DoD Awards $14.9M Engineering Services Contract to BAE Systems for Naval Support

Contract Overview

Contract Amount: $14,894,962 ($14.9M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2022-03-16

End Date: 2026-03-15

Contract Duration: 1,460 days

Daily Burn Rate: $10.2K/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 $14.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: LABOR - PROC TASKING Key points: 1. Contract value of $14.9 million for engineering services. 2. BAE Systems Technology Solutions & Services Inc. is the awardee. 3. Competition was full and open, indicating market availability. 4. The contract supports the Department of the Navy, Maryland. 5. Cost Plus Fixed Fee pricing structure.

Value Assessment

Rating: good

The Cost Plus Fixed Fee structure allows for flexibility but requires careful monitoring to ensure costs remain reasonable. Benchmarking against similar engineering service contracts is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition suggests a healthy market for these engineering services. This method typically leads to competitive pricing as multiple vendors can bid.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, promoting efficiency and potentially lower costs through market forces.

Public Impact

Supports critical naval engineering and technical services. Award to a large, established defense contractor. Contract duration extends over several years, ensuring continuity. Potential for follow-on work based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing can lead to cost overruns if not managed tightly.
Contract awarded to a large business, not specifically targeting small business set-asides.

Positive Signals

Full and open competition ensures a broad range of potential bidders.
Long-term contract provides stability for service delivery.
Supports a key agency (Department of the Navy).

Sector Analysis

This contract falls under Engineering Services, a broad category often involving specialized technical expertise. Spending in this sector can vary significantly based on defense needs and infrastructure projects.

Small Business Impact

The contract was awarded to BAE Systems Technology Solutions & Services Inc., a large business. There is no indication of a small business set-aside for this specific award, suggesting opportunities may lie in subcontracting.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The contract's duration and fixed fee component necessitate robust performance monitoring and financial oversight to ensure value for money.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure.
Contract awarded to a large business.
Lack of specific detail on 'PROC TASKING'.
Long contract duration may increase risk of cost escalation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 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 $14.9 million.

What is the period of performance?

Start: 2022-03-16. End: 2026-03-15.

What specific engineering services are included in this contract, and how do they align with current naval modernization priorities?

The contract specifies 'PROC TASKING' for engineering services. While the exact nature of these tasks isn't detailed, they likely support the Department of the Navy's operational and developmental needs. Understanding the specific technical requirements and their alignment with strategic goals is crucial for assessing the contract's overall value and effectiveness in advancing naval capabilities.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure in this contract?

The primary risk with CPFF is that the contractor may not have a strong incentive to control costs, as the government agrees to cover all allowable costs plus a fixed fee. This can lead to cost overruns if the initial cost estimates are inaccurate or if scope creep occurs without proper change order management. Effective oversight is critical to mitigate these risks.

How does the performance of BAE Systems on this contract compare to industry benchmarks for similar engineering services?

Assessing performance against industry benchmarks requires access to specific performance metrics and historical data for BAE Systems and comparable contracts. Without this detailed information, it's difficult to definitively state how performance compares. However, the full and open competition suggests a competitive environment where performance is likely a key factor in award and potential future opportunities.

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: $25,468,027

Exercised Options: $25,068,027

Current Obligation: $14,894,962

Actual Outlays: $556,295

Subaward Activity

Number of Subawards: 60

Total Subaward Amount: $4,450,091

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