DoD's $26.3M Engineering Services Contract with BAE Systems: A Decade of Defense Spending
Contract Overview
Contract Amount: $26,329,988 ($26.3M)
Contractor: BAE Systems Technology Solutions & Services Inc.
Awarding Agency: Department of Defense
Start Date: 2003-03-16
End Date: 2011-03-03
Contract Duration: 2,909 days
Daily Burn Rate: $9.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $26.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: Key points: 1. Significant contract value of $26.3 million over eight years. 2. BAE Systems, a major defense contractor, secured this award. 3. Potential risks include long-term reliance on a single vendor and cost overruns. 4. The contract falls within the Engineering Services sector, crucial for defense operations.
Value Assessment
Rating: fair
The contract was awarded on a Cost Plus Fixed Fee basis, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
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. However, the long duration and specific nature of engineering services might limit the pool of qualified bidders.
Taxpayer Impact: Taxpayer funds were used for this contract. The long-term nature and cost-plus structure warrant scrutiny to ensure value for money.
Public Impact
Supports critical defense engineering functions, contributing to national security. Long-term engagement with a single contractor may limit opportunities for smaller, innovative firms. Ensures continuity of essential engineering services for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (8 years)
- Cost Plus Fixed Fee pricing
- No small business participation noted
Positive Signals
- Awarded via full and open competition
- Established contractor with defense experience
Sector Analysis
This contract is in the Engineering Services sector, which is vital for the Department of Defense's operational readiness and technological advancement. Spending in this sector is typically high due to the complexity and specialized nature of defense projects.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract, as the awardee is a large corporation and the 'sb' field is false. This suggests a missed opportunity for small business participation in defense contracting.
Oversight & Accountability
Oversight would typically be managed by the Defense Contract Management Agency (DCMA). The long duration necessitates continuous monitoring of performance, costs, and adherence to contract terms to ensure accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Lack of small business participation.
- Long contract duration may reduce flexibility and competitive pressure.
- Limited transparency on specific services and performance metrics.
Tags
engineering-services, department-of-defense, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. See the official description on USAspending.
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $26.3 million.
What is the period of performance?
Start: 2003-03-16. End: 2011-03-03.
What was the total cost of the contract over its full duration, and how does this compare to initial estimates?
The provided data shows an award amount of $26,329,987.53. Without initial estimates or a breakdown of costs incurred over the contract's eight-year lifespan (March 2003 to March 2011), a direct comparison is not possible. Further analysis would require access to the contract's financial history and any amendments.
What specific engineering services were provided, and were there any performance issues or cost overruns during the contract period?
The contract is categorized under 'Engineering Services' (NAICS 541330). Specific details on services rendered and performance metrics are not available in the provided data. Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not rigorously managed and monitored by the contracting agency.
How effective was the full and open competition in securing the best value for the government in this long-term engineering services contract?
While 'full and open competition' suggests a broad solicitation, the effectiveness in securing best value for an eight-year contract is debatable without knowing the number of bids received and the final negotiated price. Long-term contracts can sometimes limit competitive pressures over time, potentially impacting value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 1601 RESEARCH BLVD, ROCKVILLE, MD, 08
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,805,622
Exercised Options: $26,805,622
Current Obligation: $26,329,988
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-03-16
Current End Date: 2011-03-03
Potential End Date: 2011-03-03 00:00:00
Last Modified: 2014-09-24
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