DoD's $63M BAE Systems Contract for Engineering Services: Full and Open Competition
Contract Overview
Contract Amount: $63,192,225 ($63.2M)
Contractor: BAE Systems Technology Solutions & Services Inc.
Awarding Agency: Department of Defense
Start Date: 2014-07-31
End Date: 2017-02-28
Contract Duration: 943 days
Daily Burn Rate: $67.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: IGF::OT::IGF CREATION OF MIRROR CONTRACT.
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $63.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IGF::OT::IGF CREATION OF MIRROR CONTRACT. Key points: 1. Contract awarded to BAE Systems Technology Solutions & Services Inc. for $63.2M. 2. Utilized full and open competition, suggesting a competitive bidding process. 3. Contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 4. The engineering services sector is broad, with benchmarks varying significantly by specialty.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs if not managed closely. Benchmarking CPFF contracts in engineering services is challenging due to variable scope and overhead.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the CPFF structure means the final price is not fixed upfront, potentially impacting the ultimate cost savings.
Taxpayer Impact: While competition was present, the CPFF structure introduces uncertainty in the final taxpayer cost. Effective oversight is crucial to ensure value for money.
Public Impact
Taxpayers may face higher costs due to the CPFF structure, despite competitive bidding. The contract supports critical engineering services for the Department of the Navy. Long contract duration (943 days) implies a significant, ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize cost overruns.
- Lack of specific performance metrics or outcomes makes value assessment difficult.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Contract supports a major defense agency.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330). Spending in this sector is substantial across government, with costs heavily influenced by the specific engineering discipline and project complexity.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss=false, sb=false). There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The contract type (CPFF) necessitates robust oversight to manage costs and ensure performance. Details on specific oversight mechanisms or audits are not provided in the data.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Lack of detailed performance data.
- No small business participation noted.
- Broad service category limits specific analysis.
Tags
engineering-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IGF::OT::IGF CREATION OF MIRROR CONTRACT.
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 $63.2 million.
What is the period of performance?
Start: 2014-07-31. End: 2017-02-28.
What was the final cost compared to the initial estimate, and how did the fixed fee component compare to industry standards for similar services?
The provided data does not include the final cost or a breakdown of the fixed fee. Benchmarking the fixed fee against industry standards for CPFF engineering contracts would require detailed analysis of contract terms, scope of work, and prevailing market rates at the time of award.
What specific engineering services were provided, and were there any performance issues or cost overruns during the contract period?
The data only specifies 'Engineering Services' broadly. Without a detailed statement of work or performance reports, it's impossible to assess the specific services rendered or identify any performance issues or cost overruns. The contract duration of 943 days suggests a substantial project.
How effectively did the full and open competition process ensure competitive pricing given the Cost Plus Fixed Fee structure?
Full and open competition is designed to maximize the number of potential bidders, which generally promotes competitive pricing. However, the CPFF structure means the final price is not fixed, making it harder to gauge the ultimate cost-effectiveness achieved through competition alone. Strong negotiation and oversight are still critical.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC
Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $71,143,735
Exercised Options: $71,143,735
Current Obligation: $63,192,225
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-07-31
Current End Date: 2017-02-28
Potential End Date: 2017-02-28 00:00:00
Last Modified: 2023-01-17
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