DoD Awards BAE Systems $30.7M for Navy Engineering Services via Full and Open Competition

Contract Overview

Contract Amount: $30,713,545 ($30.7M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2021-11-04

End Date: 2026-11-07

Contract Duration: 1,829 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Official Description: LABOR - NWCF TASKING

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $30.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: LABOR - NWCF TASKING Key points: 1. Significant contract value of $30.7 million awarded. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract type is Cost Plus Fixed Fee, which can pose cost control risks. 4. Services fall under Engineering, a critical sector for defense operations.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type, while allowing flexibility, can lead to costs exceeding initial estimates if not managed closely. Benchmarking against similar engineering service contracts is difficult without more specific task details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating multiple bidders participated. This method generally promotes price discovery and competitive pricing, though the Cost Plus Fixed Fee structure requires careful oversight to ensure value.

Taxpayer Impact: Taxpayer funds are being utilized for essential engineering services for the Department of the Navy. The competitive award aims to secure reasonable pricing, but the contract type necessitates vigilance against potential cost overruns.

Public Impact

Supports critical Department of the Navy operations through engineering expertise. Award to a large defense contractor, BAE Systems, highlights industry concentration. Long-term contract duration (2021-2026) ensures sustained support but also long-term financial commitment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns without strict oversight

Positive Signals

Full and open competition
Long-term support for critical defense needs

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for defense readiness and technological advancement. Spending in this area is benchmarked against the overall DoD budget for professional services, with significant portions allocated to R&D and specialized technical support.

Small Business Impact

The contract was awarded to BAE Systems Technology Solutions & Services Inc., a large defense contractor. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award.

Oversight & Accountability

The Cost Plus Fixed Fee structure requires robust oversight from the Department of the Navy to monitor costs, ensure performance, and prevent potential overruns. Regular audits and performance reviews are crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Lack of small business participation as prime
Long-term commitment of funds

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. LABOR - NWCF 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 $30.7 million.

What is the period of performance?

Start: 2021-11-04. End: 2026-11-07.

What specific engineering services are being provided under this contract, and how do they align with current Navy priorities?

The contract specifies 'Engineering Services' under NAICS code 541330. While the exact tasks are not detailed, these typically encompass design, development, testing, and integration of systems for naval platforms and infrastructure. Alignment with Navy priorities would depend on specific task orders, but generally supports modernization and operational readiness.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?

The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed plus a fixed fee. This can lead to cost overruns if the government's oversight is insufficient to manage scope creep and ensure efficient resource utilization.

How effectively does the full and open competition ensure optimal value for the taxpayer given the CPFF structure?

Full and open competition is a strong mechanism for achieving value by ensuring a competitive bidding environment. However, the CPFF structure itself introduces inherent cost risks. Optimal value is realized when the competitive process drives down the initial fee and the government exercises rigorous oversight to manage the cost reimbursement aspect effectively.

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: $30,713,547

Exercised Options: $30,713,547

Current Obligation: $30,713,545

Subaward Activity

Number of Subawards: 73

Total Subaward Amount: $4,167,444

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