DoD Awards BAE Systems $2M for Tech Support, Ending Nov 2025

Contract Overview

Contract Amount: $2,036,860 ($2.0M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2022-11-08

End Date: 2025-11-09

Contract Duration: 1,097 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: (BASE YEAR) LABOR ACST TECH SUPPORT -O&M

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $2.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: (BASE YEAR) LABOR ACST TECH SUPPORT -O&M Key points: 1. Contract awarded to BAE Systems for $2,036,859.78. 2. Competition type: Full and Open. 3. Risk: Moderate, given the Cost Plus Fixed Fee structure. 4. Sector: Information Technology/Engineering Services.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. Benchmarking against similar IT support contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the CPFF pricing structure may not always yield the lowest price compared to fixed-price contracts.

Taxpayer Impact: Taxpayer funds are being used for essential operational and maintenance technical support, with the potential for costs to exceed initial estimates due to the CPFF structure.

Public Impact

Ensures continued technical support for Department of the Navy operations. Supports BAE Systems, a major defense contractor. Potential for cost increases impacts taxpayer value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing structure
Contract duration of nearly 3 years

Positive Signals

Full and Open Competition
Essential IT support services

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT operations and maintenance. Spending in this area is critical for government efficiency, but cost controls are paramount.

Small Business Impact

The contract was awarded to BAE Systems, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Department of Defense is responsible for oversight. The CPFF structure necessitates diligent monitoring to ensure costs remain reasonable and fixed fees are justified.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee pricing
Long contract duration
Lack of specific service details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. (BASE YEAR) LABOR ACST TECH SUPPORT -O&M

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 $2.0 million.

What is the period of performance?

Start: 2022-11-08. End: 2025-11-09.

What specific technical support services are included in this contract?

The contract specifies 'LABOR ACST TECH SUPPORT -O&M', indicating labor for acquisition, sustainment, and technical support related to operations and maintenance. Further details on the scope of work would be needed to fully assess the value and necessity of the services provided.

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

The primary risk with CPFF is that the contractor is reimbursed for all allowable costs plus a fixed fee. If costs escalate beyond projections, the government pays more. This structure incentivizes cost control but can lead to higher final prices than fixed-price contracts if not managed rigorously.

How does this contract contribute to the overall effectiveness of the Department of the Navy's IT infrastructure?

This contract provides essential technical support for the Navy's operations and maintenance, which is crucial for maintaining the effectiveness of its IT infrastructure. Reliable technical support ensures systems are operational and issues are resolved promptly, directly impacting mission readiness.

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: N0042115R0002

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: $2,231,165

Exercised Options: $2,186,161

Current Obligation: $2,036,860

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $65,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042119D0047

IDV Type: IDC

Timeline