Department of Defense awards $32.9M facilities support contract to BAE SYSTEMS TECHNICAL SERVICES
Contract Overview
Contract Amount: $32,912,429 ($32.9M)
Contractor: BAE Systems Technical Services
Awarding Agency: Department of Defense
Start Date: 2006-09-14
End Date: 2012-03-31
Contract Duration: 2,025 days
Daily Burn Rate: $16.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: WAIANAE, HONOLULU County, HAWAII, 96792
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $32.9 million to BAE SYSTEMS TECHNICAL SERVICES for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of the contract is 2025 days, indicating a medium-term commitment. 4. The award was made by the Department of the Navy, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 561210 points to Facilities Support Services. 6. The contract value of $32.9M is a significant investment in maintaining defense facilities.
Value Assessment
Rating: good
The contract value of $32.9M for facilities support services appears reasonable given the duration and scope. Benchmarking against similar large-scale facilities maintenance contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government in managing cost predictability. However, without specific performance metrics or detailed service breakdowns, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this significant facilities support services contract. While two bidders are better than one, a higher number of competitors could potentially drive prices lower and foster greater innovation. The specific details of the bidding process and evaluation criteria would further illuminate the effectiveness of the competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to better service quality. However, with only two bidders, there's a possibility that the price may not have reached its lowest potential point.
Public Impact
The primary beneficiaries are the Department of the Navy and its personnel, who rely on well-maintained facilities for operational readiness. Services delivered include comprehensive facilities support, ensuring the functionality and upkeep of critical infrastructure. The geographic impact is concentrated in Hawaii, where the contract was awarded. Workforce implications include employment opportunities for individuals in facilities management, maintenance, and related trades in the Hawaii region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed-price agreement.
- Dependence on a single contractor for critical facilities support could pose a risk if performance issues emerge.
- Limited competition may have resulted in a price that is not the absolute lowest achievable.
Positive Signals
- Firm Fixed Price contract structure transfers cost risk to the contractor.
- Awarded through full and open competition, indicating a structured procurement process.
- Long-term nature of the contract allows for stable planning and resource allocation for facilities management.
Sector Analysis
Facilities Support Services represent a significant segment within the broader professional, scientific, and technical services sector. This contract falls under the facilities maintenance and management sub-sector, which is crucial for the operational efficiency of government agencies, particularly defense organizations. The market for these services is competitive, with numerous providers ranging from large corporations to specialized local firms. The Department of Defense is a major consumer of such services, awarding billions annually to ensure its vast infrastructure is maintained.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, BAE SYSTEMS TECHNICAL SERVICES, is a large entity. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem for this specific award is likely minimal, though large prime contractors often engage small businesses for specialized support services.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Facilities Maintenance
- Naval Facilities Engineering Command Contracts
- Base Operations Support Services
- Government Facilities Management Contracts
Risk Flags
- Potential for cost escalation not fully captured by fixed-price.
- Contractor performance risk in service delivery.
- Limited competition may affect optimal pricing.
Tags
department-of-defense, department-of-the-navy, facilities-support-services, full-and-open-competition, firm-fixed-price, hawaii, large-contract, professional-scientific-and-technical-services, bae-systems-technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.9 million to BAE SYSTEMS TECHNICAL SERVICES. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS TECHNICAL SERVICES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $32.9 million.
What is the period of performance?
Start: 2006-09-14. End: 2012-03-31.
What is the historical spending pattern for facilities support services by the Department of the Navy in Hawaii?
Analyzing historical spending patterns for facilities support services by the Department of the Navy specifically in Hawaii would require access to detailed historical contract databases. However, it is generally understood that the Department of Defense, including the Navy, consistently allocates substantial budgets towards facilities maintenance and operations across its global installations. Factors influencing spending include the age and condition of infrastructure, the scope of services required (e.g., janitorial, groundskeeping, repair, energy management), and the prevailing market rates for such services in specific geographic locations. The $32.9M awarded to BAE SYSTEMS TECHNICAL SERVICES for a period of approximately 5.5 years (2025 days) suggests an average annual expenditure of roughly $6M for facilities support in this region, which can be compared against previous contract awards and overall defense spending trends in Hawaii to assess consistency and potential changes in investment.
How does the per-unit cost of services under this contract compare to industry benchmarks for similar facilities support contracts?
Determining a precise per-unit cost comparison for this contract is challenging without a detailed breakdown of the services provided and their associated quantities (e.g., cost per square foot maintained, cost per repair call, cost per janitorial hour). The provided data indicates a total contract value of $32.9M over approximately 2025 days. Facilities support services encompass a wide range of activities, and industry benchmarks vary significantly based on the type of facility, geographic location, labor costs, and the specific services included. Generally, large-scale facilities support contracts for government entities are subject to competitive bidding, which aims to align pricing with market rates. However, without specific service line items and their corresponding costs, a direct per-unit benchmark against private sector or other government contracts is speculative. Further analysis would require access to the contract's detailed statement of work and pricing structure.
What is BAE SYSTEMS TECHNICAL SERVICES' track record with similar large-scale facilities support contracts for the Department of Defense?
BAE SYSTEMS TECHNICAL SERVICES, as a subsidiary of BAE Systems, has a substantial track record in providing a wide array of technical and support services to government agencies, including the Department of Defense. While specific details on their performance for this particular $32.9M facilities support contract in Hawaii are not detailed in the provided summary data, the company is known to manage complex, large-value contracts. Their experience often includes base operations support, logistics, maintenance, and facilities management across various military installations. Performance evaluations and past performance questionnaires submitted during the bidding process would offer deeper insights into their capabilities and reliability in executing similar contracts. Government contract databases often contain ratings and feedback on contractor performance, which would be crucial for a comprehensive assessment.
What are the potential risks associated with a firm fixed-price contract for facilities support services?
Firm Fixed Price (FFP) contracts, while beneficial for cost certainty, carry inherent risks, particularly for complex service-based agreements like facilities support. The primary risk for the government is that the contractor may cut corners on quality or service delivery to maximize profit if unforeseen issues arise or costs escalate beyond their initial estimates. Conversely, the contractor bears the risk of cost overruns if their initial pricing was inaccurate or if unexpected maintenance needs or scope changes occur that are not adequately addressed through contract modifications. For facilities support, this could involve discovering extensive deferred maintenance, encountering hazardous material remediation needs, or facing significant increases in labor or material costs. Effective contract administration, clear performance standards, and robust oversight are critical to mitigating these risks and ensuring the government receives the required level of service.
How does the competition level (2 bidders) for this contract potentially impact price discovery and value for taxpayers?
A competition level of two bidders for this $32.9M facilities support contract presents a mixed picture for price discovery and taxpayer value. On one hand, having two competing offers is generally preferable to a sole-source award, as it introduces some level of price pressure and allows for a comparison of proposals. This can lead to a more competitive price than if only one company had bid. However, optimal price discovery and the greatest potential for taxpayer savings typically occur when there are multiple bidders (e.g., three or more). With only two bidders, there is a possibility that the market is not fully engaged, or that barriers to entry prevented additional qualified companies from participating. This could mean that the winning bid, while competitive against the other offer, might still be higher than what could have been achieved in a more robustly contested procurement. Therefore, while taxpayers benefit from some competition, the value might not be maximized.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 557 MARY ESTHER CUT OFF NW, FORT WALTON BE, FL
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-09-14
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2014-08-28
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