DoD's $83.9M BAE Systems Contract for CE Platforms Bridge Services Raises Questions on Competition and Value

Contract Overview

Contract Amount: $83,898,648 ($83.9M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2017-02-24

End Date: 2019-09-01

Contract Duration: 919 days

Daily Burn Rate: $91.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF SERVICES PROVIDED FOR CE PLATFORMS BRIDGE CONTRACT.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $83.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IGF::OT::IGF SERVICES PROVIDED FOR CE PLATFORMS BRIDGE CONTRACT. Key points: 1. Significant spending on engineering services for CE platforms. 2. Sole-source award to BAE Systems suggests limited competition. 3. Contract type (Cost Plus Fixed Fee) can lead to cost overruns. 4. Lack of small business participation noted.

Value Assessment

Rating: questionable

The $83.9 million contract awarded to BAE Systems for CE Platform Bridge Services lacks clear justification for its cost. Without competitive bidding, it's difficult to benchmark pricing against similar services, raising concerns about whether the government received the best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition on this $83.9 million contract means taxpayers may have paid a premium, as there was no incentive for BAE Systems to offer the most cost-effective solution.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The long duration (919 days) of this bridge contract warrants scrutiny. Limited transparency into the necessity of a sole-source award for engineering services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
No small business participation
High contract value without competition

Positive Signals

Contract completed within its period of performance

Sector Analysis

The $83.9 million spent on engineering services for CE platforms falls within the broader IT and Defense sectors. Benchmarks for similar sole-source engineering contracts are difficult to establish, but the lack of competition is a common concern across government IT and defense procurements.

Small Business Impact

The contract data indicates no small business participation (sb: false). This suggests that opportunities for small businesses to contribute to this significant engineering services contract were missed, potentially limiting innovation and economic benefits for smaller enterprises.

Oversight & Accountability

The sole-source nature of this contract raises questions about the oversight applied during the procurement process. Further review is needed to understand why competitive procedures were bypassed and if adequate justification was documented.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
Cost-plus contract type
No small business participation
High value sole-source award
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $83.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IGF::OT::IGF SERVICES PROVIDED FOR CE PLATFORMS BRIDGE 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 $83.9 million.

What is the period of performance?

Start: 2017-02-24. End: 2019-09-01.

What was the specific justification for awarding this $83.9 million contract on a sole-source basis instead of conducting a competitive procurement?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this information, it's impossible to assess the validity of bypassing competition.

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

CPFF contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. While it shifts some risk to the government regarding cost overruns, it can incentivize contractors to incur higher costs to increase the fee base. This structure requires robust government oversight to ensure costs remain reasonable and the fixed fee is appropriate.

What specific CE platforms were supported by this bridge contract, and what is the long-term strategy for their sustainment?

The data does not specify the exact CE platforms supported by this contract. Understanding the specific systems is crucial for assessing the necessity of the bridge contract and evaluating the long-term sustainment strategy. Without this context, it's difficult to determine if this expenditure aligns with broader modernization or operational goals.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $88,017,211

Exercised Options: $88,017,211

Current Obligation: $83,898,648

Actual Outlays: $-0

Subaward Activity

Number of Subawards: 230

Total Subaward Amount: $42,495,166

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline