DoD Awards BAE Systems $36.6M Engineering Services Task Order Under Full and Open Competition
Contract Overview
Contract Amount: $36,625,524 ($36.6M)
Contractor: BAE Systems Technology Solutions & Services Inc.
Awarding Agency: Department of Defense
Start Date: 2024-02-26
End Date: 2026-02-26
Contract Duration: 731 days
Daily Burn Rate: $50.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AWARD AND INCREMENTALLY FUND SUBJECT TASK ORDER.
Place of Performance
Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $36.6 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: AWARD AND INCREMENTALLY FUND SUBJECT TASK ORDER. Key points: 1. Significant award value of $36.6 million for engineering services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 4. Services are categorized under Engineering Services (NAICS 541330).
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs than fixed-price contracts if not managed tightly. Benchmarking CPFF contracts in engineering services is challenging due to variable scope and overhead.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing, but the CPFF structure means the final price is not fixed upfront.
Taxpayer Impact: Taxpayer funds are utilized for engineering services. The CPFF structure requires careful oversight to ensure cost efficiency and prevent unnecessary expenditures.
Public Impact
Supports critical Department of the Navy engineering and technical requirements. BAE Systems, a major defense contractor, will provide specialized services. The task order duration of 731 days suggests a substantial, ongoing project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure may lead to cost overruns.
- Potential for scope creep in engineering services contracts.
- Limited visibility into final cost due to CPFF structure.
Positive Signals
- Awarded under full and open competition.
- Clear task order period of performance.
- Services align with core defense mission needs.
Sector Analysis
Engineering services are crucial for defense projects, encompassing design, analysis, and technical support. Spending in this sector is benchmarked against similar large-scale defense engineering contracts, with CPFF contracts often representing a higher risk profile for cost control.
Small Business Impact
This award went to BAE Systems Technology Solutions & Services Inc., a large prime contractor. There is no indication of small business subcontracting in the provided data, which could be an area for future analysis.
Oversight & Accountability
The Department of Defense's oversight mechanisms are critical for managing CPFF contracts. Regular audits and performance reviews are necessary to ensure costs are reasonable and the work meets objectives.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for scope creep in engineering services.
- Lack of specific detail on small business participation.
- Limited insight into cost drivers without further data.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.6 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. AWARD AND INCREMENTALLY FUND SUBJECT 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 $36.6 million.
What is the period of performance?
Start: 2024-02-26. End: 2026-02-26.
What specific engineering services are being provided under this task order, and how do they align with the Navy's strategic objectives?
The data indicates 'Engineering Services' (NAICS 541330) are being provided. While the exact nature of these services isn't detailed, they likely support naval platform development, maintenance, or modernization. Understanding the specific technical requirements and their contribution to the Navy's broader strategic goals is essential for assessing the true value of this award.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) structure for this $36.6 million task order, and how are they being mitigated?
The primary risk with CPFF is the potential for cost overruns, as the contractor is reimbursed for actual costs plus a fixed fee. Mitigation strategies typically involve robust government oversight, detailed cost tracking, clear performance metrics, and defined ceilings. Without specific details on these mitigation efforts, the risk of exceeding the $36.6 million award ceiling remains a concern.
How effectively does the full and open competition process ensure optimal value for taxpayer money in the context of specialized engineering services?
Full and open competition is designed to foster a competitive environment, theoretically leading to better pricing and quality. For specialized engineering services, its effectiveness depends on the availability of qualified bidders and the clarity of the solicitation. While it provides a baseline for value, the CPFF structure means the final cost isn't determined until completion, making post-award cost management crucial for realizing optimal taxpayer value.
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: N0042122R0172
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: $77,743,220
Exercised Options: $48,601,000
Current Obligation: $36,625,524
Actual Outlays: $178,597
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $1,906,579
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042124D0008
IDV Type: IDC
Timeline
Start Date: 2024-02-26
Current End Date: 2026-02-26
Potential End Date: 2029-02-26 00:00:00
Last Modified: 2026-01-13
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