DoD Awards BAE Systems $25.8M Engineering Services Contract for Navy Tasking

Contract Overview

Contract Amount: $25,833,172 ($25.8M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2022-03-09

End Date: 2026-03-14

Contract Duration: 1,466 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LABOR - PROC TASKING

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: LABOR - PROC TASKING Key points: 1. Significant contract value of $25.8 million awarded to a major defense contractor. 2. Competition method was 'Full and Open', suggesting a competitive bidding process. 3. Contract type is 'Cost Plus Fixed Fee', which can carry cost overrun risks. 4. The sector is Engineering Services, a critical component of defense operations.

Value Assessment

Rating: good

The contract value of $25.8M for engineering services appears reasonable given the duration and the nature of the work. Benchmarking against similar large-scale engineering support contracts for the Department of Defense would provide a more precise assessment.

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 were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently through a market-driven pricing approach.

Public Impact

Ensures continued engineering support for critical Department of the Navy operations. Supports advanced technological development and maintenance within the defense sector. Potential for job creation within BAE Systems and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of specific performance metrics in provided data.
Potential for scope creep in long-term engineering tasks.

Positive Signals

Awarded through full and open competition.
Long contract duration suggests sustained need and potential for stable support.
Contract supports a key government agency (Department of the Navy).

Sector Analysis

Engineering services are vital for the defense sector, encompassing design, development, and technical support for military systems. Spending in this area is benchmarked against the overall defense budget and specific program requirements.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Larger prime contractors like BAE Systems often utilize small business subcontractors, but direct award analysis shows no small business participation at the prime level.

Oversight & Accountability

The Department of Defense, specifically the Department of the Navy, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance and performance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
No direct small business award.
Limited detail on specific task order scope.
Long contract duration increases potential for scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. LABOR - PROC 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 $25.8 million.

What is the period of performance?

Start: 2022-03-09. End: 2026-03-14.

What specific engineering tasks are included in this delivery order, and how do they align with the Navy's strategic objectives?

The provided data categorizes this as 'LABOR - PROC TASKING' under 'Engineering Services'. Without further details on the specific task order, it's difficult to ascertain the exact nature of the work. However, it's reasonable to assume these tasks support the Department of the Navy's operational readiness, maintenance, or modernization efforts, aligning with broader defense strategies.

What are the potential risks associated with the 'Cost Plus Fixed Fee' contract type for this specific engineering tasking?

The 'Cost Plus Fixed Fee' (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee. Risks include potential for cost overruns if initial estimates are inaccurate, as the government bears the cost risk. The fixed fee provides some incentive for efficiency, but close monitoring of costs and scope is crucial to prevent excessive spending.

How does the $25.8 million award compare to typical spending on similar engineering services contracts within the Department of Defense?

The $25.8 million value for a multi-year engineering services contract is substantial but not unusual within the Department of Defense. Benchmarking requires comparing it against contracts of similar scope, duration, and complexity. Factors like the specific technical expertise required and the criticality of the Navy's needs would influence its relative size.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042120R0146

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: $38,065,486

Exercised Options: $37,415,486

Current Obligation: $25,833,172

Subaward Activity

Number of Subawards: 178

Total Subaward Amount: $10,275,106

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042122D0001

IDV Type: IDC

Timeline