DoD's $130.7M Engineering Services Contract Awarded to BAE Systems for Naval Undersea Warfare Center

Contract Overview

Contract Amount: $13,068,267 ($13.1M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2002-01-23

End Date: 2011-04-12

Contract Duration: 3,366 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200207!021920!1700!BW24A !NAVAL UNDERSEA WARFARE CENTER, N!N6660402C1920 !A!N! !N! !20020123!20070131!103933453!876861790!217304393!N!BAE SYSTEMS APPLIED TECHNOLOGI!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!67675!031!24!ROCKVILLE !MONTGOMERY !MARYLAND !+000000500000!N!N!000015336417!R414!SYSTEMS ENGINEERING SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!001!B! !C!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! !Y! !N66604!0001!

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: 200207!021920!1700!BW24A !NAVAL UNDERSEA WARFARE CENTER, N!N6660402C1920 !A!N! !N! !20020123!20070131!103933453!876861790!217304393!N!BAE SYSTEMS APPLIED TECHNOLOGI!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!67675!031!24!ROCKVILLE !MONTG… Key points: 1. Contract awarded for systems engineering services, indicating a need for specialized technical expertise. 2. The duration of the contract (3366 days) suggests a long-term requirement for these services. 3. The award to a single entity, BAE Systems, warrants examination of competition dynamics. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 5. The geographic location of the contractor (Maryland) may have implications for local economic impact. 6. The specific NAICS code (541330) points to a focus on engineering services within the defense sector.

Value Assessment

Rating: fair

The total award amount of $130.7 million over approximately 9 years represents a significant investment in engineering services. Benchmarking this against similar contracts for systems engineering support within the Department of Defense is crucial. Without direct comparisons, it's difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D and complex services, carries inherent risks of cost escalation if the fixed fee is not adequately justified or if the scope of work expands significantly.

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. However, the data indicates only one award was made to BAE Systems Technology Solutions & Services Inc. Further investigation would be needed to determine the number of bids received and the reasons why only one award was issued. A single award under full and open competition might suggest that only one offeror met all the technical and cost requirements, or it could indicate a lack of robust competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process. However, if only one bid was truly viable, the potential cost savings from competition may have been limited.

Public Impact

The primary beneficiary is the Naval Undersea Warfare Center (NUWC), which receives critical systems engineering support. Services delivered include systems engineering, which is vital for the development and maintenance of complex naval systems. The geographic impact is primarily centered around the contractor's location in Rockville, Maryland, potentially creating local jobs. Workforce implications include the employment of engineers and technical staff by BAE Systems to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher costs if not managed effectively.
Limited information on the number of bids received under 'full and open competition' raises questions about the extent of competition.
The long contract duration (over 9 years) could present challenges in adapting to evolving technological needs.

Positive Signals

Awarded under 'full and open competition', indicating an attempt to solicit a wide range of potential contractors.
The contract supports a critical function (systems engineering) for the Naval Undersea Warfare Center.
BAE Systems is a well-established defense contractor with a track record in complex systems integration.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications. The market for defense engineering services is substantial, driven by the continuous need for technological advancement and modernization of military platforms. Comparable spending benchmarks would involve analyzing other large-scale systems engineering contracts awarded by the Department of Defense to similar prime contractors for naval or other defense systems.

Small Business Impact

The contract data indicates that this was not a small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. The prime contractor, BAE Systems, is a large business, and while they may engage small businesses as subcontractors, the primary award does not directly benefit the small business ecosystem through a set-aside provision.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to performance metrics outlined in the contract and the Cost Plus Fixed Fee structure. Transparency is generally maintained through contract awards databases, though specific performance details and cost breakdowns may be subject to proprietary or national security restrictions. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Systems Engineering Support
Naval Undersea Warfare Center (NUWC) Operations
BAE Systems Defense Contracts
Cost Plus Fixed Fee Contracts in Defense

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited transparency on the number of bids received under full and open competition.
Risk of technological obsolescence over the long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. 200207!021920!1700!BW24A !NAVAL UNDERSEA WARFARE CENTER, N!N6660402C1920 !A!N! !N! !20020123!20070131!103933453!876861790!217304393!N!BAE SYSTEMS APPLIED TECHNOLOGI!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!67675!031!24!ROCKVILLE !MONTGOMERY !MARYLAND !+000000500000!N!N!000015336417!R414!SYSTEMS ENGINEERING SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B

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 $13.1 million.

What is the period of performance?

Start: 2002-01-23. End: 2011-04-12.

What is the specific nature of the 'Systems Engineering Services' provided under this contract?

The 'Systems Engineering Services' (NAICS code 541330) provided under this contract are crucial for the design, development, integration, and lifecycle management of complex naval systems. This typically involves activities such as requirements definition, system architecture development, technical planning, risk management, configuration management, and performance analysis. For the Naval Undersea Warfare Center (NUWC), these services likely support the advancement of submarine technology, underwater sensors, sonar systems, and other critical undersea warfare capabilities. The contract's duration suggests a long-term need for expertise in maintaining and evolving these sophisticated systems.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for similar services, and what are its implications for cost control?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or involves a high degree of uncertainty, such as research and development or complex system design. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change, but it shifts more cost risk to the government. For cost control, the government must diligently monitor and audit contractor costs to ensure they are allowable and reasonable. The fixed fee itself is negotiated upfront, and while it doesn't fluctuate with costs, the government must ensure the fee is commensurate with the risk and effort involved. Without robust oversight, CPFF contracts can lead to cost overruns as the contractor is incentivized to incur costs to achieve the fixed fee.

What is BAE Systems' track record with similar large-scale defense engineering contracts?

BAE Systems is a major global defense contractor with extensive experience in providing systems engineering and technical services to various branches of the U.S. military, including the Department of the Navy. They have a well-established track record in managing large, complex defense programs, often involving advanced technologies and long program durations. Their portfolio includes work on naval platforms, aerospace systems, and command and control systems. Analyzing their past performance on similar CPFF or large-scale engineering contracts would provide insight into their ability to manage costs, adhere to schedules, and deliver quality technical solutions within the defense sector. Publicly available contract award data and performance reviews, where accessible, can offer further context.

Given the 'full and open competition' designation, why was only one award made to BAE Systems?

The designation 'full and open competition' means that the solicitation was made available to all responsible sources, and all responsible sources were permitted to submit a response. However, it does not guarantee that multiple awards will be made, nor does it guarantee that multiple bids will be received. There are several reasons why only one award might be made: 1) Only one offeror submitted a proposal. 2) Only one offeror was found to be technically acceptable after evaluation. 3) Only one offeror represented the best value to the government based on the evaluation criteria. Without access to the specific evaluation results and debriefings provided to unsuccessful offerors (if any), it's difficult to pinpoint the exact reason. It could indicate strong capabilities from BAE Systems or potentially a less competitive market for these specific services.

What are the potential risks associated with a contract duration of over 9 years (3366 days)?

A contract duration exceeding nine years presents several potential risks. Firstly, technological obsolescence is a significant concern; systems and requirements can change rapidly, making the initially defined scope potentially outdated by the end of the contract term. Secondly, maintaining consistent performance and quality over such a long period can be challenging, requiring robust contract management and oversight. Thirdly, economic conditions and budget priorities within the government can shift, potentially impacting funding availability or leading to contract modifications or terminations. Lastly, long-term reliance on a single contractor for critical services might reduce flexibility and inhibit the adoption of new technologies or approaches that could be introduced by competitors.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 1601 RESEARCH BLVD, ROCKVILLE, MD, 08

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline