DoD Spends $31.3M on Submarine Torpedo Launcher Engineering Services with BAE Systems

Contract Overview

Contract Amount: $31,271,208 ($31.3M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2008-08-06

End Date: 2015-02-28

Contract Duration: 2,397 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TAS::97 0100::TAS ENGINEERING AND SUPPORT SERVICES FOR SURFACE SHIP TORPEDO LAUNCHERS, RESPONSIBLE FOR THE INTERFACE BETWEEN THE TOMAHAWK MISSILE SYSTEM AS WELL AS THE WEAPON LAUNCHING, STOWAGE AND HANDLING SYSTEM ON SUBMARINES. TAS::97 4930 000::TAS

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: TAS::97 0100::TAS ENGINEERING AND SUPPORT SERVICES FOR SURFACE SHIP TORPEDO LAUNCHERS, RESPONSIBLE FOR THE INTERFACE BETWEEN THE TOMAHAWK MISSILE SYSTEM AS WELL AS THE WEAPON LAUNCHING, STOWAGE AND HANDLING SYSTEM ON SUBMARINES. TAS::97 4930 000::TAS Key points: 1. Significant contract awarded to BAE Systems for critical submarine weapon system interface. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration spans nearly 8 years, indicating a long-term need. 4. Cost-plus-fixed-fee contract type may lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The total award amount of $31.3 million for nearly 8 years of service suggests a moderate annual spend. Benchmarking against similar complex engineering services contracts for defense systems is necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific pricing mechanisms within the Cost Plus Fixed Fee structure need scrutiny to ensure optimal price discovery.

Taxpayer Impact: Taxpayer funds are being used for specialized engineering services essential for submarine defense capabilities. The competitive award process aims to ensure reasonable pricing, but oversight is crucial.

Public Impact

Ensures operational readiness of submarine torpedo systems. Supports advanced naval defense capabilities. Funds specialized engineering expertise within the defense industrial base. Contributes to the technological advancement of submarine warfare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can incentivize contractor to increase costs.
Long contract duration increases risk of scope creep and cost escalation.
Limited information on performance metrics and quality assurance.

Positive Signals

Awarded under full and open competition.
Supports critical national defense infrastructure.
Experienced contractor with a long-standing relationship.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting complex defense systems. Spending benchmarks for similar specialized engineering services for naval platforms are typically high due to the technical requirements and security protocols involved.

Small Business Impact

The data indicates the prime contractor is BAE Systems, a large business. There is no explicit information on subcontracting to small businesses, which is a potential area for improvement or further investigation.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The long duration and cost-plus nature of the contract necessitate robust oversight to manage costs and ensure performance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost-plus-fixed-fee contract type.
Long contract duration.
Lack of detailed performance metrics.
Potential for cost escalation.
No explicit mention of small business utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. TAS::97 0100::TAS ENGINEERING AND SUPPORT SERVICES FOR SURFACE SHIP TORPEDO LAUNCHERS, RESPONSIBLE FOR THE INTERFACE BETWEEN THE TOMAHAWK MISSILE SYSTEM AS WELL AS THE WEAPON LAUNCHING, STOWAGE AND HANDLING SYSTEM ON SUBMARINES. TAS::97 4930 000::TAS

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 $31.3 million.

What is the period of performance?

Start: 2008-08-06. End: 2015-02-28.

What is the average annual cost for this service, and how does it compare to similar contracts for submarine weapon system support?

The total award of $31.3 million over approximately 2397 days (about 6.5 years of performance) averages to roughly $4.8 million per year. Comparing this to similar contracts requires access to a database of defense engineering service procurements, considering factors like system complexity, scope of work, and contractor rates.

What are the key performance indicators (KPIs) for this contract, and how is BAE Systems' performance being measured?

The provided data does not detail specific Key Performance Indicators (KPIs) or performance metrics. Robust oversight would involve tracking metrics related to system availability, reliability, response times for engineering support, and adherence to project milestones to ensure effective service delivery and value for money.

What is the potential for cost overruns with this Cost Plus Fixed Fee (CPFF) contract, and what controls are in place?

CPFF contracts carry inherent risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Controls typically include detailed cost tracking, regular audits, negotiation of ceilings, and strong program management to scrutinize expenditures and prevent unnecessary costs.

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: N0002408R3159

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

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: $31,643,478

Exercised Options: $31,640,278

Current Obligation: $31,271,208

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4018

IDV Type: IDC

Timeline