DoD's $34.5M SATCOM Contract with BAE Systems Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $34,548,936 ($34.5M)
Contractor: BAE Systems Technical Services
Awarding Agency: Department of Defense
Start Date: 2007-10-15
End Date: 2012-09-30
Contract Duration: 1,812 days
Daily Burn Rate: $19.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: O&M SATCOM WAHIAWA
Place of Performance
Location: WAHIAWA, HONOLULU County, HAWAII, 96786, UNITED STATES OF AMERICA
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $34.5 million to BAE SYSTEMS TECHNICAL SERVICES for work described as: O&M SATCOM WAHIAWA Key points: 1. Contract awarded for Facilities Support Services in Hawaii. 2. BAE Systems Technical Services is the contractor. 3. The contract duration was 1812 days. 4. The contract was awarded under full and open competition. 5. The total award amount was $34,548,936.26.
Value Assessment
Rating: fair
The contract's value of $34.5M over five years for O&M SATCOM services appears reasonable, but a direct comparison is difficult without specific service details. The benchmark of $19.07M (BR) suggests potential overspending if it represents a comparable contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method should theoretically drive competitive pricing. However, the significant award amount and duration warrant a review to ensure the pricing reflects true market value and not inflated costs due to limited bidders or scope creep.
Taxpayer Impact: Taxpayer funds were used for this contract. While competition aims for efficiency, the final price and service delivery will determine the ultimate taxpayer impact.
Public Impact
Ensures critical O&M SATCOM services for the Department of the Navy in Hawaii. Supports national security infrastructure through reliable satellite communications. Potential impact on local economy through contractor employment and operations. The contract's duration suggests a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for overspending based on benchmark.
- Lack of detailed service scope makes value assessment difficult.
- Long contract duration could lead to price inflexibility.
Positive Signals
- Awarded through full and open competition.
- Contract supports critical national security infrastructure.
- Clear contractor identified.
Sector Analysis
This contract falls under Facilities Support Services, a broad category often involving maintenance, operations, and management of physical infrastructure. Spending in this sector can vary widely based on the complexity and scale of the facilities supported. The $34.5M award is substantial for a five-year period.
Small Business Impact
The data indicates this contract was not awarded to small businesses (SB: false). This suggests that the prime contractor, BAE Systems Technical Services, likely handled the majority of the work, potentially subcontracting portions to larger entities rather than small businesses.
Oversight & Accountability
Oversight would involve monitoring contract performance, adherence to service level agreements, and financial accountability. The Department of the Navy is responsible for ensuring BAE Systems meets its contractual obligations and that taxpayer funds are used efficiently.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpricing compared to benchmark.
- Lack of detailed service scope hinders value assessment.
- Long contract duration may reduce future cost-saving opportunities.
- No small business participation noted.
Tags
facilities-support-services, department-of-defense, hi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.5 million to BAE SYSTEMS TECHNICAL SERVICES. O&M SATCOM WAHIAWA
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 $34.5 million.
What is the period of performance?
Start: 2007-10-15. End: 2012-09-30.
How does the awarded price compare to industry benchmarks for similar O&M SATCOM services, considering the specific technical requirements and location?
The provided benchmark (BR) of $19.07M is significantly lower than the awarded $34.5M. This discrepancy raises concerns about potential overpricing or a substantial difference in scope/service levels. A detailed analysis comparing the specific services, technical complexity, and duration of both contracts is necessary to definitively assess value for money.
What specific risks were identified during the procurement process, and how were they mitigated to ensure fair pricing and effective service delivery?
While the contract was awarded under full and open competition, the significant price difference from the benchmark suggests potential risks in price discovery or scope definition. Further investigation into the solicitation documents, evaluation criteria, and any pre-award risk assessments would clarify how potential risks related to cost, performance, and contractor capability were addressed.
To what extent did the competitive bidding process effectively drive down costs and ensure the most advantageous solution for the government?
Full and open competition is designed to maximize cost savings. However, the substantial difference between the awarded amount and the benchmark ($34.5M vs $19.07M) warrants scrutiny. It's possible that the bidding process did not yield the most cost-effective outcome, or that the benchmark is not directly comparable. A review of the bidding process and the final negotiated price is needed.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0060406R0013
Offers Received: 3
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 BEACH, FL, 32548
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,548,936
Exercised Options: $34,548,936
Current Obligation: $34,548,936
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-10-15
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2015-04-02
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