DoD's $26M Contract for Communications Equipment Awarded to BAE Systems Under Full and Open Competition

Contract Overview

Contract Amount: $26,021,286 ($26.0M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2022-12-08

End Date: 2024-06-04

Contract Duration: 544 days

Daily Burn Rate: $47.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AFLOAT NETWORKS

Place of Performance

Location: SUMMERVILLE, DORCHESTER County, SOUTH CAROLINA, 29483

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: AFLOAT NETWORKS Key points: 1. The Department of Defense awarded a $26 million contract for communications equipment. 2. BAE Systems Technology Solutions & Services Inc. secured the contract. 3. The award was made under a full and open competition. 4. The contract is for 'Other Communications Equipment Manufacturing' with a North American Industry Classification System (NAICS) code of 334290. 5. The contract duration is 544 days, ending in June 2024.

Value Assessment

Rating: good

The contract value of $26 million appears reasonable for specialized communications equipment, especially given the full and open competition which typically drives competitive pricing. Benchmarking against similar DoD contracts for communication systems would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method is expected to foster price discovery and ensure the government receives competitive pricing.

Taxpayer Impact: The use of full and open competition suggests that taxpayer funds are being utilized efficiently by leveraging market competition to obtain the best value.

Public Impact

Ensures the Department of the Navy has access to necessary communications equipment. Supports technological advancements in military communication systems. The competitive award process aims to maximize the value of taxpayer investment. Potential for job creation within BAE Systems and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration extends beyond the award date, indicating potential for modifications or extensions.
Specific details on the 'Other Communications Equipment' are not provided, making it difficult to assess technological relevance.
No explicit mention of small business participation.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm Fixed Price contract type helps control costs.
Department of Defense contract indicates critical national security relevance.

Sector Analysis

The 'Other Communications Equipment Manufacturing' sector (NAICS 334290) encompasses a wide range of products. Defense spending in this area is crucial for maintaining communication superiority. Benchmarks for similar contracts would depend heavily on the specific type and complexity of the equipment.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense, which typically has robust oversight mechanisms. However, the specific oversight applied to this delivery order is not detailed in the provided data.

Related Government Programs

Other Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of specificity regarding the 'Other Communications Equipment'.
No information on small business subcontracting.
Contract end date has passed, requiring clarification on current status.
Limited insight into the competitive evaluation process beyond 'full and open'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 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 $26.0 million.

What is the period of performance?

Start: 2022-12-08. End: 2024-06-04.

What is the specific type of communications equipment being procured, and how does it align with current and future naval communication needs?

The provided data categorizes the procurement under 'Other Communications Equipment Manufacturing' (NAICS 334290) without specifying the exact equipment. Understanding the precise nature of this equipment is crucial to assess its technological relevance, operational necessity for the Department of the Navy, and its contribution to modernizing naval communication capabilities. Without this detail, it's challenging to fully evaluate the strategic value beyond the contract's financial scope.

What were the key factors considered during the full and open competition that led to BAE Systems being selected, and how did they impact the final price?

While the contract was awarded under full and open competition, the specific evaluation criteria and the number of competing bids are not detailed. Typically, factors include technical capability, past performance, and price. The competitive nature of this process is expected to have driven a fair market price, but a deeper dive into the proposal evaluation would reveal the precise value proposition and cost-effectiveness achieved.

What is the potential long-term impact of this procurement on the Department of the Navy's communication infrastructure and BAE Systems' role within it?

This $26 million contract suggests a significant investment in specific communication equipment, potentially enhancing or replacing existing systems for the Navy. The successful execution by BAE Systems could position them as a key provider for future communication needs, influencing the technological roadmap and interoperability of naval networks. The duration and scope indicate a substantial, albeit specific, contribution to the Navy's operational readiness.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

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

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: $26,021,286

Exercised Options: $26,021,286

Current Obligation: $26,021,286

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $5,558,439

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