DoD's $21.7M BAE Systems Contract for Engineering Services: Full and Open Competition Awarded

Contract Overview

Contract Amount: $21,705,434 ($21.7M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-01

End Date: 2015-09-30

Contract Duration: 2,220 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TO N00178-04-D-4018-N408

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $21.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: TO N00178-04-D-4018-N408 Key points: 1. Contract awarded to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for engineering services. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The total value of the contract is $21,705,434.03. 4. The contract duration was 2220 days, spanning from September 1, 2009, to September 30, 2015. 5. The contract type is Cost Plus Fixed Fee (CPFF).

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee structure allows for cost reimbursement plus a predetermined profit. This can be effective for complex projects where costs are uncertain, but requires careful oversight to manage spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, with pricing driven by market forces.

Public Impact

Ensures access to specialized engineering expertise for Department of Defense projects. Supports technological advancement and operational readiness within the Navy. The competitive award process aims to deliver cost-effective solutions to taxpayers. Long-term contract duration suggests ongoing critical support requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed strictly.
Lack of specific performance metrics makes it difficult to assess efficiency.
No indication of small business participation.

Positive Signals

Awarded through full and open competition.
Long-term contract indicates sustained need and potential for stable support.
Experienced contractor with a significant award amount.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for supporting complex government projects, particularly in defense. Spending benchmarks for this sector vary widely based on project scope and specialization.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). There is no specific information provided regarding subcontracting opportunities for small businesses.

Oversight & Accountability

The contract's Cost Plus Fixed Fee structure necessitates robust oversight from the Department of the Navy to ensure costs are reasonable and the fixed fee is earned. Audits and regular performance reviews are critical for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed properly.
Lack of detailed performance metrics makes it difficult to assess efficiency.
No specific mention of small business subcontracting.
The contract duration is long, increasing the risk of scope creep or changing requirements.
The 'br' (breakdown?) value of 9777 is unclear and could represent an unmanaged cost element.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. TO N00178-04-D-4018-N408

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 $21.7 million.

What is the period of performance?

Start: 2009-09-01. End: 2015-09-30.

What specific engineering services were provided under this contract, and how did they contribute to the Navy's mission objectives?

The contract provided engineering services under NAICS code 541330. While the specific services are not detailed, they likely encompassed design, analysis, testing, and integration for naval systems or platforms. These services are critical for maintaining and enhancing the technological capabilities and operational readiness of the Navy's assets, directly supporting its mission objectives.

Given the CPFF structure, what mechanisms were in place to control costs and prevent potential overruns?

Cost Plus Fixed Fee contracts require stringent oversight. The Department of the Navy would have implemented mechanisms such as detailed cost tracking, regular audits, negotiation of indirect cost rates, and performance reviews to ensure costs remained reasonable and aligned with the project's scope. The fixed fee component incentivizes the contractor to manage costs efficiently to maximize their profit.

How effectively did the full and open competition process ensure the best value was achieved for these engineering services?

Full and open competition generally leads to best value by fostering a competitive environment where multiple qualified contractors vie for the award. This process encourages competitive pricing and innovation. The Department of the Navy likely evaluated proposals based on a combination of technical merit and cost, ensuring that the selected contractor offered the optimal balance of capability and price for the required engineering services.

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: N0002409R3217

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: $22,082,248

Exercised Options: $22,082,248

Current Obligation: $21,705,434

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4018

IDV Type: IDC

Timeline