DoD awards BAE Systems $16.1M for JPALS platform, with 5 years of support

Contract Overview

Contract Amount: $16,135,269 ($16.1M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2021-08-02

End Date: 2026-08-01

Contract Duration: 1,825 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NEW JPALS & FUTURE PLATFORM TASK ORDER AND OBLIGATE FUNDS

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $16.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: NEW JPALS & FUTURE PLATFORM TASK ORDER AND OBLIGATE FUNDS Key points: 1. Contract value represents a significant investment in naval aviation logistics. 2. Competition dynamics suggest a potentially competitive bidding process for this task order. 3. Performance risk may be moderate given the nature of engineering services and platform development. 4. This contract supports critical naval systems, indicating its strategic importance. 5. The engineering services sector is characterized by complex technical requirements and specialized expertise.

Value Assessment

Rating: good

The $16.1 million award for the JPALS and Future Platform Task Order appears reasonable for a 5-year engineering services contract. Benchmarking against similar complex system development and support contracts within the Department of Defense suggests that the pricing is within expected ranges. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility while managing costs, though it requires diligent oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This approach generally fosters a competitive environment, which can lead to better pricing and innovative solutions for the government. The specific number of bidders is not provided, but the designation suggests a robust competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of obtaining the best value through a competitive bidding process, potentially driving down costs and improving service quality.

Public Impact

Naval aviators and support personnel will benefit from improved logistics capabilities. Services delivered include engineering, development, and support for the JPALS and future platforms. The geographic impact is primarily within Department of the Navy operations, potentially worldwide. Workforce implications include specialized engineering and technical roles within BAE Systems and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contracts require careful monitoring to prevent cost overruns.
Long-term contracts can be subject to scope creep if not managed effectively.
Reliance on a single contractor for critical platform support may pose future risks.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
The contract supports a critical naval system, indicating its strategic importance.
The fixed-fee component of the CPFF contract provides some cost certainty.

Sector Analysis

The Department of Defense's engineering services sector is vast, encompassing a wide range of technical support, research, and development activities. This contract fits within the broader category of defense logistics and systems engineering, a market segment characterized by high technical barriers to entry and significant government spending. Comparable spending benchmarks in this area are often in the multi-million to billion-dollar range for major platform development and sustainment.

Small Business Impact

This contract was not specifically set aside for small businesses, and there is no indication of a small business subcontracting plan being a primary focus. The prime contractor, BAE Systems, is a large defense contractor. While large prime contractors often engage small businesses as subcontractors, the direct award does not guarantee small business participation. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Navy contracting and program management offices. Accountability measures are inherent in the CPFF structure, requiring the contractor to justify costs and adhere to the fixed fee. Transparency is typically maintained through contract reporting mechanisms and potential audits by the Defense Contract Audit Agency (DCAA) or the Inspector General.

Related Government Programs

Naval Aviation Logistics Command Information System (NALCOMIS)
Joint Automated Logistics Environment (JALE)
Defense Logistics Agency (DLA) IT Support Contracts
Naval Air Systems Command (NAVAIR) Engineering Services

Risk Flags

Potential for cost overruns in CPFF contract
Long-term reliance on a single vendor for critical systems
Need for robust government oversight of contractor performance and costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. NEW JPALS & FUTURE PLATFORM TASK ORDER AND OBLIGATE FUNDS

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 $16.1 million.

What is the period of performance?

Start: 2021-08-02. End: 2026-08-01.

What is the track record of BAE Systems Technology Solutions & Services Inc. with the Department of Defense for similar engineering services contracts?

BAE Systems Technology Solutions & Services Inc. has a substantial track record with the Department of Defense, frequently securing contracts for engineering, technical support, and system integration services across various branches. They are a major defense contractor known for supporting complex platforms and programs. Their past performance on similar contracts, particularly those involving logistics systems and aviation support, would be a key factor in the evaluation of this specific award. Historical data from contract databases would reveal the volume and nature of their previous work, including any performance issues or commendations, providing context for their ability to execute this new task order effectively.

How does the $16.1 million value compare to previous investments in the JPALS platform or similar logistics systems?

The $16.1 million obligation for the JPALS & Future Platform Task Order represents a significant, but not necessarily unprecedented, investment. The total value of the contract over its potential duration (implied by the 5-year period of performance) needs to be considered in context. Previous investments in the JPALS program, or comparable naval aviation logistics IT systems, would provide a benchmark. Factors such as system upgrades, new platform integration, and evolving technological requirements can influence contract values. Without specific historical data on JPALS sustainment or development costs, it's challenging to definitively state if this amount is high or low, but it aligns with the typical scale of major system support contracts within the DoD.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services like this?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' portion means the government bears the risk of actual costs incurred. This can lead to potential cost overruns if the contractor's estimates are inaccurate or if unforeseen technical challenges arise. The government must implement robust oversight to ensure costs are reasonable and allocable. Contractor incentive is also a consideration; while the fixed fee incentivizes completion, it may not strongly incentivize cost reduction beyond what's necessary to achieve the fee, unlike fixed-price contracts.

What is the expected impact of this contract on the operational readiness of naval aviation units?

This contract is expected to have a positive impact on the operational readiness of naval aviation units by ensuring the continued functionality, development, and potential enhancement of the JPALS and future platform systems. JPALS (Joint Automated Payloads Logistics System) is crucial for managing aircraft parts, maintenance, and supply chain logistics. By obligating funds for task orders and support, the Navy aims to maintain and improve the efficiency and reliability of these critical logistics functions. Enhanced logistics capabilities directly translate to better aircraft availability, reduced downtime, and more efficient deployment cycles, all of which are vital components of operational readiness.

How has spending on engineering services for naval aviation systems evolved over the past five years?

Spending on engineering services for naval aviation systems has generally seen consistent demand, driven by the need to maintain aging fleets, modernize existing platforms, and develop new capabilities. Over the past five years, there has been a continuous requirement for specialized engineering support to address complex challenges in areas like avionics, propulsion, software development, and integrated logistics. While specific figures fluctuate based on program priorities and budget cycles, the overall trend indicates sustained investment in engineering services to ensure the technological superiority and operational effectiveness of naval aviation assets. This particular contract aligns with that ongoing trend.

What does the 'Engineering Services' (NAICS 541330) classification imply about the nature of the work performed under this contract?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' indicates that the primary work performed under this contract involves the application of engineering principles and expertise. This typically includes activities such as design, development, testing, and analysis of systems, equipment, and processes. For this specific contract related to JPALS and future platforms, it suggests that BAE Systems will be engaged in tasks like system architecture design, software engineering, hardware integration, technical documentation, and potentially research and development to improve or create new logistics functionalities for naval aviation.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042120R0119

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

Financial Breakdown

Contract Ceiling: $20,682,609

Exercised Options: $19,489,916

Current Obligation: $16,135,269

Subaward Activity

Number of Subawards: 49

Total Subaward Amount: $6,439,565

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042121D0017

IDV Type: IDC

Timeline