NAWCAD awards $7.08M engineering services contract to BAE Systems for technical support

Contract Overview

Contract Amount: $7,080,294 ($7.1M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2018-09-28

End Date: 2022-09-27

Contract Duration: 1,460 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ESTABLISH TASK ORDER N00421-18-F-1085 FOR NAWCAD TECHNICAL SUPPORT

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $7.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: ESTABLISH TASK ORDER N00421-18-F-1085 FOR NAWCAD TECHNICAL SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. Technical support services are crucial for maintaining complex defense systems. 4. The contract duration of 1460 days (4 years) indicates a long-term need for these services. 5. The awardee, BAE Systems, is a large defense contractor with significant experience. 6. The contract is a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the broader contract it falls under and the specific services rendered. However, the Cost Plus Fixed Fee (CPFF) pricing structure means the government pays the actual costs incurred by the contractor plus a fixed fee. While this can be appropriate for research and development or when costs are uncertain, it requires robust oversight to ensure costs remain reasonable and the fixed fee represents fair profit. Comparing this to similar technical support contracts for NAWCAD would provide better insight into pricing efficiency.

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 bids. The number of bidders is not specified, but this approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the government sought the best value from the widest possible pool of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, maximizing the value of federal dollars.

Public Impact

The Department of the Navy benefits from continued technical support for its systems. This contract supports the Naval Air Warfare Center Aircraft Division (NAWCAD) in its mission. The services provided are essential for the operational readiness of naval aircraft and related systems. The contract is geographically located in Maryland, potentially impacting the local workforce in that region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs and ensure the fixed fee is reasonable.
Lack of specific details on the scope of work makes it difficult to assess the true value for money.
The reliance on a single delivery order under a potentially larger contract vehicle might limit flexibility if needs change significantly.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The contractor, BAE Systems, is a well-established entity with a strong track record in defense contracting.
The contract addresses a clear need for technical support within a critical defense agency.

Sector Analysis

Engineering services, particularly those supporting defense applications, represent a significant segment of the federal contracting market. This contract falls within the broader category of professional, scientific, and technical services. The market for such services is characterized by a mix of large prime contractors and specialized small businesses. Spending in this sector is often driven by the need for specialized expertise to support complex government systems and research and development efforts.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, its direct impact on small business set-asides is nil. However, as a large prime contractor (BAE Systems) is the awardee, there may be subcontracting opportunities for small businesses, depending on the nature of the technical support required. The extent of small business participation would typically be detailed in the subcontracting plan, which is not provided here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and NAWCAD. As a Cost Plus Fixed Fee contract, rigorous financial oversight is necessary to monitor incurred costs and ensure the fixed fee remains appropriate. Transparency is enhanced through contract award databases, but detailed performance metrics and cost breakdowns are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NAWCAD Technical Support Contracts
Department of the Navy Engineering Services
BAE Systems Defense Contracts
Cost Plus Fixed Fee Contracts
Full and Open Competition Awards

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Scope of work details are not provided, limiting detailed value assessment.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. ESTABLISH TASK ORDER N00421-18-F-1085 FOR NAWCAD TECHNICAL SUPPORT

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 $7.1 million.

What is the period of performance?

Start: 2018-09-28. End: 2022-09-27.

What is the specific scope of technical support provided under this delivery order?

The provided data indicates the contract is for 'NAWCAD TECHNICAL SUPPORT' and falls under 'Engineering Services' (NAICS code 541330). However, the precise details of the technical support are not specified in the abbreviated data. This could range from systems engineering, software development support, hardware integration, testing, maintenance, or specialized technical consulting. A more detailed statement of work (SOW) would be required to understand the exact services rendered and their criticality to NAWCAD's mission.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar engineering services?

Cost Plus Fixed Fee contracts are often used when the scope of work is not well-defined or involves significant uncertainty, such as in research and development. For more defined engineering services, fixed-price contracts (like Firm-Fixed-Price or Fixed-Price Incentive) might offer better cost control for the government, as the contractor bears more risk for cost overruns. CPFF requires robust government oversight to ensure costs are reasonable and allocable, and the fixed fee is justified. Compared to time-and-materials or labor-hour contracts, CPFF aims to provide a defined profit margin while allowing for cost flexibility.

What is BAE Systems' track record with NAWCAD and similar defense technical support contracts?

BAE Systems is a major defense contractor with extensive experience supporting various branches of the U.S. military, including the Navy. They have a history of performing complex engineering and technical support services. While this specific delivery order is for $7.08 million, BAE Systems likely holds numerous larger contracts with NAWCAD and other defense agencies. A deeper dive into their contract history with NAWCAD would reveal their performance ratings, any past issues, and their overall success in delivering similar technical support, providing context for their capability and reliability on this award.

What are the potential risks associated with a CPFF contract for technical support?

The primary risk with a CPFF contract is the potential for cost growth, as the contractor is reimbursed for actual costs incurred. Without stringent oversight, there's a risk that costs could escalate beyond what might be expected in a fixed-price scenario. The fixed fee, while negotiated, could also become a disproportionately high profit if costs are managed inefficiently by the contractor. Additionally, defining and controlling the scope of work under CPFF can be challenging, potentially leading to scope creep if not managed carefully by the government contracting officer and technical team.

How does this contract's value compare to other engineering services contracts awarded by the Department of the Navy?

The $7.08 million value of this delivery order is relatively modest when compared to the vast portfolio of contracts awarded by the Department of the Navy, which often includes multi-billion dollar shipbuilding, aircraft procurement, and major system development programs. However, for specialized technical support services, this amount could represent a significant engagement. Benchmarking requires comparing it to other contracts for similar engineering services, with similar scopes of work, and potentially within the same geographic region or for the same platform, which is not possible with the limited data provided.

What is the historical spending trend for engineering services at NAWCAD?

Historical spending trends for engineering services at NAWCAD are likely substantial, given its role in research, development, and acquisition for naval aviation. NAWCAD relies heavily on external expertise for specialized engineering tasks. Annual spending on engineering services can fluctuate based on program priorities, budget allocations, and the lifecycle stage of various aircraft and weapon systems. Without access to historical NAWCAD procurement data, it's difficult to pinpoint specific trends, but it's reasonable to assume consistent and significant investment in these critical support functions over time.

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

Solicitation ID: N0042117R0004

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

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: $7,120,379

Exercised Options: $7,120,379

Current Obligation: $7,080,294

Actual Outlays: $274,736

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $27,899,659

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042118D0059

IDV Type: IDC

Timeline