DoD awards BAE Systems $4.7M task order for RDT&E engineering services, with a 3-year performance period

Contract Overview

Contract Amount: $4,719,723 ($4.7M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2022-02-18

End Date: 2026-04-21

Contract Duration: 1,523 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LABOR - TERM - RDT&E - IAP BRANCH ESTABLISH TASK ORDER

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $4.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: LABOR - TERM - RDT&E - IAP BRANCH ESTABLISH TASK ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries risk if costs exceed estimates. 3. Performance period of over 4 years indicates a significant, long-term requirement. 4. The task order is part of a larger contract vehicle, implying potential for follow-on work. 5. No small business set-aside was utilized, indicating the primary awardee is not a small business. 6. The specific nature of RDT&E services suggests a focus on research, development, testing, and evaluation.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without knowing the scope of work and comparable RDT&E services. The Cost Plus Fixed Fee (CPFF) contract type means the final cost is subject to actual expenses incurred plus a fixed fee. While this can be appropriate for R&D where costs are uncertain, it requires robust oversight to ensure value for money. Without more data on the specific services rendered and the fixed fee percentage, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the best value offer. The use of full and open competition is a positive sign for achieving competitive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the most advantageous offer through a broad solicitation.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its research, development, testing, and evaluation (RDT&E) initiatives. This contract likely supports advanced technological development crucial for national defense. The geographic impact is centered in Maryland, where BAE Systems' task order operations are located. The contract may indirectly impact the defense technology workforce by creating demand for skilled engineers and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type requires diligent oversight to manage costs and ensure the fixed fee remains reasonable.
The long performance period necessitates ongoing monitoring to ensure continued alignment with evolving RDT&E needs.
Lack of small business participation in this specific award may limit opportunities for smaller innovative firms in this particular instance.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
BAE Systems is a large, established defense contractor with a significant track record, implying experience and capability.
The task order is for RDT&E, indicating support for critical innovation and technological advancement.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting Research, Development, Test, and Evaluation (RDT&E) for the Department of Defense. The engineering services market is substantial, with significant government spending directed towards defense-related R&D. Comparable spending benchmarks would typically involve analyzing other DoD contracts for similar engineering support, particularly those focused on advanced technology development and system integration.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting requirements for small businesses within the provided data. This suggests that the primary focus of this task order was on securing capabilities from larger, established contractors. The impact on the small business ecosystem is neutral to negative for this specific award, as it does not appear to directly create set-aside opportunities.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee (CPFF) contract would typically involve rigorous monitoring of BAE Systems' incurred costs and the justification for the fixed fee. The Department of the Navy, as the awarding agency, is responsible for ensuring compliance with contract terms and performance standards. Transparency would be enhanced through regular reporting requirements and potential audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research, Development, Test, and Evaluation (RDT&E)
Engineering Services Contracts
Naval Systems Development
BAE Systems Technology Solutions & Services Inc. Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage potential cost overruns.
Long performance period necessitates ongoing monitoring to ensure continued relevance and effectiveness of services.
Lack of explicit small business subcontracting goals may limit opportunities for smaller firms in this specific award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. LABOR - TERM - RDT&E - IAP BRANCH ESTABLISH TASK ORDER

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 $4.7 million.

What is the period of performance?

Start: 2022-02-18. End: 2026-04-21.

What is the typical profit margin (fixed fee) for Cost Plus Fixed Fee (CPFF) RDT&E contracts awarded by the Department of the Navy to large defense contractors like BAE Systems?

For Cost Plus Fixed Fee (CPFF) RDT&E contracts awarded by the Department of the Navy to large defense contractors, the fixed fee typically ranges from 5% to 15% of the estimated cost. This percentage is negotiated based on factors such as the complexity of the work, the level of risk involved, and the contractor's historical performance. For highly complex or high-risk RDT&E efforts, the fee might be at the higher end of this spectrum. Conversely, for more straightforward tasks with lower risk, the fee would likely be closer to the lower end. The specific fee for this BAE Systems task order would be detailed in the contract documentation and is subject to negotiation and approval by the contracting officer.

How does the $4.7 million value of this task order compare to other RDT&E engineering services contracts awarded by the Department of the Navy in the last fiscal year?

Comparing the $4.7 million value of this task order requires access to comprehensive contract databases and filtering for similar RDT&E engineering services contracts awarded by the Department of the Navy within the same timeframe. However, as a general observation, task orders of this magnitude are common within large, multi-year contract vehicles supporting significant defense programs. Larger RDT&E efforts can easily run into tens or hundreds of millions of dollars. This $4.7 million task order likely represents a specific component or phase of a broader research and development initiative. Without more granular data on the scope of work and the specific technological area, a precise comparison is difficult, but it falls within a typical range for specialized engineering support tasks.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for RDT&E services, and how are they mitigated?

The primary risks associated with a CPFF contract for RDT&E services include potential cost overruns if the contractor's estimates are inaccurate or if unforeseen technical challenges arise, leading to increased costs beyond the initial estimates. The government is obligated to pay the actual costs incurred, plus the negotiated fixed fee. Mitigation strategies employed by the government include robust oversight of contractor expenditures, detailed review of cost proposals, negotiation of a reasonable fixed fee, and clear definition of contract scope and deliverables. Performance metrics and milestones are also crucial for monitoring progress and identifying potential issues early. The contracting officer's vigilance in managing the contract and ensuring adherence to the Statement of Work is paramount to mitigating these risks and ensuring value for taxpayer money.

What is BAE Systems Technology Solutions & Services Inc.'s track record with the Department of the Navy for similar RDT&E engineering services?

BAE Systems Technology Solutions & Services Inc. is a significant defense contractor with a substantial history of performing RDT&E and engineering services for the Department of the Navy. While specific details of their past performance on similar task orders are not provided in this data, the company's size and established presence suggest a strong capability in this domain. They are known to be involved in a wide array of defense programs, including naval systems, aerospace, and intelligence support. The Department of the Navy likely has internal performance evaluations and past performance data that would have been considered during the source selection process for this task order, indicating confidence in BAE Systems' ability to execute the required RDT&E services effectively.

What does the 'IAP BRANCH ESTABLISH TASK ORDER' designation imply about the nature of the services being procured?

The designation 'IAP BRANCH ESTABLISH TASK ORDER' suggests that this task order is being established by a specific branch within the 'IAP' (likely an acronym for an Information Assurance Program, Integrated Acquisition Program, or similar functional area) of the Department of the Navy. The 'ESTABLISH TASK ORDER' part indicates the administrative action of creating this specific work assignment under a pre-existing contract vehicle. The nature of the services being procured, as indicated by the NAICS code (541330 - Engineering Services) and the contract description (RDT&E), points towards specialized engineering support required to establish or enhance a particular capability or system managed by this IAP Branch. This could involve design, development, testing, or integration services related to a specific program or system.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042119R0003

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: $6,402,394

Exercised Options: $6,149,481

Current Obligation: $4,719,723

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $2,727,887

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042121D0001

IDV Type: IDC

Timeline