DoD Awards BAE Systems $25.4M for Engineering Services, Raising Value Concerns

Contract Overview

Contract Amount: $25,382,808 ($25.4M)

Contractor: BAE Systems Technical Services

Awarding Agency: Department of Defense

Start Date: 2002-08-07

End Date: 2006-09-30

Contract Duration: 1,515 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200211!000229!1700!WA30D !FLEET & INDUSTRIAL SUPPLY CENTER!N0024402C0038 !A!N! !N! !20020807!20030930!150805703!876861790!217304393!N!BAE SYSTEMS TECHNICAL SERVICES!557 MARY ESTHER CUT-OFF !FORT WALTON BE !FL!32548!72650!003!15!WAHIAWA !HONOLULU !HAWAII !+000000039207!N!N!000026343138!M127!OPERATION/ELECTRONIC & COMMUNICATION FACILITIES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!1!004!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! !N00950!0001!

Place of Performance

Location: WAHIAWA, HONOLULU County, HAWAII, 96786

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to BAE SYSTEMS TECHNICAL SERVICES for work described as: 200211!000229!1700!WA30D !FLEET & INDUSTRIAL SUPPLY CENTER!N0024402C0038 !A!N! !N! !20020807!20030930!150805703!876861790!217304393!N!BAE SYSTEMS TECHNICAL SERVICES!557 MARY ESTHER CUT-OFF !FORT WALTON BE !FL!32548!72650!003!15!WAHIAWA !HONOL… Key points: 1. Significant contract value of $25.4 million for engineering services. 2. Competition method was 'Full and Open', but specific details are limited. 3. Potential risk associated with the contract duration of 1515 days. 4. Spending falls within the Engineering Services sector (NAICS 541330).

Value Assessment

Rating: questionable

The contract value of $25.4 million for engineering services over 1515 days appears high compared to typical contracts in this sector. Further benchmarking is needed to assess true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition'. However, the limited data provided does not offer insights into the price discovery process or the number of bids received.

Taxpayer Impact: The substantial value of this contract means taxpayer funds are significantly allocated. Ensuring competitive pricing is crucial for maximizing the value of these funds.

Public Impact

Taxpayers are funding critical engineering services for the Department of Defense. The long duration of the contract could impact the adaptability to evolving technological needs. The specific nature of the 'OPERATION/ELECTRONIC & COMMUNICATION FACILITIES' services is not detailed, limiting public understanding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration
Lack of detailed service description
Potential for cost overruns given the long term

Positive Signals

Awarded under full and open competition
Established contractor with a history of government work

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector that supports various government and private sector projects. Spending benchmarks for similar large-scale engineering support contracts are typically in the millions, but specific comparisons require more detailed service scope.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The awardee, BAE Systems Technical Services, is a large corporation, suggesting limited direct benefit to small businesses through this prime contract.

Oversight & Accountability

Oversight of this contract would primarily fall under the Department of the Navy. The long duration necessitates robust oversight to ensure performance, cost control, and adherence to contract terms throughout its lifecycle.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Contract duration is unusually long.
Lack of detailed service description.
Potential for cost creep over the contract term.
Limited information on the competitive bidding process.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to BAE SYSTEMS TECHNICAL SERVICES. 200211!000229!1700!WA30D !FLEET & INDUSTRIAL SUPPLY CENTER!N0024402C0038 !A!N! !N! !20020807!20030930!150805703!876861790!217304393!N!BAE SYSTEMS TECHNICAL SERVICES!557 MARY ESTHER CUT-OFF !FORT WALTON BE !FL!32548!72650!003!15!WAHIAWA !HONOLULU !HAWAII !+000000039207!N!N!000026343138!M127!OPERATION/ELECTRONIC & COMMUNICATION FACILITIES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNICAL SERVICES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $25.4 million.

What is the period of performance?

Start: 2002-08-07. End: 2006-09-30.

What specific engineering services are included in this contract, and how do they align with current operational needs?

The contract broadly covers 'OPERATION/ELECTRONIC & COMMUNICATION FACILITIES'. Without a detailed statement of work, it's difficult to assess the precise services. This lack of specificity raises questions about whether the services are still relevant and critical to current Department of Defense needs, especially given the contract's start date in 2002 and potential end in 2006.

Given the 'Full and Open Competition' award, what was the competitive landscape, and were there opportunities for smaller, specialized firms?

While the contract was advertised as 'Full and Open', the limited data prevents an analysis of the bidding process. It's unclear how many bids were received or if the requirements inadvertently favored larger incumbents. Further investigation into the solicitation and award details would clarify the true level of competition and potential barriers for smaller businesses.

How does the $25.4 million contract value, spread over 1515 days, compare to industry benchmarks for similar electronic and communication facility operations and maintenance?

Benchmarking this contract's value requires a detailed breakdown of services. However, a $25.4 million award over approximately four years suggests an average annual spend of over $6 million. This figure needs to be compared against industry standards for comparable government contracts to determine if it represents efficient use of taxpayer funds or potential overpricing.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 557 MARY ESTHER CUT-OFF, FORT WALTON BE, FL

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline