DoD Awards BAE Systems $7.67M Engineering Services Task Order for Navy Support

Contract Overview

Contract Amount: $7,671,437 ($7.7M)

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: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AOOSS TASK ORDER 2

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $7.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: AOOSS TASK ORDER 2 Key points: 1. Contract awarded to BAE Systems for engineering services. 2. Full and open competition was utilized. 3. The contract has a duration of 729 days. 4. This is a delivery order under an existing contract. 5. No small business participation was noted.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services 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 specific pricing structure (Cost Plus Fixed Fee) may not always yield the lowest price.

Taxpayer Impact: Taxpayer funds are being used for engineering services, with the final cost dependent on actual costs incurred plus a fixed fee.

Public Impact

Supports Department of the Navy operations with essential engineering services. Potential for technological advancements and improved defense capabilities. Ensures continued service delivery through an established contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
No small business participation noted, potentially limiting broader economic impact.

Positive Signals

Awarded under full and open competition.
Supports critical Department of the Navy requirements.

Sector Analysis

Engineering services are crucial for defense sector operations, encompassing design, development, and testing. Spending benchmarks vary widely based on the specific nature of the engineering work and the agency involved.

Small Business Impact

The contract data indicates no small business participation. This suggests that the prime contractor did not subcontract with small businesses for this specific task order, potentially missing opportunities to leverage smaller, specialized firms.

Oversight & Accountability

Oversight will be critical to manage the Cost Plus Fixed Fee structure, ensuring that costs remain reasonable and the fixed fee is justified by the services rendered. The Department of the Navy is responsible for monitoring performance and expenditures.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Lack of small business participation.
Potential for cost overruns without stringent oversight.
Limited transparency on specific services and fee justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. AOOSS TASK ORDER 2

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 $7.7 million.

What is the period of performance?

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

What specific engineering services are being procured under this task order, and how do they align with current Navy modernization priorities?

The task order is for engineering services under NAICS code 541330. While the specific services are not detailed, they likely support the Department of the Navy's ongoing operational and modernization efforts. Further analysis would require access to the detailed statement of work to understand the precise nature of the engineering support and its strategic alignment.

What is the historical performance of BAE Systems on similar Cost Plus Fixed Fee contracts with the Department of Defense?

Assessing BAE Systems' historical performance on similar contracts is crucial for understanding potential risks. A review of past contract data, including cost variances, delivery performance, and quality ratings, would provide insights into their ability to manage projects effectively within this contract type and identify any recurring issues or strengths.

How does the fixed fee component compare to industry standards for similar engineering services, and what is the rationale for this specific fee?

The rationale behind the fixed fee and its comparison to industry standards is essential for evaluating value. Without detailed cost breakdowns and fee structures, it's challenging to benchmark. Understanding the complexity of the services, the level of risk assumed by the contractor, and market rates for similar fixed fees would be necessary for a comprehensive assessment.

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: $15,704,233

Exercised Options: $10,192,939

Current Obligation: $7,671,437

Actual Outlays: $513,887

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $252,027

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