Navy Awards BAE Systems $20.3M for Engineering Services Under Full and Open Competition

Contract Overview

Contract Amount: $20,343,848 ($20.3M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2021-05-04

End Date: 2026-05-03

Contract Duration: 1,825 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: EXCOMM NAVY AND MARINE CORPS TASK ORDER

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: EXCOMM NAVY AND MARINE CORPS TASK ORDER Key points: 1. Significant contract value of $20.3 million awarded to a major defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risk associated with cost-plus fixed-fee contract type, which can incentivize higher costs. 4. Engineering services sector is critical for defense modernization and operational readiness.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs compared to fixed-price contracts if not managed closely. Benchmarking against similar engineering services contracts is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes competitive pricing and allows for the best value to be determined.

Taxpayer Impact: The use of full and open competition is positive for taxpayers as it aims to secure the most competitive pricing. However, the CPFF structure requires diligent oversight to ensure cost efficiency.

Public Impact

Ensures continued engineering support for Navy and Marine Corps operations. Supports technological advancements and maintenance of critical defense systems. Impacts the defense industrial base and employment within the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Long contract duration (5 years) increases exposure to potential inefficiencies.
Lack of specific performance metrics in provided data.

Positive Signals

Awarded under full and open competition.
Contract supports critical defense needs.
Experienced contractor selected.

Sector Analysis

This contract falls within the Engineering Services sector, a vital component of the defense industry. Spending in this area is benchmarked against the overall defense budget and specific program requirements.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. The prime contractor is a large business, suggesting limited direct opportunities for small businesses through this specific award.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The CPFF contract type necessitates robust monitoring of costs and performance to ensure accountability and prevent waste.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Overruns
Scope Creep
Contractor Performance Issues
Lack of Measurable Outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. EXCOMM NAVY AND MARINE CORPS TASK ORDER

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 $20.3 million.

What is the period of performance?

Start: 2021-05-04. End: 2026-05-03.

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

The contract is for general engineering services. A detailed breakdown of the specific services is crucial to understand their alignment with current defense priorities, such as modernization of naval platforms, cybersecurity enhancements, or development of new defense technologies. Without this detail, it's difficult to fully assess the strategic value.

How will the government ensure cost control and prevent potential overruns with a Cost Plus Fixed Fee contract?

Effective oversight is paramount. The government must implement rigorous cost tracking, regular audits, and performance reviews. Establishing clear milestones and deliverables, along with strong negotiation tactics for the fixed fee component, will be essential to manage costs and ensure the contractor remains incentivized for efficiency.

What mechanisms are in place to measure the effectiveness and impact of these engineering services on Navy and Marine Corps readiness?

Measuring effectiveness requires defining key performance indicators (KPIs) tied to operational readiness, system uptime, or successful project completion. Regular performance evaluations against these KPIs, coupled with feedback from end-users within the Navy and Marine Corps, will provide insights into the actual impact and value derived from the services.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042118R0072

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: $27,116,351

Exercised Options: $25,546,769

Current Obligation: $20,343,848

Actual Outlays: $8,512,892

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $4,431,249

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0042121D0018

IDV Type: IDC

Timeline