DoD Awards BAE Systems $18.7M for Platform Launching Systems Engineering Support

Contract Overview

Contract Amount: $18,732,714 ($18.7M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2015-03-01

End Date: 2020-09-24

Contract Duration: 2,034 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF THE CONTRACTOR SHALL PROVIDE ENGINEERING, TECHNICAL, AND PROGRAMMATIC SERVICES IN SUPPORT OF PLATFORM LAUNCHING SYSTEMS AND RELATED SUBSYSTEMS FOR NUWCDIVNPT CODE 40 AND CODE 25.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IGF::CT::IGF THE CONTRACTOR SHALL PROVIDE ENGINEERING, TECHNICAL, AND PROGRAMMATIC SERVICES IN SUPPORT OF PLATFORM LAUNCHING SYSTEMS AND RELATED SUBSYSTEMS FOR NUWCDIVNPT CODE 40 AND CODE 25. Key points: 1. Contract awarded to BAE Systems for critical engineering and technical services. 2. Significant contract value suggests complex and long-term support requirements. 3. Focus on platform launching systems indicates a specialized defense sector need. 4. Potential for cost overruns exists with Cost Plus Fixed Fee contract type.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs than fixed-price contracts if not managed tightly. Benchmarking against similar engineering services contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing outcomes and how well they reflect market rates are not detailed.

Taxpayer Impact: Taxpayers are funding critical defense infrastructure support. The CPFF structure necessitates careful oversight to ensure cost efficiency and prevent unnecessary expenditure.

Public Impact

Ensures continued operational readiness of naval platform launching systems. Supports advanced engineering and technical expertise within the defense industrial base. Contributes to the development and maintenance of national security assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Lack of detailed cost breakdown makes precise value assessment challenging.
No indication of small business participation.

Positive Signals

Awarded under full and open competition.
Supports critical naval defense systems.
Long contract duration suggests sustained need and potential for stable support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting naval defense systems. Spending in this area is driven by national security priorities and the need for advanced technological capabilities.

Small Business Impact

The data indicates that small businesses were not directly involved in this contract award, as the prime contractor is a large entity and the 'sb' field is false. Further analysis would be needed to determine if any subcontracting opportunities were extended to small businesses.

Oversight & Accountability

The Cost Plus Fixed Fee contract type requires robust oversight from the Defense Contract Management Agency (DCMA) to monitor costs, performance, and ensure compliance with contract terms. Regular audits and performance reviews are crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Lack of detailed cost transparency.
No small business participation noted.
Long contract duration increases exposure to potential cost changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IGF::CT::IGF THE CONTRACTOR SHALL PROVIDE ENGINEERING, TECHNICAL, AND PROGRAMMATIC SERVICES IN SUPPORT OF PLATFORM LAUNCHING SYSTEMS AND RELATED SUBSYSTEMS FOR NUWCDIVNPT CODE 40 AND CODE 25.

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 $18.7 million.

What is the period of performance?

Start: 2015-03-01. End: 2020-09-24.

What is the estimated total cost of ownership for the services provided under this contract, considering potential cost escalations?

The total award value is $18.7 million, but as a Cost Plus Fixed Fee (CPFF) contract, the final cost could exceed this if actual costs are higher than anticipated. Effective oversight by DCMA is critical to manage these costs and ensure the government only pays for reasonable and allocable expenses, thereby controlling the total cost of ownership.

What are the specific performance metrics used to evaluate BAE Systems' engineering services and ensure mission effectiveness?

The provided data does not specify the performance metrics. However, for engineering and programmatic services supporting critical platform launching systems, metrics likely include on-time delivery of technical reports, successful subsystem integration, adherence to safety standards, and responsiveness to urgent technical issues. DCMA would be responsible for monitoring these metrics.

How does the pricing structure of this CPFF contract compare to industry benchmarks for similar engineering support services in the defense sector?

Without detailed cost breakdowns and specific service deliverables, a direct comparison to industry benchmarks is challenging. CPFF contracts inherently carry higher risk of cost growth than fixed-price contracts. The government's ability to negotiate favorable fixed fees and rigorously audit costs is key to ensuring competitive pricing in this context.

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: N0002414R3072

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: $19,797,369

Exercised Options: $19,755,060

Current Obligation: $18,732,714

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $6,327,721

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