DoD Awards BAE Systems $54.9M for Engineering Services Under Full and Open Competition

Contract Overview

Contract Amount: $54,875,973 ($54.9M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2020-02-01

End Date: 2024-10-31

Contract Duration: 1,734 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROC LABOR

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $54.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: PROC LABOR Key points: 1. Significant contract value of $54.9 million awarded to a major defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans nearly five years, indicating a long-term need for services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may present cost control challenges.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure costs remain reasonable and aligned with the fixed fee. Benchmarking against similar engineering service contracts is crucial for validating pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified vendors to bid, theoretically driving down costs and ensuring the government receives competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the engineering services procured.

Public Impact

Supports critical Department of the Navy engineering and technical requirements. Long-term contract duration provides stability for service delivery and workforce planning. Potential for innovation and efficiency gains through competitive contractor solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not managed diligently.
Long contract duration increases exposure to potential scope creep or changing requirements.

Positive Signals

Full and open competition promotes a competitive market.
Clear contract end date provides a defined period for service delivery.

Sector Analysis

This contract falls within the Engineering Services sector, which is a critical component of defense spending. Benchmarks for similar large-scale engineering contracts often range from tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

The contract was awarded to BAE Systems Technology Solutions & Services Inc., a large defense contractor. There is no indication that small businesses were significantly involved in this specific award, though they may be subcontractors.

Oversight & Accountability

The Department of Defense, specifically the Department of the Navy, is responsible for oversight. The CPFF structure necessitates robust oversight to manage costs and ensure performance objectives are met within the agreed-upon fee.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure.
Long contract duration (nearly 5 years).
Potential for cost overruns.
Lack of explicit small business participation mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. PROC 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 $54.9 million.

What is the period of performance?

Start: 2020-02-01. End: 2024-10-31.

What specific engineering services are being procured, and how do they align with current defense priorities?

The contract is for general engineering services (NAICS 541330). While the specific tasks are not detailed here, such services typically encompass design, analysis, testing, and technical support for complex defense systems. Alignment with priorities would depend on the Navy's current shipbuilding, modernization, or operational support needs.

What are the key performance indicators (KPIs) and how will contractor performance be measured to ensure value for money?

Performance measurement under a CPFF contract typically involves tracking technical progress, adherence to schedules, and cost control against the estimated cost. Specific KPIs would be detailed in the contract's Statement of Work (SOW), focusing on deliverables, quality standards, and responsiveness to Navy requirements.

How will the government ensure cost reasonableness throughout the contract's duration, given the CPFF structure?

The government will ensure cost reasonableness through regular audits, review of contractor incurred cost submissions, and comparison against established benchmarks. The contracting officer's representative (COR) will play a crucial role in monitoring expenditures and ensuring all costs are allowable, allocable, and reasonable in relation to the work performed.

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: N0042119R0082

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: $55,900,032

Exercised Options: $55,900,032

Current Obligation: $54,875,973

Actual Outlays: $163,350

Subaward Activity

Number of Subawards: 97

Total Subaward Amount: $10,941,178

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0042120D0003

IDV Type: IDC

Timeline