DoD Awards BAE Systems $16.5M Task Order for Engineering Services Under Full and Open Competition

Contract Overview

Contract Amount: $16,495,931 ($16.5M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2025-09-27

Contract Duration: 1,823 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Official Description: TASK ORDER ESTABLISHED AND INCREMENTAL FUNDING

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: TASK ORDER ESTABLISHED AND INCREMENTAL FUNDING Key points: 1. Significant contract value of $16.5 million awarded. 2. Competition was full and open, indicating a competitive bidding process. 3. Risk appears moderate given the task order nature and fixed fee structure. 4. Engineering Services sector is critical for defense operations.

Value Assessment

Rating: good

The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility while capping profit. The benchmark for similar engineering services contracts varies widely, but this award appears reasonable given the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to sole-source or limited competition.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more efficient use of funds for the engineering services provided.

Public Impact

Supports critical Department of the Navy engineering and technical services. BAE Systems, a major defense contractor, will perform the work. Task order extends through September 2025, ensuring continuity of services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee (CPFF) can sometimes lead to cost overruns if not managed tightly.
  • Long duration (1823 days) requires ongoing performance monitoring.

Positive Signals

  • Full and open competition is a strong positive signal.
  • Award to a reputable contractor with relevant expertise.

Sector Analysis

This award falls within the Engineering Services sector, which is crucial for defense agencies requiring specialized technical expertise. Spending in this sector is consistently high due to the complexity of defense systems.

Small Business Impact

The contract was awarded under full and open competition, and there is no indication of specific set-asides for small businesses. The prime contractor, BAE Systems, is a large business.

Oversight & Accountability

The task order structure implies oversight by the Department of the Navy. The CPFF contract type necessitates careful monitoring of costs and performance to ensure value for money.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee (CPFF) contract type.
  • Long contract duration.
  • No specific small business participation noted.
  • Task order awarded to a large prime contractor.

Tags

engineering-services, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. TASK ORDER ESTABLISHED AND INCREMENTAL FUNDING

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 $16.5 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-09-27.

What specific engineering services are included in this task order, and how do they align with the Department of the Navy's strategic objectives?

The task order focuses on engineering services, likely encompassing design, development, testing, and integration of systems for the Department of the Navy. These services are crucial for maintaining and modernizing naval assets, ensuring operational readiness and technological superiority in line with strategic defense goals.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this task order?

The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed plus a fixed fee. However, the government's oversight and the fixed fee component mitigate this by limiting the contractor's profit, requiring diligent monitoring of expenditures and performance.

How does the pricing of this task order compare to similar engineering services contracts awarded by the Department of Defense?

Without specific details on the scope of work and labor categories, a precise comparison is difficult. However, the award was made under full and open competition, suggesting competitive pricing. Benchmarking against similar contracts would require access to detailed cost data and service descriptions.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: MODIFICATION OF EQUIPMENTMODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042119R0105

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: $17,391,254

Exercised Options: $17,391,254

Current Obligation: $16,495,931

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0042120D0117

IDV Type: IDC

Timeline

Start Date: 2020-09-30

Current End Date: 2025-09-27

Potential End Date: 2025-09-27 00:00:00

Last Modified: 2025-06-03

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