DoD Awards BAE Systems $44M Engineering Services Contract Amidst Full and Open Competition

Contract Overview

Contract Amount: $44,056,739 ($44.1M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2021-01-28

End Date: 2026-01-27

Contract Duration: 1,825 days

Daily Burn Rate: $24.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MSE BRANCH (ASI DIVISION WOLF) TASKING

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $44.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: MSE BRANCH (ASI DIVISION WOLF) TASKING Key points: 1. Significant contract value of $44.06 million for engineering services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Contract duration of five years (2021-2026) suggests a long-term need. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar engineering services contracts is crucial to ensure the fixed fee and cost reimbursement are reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing, but the Cost Plus Fixed Fee structure requires diligent oversight to control costs.

Taxpayer Impact: Taxpayer funds are being utilized for engineering services. The competitive nature of the award is a positive sign for cost efficiency, but the contract type necessitates careful monitoring to prevent excessive spending.

Public Impact

Supports critical engineering services for the Department of the Navy. Potential for technological advancements and improvements in naval systems. Ensures continued operational readiness and modernization of defense capabilities. Economic impact through BAE Systems' operations and potential subcontracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type risk
Potential for scope creep
Long-term duration requires sustained oversight

Positive Signals

Full and open competition
Supports critical defense mission
Experienced contractor

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for government operations, particularly in defense. Spending in this sector is often driven by modernization efforts and maintenance of complex systems. Benchmarks vary widely based on specialization and project scope.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. While BAE Systems is a large prime contractor, the extent of small business participation through subcontracting is not detailed here and warrants further investigation.

Oversight & Accountability

The Department of the Navy is responsible for oversight. Given the Cost Plus Fixed Fee structure and the five-year duration, robust contract management and performance monitoring are essential to ensure value for money and prevent potential cost overruns.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Long contract duration
Lack of small business subcontracting details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. MSE BRANCH (ASI DIVISION WOLF) TASKING

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 $44.1 million.

What is the period of performance?

Start: 2021-01-28. End: 2026-01-27.

What is the estimated total cost if the 'cost' portion of the Cost Plus Fixed Fee significantly exceeds initial projections?

The 'cost' portion is variable and depends on the actual expenses incurred by BAE Systems in performing the contract. If these costs significantly exceed projections, the total contract value could rise substantially beyond the initial $44 million estimate. The 'fixed fee' component remains constant, but the government bears the risk of increased direct and indirect costs, necessitating stringent cost controls and audits by the Department of the Navy.

How effectively has BAE Systems managed similar Cost Plus Fixed Fee contracts in the past to mitigate risks?

Assessing BAE Systems' historical performance on similar Cost Plus Fixed Fee contracts is crucial. Past success in managing costs, controlling scope, and delivering on time under such arrangements would indicate a lower risk profile for this contract. Conversely, a history of cost overruns or performance issues would raise concerns about the government's ability to achieve value for money and meet its objectives.

What specific engineering services are included, and how do they align with current and future Department of the Navy modernization priorities?

Understanding the precise nature of the engineering services is key to evaluating effectiveness. If these services directly support critical modernization efforts, such as cybersecurity enhancements, platform upgrades, or new technology integration, the contract's value and impact are likely high. Alignment with strategic goals ensures that taxpayer investment contributes to the Navy's long-term operational advantage and readiness.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042119R0003

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: $45,343,256

Exercised Options: $44,982,164

Current Obligation: $44,056,739

Subaward Activity

Number of Subawards: 62

Total Subaward Amount: $20,419,070

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042121D0001

IDV Type: IDC

Timeline