DoD awards BAE Systems $18.2M for Host Nation Service Support, raising questions on value and competition

Contract Overview

Contract Amount: $18,224,729 ($18.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2019-04-09

End Date: 2024-04-08

Contract Duration: 1,826 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: HOST NATION SERVICE SUPPORT

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: HOST NATION SERVICE SUPPORT Key points: 1. Significant contract value of $18.2M over 5 years. 2. BAE Systems, a large defense contractor, holds the award. 3. Potential risks associated with cost-plus-fixed-fee contract type. 4. Services fall under 'Other Computer Related Services' (NAICS 541519).

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. Benchmarking against similar 'Other Computer Related Services' contracts is difficult without more detailed service descriptions.

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 strategies and how they were evaluated are not detailed, impacting the assessment of price discovery.

Taxpayer Impact: Taxpayer funds are utilized for essential defense support services. The effectiveness of the competition in securing the best value for taxpayers is a key consideration.

Public Impact

Supports critical Department of Defense operations. Contract duration of 5 years provides long-term service stability. Potential for cost escalation under CPFF structure. Services are geographically specific to Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Lack of detailed service scope for value assessment
No small business participation noted

Positive Signals

Awarded via full and open competition
Long contract duration ensures service continuity

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending benchmarks for this category can vary widely based on the specific nature of the services provided, making direct comparison challenging without further detail.

Small Business Impact

The data indicates no small business participation in this contract (ss: false, sb: false). This suggests that large businesses dominated the bidding process, potentially limiting opportunities for smaller, specialized firms in this service area.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), indicating established oversight mechanisms. However, the effectiveness of this oversight in controlling costs and ensuring performance under a CPFF contract requires ongoing monitoring.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type increases risk of cost overruns.
Lack of detailed service scope hinders value assessment.
No small business participation noted.
Potential for undefined costs impacting final price.
Geographic concentration of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. HOST NATION SERVICE SUPPORT

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: 2019-04-09. End: 2024-04-08.

What specific 'Host Nation Service Support' functions are included in this contract, and how do they align with the 'Other Computer Related Services' NAICS code?

The specific functions are not detailed in the provided data. 'Other Computer Related Services' is a broad category that can encompass a wide range of IT support, including network management, system administration, and technical consulting. Understanding the precise deliverables is crucial for assessing if the chosen NAICS code accurately reflects the work and for evaluating the overall value proposition.

How effectively did the full and open competition process ensure competitive pricing for a Cost Plus Fixed Fee contract?

While 'full and open competition' suggests a broad solicitation, the CPFF structure inherently carries risk. The effectiveness of the competition in securing competitive pricing depends on the clarity of the fixed fee negotiation and the robustness of the government's cost oversight. Without insight into the bidding margins and the government's cost evaluation criteria, it's difficult to definitively assess the price discovery achieved.

What is the projected taxpayer impact of potential cost overruns given the CPFF contract type and the 5-year duration?

The CPFF structure allows for costs to exceed initial estimates, with the government bearing the burden. Over a 5-year period, even a small percentage increase in costs can translate to millions of taxpayer dollars. Robust government oversight and clear performance metrics are essential to mitigate this risk and control the ultimate financial impact on taxpayers.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $51,336,389

Exercised Options: $25,269,291

Current Obligation: $18,224,729

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $7,078,033

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523618D4800

IDV Type: IDC

Timeline