DoD Awards $23.7M C27J Aircraft Contract to BAE Systems via Full and Open Competition
Contract Overview
Contract Amount: $23,729,070 ($23.7M)
Contractor: BAE Systems Technology Solutions & Services Inc.
Awarding Agency: Department of Defense
Start Date: 2022-03-01
End Date: 2026-01-15
Contract Duration: 1,416 days
Daily Burn Rate: $16.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: C27J A/C 3 AND A/C 4
Place of Performance
Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $23.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: C27J A/C 3 AND A/C 4 Key points: 1. Contract awarded to BAE Systems for C27J aircraft components. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial, spanning over 1400 days. 4. The sector is Aircraft Manufacturing, a key area for defense spending.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar aircraft component contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, which typically promotes competitive pricing. However, the specific pricing structure (Cost Plus Fixed Fee) requires careful monitoring to ensure fair market value.
Taxpayer Impact: The use of full and open competition is generally positive for taxpayers, as it aims to secure the best possible prices through market forces.
Public Impact
Ensures continued support and availability of C27J aircraft for military operations. Supports jobs within the aerospace manufacturing sector. Potential for cost efficiencies through competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may present risks if requirements change.
Positive Signals
- Full and open competition utilized.
- Awarded to a known defense contractor.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which is a significant component of the Department of Defense's budget. Benchmarks for similar aircraft component contracts would provide further context on pricing.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of the Navy awarded this contract, indicating established oversight mechanisms. However, the Cost Plus Fixed Fee structure necessitates diligent monitoring to ensure accountability and prevent cost creep.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for scope creep.
- Lack of specific small business participation data.
Tags
aircraft-manufacturing, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. C27J A/C 3 AND A/C 4
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 $23.7 million.
What is the period of performance?
Start: 2022-03-01. End: 2026-01-15.
What is the specific breakdown of costs within the Cost Plus Fixed Fee structure, and how is the fixed fee determined?
The Cost Plus Fixed Fee (CPFF) structure involves the contractor being reimbursed for allowable costs plus a predetermined fixed fee. The fixed fee represents the contractor's profit. Understanding the basis for this fee and the allowable cost categories is crucial for assessing value and preventing potential overcharges. Detailed contract clauses would outline these specifics.
What are the key performance indicators (KPIs) and milestones for this contract, and how will performance be measured?
Key performance indicators and milestones are essential for tracking progress and ensuring the contractor meets contractual obligations. For aircraft component manufacturing, these might include delivery schedules, quality control metrics, and adherence to technical specifications. The Department of the Navy's oversight would involve regular performance reviews against these defined KPIs.
How does the awarded price compare to historical pricing for similar C27J aircraft components or comparable aircraft programs?
Benchmarking the awarded price against historical data for similar components or programs is vital for assessing cost-effectiveness. Without this comparison, it's difficult to determine if the $23.7 million represents a fair market price. Analysis of past contracts and industry pricing trends would be necessary for a comprehensive evaluation.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0042116R0040
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Compagnie DE Developpement DE L'eau S.A.
Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $24,962,390
Exercised Options: $24,962,390
Current Obligation: $23,729,070
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $1,717,393
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042117D0045
IDV Type: IDC
Timeline
Start Date: 2022-03-01
Current End Date: 2026-01-15
Potential End Date: 2026-01-15 00:00:00
Last Modified: 2025-06-10
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