Navy awards $18.8M contract to BAE Systems for electronic components, not competed

Contract Overview

Contract Amount: $18,867,865 ($18.9M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2011-08-12

End Date: 2015-08-31

Contract Duration: 1,480 days

Daily Burn Rate: $12.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NAVY REQUIREMENT

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060, UNITED STATES OF AMERICA

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: NAVY REQUIREMENT Key points: 1. Contract value of $18.8M for electronic components. 2. Sole-source award to BAE Systems Information and Electronic Systems Integration Inc. 3. Risk of limited competition and potentially higher costs due to sole-source nature. 4. Sector: Other Electronic Component Manufacturing (NAICS 334419).

Value Assessment

Rating: fair

The contract value of $18.8M for electronic components is difficult to assess without specific product details. The lack of competition makes it challenging to benchmark pricing against similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in less favorable pricing for the government compared to a competitive process.

Taxpayer Impact: Taxpayer funds are used for this contract. The lack of competition raises concerns about whether the government achieved the best possible price.

Public Impact

Potential for higher costs due to lack of competition. Impact on small businesses is minimal as it was not competed. Ensuring the necessity and justification for a sole-source award is crucial for accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Firm fixed price contract type
Clear awardee identified

Sector Analysis

This contract falls under the 'Other Electronic Component Manufacturing' sector. Spending in this sector can vary widely based on technological advancements and defense requirements. Benchmarks are difficult without specific component details.

Small Business Impact

This contract was awarded solely to BAE Systems and did not involve competition, therefore there is no indication of small business participation or benefit from this specific award.

Oversight & Accountability

Oversight is needed to ensure the justification for the sole-source award was sound and that the pricing is reasonable given the lack of competitive bidding. Accountability rests on the agency's procurement process.

Related Government Programs

Other Electronic Component Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competitive pressure.
No small business set-aside or participation.
Contract duration is significant (1480 days).
Awarded in 2011, may be outdated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. NAVY REQUIREMENT

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2011-08-12. End: 2015-08-31.

What was the justification for awarding this contract on a sole-source basis instead of competing it?

The justification for a sole-source award typically involves situations where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs that preclude a competitive process. The Department of the Navy would have had to document this justification thoroughly.

How can the government ensure fair pricing without competition for this $18.8M contract?

Even without competition, the government can ensure fair pricing through robust cost analysis, negotiation, and by referencing historical pricing data for similar components if available. Independent government cost estimators and market research can also help validate the reasonableness of the proposed price.

What is the long-term impact of sole-source awards on the electronic component manufacturing sector for the Navy?

Repeated sole-source awards can stifle innovation and competition within the sector, potentially leading to higher prices and reduced availability of advanced technologies over time. It may also discourage new entrants from developing capabilities if they perceive the market as closed.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,867,865

Exercised Options: $18,867,865

Current Obligation: $18,867,865

Contract Characteristics

Cost or Pricing Data: YES

Timeline