DoD Awards BAE Systems $65.8M for Naval Air Warfare Center Engineering Services

Contract Overview

Contract Amount: $65,834,551 ($65.8M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2001-05-30

End Date: 2010-11-22

Contract Duration: 3,463 days

Daily Burn Rate: $19.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Official Description: 200110!003287!1700!A8104 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042101C0169 !A!N!*!N! !20010530!20060531!103933453!876861790!217304393!N!BAE SYSTEMS APPLIED TECHNOLOGI!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!67675!031!24!ROCKVILLE !MONTGOMERY !MARYLAND !+000000522332!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!*!*!3! ! ! !*!*!*!B!*!*!A! !A !N!U!2!001!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!A!N! ! ! ! ! ! !0001!

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $65.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: 200110!003287!1700!A8104 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042101C0169 !A!N!*!N! !20010530!20060531!103933453!876861790!217304393!N!BAE SYSTEMS APPLIED TECHNOLOGI!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!67675!031!24!ROCKVILLE !MONTG… Key points: 1. Contract awarded to BAE Systems for engineering and technical services. 2. The contract has a duration of approximately 9.5 years. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is primarily IT and Engineering Services, with potential for broader defense applications.

Value Assessment

Rating: fair

The contract value is $65.8 million over nearly a decade. Without specific task orders or detailed cost breakdowns, it's difficult to assess the per-unit cost effectiveness against similar contracts. The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing, though the specific impact depends on the number and quality of bids received.

Taxpayer Impact: While competition is generally beneficial for taxpayers, the long duration and cost-plus nature of this contract warrant close monitoring to ensure funds are used efficiently and effectively.

Public Impact

Supports critical naval aviation research and development. Potential impact on technological advancements in defense. Job creation in Maryland's technology and engineering sectors. Ensures continued operational readiness for naval air systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration increases risk of scope creep and cost escalation.
Cost-plus contract type can incentivize higher spending if not strictly managed.
Lack of specific performance metrics makes it hard to gauge true value.

Positive Signals

Full and open competition suggests potential for competitive pricing.
Award to a known defense contractor like BAE Systems indicates established capability.
Long-term nature provides stability for critical naval programs.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a broad category often involving specialized technical expertise. Spending in this sector is crucial for defense readiness and technological innovation, with benchmarks varying widely based on the specific services and complexity.

Small Business Impact

While the primary awardee is BAE Systems, a large defense contractor, the 'full and open' competition clause theoretically allows for small business participation through subcontracting. However, the data does not specify the extent of small business involvement.

Oversight & Accountability

Oversight is critical for long-term, cost-plus contracts. The Department of the Navy is responsible for monitoring BAE Systems' performance and expenditures to ensure adherence to contract terms and prevent waste.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration (approx. 9.5 years).
Cost-Plus Fixed Fee (CPFF) contract type.
Lack of detailed service scope in summary data.
Potential for cost overruns and scope creep.
Limited insight into specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. 200110!003287!1700!A8104 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042101C0169 !A!N!*!N! !20010530!20060531!103933453!876861790!217304393!N!BAE SYSTEMS APPLIED TECHNOLOGI!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!67675!031!24!ROCKVILLE !MONTGOMERY !MARYLAND !+000000522332!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!*!*!3! ! ! !*!*!*!B!*!*!A!

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $65.8 million.

What is the period of performance?

Start: 2001-05-30. End: 2010-11-22.

What specific engineering and technical services are covered under this contract, and how do they align with current naval aviation needs?

The contract specifies 'ENGINEERING TECHNICAL SERVICES' (PSC R425). While the exact scope isn't detailed, these services typically encompass design, analysis, testing, and integration for complex systems. For naval aviation, this likely includes support for aircraft platforms, weapons systems, avionics, and related infrastructure, ensuring continued operational capability and modernization efforts.

How effectively did the 'full and open competition' process ensure competitive pricing given the long contract duration and cost-plus structure?

Full and open competition is designed to solicit the best value. However, the 'Cost Plus Fixed Fee' structure, combined with a long duration (over 9 years), presents challenges. While initial bids were likely competitive, the potential for cost growth over time necessitates robust oversight to ensure the fixed fee remains appropriate and taxpayer funds are not unduly burdened by inefficiencies.

What are the key performance indicators (KPIs) used to measure the effectiveness and value delivered by BAE Systems under this contract?

The provided data does not detail specific Key Performance Indicators (KPIs). Effective measurement would typically involve metrics related to on-time delivery of services, adherence to technical specifications, successful system integration, cost control within approved budgets, and overall contribution to naval aviation program objectives. Without these, assessing true effectiveness is challenging.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline