DoD awards BAE Systems $20.6M for engineering services, with a 2-year performance period

Contract Overview

Contract Amount: $20,664,901 ($20.7M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-01

End Date: 2026-02-28

Contract Duration: 729 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AOOSS TASK ORDER #1 AND INCREMENTAL FUNDING

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: AOOSS TASK ORDER #1 AND INCREMENTAL FUNDING Key points: 1. The contract's cost-plus-fixed-fee structure suggests potential for cost overruns if not closely managed. 2. Full and open competition was utilized, indicating a broad market search for qualified offerors. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting a pre-established relationship and streamlined procurement. 4. Performance is concentrated in Maryland, potentially indicating a focus on specific naval facilities or research centers. 5. The fixed fee component, while not explicitly stated in the provided data, is a key element for assessing contractor incentive and overall value. 6. The contract duration of 729 days allows for sustained support but requires ongoing performance monitoring.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without knowing the scope of work and comparing it to similar engineering services contracts. The cost-plus-fixed-fee (CPFF) pricing structure can lead to higher costs than fixed-price contracts if not managed diligently. However, CPFF is often used for complex R&D or services where the scope is not fully defined upfront. The total award amount of $20.6 million for a two-year period suggests a moderate investment for specialized engineering support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, implying that the Department of the Navy sought proposals from all responsible sources. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings. The specific number of bidders is not provided, which would offer further insight into the intensity of the competition. However, the use of full and open competition is a positive indicator for market engagement.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider selection of qualified contractors, ensuring that the government receives the best value for its investment in engineering services.

Public Impact

The Department of the Navy benefits from specialized engineering services crucial for its operations and technological advancements. The contract supports the development and maintenance of naval systems and infrastructure. Work is primarily located in Maryland, impacting the local economy and workforce in that region. Skilled engineers and technical personnel are likely to be employed to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts carry inherent risks of cost escalation if not rigorously monitored and controlled.
Lack of specific details on the number of bidders limits the assessment of competitive pressure on pricing.
The performance period of two years requires sustained oversight to ensure continued value and adherence to scope.

Positive Signals

Awarded under full and open competition, suggesting a robust market solicitation.
The contract is a delivery order, implying it falls under an existing IDIQ vehicle, which can streamline processes and potentially leverage pre-negotiated terms.
The fixed fee component, while not quantified, provides a defined profit margin for the contractor, aligning incentives to some extent.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports government and private entities with specialized expertise in design, analysis, and problem-solving for complex projects. The market for engineering services is substantial, driven by ongoing infrastructure development, defense modernization, and technological innovation. This specific award to BAE Systems likely supports naval engineering requirements, a significant area of government spending.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this specific award. This suggests that the contract was not set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mandated within this task order. Further analysis of the parent IDIQ contract would be needed to understand the overall small business utilization strategy for this vehicle.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. As a delivery order under an IDIQ, the parent contract likely has established oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, with the DoD IG having oversight authority.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
BAE Systems Technology Solutions & Services Inc. Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Vehicles

Risk Flags

Cost-plus-fixed-fee contract type requires diligent cost monitoring to prevent overruns.
Lack of specific bidder count limits assessment of competitive intensity.
Performance concentrated geographically in Maryland may indicate limited geographic reach for benefits.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. AOOSS TASK ORDER #1 AND INCREMENTAL FUNDING

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 $20.7 million.

What is the period of performance?

Start: 2024-03-01. End: 2026-02-28.

What is the specific scope of engineering services required under this task order?

The provided data does not detail the specific scope of engineering services. However, given the agency (Department of the Navy) and the contractor (BAE Systems Technology Solutions & Services Inc.), it is highly probable that these services relate to naval systems, platforms, or infrastructure. This could encompass areas such as design, analysis, testing, integration, sustainment engineering, or technical support for various naval assets. The 'Engineering Services' NAICS code (541330) broadly covers firms that provide specialized engineering expertise across diverse fields.

How does the $20.6 million award compare to BAE Systems' historical contract awards for similar services?

Without access to a comprehensive database of BAE Systems' historical contracts and specific service categories, a direct comparison is difficult. However, $20.6 million for a two-year task order is a significant award, indicative of a substantial project. BAE Systems is a major defense contractor with a broad portfolio, and they frequently receive large contracts for engineering and technical services across various military branches. This award appears to be within the typical range for major task orders awarded to large defense integrators for specialized support.

What are the key performance indicators (KPIs) and metrics used to evaluate BAE Systems' performance on this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. Typically, for engineering services contracts, KPIs would focus on factors such as adherence to schedule, quality of deliverables (e.g., reports, designs, analyses), technical accuracy, cost control (especially relevant for CPFF), and responsiveness to government requests. These metrics are usually detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS) and are monitored by the Contracting Officer's Representative (COR).

What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific engagement?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than anticipated if the contractor's costs exceed initial estimates, even though the fee (profit) is fixed. This structure is often used when the scope of work is not well-defined or involves significant uncertainty, such as research and development. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are crucial to mitigate the risk of cost overruns and ensure value for the government.

What is the historical spending trend for engineering services by the Department of the Navy, and how does this award fit in?

The Department of the Navy consistently spends billions of dollars annually on engineering services, supporting its vast array of platforms, systems, and infrastructure. Spending in this category is driven by modernization efforts, maintenance requirements, and new platform development. This $20.6 million award represents a specific investment within that larger context. While not a massive standalone sum in the context of the entire DoD budget, it signifies a dedicated allocation for critical engineering support, likely contributing to specific naval programs or initiatives.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: N0042122R0219

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $70,810,272

Exercised Options: $29,383,082

Current Obligation: $20,664,901

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $1,078,588

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042123D0020

IDV Type: IDC

Timeline