DoD awards $11.3M for communications equipment, with limited competition and a long performance period

Contract Overview

Contract Amount: $11,313,624 ($11.3M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-13

End Date: 2027-03-22

Contract Duration: 767 days

Daily Burn Rate: $14.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ITEM: CONVERTER,FREQUENCY NSN: VARIOUS PN: VARIOUS

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: ITEM: CONVERTER,FREQUENCY NSN: VARIOUS PN: VARIOUS Key points: 1. The contract value of $11.3 million is moderate for defense procurements. 2. Limited competition may indicate specialized needs or a lack of market alternatives. 3. The extended performance period of over two years suggests a need for sustained support. 4. The firm-fixed-price contract type shifts risk to the contractor. 5. The specific item, 'CONVERTER', points to a niche but essential component. 6. The award to BAE Systems suggests a reliance on established defense contractors.

Value Assessment

Rating: fair

Benchmarking the value of this specific converter is challenging without detailed specifications and market data. However, the $11.3 million award over approximately two years suggests a moderate annual spend. Given the limited competition, it's difficult to definitively assess if this represents excellent value for money. Further analysis would require comparing the unit price and specifications against similar, competitively sourced converters, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' indicating that the solicitation was not broadly advertised or that only a limited number of sources were considered. This could be due to proprietary technology, urgent requirements, or a lack of sufficient qualified bidders in the market. The limited competition means less price discovery and potentially higher costs for the government.

Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as the government may not benefit from the most competitive offers available in the market.

Public Impact

The Department of the Navy benefits from the acquisition of essential communications equipment. This contract ensures the availability of critical converter components for naval operations. The geographic impact is primarily tied to the contractor's facilities and the deployment locations of the naval assets utilizing the equipment. Workforce implications are likely within BAE Systems' operations and potentially at naval facilities requiring the equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpricing and reduced innovation.
Lack of transparency in the 'NOT AVAILABLE FOR COMPETITION' award process hinders public scrutiny.
The long performance period could expose the government to risks if technology evolves rapidly.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to a known defense contractor like BAE Systems suggests a level of trust and established performance.
The specific NSN and item description indicate a focus on a defined, necessary component.

Sector Analysis

The 'Other Communications Equipment Manufacturing' sector is a vital part of the broader defense industrial base, providing specialized components for military systems. Spending in this area is often characterized by high technical requirements and a limited number of specialized manufacturers. While specific market size data for 'converters' is not readily available, the defense sector's overall investment in communications technology is substantial, often involving significant R&D and long-term sustainment contracts.

Small Business Impact

There is no indication of a small business set-aside for this contract, and the prime contractor, BAE Systems, is a large defense corporation. This suggests that subcontracting opportunities for small businesses may be limited unless specifically mandated or pursued by the prime. The absence of a set-aside means the primary focus is on fulfilling the requirement, not necessarily on fostering small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The firm-fixed-price nature of the award shifts some risk to the contractor, but performance monitoring and acceptance of deliverables remain key oversight functions. Transparency is limited due to the 'NOT AVAILABLE FOR COMPETITION' award, making external oversight more challenging. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Communications Systems
Defense Electronics Procurement
Specialized Electronic Component Manufacturing
Department of Defense Information Technology

Risk Flags

Limited competition
Potential for higher cost due to lack of competition
Risk of technology obsolescence over the contract period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. ITEM: CONVERTER,FREQUENCY NSN: VARIOUS PN: VARIOUS

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 $11.3 million.

What is the period of performance?

Start: 2025-02-13. End: 2027-03-22.

What is the specific technical function and criticality of the 'CONVERTER' being procured?

The provided data identifies the item as 'CONVERTER' with a National Stock Number (NSN) and a Product Number (PN), but lacks specific technical details. In a defense context, 'converters' can refer to a wide range of devices, such as power converters (DC-DC, AC-DC), signal converters, or frequency converters. Their criticality would depend on their role within a larger system. For instance, a power converter might be essential for operating electronic equipment on a naval vessel, while a signal converter could be vital for data transmission or processing. Without further technical specifications, it's impossible to ascertain the exact function and its precise criticality to naval operations, though its procurement by the Department of the Navy suggests it is a necessary component.

How does the $11.3 million contract value compare to similar procurements for communication converters?

Direct comparison of the $11.3 million contract value for this 'CONVERTER' to similar procurements is difficult without more specific technical data and market intelligence. The 'NOT AVAILABLE FOR COMPETITION' status further complicates benchmarking, as competitive bids typically drive prices down. However, for specialized defense electronics, contract values can vary significantly based on technological sophistication, quantity, and performance requirements. An $11.3 million award over approximately two years suggests an average annual spend of around $5.65 million. This figure needs to be evaluated against the specific capabilities and quantities delivered. If similar, competitively sourced converters with comparable specifications exist, their pricing would offer a more robust benchmark for value assessment.

What are the primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' award for this type of equipment?

The primary risks associated with a 'NOT AVAILABLE FOR COMPETITION' award for communication equipment like this converter include potential overpricing, reduced innovation, and a lack of transparency. Without a competitive bidding process, the government may not achieve the best possible price, as there is less pressure on the contractor to offer the most cost-effective solution. Furthermore, limited competition can stifle innovation by reducing the incentive for contractors to develop superior or more cost-efficient technologies. The lack of open competition also makes it harder for oversight bodies and the public to scrutinize the fairness and value of the procurement, potentially masking inefficiencies or suboptimal decision-making.

What is BAE Systems' track record with the Department of the Navy for similar communication equipment?

BAE Systems is a major defense contractor with a significant and long-standing relationship with the Department of the Navy, frequently awarded contracts for a wide array of electronic systems, including communications equipment. While specific details on their track record for 'converters' are not provided in this data snippet, their overall performance with the Navy typically involves complex systems integration, manufacturing, and sustainment. Historical data would likely show numerous awards for various electronic components and systems. Assessing their specific track record for this particular type of converter would require examining past performance reviews, delivery history, and any documented issues or successes related to similar procurements.

What are the implications of the long performance period (February 2025 - March 2027) for technology obsolescence?

A performance period extending over two years (February 2025 to March 2027) for electronic equipment like a 'converter' carries a moderate risk of technology obsolescence. While not an extremely long duration in defense contracting terms, the pace of technological advancement, particularly in electronics and communications, can be rapid. If the converter is based on cutting-edge technology, there's a possibility that newer, more capable, or more efficient alternatives could emerge during its service life. The government should have contingency plans or clauses in place to address potential obsolescence, such as options for upgrades or replacements, especially if the converter is critical to a system with a longer operational lifespan than the contract period.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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: $11,313,624

Exercised Options: $11,313,624

Current Obligation: $11,313,624

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $4,552,123

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038325DNH01

IDV Type: IDC

Timeline