BAE Systems awarded $20.3M for antenna systems, with a 2029 end date

Contract Overview

Contract Amount: $20,270,074 ($20.3M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2021-12-30

End Date: 2029-05-31

Contract Duration: 2,709 days

Daily Burn Rate: $7.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ANTENNA SYSTEMS

Place of Performance

Location: GREENLAWN, SUFFOLK County, NEW YORK, 11740

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: ANTENNA SYSTEMS Key points: 1. Contract awarded to a single vendor suggests potential for limited competition. 2. The firm-fixed-price structure aims to control costs for the government. 3. A long contract duration may indicate a need for sustained support or development. 4. The award falls within the wireless communications equipment manufacturing sector. 5. Performance will be monitored by the Department of the Navy. 6. The contract value is substantial for specialized antenna systems.

Value Assessment

Rating: fair

The contract value of $20.3 million for antenna systems appears reasonable given the specialized nature of the equipment and the long performance period extending to May 2029. Without specific details on the exact specifications of the antenna systems or comparable contract data for similar advanced systems, a precise value-for-money assessment is challenging. However, the firm-fixed-price contract type is a positive indicator for cost control. Benchmarking against other Department of Defense contracts for similar electronic warfare or communication systems would provide further insight into pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when there are urgent needs that preclude a competitive process. The lack of competition means the government did not benefit from a bidding process that could drive down prices through market forces. The justification for a sole-source award would need to be thoroughly documented to ensure it was appropriate.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not have the benefit of competitive pricing. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The Department of the Navy is the primary beneficiary, receiving advanced antenna systems. These systems are likely critical for naval communication, surveillance, or electronic warfare capabilities. The contract supports advanced manufacturing and technology development within the defense sector. The geographic impact is primarily linked to BAE Systems' operations in New York and the Navy's operational bases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Long contract duration increases exposure to potential cost overruns or scope creep if not managed tightly.
Lack of public detail on system specifications makes independent value assessment difficult.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established defense contractor like BAE Systems suggests access to proven technology and expertise.
Long-term contract allows for sustained development and integration of critical systems.

Sector Analysis

This contract falls within the broader Information Technology and Defense Electronics sectors, specifically focusing on Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing (NAICS 334220). The market for advanced antenna systems is highly specialized, often dominated by a few key defense contractors with the necessary research, development, and manufacturing capabilities. Spending in this area is driven by the need for cutting-edge communication and sensing technologies for national security. Comparable spending benchmarks would involve analyzing other contracts for similar electronic warfare, radar, or secure communication systems awarded by the Department of Defense.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests it is not a small business prime contract. This means that opportunities for small businesses would primarily be through subcontracting if BAE Systems chooses to engage them. The impact on the small business ecosystem depends on BAE's subcontracting strategy and the availability of small businesses with the specialized skills required for antenna system components or related services.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract databases like FPDS, although detailed technical specifications are often proprietary. The Inspector General for the Department of Defense may conduct audits or investigations if concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Procurement
Naval Electronic Systems
Communications Equipment Manufacturing
Advanced Technology Development Contracts
Sole-Source Defense Contracts

Risk Flags

Sole-source award
Long contract duration
Lack of public technical details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. ANTENNA SYSTEMS

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION 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: 2021-12-30. End: 2029-05-31.

What is the specific type and capability of the antenna systems being procured under this contract?

The provided data indicates the contract is for 'ANTENNA SYSTEMS' under NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing). While the specific capabilities are not detailed, such systems within the Department of Defense context typically involve advanced radio frequency (RF) components for communication, radar, electronic warfare, or signals intelligence applications. These could range from sophisticated phased-array antennas for naval vessels to specialized communication arrays for aircraft or ground stations. The long duration and significant value suggest a complex, potentially integrated system rather than off-the-shelf components.

How does the $20.3 million contract value compare to similar antenna system procurements by the Navy or other defense agencies?

Benchmarking the $20.3 million value requires access to detailed contract databases and knowledge of the specific technical requirements. However, for advanced, specialized antenna systems critical to naval operations, this value appears within a plausible range, especially considering the contract duration extends over several years (ending May 2029). Contracts for less complex or commercial-off-the-shelf antennas would likely be significantly lower. Conversely, highly classified or cutting-edge research and development projects for next-generation systems could potentially exceed this amount. Without specific technical comparisons, it's difficult to definitively state if it represents excellent or questionable value.

What are the primary risks associated with a sole-source award for these antenna systems?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. This can lead to reduced value for taxpayer money. Another risk is vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future flexibility or innovation. Furthermore, without competition, there's a reduced incentive for the contractor to aggressively pursue cost efficiencies or superior performance beyond the contract minimums. Ensuring the sole-source justification was robust and that the government negotiated the best possible terms is crucial to mitigate these risks.

What is BAE Systems' track record with the Department of the Navy for similar antenna or electronic systems?

BAE Systems is a major defense contractor with a significant history of providing electronic systems, including communication and sensor technologies, to the Department of the Navy and other military branches. They have a well-established presence in areas like radar, electronic warfare, and command and control systems. While specific performance metrics for past antenna system contracts are not detailed here, their status as a prime contractor on numerous large-value defense programs suggests a generally accepted capability and reliability. However, like any large contractor, past performance reviews and specific contract outcomes would need to be examined for a complete picture.

What are the potential performance implications of the contract's long duration (ending May 2029)?

A long contract duration, such as the one ending in May 2029, implies that the antenna systems may require sustained development, integration, testing, and potentially ongoing support or upgrades over an extended period. This can be beneficial for ensuring the technology matures properly and integrates seamlessly with existing naval platforms. However, it also introduces risks related to technological obsolescence if the underlying technology evolves rapidly, potential cost growth if not managed tightly, and the need for consistent government oversight throughout the contract lifecycle. It suggests the systems are likely complex and strategic in nature.

How does this contract fit into the broader context of naval modernization or specific defense programs?

This contract likely supports specific naval modernization efforts or ongoing defense programs that rely on advanced communication or sensor capabilities. The Department of the Navy continuously invests in upgrading its fleet's electronic warfare, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), and combat systems. Antenna systems are fundamental components of these capabilities. The award to BAE Systems suggests alignment with their existing portfolio of naval electronic solutions and potentially contributes to larger platform upgrades or the fielding of new capabilities across the naval force.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042121R0099

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 450 PULASKI RD, GREENLAWN, NY, 11740

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,393,201

Exercised Options: $20,270,074

Current Obligation: $20,270,074

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,069,926

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline