DoD awards BAE Systems $12.18M IDIQ task order for engineering support services

Contract Overview

Contract Amount: $12,179,208 ($12.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $33.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TO AWARD TASK ORDER FOR IDIQ SUPPORT

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: TO AWARD TASK ORDER FOR IDIQ SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Task order duration of 364 days indicates a short-term need for specific services. 3. Cost Plus Fixed Fee (CPFF) contract type may lead to cost overruns if not closely managed. 4. The contract is for engineering services, a critical component of defense operations. 5. Awarded by the Department of the Navy, indicating a specific branch's requirement. 6. The task order is a delivery order against an existing IDIQ contract.

Value Assessment

Rating: fair

The total award amount of $12.18 million for a 364-day engineering services task order appears within a reasonable range for specialized defense support. However, without specific benchmarks for the exact services rendered under this CPFF contract, a definitive value-for-money assessment is challenging. The CPFF structure necessitates robust oversight to control costs, as it incentivizes the contractor to incur costs to achieve a fixed fee. Comparing this to similar engineering support contracts awarded by the Navy or other DoD branches for comparable scope and duration would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment. This approach is generally expected to yield competitive pricing and a wider range of technical solutions. The Department of the Navy's decision to use this procurement method implies confidence in its ability to attract multiple qualified offerors for these engineering services.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation, leading to better value for public funds spent on essential defense services.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its operational and developmental needs. Services delivered are likely to include technical analysis, design, testing, or system integration for defense platforms or systems. The geographic impact is centered in Maryland (ST: MD), where the contractor's operations are based. Workforce implications include employment for engineers and technical specialists within BAE Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost escalation if not meticulously managed and monitored by the government.
Lack of specific details on the number of bidders in the full and open competition makes it difficult to fully assess the intensity of price discovery.
The short duration (364 days) might indicate a stop-gap measure or a narrowly defined scope, potentially limiting long-term strategic benefits.

Positive Signals

Awarded under a full and open competition, which typically promotes competitive pricing and wider access to qualified contractors.
The contract is a delivery order against an existing IDIQ, suggesting a pre-vetted contractor and streamlined acquisition process.
Engineering services are crucial for maintaining and advancing defense capabilities, indicating a focus on essential mission requirements.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market supporting defense and other government agencies. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and development of military systems. Comparable spending benchmarks would involve analyzing other DoD contracts for similar engineering support, considering factors like contract type, duration, and specific technical requirements. The $12.18 million award for a one-year task order is moderate within this sector.

Small Business Impact

This contract was not set aside for small businesses (SB: false) and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, the prime contractor, BAE Systems, may engage small businesses as subcontractors, which would indirectly benefit them. Further analysis of the subcontracting plan, if available, would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee (CPFF) contract will be critical. The Department of the Navy is responsible for monitoring expenditures, ensuring performance aligns with contract requirements, and managing the fixed fee to prevent cost overruns. Transparency is facilitated by the contract award notice, but detailed performance metrics and financial reporting would be subject to government review. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Department of the Navy Contracts
IDIQ Task Orders
Cost Plus Fixed Fee Contracts
Engineering, Procurement, Construction, and R&D

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage potential cost overruns.
Limited information on the number of bidders in the full and open competition makes it difficult to fully assess competitive intensity.
The specific scope of engineering services is not detailed, hindering a precise value-for-money assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. TO AWARD TASK ORDER FOR IDIQ SUPPORT

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 $12.2 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

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

BAE Systems Technology Solutions & Services Inc. has a significant history of contracting with the Department of the Navy and other Department of Defense agencies. Analyzing their past performance on similar engineering services contracts, particularly those awarded under Cost Plus Fixed Fee (CPFF) structures, would be crucial. This includes reviewing contract close-out data, past performance evaluations, and any documented instances of cost overruns or performance issues. A strong track record with the Navy suggests familiarity with their requirements and processes, potentially mitigating some risks associated with this new task order. Conversely, a history of performance issues or significant cost variances on comparable contracts would raise concerns about the value and execution of this award.

How does the $12.18 million cost for a 364-day engineering task order compare to market rates for similar services?

Benchmarking the $12.18 million cost for a 364-day engineering services task order against market rates requires detailed knowledge of the specific services provided. Engineering services can range widely in complexity and cost, from basic consulting to highly specialized system design and integration. Given the Cost Plus Fixed Fee (CPFF) structure, the government pays allowable costs plus a fixed fee. To assess value, one would compare the estimated costs (labor rates, overhead, materials) and the fixed fee against industry standards for comparable tasks. Without a breakdown of labor categories, hours, and specific deliverables, a precise comparison is difficult. However, the average daily cost is approximately $33,459 ($12.18M / 364 days), which serves as a starting point for comparison with other DoD engineering contracts or commercial rates for similar expertise.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this engineering services task order?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost escalation. While the fee is fixed, the government bears the risk of all allowable costs incurred by the contractor. If the contractor is inefficient or if unforeseen technical challenges arise, the total cost to the government can increase significantly beyond initial estimates, even though the contractor's profit margin (the fee) remains constant. This necessitates rigorous government oversight to ensure costs are reasonable, allocable, and allowable, and that the contractor exercises due diligence in managing project expenses. Effective monitoring of labor hours, material purchases, and subcontractor costs is essential to mitigate this risk and ensure the government receives good value.

How effective is the 'full and open competition' approach likely to be in ensuring competitive pricing for this specific engineering services contract?

The 'full and open competition' approach is designed to maximize competition and thereby drive down prices. For this engineering services task order, its effectiveness hinges on several factors. Firstly, the number of qualified bidders that responded is critical; a large number of capable offerors generally leads to more aggressive pricing. Secondly, the clarity and specificity of the government's requirements outlined in the solicitation influence how well bidders can tailor their proposals and price competitively. If the requirements are well-defined and the market has sufficient capacity to meet them, full and open competition is likely to yield favorable pricing for the Department of the Navy. Conversely, if the specialized nature of the engineering services limits the pool of qualified bidders, or if the requirements are ambiguous, the competitive advantage may be diminished.

What are the potential implications of awarding a delivery order against an existing IDIQ for engineering services?

Awarding a delivery order against an existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract, such as this one, streamlines the acquisition process for the Department of the Navy. It implies that a broader contract vehicle has already been established through a potentially competitive process, and BAE Systems has been identified as a qualified vendor. This typically reduces lead time and administrative burden compared to a standalone new procurement. For taxpayers, this can mean faster delivery of needed services and potentially lower administrative costs. However, the value and competitiveness of the underlying IDIQ contract itself are crucial; if the IDIQ was not competitively awarded or if its terms are unfavorable, the benefits of using it for task orders may be limited.

What is the significance of the contract being for 'Engineering Services' (NAICS 541330) within the broader defense spending context?

Engineering services (NAICS 541330) are fundamental to the Department of Defense's mission, encompassing a wide array of activities from research and development support to system design, integration, testing, and lifecycle management. This specific $12.18 million task order represents a small but vital component of the DoD's overall spending on technical expertise. Such contracts enable the military to leverage specialized knowledge that may not be available in-house, ensuring that complex weapon systems, platforms, and infrastructure are designed, maintained, and modernized effectively. The allocation of funds to engineering services reflects a commitment to technological advancement and operational readiness, underpinning the development and sustainment of national defense capabilities.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042124R0038

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

Financial Breakdown

Contract Ceiling: $73,010,594

Exercised Options: $23,664,252

Current Obligation: $12,179,208

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0042125D0300

IDV Type: IDC

Timeline