DoD's $18.2M contract for towed systems program support services awarded to BAE Systems, spanning 8 years

Contract Overview

Contract Amount: $18,182,377 ($18.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2008-06-26

End Date: 2016-09-30

Contract Duration: 3,018 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TOWED SYSTEMS PROGRAM SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: TOWED SYSTEMS PROGRAM SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in specialized engineering services. 2. BAE Systems, a major defense contractor, secured this award. 3. The contract duration of over 8 years suggests a long-term need for these services. 4. Engineering services are critical for the development and maintenance of complex defense systems. 5. The award was made under full and open competition, indicating a broad market search. 6. The contract type (Cost Plus Fixed Fee) implies potential for cost overruns if not managed carefully.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable data for 'Towed Systems Program Support Services'. However, the $18.2 million over an 8-year period averages to approximately $2.27 million per year. This annual figure needs to be assessed against the scope and complexity of the support provided. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs than fixed-price contracts if cost controls are not robust, warranting close monitoring of expenditures against the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it was competed broadly is a positive sign for price discovery. However, the number of actual bidders is not provided, which would offer further insight into the intensity of the competition. A robust competitive process generally leads to better pricing for the government.

Taxpayer Impact: Full and open competition aims to ensure that the government receives the best value by allowing all qualified sources to participate, potentially driving down costs through market forces.

Public Impact

The Department of Defense benefits from continued support for its towed systems programs. Engineering services are delivered to ensure the operational readiness and technological advancement of critical defense assets. The geographic impact is likely concentrated around BAE Systems' facilities and relevant DoD installations. This contract supports specialized engineering roles, potentially impacting the defense technology workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively and prevent overruns.
The long duration of the contract (over 8 years) necessitates ongoing performance monitoring to ensure continued value.
Specialized engineering services can be subject to scope creep if requirements are not clearly defined and managed.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
BAE Systems is a well-established defense contractor with a track record in complex systems support.
The contract addresses a specific program need within the Department of Defense, suggesting strategic alignment.

Sector Analysis

The defense engineering services sector is characterized by highly specialized firms capable of supporting complex military systems. This contract falls within the broader engineering services market, which is substantial and driven by government procurement. Comparable spending benchmarks would typically involve analyzing other large, long-term engineering support contracts awarded by the DoD or other federal agencies for similar types of systems.

Small Business Impact

There is no indication that this contract included a small business set-aside. As a large contract awarded to a major defense contractor, the primary impact on small businesses would likely be through subcontracting opportunities. The extent of small business subcontracting would depend on BAE Systems' strategy and the specific requirements of the towed systems program support.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the CPFF contract structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract databases and reporting requirements, though specific program details may be sensitive.

Related Government Programs

Towed Artillery Systems
Defense Engineering Services
Program Management Support
Military Equipment Support

Risk Flags

Cost Plus Fixed Fee contract type requires careful cost management.
Long contract duration necessitates sustained performance monitoring.
Potential for scope creep in complex engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. TOWED SYSTEMS PROGRAM SUPPORT SERVICES

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2008-06-26. End: 2016-09-30.

What is the historical spending trend for towed systems program support services within the Department of Defense?

Analyzing historical spending trends for 'towed systems program support services' specifically is challenging without more granular data. However, overall Department of Defense spending on engineering and technical services has been substantial, often in the tens of billions of dollars annually. This particular contract, valued at $18.2 million over eight years, represents a focused investment within a larger category. Trends in defense spending are influenced by geopolitical factors, technological advancements, and budget appropriations. For towed systems, spending would likely correlate with modernization efforts, sustainment requirements, and the development of new platforms or upgrades.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of cost efficiency for engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, common in research and development or complex engineering services. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer less cost certainty for the government, as costs can exceed initial estimates. However, it provides flexibility and encourages the contractor to undertake complex tasks. For cost efficiency, fixed-price incentive fee or other performance-based contracts might be more advantageous if performance metrics can be clearly defined and measured, as they incentivize the contractor to control costs more directly.

What are the typical performance metrics or key performance indicators (KPIs) for engineering support services contracts in the defense sector?

Typical performance metrics for defense engineering support services contracts often include on-time delivery of technical documentation, adherence to design specifications, successful completion of testing phases, system reliability improvements, and responsiveness to technical queries. For a contract like this, KPIs might also involve the successful integration of new technologies, the reduction of system downtime, or the achievement of specific performance targets for the towed systems. The effectiveness of the contractor's project management, quality control processes, and the skill level of the assigned personnel are also crucial, often assessed through periodic reviews and performance reports.

What is BAE Systems' track record with similar large-scale engineering support contracts for the Department of Defense?

BAE Systems Technology Solutions & Services Inc. has a significant track record with the Department of Defense, having been awarded numerous large contracts across various domains, including engineering, logistics, and technical support. Their experience often involves complex systems integration, sustainment, and modernization efforts for military platforms. While specific details on past performance for 'towed systems program support' would require deeper analysis of contract databases, BAE Systems is generally recognized as a capable provider of such services. Their history includes managing large, multi-year programs, which suggests they possess the organizational capacity and technical expertise required for contracts of this nature.

What are the potential risks associated with a sole-source or limited competition award for specialized engineering services?

This contract was awarded under full and open competition, so the risks associated with sole-source or limited competition are not directly applicable here. However, in scenarios where competition is limited, potential risks include higher prices due to reduced market pressure, less innovation as contractors may not feel compelled to offer novel solutions, and a potential lack of transparency in the procurement process. There's also a risk that the government might not be aware of all capable sources, potentially missing out on better value or more suitable technical approaches. For specialized engineering services, limited competition can arise if only a few firms possess the unique expertise or security clearances required.

How does the geographic location of contract performance (Maryland) influence the cost and execution of this engineering support contract?

The contract indicates performance in Maryland (ST: MD). This location is significant as Maryland is a hub for defense contractors and government agencies, including the Department of Defense. Proximity to key DoD installations and decision-makers can facilitate communication, collaboration, and oversight, potentially streamlining execution. However, operating in a high-cost-of-living area like Maryland can also increase labor costs for the contractor, which may be reflected in the contract's pricing structure, particularly under a CPFF arrangement. Access to a skilled workforce in engineering and defense technology is generally good in this region, which can be an advantage for contractor staffing.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002408R3119

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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

Financial Breakdown

Contract Ceiling: $19,808,409

Exercised Options: $19,709,052

Current Obligation: $18,182,377

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4018

IDV Type: IDC

Timeline