DoD's $34.7M Teleport Contract with BAE Systems Raises Questions on Value and Competition

Contract Overview

Contract Amount: $34,766,776 ($34.8M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2013-04-15

End Date: 2015-11-30

Contract Duration: 959 days

Daily Burn Rate: $36.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF TELEPORT

Place of Performance

Location: WAHIAWA, HONOLULU County, HAWAII, 96786, UNITED STATES OF AMERICA

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $34.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IGF::OT::IGF TELEPORT Key points: 1. The contract awarded to BAE Systems for telecommunications services represents a significant expenditure. 2. Competition details are unclear, potentially impacting price discovery and taxpayer value. 3. The fixed-price contract type aims to control costs, but the lack of clear competition raises risk. 4. The IT sector is broad; specific benchmarks for this niche telecommunications service are needed.

Value Assessment

Rating: questionable

The contract's value of $34.7M over 959 days needs comparison to similar telecommunications services. Without benchmarks, assessing if this price is competitive is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While listed as full and open competition, the lack of detailed award information makes it difficult to assess the breadth of participation and the effectiveness of the price discovery process.

Taxpayer Impact: The significant expenditure warrants scrutiny to ensure taxpayers received the best possible value given the competitive landscape.

Public Impact

Citizens expect transparency in defense spending, especially for services like telecommunications. The effectiveness of competition in securing fair prices for government contracts is a key public concern. Ensuring robust oversight prevents potential waste and ensures resources are used efficiently.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition justification
Unclear value for money assessment
Potential for uncompetitive pricing

Positive Signals

Firm Fixed Price contract type
Awarded by Department of Defense

Sector Analysis

This contract falls within the Information Technology sector, specifically telecommunications. Benchmarking against similar government or commercial contracts for specialized telecommunications infrastructure and services is crucial for assessing value.

Small Business Impact

The provided data does not indicate any specific set-asides or participation goals for small businesses in this contract, suggesting it may not have directly benefited SMBs.

Oversight & Accountability

Oversight of this contract would involve monitoring performance against the firm fixed price, ensuring deliverables meet specifications, and reviewing the initial competition process for adherence to federal acquisition regulations.

Related Government Programs

All Other Telecommunications
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of transparency in competition details
Potential for uncompetitive pricing
Insufficient data for value-for-money assessment
Broad service category may obscure specific needs and costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IGF::OT::IGF TELEPORT

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 $34.8 million.

What is the period of performance?

Start: 2013-04-15. End: 2015-11-30.

What was the specific nature of the telecommunications services provided, and how did they align with the Department of the Navy's operational needs?

The contract, identified by PSC code 517919, covers 'All Other Telecommunications.' This broad category suggests a range of services, potentially including network infrastructure, satellite communications, or specialized data transmission. Understanding the precise requirements is essential to evaluate if the $34.7M expenditure was justified and directly supported the Navy's mission objectives effectively.

Given the 'full and open competition' designation, what was the rationale for awarding the contract to BAE Systems, and were alternative proposals thoroughly evaluated?

While designated as full and open, the absence of detailed award information necessitates further inquiry into the evaluation process. Understanding the number of bids received, the evaluation criteria, and the specific reasons BAE Systems was selected is critical. This ensures that the competition was robust and that the government secured the best value, rather than simply the lowest price from a single, potentially dominant, bidder.

How does the per-unit cost or overall value of this contract compare to industry benchmarks for similar telecommunications services, and what is the potential taxpayer impact of any discrepancy?

Without specific unit cost data or comparable contract benchmarks, assessing the taxpayer impact is challenging. If this contract's pricing is found to be above market rates, it represents potential waste. Conversely, if it represents a good deal, it highlights effective procurement. Further analysis comparing the contract's terms and pricing to similar government and commercial agreements is needed to quantify the value for taxpayers.

Industry Classification

NAICS: Information › Other Telecommunications › All Other Telecommunications

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: N0060411R3006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 520 GAITHER ROAD, 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: $35,532,982

Exercised Options: $34,766,776

Current Obligation: $34,766,776

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $20,016,329

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: NO

Timeline