navy. They are known for their work on integrated combat systems, electronic warfare, and secure communication networks. Their experience spans large-scale platform integration, including work on naval vessels, which directly relates to the 'Afloat Networks' requirement. Past performance evaluations, often included in contract award justifications (though not detailed here), typically assess a contractor's ability to meet schedule, cost, and technical requirements on previous, similar projects. BAE Systems' consistent presence as a prime contractor on major defense programs suggests a generally positive track record in this domain.

Are there any identified risks associated with the technology or implementation of these afloat networks?

Potential risks associated with afloat networks include technological obsolescence, as communication technology evolves rapidly. Integration challenges with legacy systems on naval platforms can also pose a risk, requiring significant customization and testing. Cybersecurity threats are a constant concern for any defense communication system, necessitating robust security measures and ongoing vigilance. Furthermore, the harsh maritime environment can impact the durability and reliability of electronic equipment, potentially leading to increased maintenance needs or premature failure. The contract's fixed-price nature, while beneficial for cost control, could also incentivize the contractor to cut corners on quality or support if not adequately monitored, though BAE Systems' reputation typically mitigates this concern.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003913R0013

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

Address: 520 GAITHER ROAD, 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: $25,784,838

Exercised Options: $25,784,838

Current Obligation: $25,784,838

Actual Outlays: $10,704,180

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003914D0121

IDV Type: IDC

Timeline