DoD Awards $17.6M Engineering Services Contract to BAE Systems via Full and Open Competition

Contract Overview

Contract Amount: $17,590,042 ($17.6M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2019-02-28

End Date: 2024-11-18

Contract Duration: 2,090 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IGF::OT::IGF Key points: 1. Contract Value: $17.6 million over approximately 5.7 years. 2. Competition: Awarded under full and open competition, indicating a competitive bidding process. 3. Risk: Moderate risk due to Cost Plus Fixed Fee (CPFF) pricing structure. 4. Sector: Engineering Services within the Defense sector.

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple bidders had the opportunity to compete. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award is expected to yield fair market value for the engineering services provided, benefiting taxpayers.

Public Impact

Supports critical engineering services for the Department of the Navy. Potential for technological advancements through BAE Systems' expertise. Ensures continued operational readiness for naval assets.

Waste & Efficiency Indicators

Waste Risk Score: 84 / 10

Warning Flags

CPFF pricing structure requires diligent oversight to control costs.
Long contract duration (approx. 5.7 years) necessitates ongoing performance monitoring.

Positive Signals

Awarded via full and open competition.
Experienced contractor (BAE Systems) likely to deliver quality services.
Contract supports essential defense functions.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the defense industry. Spending in this area is often driven by complex system development, maintenance, and modernization needs.

Small Business Impact

The data does not indicate any specific subcontracting goals for small businesses on this contract. Further review would be needed to assess potential small business participation.

Oversight & Accountability

The contract is a delivery order under a larger contract, implying that oversight mechanisms are likely in place. However, the CPFF structure necessitates robust government oversight to manage costs and ensure performance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns.
Long contract duration requires sustained oversight.
Potential for scope creep if not managed tightly.
Reliance on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IGF::OT::IGF

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 $17.6 million.

What is the period of performance?

Start: 2019-02-28. End: 2024-11-18.

What is the historical performance of BAE Systems on similar Cost Plus Fixed Fee contracts with the Department of Defense?

BAE Systems has a long history of performing on DoD contracts, including those with CPFF structures. Their past performance data, available through government databases like the Contractor Performance Assessment Reporting System (CPARS), would provide insights into their track record regarding cost control, schedule adherence, and technical execution on similar engagements. Analyzing this data is crucial for assessing the risk associated with this specific award.

How does the fixed fee component of this CPFF contract compare to industry benchmarks for similar engineering services?

The fixed fee is a critical element of a CPFF contract, representing the contractor's profit. Benchmarking this fee against industry standards for comparable engineering services, considering the complexity and scope of work, is essential. A fee significantly above or below the norm could indicate potential issues with the pricing strategy, either overpaying the contractor or potentially incentivizing lower quality work if the fee is too low.

What specific engineering services are covered under this delivery order, and how do they align with the Department of the Navy's current strategic priorities?

Understanding the precise nature of the engineering services procured is vital. This includes identifying whether they relate to new system development, sustainment, modernization, or research. Aligning these services with the Navy's strategic objectives, such as fleet readiness, technological superiority, or cybersecurity enhancements, helps justify the expenditure and ensures the contract contributes effectively to national defense 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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042116R0026

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,619,597

Exercised Options: $17,619,597

Current Obligation: $17,590,042

Actual Outlays: $1,265,217

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $18,697,148

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042119D0033

IDV Type: IDC

Timeline