Naval Air Warfare Center contract for engineering services awarded to BAE Systems Applied Technologies for over $114 million

Contract Overview

Contract Amount: $114,232,150 ($114.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2003-05-01

End Date: 2008-04-30

Contract Duration: 1,826 days

Daily Burn Rate: $62.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200308!000331!1700!A8102 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042103C0035 !A!N! !N! !20030501!20040430!103933453!876861790!217304393!N!BAE SYSTEMS APPLIED TECHNOLOGI!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!69525!037!24!ST. INIGOES !ST. MARY S !MARYLAND !+000001977343!N!N!000117814176!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!U!2!001!B! !C!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! !Y! ! !0001! !

Place of Performance

Location: SAINT INIGOES, ST. MARY'S County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $114.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: 200308!000331!1700!A8102 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042103C0035 !A!N! !N! !20030501!20040430!103933453!876861790!217304393!N!BAE SYSTEMS APPLIED TECHNOLOGI!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!69525!037!24!ST. INIGOES !ST. M… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is 5 years, indicating a long-term need for these services. 4. The primary place of performance is St. Inigoes, Maryland, suggesting a focus on domestic operations. 5. The contractor, BAE Systems, is a major defense contractor with a significant presence in the industry. 6. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services, a critical support function for defense operations.

Value Assessment

Rating: fair

The total value of this contract is over $114 million, awarded to BAE Systems Applied Technologies. Benchmarking this against similar contracts for engineering services within the Department of Defense is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type, while common in R&D and complex services, carries inherent risks of cost escalation. The fixed fee component provides some incentive for the contractor to control costs, but the government bears the risk of actual costs exceeding estimates. Further analysis would require comparing the fee structure and total costs to similar CPFF contracts for comparable engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The number of bidders is not explicitly stated in the provided data, but the designation suggests a competitive process was intended. Full and open competition is generally expected to yield better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A competitive award process for this significant contract is beneficial for taxpayers, as it aims to ensure the government receives the best value by encouraging multiple companies to offer their services at competitive rates.

Public Impact

The primary beneficiary of this contract is the Naval Air Warfare Center, which receives essential engineering and technical services. Services delivered include engineering and technical support crucial for naval aviation programs. The geographic impact is centered around St. Inigoes, Maryland, where the primary place of performance is located. The contract supports a workforce of engineers and technical specialists, contributing to employment in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored, as the government bears the risk of actual costs.
Lack of specific details on the scope of 'engineering technical services' makes it difficult to assess the true value for money and potential for scope creep.
The contract duration of 5 years (1826 days) is substantial, increasing the potential for cost increases over time if inflation or unforeseen technical challenges arise.

Positive Signals

Awarded through 'full and open competition,' which typically fosters competitive pricing and ensures a broad range of capable contractors can participate.
BAE Systems is a well-established defense contractor with a proven track record, suggesting a lower risk of performance failure.
The contract specifies a fixed fee, which provides some level of cost certainty for the contractor's profit margin.

Sector Analysis

This contract falls within the Defense sector, specifically supporting naval aviation capabilities. The Engineering Services category (NAICS 541330) is a significant component of defense spending, encompassing a wide range of technical support, design, and development activities. The market for these services is dominated by large defense contractors like BAE Systems, with significant government contracts awarded annually. Comparable spending benchmarks would involve looking at other large-scale engineering support contracts awarded by the Department of Defense to similar firms.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it is possible that subcontracting opportunities may exist for small businesses within the ecosystem. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business sector is not immediately apparent from this data alone.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Naval Air Systems Command (NAVAIR) and the Department of Defense's contracting and financial management offices. Accountability measures would be embedded in the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, where basic award information is made public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Engineering Services
Cost Plus Fixed Fee Contracts
Defense Contractor Support Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Lack of detailed service scope makes value assessment difficult.
Long contract duration increases potential for cost escalation over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $114.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. 200308!000331!1700!A8102 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042103C0035 !A!N! !N! !20030501!20040430!103933453!876861790!217304393!N!BAE SYSTEMS APPLIED TECHNOLOGI!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!69525!037!24!ST. INIGOES !ST. MARY S !MARYLAND !+000001977343!N!N!000117814176!R425!ENGINEERING TECHNICAL SERVICES !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 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 $114.2 million.

