DoD Awards $22.3M Contract for Tactical Modules to BAE Systems

Contract Overview

Contract Amount: $22,295,000 ($22.3M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-25

End Date: 2029-10-25

Contract Duration: 1,856 days

Daily Burn Rate: $12.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MMM TACTICAL MODULE

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: MMM TACTICAL MODULE Key points: 1. Contract awarded to a single, large business prime. 2. No small business participation noted. 3. Definitive contract with a firm fixed price. 4. Sector: Defense manufacturing, specifically circuit boards.

Value Assessment

Rating: fair

The contract value of $22.3 million over approximately 5 years suggests a moderate annual spend. Benchmarking against similar tactical module or bare printed circuit board manufacturing contracts would be necessary to assess pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. Without competition, the government may not have achieved the best possible price or terms.

Taxpayer Impact: Taxpayer funds are committed without competitive price discovery, potentially leading to higher costs than if multiple vendors had bid.

Public Impact

Defense spending on specialized electronic components. Potential for limited competition in niche manufacturing. Impact on BAE Systems' revenue and operational capacity. Ensuring supply chain resilience for critical defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
No small business participation
Long contract duration

Positive Signals

Firm fixed price contract type
Awarded to established defense contractor

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on bare printed circuit board manufacturing for tactical modules. Spending benchmarks in this niche area are difficult to ascertain without more specific data on component complexity and volume.

Small Business Impact

There is no indication of small business participation in this contract. This suggests that the prime contractor, BAE Systems, is handling the entire scope of work, potentially missing opportunities to leverage small business capabilities.

Oversight & Accountability

The award is a definitive contract, suggesting a clear scope of work. Oversight will be crucial to ensure BAE Systems meets performance requirements and that the firm fixed price remains advantageous throughout the contract's lifecycle.

Related Government Programs

Bare Printed Circuit Board Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competitive pricing.
No small business subcontracting opportunities identified.
Long contract duration increases long-term risk.
Potential for vendor lock-in.
Dependence on a single supplier for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. MMM TACTICAL MODULE

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 $22.3 million.

What is the period of performance?

Start: 2024-09-25. End: 2029-10-25.

What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing without competition?

The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Without specific details on the justification, it's difficult to assess the price discovery impact. However, the government should have conducted a price analysis based on historical data, commercial pricing, or other available benchmarks to ensure the price was fair and reasonable.

What are the risks associated with relying on a single supplier for these critical tactical modules, especially given the long contract duration?

The primary risks include supply chain disruption if BAE Systems faces production issues, potential price increases in future modifications or follow-on contracts due to lack of competition, and limited innovation if alternative solutions are not explored. The long duration amplifies these risks, making it crucial to monitor performance and market conditions closely.

How does the performance of this contract align with the Department of the Navy's broader goals for tactical module procurement and technological advancement?

Alignment depends on the specific capabilities these modules provide and their integration into larger systems. If these modules represent state-of-the-art technology or are essential for current operational readiness, the contract supports Navy goals. However, the lack of competition might hinder the exploration of potentially more advanced or cost-effective solutions that could emerge from a competitive environment.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Bare Printed Circuit Board Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

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: Ball Corporation

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: $34,300,000

Exercised Options: $34,300,000

Current Obligation: $22,295,000

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $5,753,385

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline