DoD awards $13.77M for QRD Support to BAE Systems, a sole-source contract

Contract Overview

Contract Amount: $13,771,361 ($13.8M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2009-02-18

End Date: 2012-04-27

Contract Duration: 1,164 days

Daily Burn Rate: $11.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: QRD SUPPORT

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: QRD SUPPORT Key points: 1. Contract awarded to a single vendor, raising questions about price discovery. 2. Long contract duration of 1164 days suggests potential for cost overruns. 3. No small business participation noted, impacting diversity goals. 4. Sector is Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.

Value Assessment

Rating: questionable

The contract's value of $13.77M over three years lacks clear benchmarks for comparison due to its sole-source nature. Without competitive bids, assessing if the price is optimal is difficult.

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 potentially leads to higher costs for taxpayers as there was no competitive pressure to lower bids.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the QRD Support services.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. Limited visibility into the necessity and cost-effectiveness of the services provided. Potential for reduced innovation due to a lack of market competition.

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

Sector Analysis

The contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector can vary widely based on technological advancements and defense needs.

Small Business Impact

This contract did not involve small businesses, which is a missed opportunity to support smaller enterprises and foster innovation within the defense supply chain.

Oversight & Accountability

The sole-source nature of this award warrants closer oversight to ensure the government is receiving fair value and that the services are essential.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. QRD SUPPORT

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 $13.8 million.

What is the period of performance?

Start: 2009-02-18. End: 2012-04-27.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. Without this information, it's difficult to assess if the government truly had no other viable options or if competition was unnecessarily avoided.

How was the price determined to be fair and reasonable without competition?

Determining price reasonableness without competition often relies on historical pricing, catalog prices, or cost analysis. The absence of competitive bids makes it challenging to verify if the negotiated price represents the best value achievable for the taxpayer.

What specific QRD support services were provided, and were they critical to DoD operations?

Understanding the specific services rendered is crucial for assessing their criticality and value. If the services were non-essential or could have been procured through more competitive means, the sole-source award raises concerns about resource allocation and efficiency.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: 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: $33,272,107

Exercised Options: $20,364,650

Current Obligation: $13,771,361

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline