DoD Awards BAE Systems $30.3M Engineering Services Contract with Fixed Fee

Contract Overview

Contract Amount: $30,353,126 ($30.4M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2021-01-15

End Date: 2026-01-14

Contract Duration: 1,825 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LABOR - PROC

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $30.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: LABOR - PROC Key points: 1. Contract awarded to BAE Systems for engineering services. 2. Significant value of $30.3 million over 5 years. 3. Full and open competition was utilized. 4. Cost Plus Fixed Fee pricing structure. 5. Contract supports the Department of the Navy.

Value Assessment

Rating: good

The Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully. However, the fixed fee component provides some predictability. Benchmarking against similar engineering services contracts is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition generally leads to better price discovery and potentially lower costs for the government. This method allows all qualified vendors to bid, fostering a competitive environment.

Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value through market forces.

Public Impact

Supports critical Navy engineering and technical services. Potential for technology advancements through engineering solutions. Economic impact through BAE Systems' operations and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing risk
Long-term contract duration

Positive Signals

Full and open competition
Supports Department of Defense

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense and infrastructure projects. Spending in this sector is often substantial, driven by complex government requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large corporation. There is no direct indication of small business participation within this specific award.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The fixed fee component of the contract provides a degree of accountability for performance and cost control.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee pricing
Long contract duration (5 years)
Potential for scope creep
Reliance on a single large contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. LABOR - PROC

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 $30.4 million.

What is the period of performance?

Start: 2021-01-15. End: 2026-01-14.

What specific engineering services are included in this contract, and how do they align with current Navy modernization priorities?

The contract specifies engineering services under NAICS code 541330. While the exact services are not detailed here, they likely encompass design, analysis, testing, and technical support for naval systems and platforms. Alignment with modernization priorities would require further investigation into the specific task orders issued under this contract.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure in this contract?

The CPFF structure carries risks of cost overruns if the contractor's actual costs exceed estimates, although the fixed fee provides a ceiling on profit. Inefficient performance by the contractor could lead to higher costs without a corresponding increase in the government's benefit, necessitating robust oversight to ensure value.

How does the competitive landscape for engineering services contracts of this magnitude typically influence pricing and innovation?

Full and open competition generally drives down prices and encourages innovation as contractors vie for the award. For large contracts like this, multiple bidders are expected, leading to a more robust price discovery process and potentially better technological solutions being offered to meet the government's needs.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042118R0032

Offers Received: 1

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: $44,452,144

Exercised Options: $44,239,706

Current Obligation: $30,353,126

Subaward Activity

Number of Subawards: 50

Total Subaward Amount: $18,990,382

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042119D0035

IDV Type: IDC

Timeline