DoD Awards BAE Systems $90M O&M Tasking Contract for Engineering Services

Contract Overview

Contract Amount: $90,353,673 ($90.4M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2020-04-14

End Date: 2025-04-30

Contract Duration: 1,842 days

Daily Burn Rate: $49.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LABOR - O&M TASKING, ODC OMN

Place of Performance

Location: CALIFORNIA, SAINT MARYS County, MARYLAND, 20619

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $90.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: LABOR - O&M TASKING, ODC OMN Key points: 1. Significant contract value of $90.35M awarded to a large business. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 4. The sector is Engineering Services, a critical component of defense operations.

Value Assessment

Rating: good

The contract value of $90.35M for a 5-year period appears reasonable given the scope of O&M tasking and engineering services. Benchmarking against similar large-scale defense engineering contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust process for soliciting bids. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, benefiting taxpayers by avoiding inflated costs.

Public Impact

Ensures continued operational readiness and maintenance for naval assets. Supports critical engineering functions within the Department of the Navy. Provides long-term employment opportunities within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may incentivize cost overruns.
No small business participation noted, potentially missing opportunities for smaller enterprises.

Positive Signals

Awarded under full and open competition.
Long contract duration provides stability for services.

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for defense readiness and infrastructure maintenance. Spending in this sector is substantial, and competitive awards are crucial for cost efficiency.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. This suggests that the scale and nature of the required services were likely better suited for larger contractors, potentially limiting opportunities for small business participation in this specific award.

Oversight & Accountability

The contract's duration and value suggest it will undergo standard oversight processes within the Department of the Navy to ensure performance and adherence to terms. Regular reporting and performance reviews are expected.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
No small business participation.
Long contract duration (5 years).
Potential for scope creep in O&M tasking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. LABOR - O&M TASKING, ODC OMN

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 $90.4 million.

What is the period of performance?

Start: 2020-04-14. End: 2025-04-30.

What is the typical profit margin for Cost Plus Fixed Fee contracts in defense engineering services, and how does BAE's margin compare?

Profit margins for CPFF contracts in defense engineering can vary but often range from 7-15%. A precise comparison for BAE Systems would require access to the specific contract's negotiated fee structure and profit targets. Without that detailed information, it's difficult to definitively assess if their margin is competitive or excessive.

What are the key performance indicators (KPIs) for this contract, and how will BAE's performance be measured?

Key performance indicators for O&M tasking and engineering services typically include timeliness of task completion, quality of engineering solutions, adherence to budget, and overall system reliability improvements. The Department of the Navy will likely monitor these KPIs through regular progress reports, site inspections, and user feedback to ensure BAE Systems meets contractual obligations effectively.

Are there any specific technological advancements or innovations expected from BAE Systems under this contract?

While the contract focuses on O&M tasking and engineering services, there's an implicit expectation that BAE Systems will leverage current best practices and potentially introduce innovative solutions to improve efficiency and effectiveness. Specific technological advancements would likely be detailed in task orders or require BAE to propose solutions that enhance system performance or reduce lifecycle costs.

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: N0042118R0017

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

Financial Breakdown

Contract Ceiling: $104,769,179

Exercised Options: $104,546,142

Current Obligation: $90,353,673

Actual Outlays: $9,408,971

Subaward Activity

Number of Subawards: 107

Total Subaward Amount: $10,015,291

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042120D0004

IDV Type: IDC

Timeline