DoD Awards BAE Systems $13.8M for RIS Tech Support Labor, Engineering Services

Contract Overview

Contract Amount: $13,837,440 ($13.8M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2019-08-23

End Date: 2024-10-31

Contract Duration: 1,896 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: BASE YEAR - RIS TECH SUPPORT LABOR

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: BASE YEAR - RIS TECH SUPPORT LABOR Key points: 1. Significant contract awarded to BAE Systems for critical RIS tech support. 2. Competition method was full and open, suggesting potential for competitive pricing. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is Engineering Services, a common area for government contracting.

Value Assessment

Rating: fair

The contract value of $13.8M over approximately 5 years for tech support labor appears reasonable, but without specific service benchmarks, a precise comparison is difficult. The Cost Plus Fixed Fee structure warrants scrutiny for potential cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can drive competitive pricing. However, the specific pricing discovery mechanisms within this competitive process are not detailed.

Taxpayer Impact: Taxpayer funds are being utilized for essential technology support services. The competitive award aims to ensure value, but the Cost Plus Fixed Fee structure introduces risk to the overall cost efficiency.

Public Impact

Ensures continued technological support for Department of the Navy operations. Supports BAE Systems' role as a key defense contractor. Potential for innovation and efficiency gains through contracted services. Impacts personnel and resources within the Navy's RIS division.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Long duration (approx. 5 years) increases exposure to potential cost growth.
No specific performance metrics or benchmarks provided for evaluation.

Positive Signals

Awarded via full and open competition, promoting market participation.
BAE Systems is a well-established defense contractor.
Contract supports critical Navy technology infrastructure.

Sector Analysis

This contract falls within the Engineering Services sector, which is a significant area of government spending. Benchmarks for similar RIS tech support contracts are highly variable based on scope and duration, making direct comparison challenging.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). Therefore, there is no direct benefit to small businesses from this specific award, and opportunities for subcontracting are not specified.

Oversight & Accountability

Oversight will be crucial given the Cost Plus Fixed Fee structure. The Department of the Navy's contracting officers and program managers are responsible for monitoring performance, costs, and ensuring adherence to contract terms to maintain accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee structure.
Long contract duration.
Lack of specified performance metrics.
Potential for scope creep without clear definition.
Reliance on contractor self-reporting for costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. BASE YEAR - RIS TECH SUPPORT LABOR

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 $13.8 million.

What is the period of performance?

Start: 2019-08-23. End: 2024-10-31.

What specific RIS technologies and services are covered under this contract, and how do they align with current and future Navy operational needs?

The contract specifies 'RIS TECH SUPPORT LABOR' and falls under 'Engineering Services.' Without further detail, it's presumed to cover maintenance, upgrades, and operational support for the Navy's information and communication systems. Alignment with future needs would depend on the specific scope of work and any built-in flexibility for evolving technological requirements.

How will the Cost Plus Fixed Fee structure be managed to mitigate the risk of cost overruns and ensure optimal value for taxpayer funds?

Effective management of a Cost Plus Fixed Fee contract requires robust oversight, detailed cost tracking, and clear definition of allowable costs. The Navy must actively monitor BAE Systems' expenditures, validate incurred costs against the fixed fee, and enforce contract clauses that limit profit and prevent unnecessary spending to ensure value.

What performance metrics or Key Performance Indicators (KPIs) are in place to measure the effectiveness and efficiency of BAE Systems' technical support?

The provided data does not specify any performance metrics or KPIs. Effective oversight would necessitate the establishment of clear, measurable indicators related to response times, system uptime, issue resolution rates, and user satisfaction to objectively assess the contractor's performance and the contract's overall effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042117R0003

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie DE Developpement DE L'eau S.A.

Address: 520 GAITHER RD, 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: $14,125,890

Exercised Options: $14,125,890

Current Obligation: $13,837,440

Actual Outlays: $3,705,756

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $5,300,130

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042119D0055

IDV Type: IDC

Timeline