What is the period of performance?

Start: 2003-05-01. End: 2008-04-30.

What is the historical spending pattern for engineering services at the Naval Air Warfare Center, and how does this contract compare?

Analyzing historical spending patterns for engineering services at the Naval Air Warfare Center (NAWC) requires access to detailed procurement data over multiple fiscal years. Without that specific historical data, it's difficult to definitively state how this $114 million contract compares. However, contracts of this magnitude for engineering and technical services are not uncommon within major defense organizations like NAWC, which rely heavily on specialized expertise for research, development, testing, and evaluation of complex systems. The duration of this contract (5 years) suggests a sustained need, and its value reflects the significant resources required for advanced engineering support in the defense sector. A comprehensive comparison would involve identifying trends in contract values, types (e.g., CPFF vs. FFP), and the number of competitors for similar NAWC engineering services over time.

What specific engineering services are covered under this contract, and what is the breakdown of costs?

The provided data identifies the contract's purpose as 'ENGINEERING TECHNICAL SERVICES' under NAICS code 541330. However, it does not detail the specific types of engineering services rendered (e.g., systems engineering, software engineering, mechanical design, testing, analysis). Similarly, the breakdown of costs, such as the allocation between direct labor, indirect costs, materials, and the fixed fee, is not provided. The contract type is 'COST PLUS FIXED FEE' (CPFF), meaning the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Understanding the specific services and cost breakdown would require reviewing the contract's statement of work (SOW) and detailed financial exhibits, which are not included in the summary data.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract potentially impact cost control and contractor performance?

The Cost Plus Fixed Fee (CPFF) contract structure means the government agrees to pay the contractor for all legitimate, allowable costs incurred, plus a fixed amount for profit (the fee). This structure is often used when the scope of work is not well-defined or involves significant uncertainty, such as research and development or complex technical services. For cost control, the government bears the primary risk of cost overruns; if the contractor's costs exceed estimates, the government pays them. However, the fixed fee provides the contractor with an incentive to manage costs efficiently, as their profit is capped regardless of how low they bring the costs. Contractor performance is influenced by the need to meet technical requirements and delivery schedules to justify the costs incurred and earn the fixed fee. Robust government oversight, including detailed cost monitoring and performance reviews, is crucial to mitigate risks associated with CPFF contracts.

What is BAE Systems Applied Technologies' track record with similar government contracts, particularly with the Department of the Navy?

BAE Systems Applied Technologies, as part of the larger BAE Systems conglomerate, has a substantial track record of performing complex engineering and technical services for the Department of Defense, including the Department of the Navy. While specific performance metrics for this particular contract (N0042103C0035) are not detailed in the summary data, BAE Systems is a major defense contractor known for its capabilities in areas such as aerospace, electronics, and information technology. Their history includes numerous large-scale contracts across various military branches. A thorough assessment of their track record would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past performance issues or disputes, and their success in delivering similar services on time and within budget on other government contracts.

Are there any identified risks or concerns associated with this specific contract award or the contractor?

Based on the provided summary data, the primary identified risk associated with this contract is the Cost Plus Fixed Fee (CPFF) structure itself. CPFF contracts inherently carry a risk of cost growth, as the government is obligated to cover all allowable costs, potentially exceeding initial estimates. Without detailed performance data or specific risk assessments tied to this award, it's difficult to pinpoint other unique risks. Regarding the contractor, BAE Systems is a large, established entity, which generally implies a lower risk of contractor failure compared to smaller firms. However, risks could emerge related to specific technical challenges, program management effectiveness, or potential cost overruns if oversight is insufficient. Further risk assessment would require examining the contract's statement of work, performance history, and any specific risk mitigation plans developed during the procurement process.

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