Navy Awards $12.1M for CLB BSS Material to BAE Systems, Full Competition
Contract Overview
Contract Amount: $12,064,390 ($12.1M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2025-03-11
End Date: 2028-09-30
Contract Duration: 1,299 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: YEAR 3 CLB BSS MATERIAL
Place of Performance
Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55421
Plain-Language Summary
Department of Defense obligated $12.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: YEAR 3 CLB BSS MATERIAL Key points: 1. Contract Value: $12.1 million over approximately 4 years. 2. Competition: Awarded under full and open competition. 3. Risk: Fixed Price with Economic Price Adjustment (FPEPA) contract type introduces potential for cost escalation. 4. Sector: Defense - Shipbuilding and Repairing.
Value Assessment
Rating: good
The contract is a delivery order against an existing contract. Pricing is likely benchmarked against similar orders for CLB BSS Material within the Navy's shipbuilding and repair portfolio.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure the best value for the required materials.
Public Impact
Ensures availability of critical CLB BSS Material for naval operations. Supports BAE Systems' operations and potentially jobs in Minnesota. The FPEPA clause requires monitoring to manage potential cost increases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic Price Adjustment clause may increase final cost.
- Contract duration extends to late 2028, requiring long-term oversight.
Positive Signals
- Awarded under full and open competition.
- Clear delivery order against an established contract.
Sector Analysis
This contract falls within the Defense sector, specifically Shipbuilding and Repairing. Spending in this area is critical for national security and often involves complex, high-value procurements.
Small Business Impact
The awardee is BAE Systems Land & Armaments L.P., a large defense contractor. There is no indication of small business participation in this specific delivery order, though the prime contract might include subcontracting goals.
Oversight & Accountability
Oversight will be managed by the Department of the Navy. The fixed-price with economic price adjustment structure necessitates careful monitoring of cost drivers to ensure value.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential cost overruns due to EPA.
- Long contract duration requires sustained oversight.
- Lack of explicit small business subcontracting information.
- Specifics of material and its criticality not detailed.
Tags
ship-building-and-repairing, department-of-defense, mn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. YEAR 3 CLB BSS MATERIAL
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND & ARMAMENTS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.1 million.
What is the period of performance?
Start: 2025-03-11. End: 2028-09-30.
What specific CLB BSS Material is being procured, and what is its criticality to naval operations?
CLB BSS Material likely refers to Combat Logistics Battalion Base Support Systems or similar critical components for naval fleet readiness. Understanding the exact nature and function of this material is key to assessing its value and the necessity of the expenditure. Its criticality directly impacts operational capabilities and mission success.
How does the economic price adjustment mechanism work, and what are the potential risks to the government's budget?
The Economic Price Adjustment (EPA) clause allows for price changes based on specific economic factors, such as inflation or material cost fluctuations. This introduces risk as the final cost could exceed the initial estimate if these factors increase significantly. The government must carefully define the EPA triggers and limits to mitigate budget uncertainty.
What was the competitive landscape like for this delivery order, and were there other viable bidders?
While awarded under full and open competition, the specific details of the bidding process are not provided. Understanding the number of bids received and the price differences among them would offer deeper insight into the effectiveness of the competition in driving down costs and ensuring the best value for the taxpayer.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIP AND MARINE EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0016722R0015
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 4800 E RIVER RD, MINNEAPOLIS, MN, 55421
Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations
Financial Breakdown
Contract Ceiling: $12,064,390
Exercised Options: $12,064,390
Current Obligation: $12,064,390
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $6,351,570
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0016723D0004
IDV Type: IDC
Timeline
Start Date: 2025-03-11
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2026-02-23
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