DoD's $17.9M contract for specialized test equipment awarded to BCF Designs Ltd. shows potential value concerns

Contract Overview

Contract Amount: $17,976,341 ($18.0M)

Contractor: BCF Designs Ltd

Awarding Agency: Department of Defense

Start Date: 2005-08-31

End Date: 2009-12-31

Contract Duration: 1,583 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200511!384598!1700!N68335!NAVAL AIR ENGINEERING STATION !N6833504C0187 !A!N! !N! !P00004!20050831!20060901!770251296!770251296!770251296!N!B C F DESIGNS LTD !PHOENIX HO !CIRENCESTER !UK!* !00000! !UK!* !* !UNITED KIN!+000004496520!N!N!000000000000!1190!SPECILIZED TEST AND HANDLING EQ, NUCL ORD !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !334515!E! !3! ! !H! ! !20200930!B! ! !A! !A!U!J!1!001!B! !Z!N!Z!B!UK!N!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y!1700!N68335!0001! !

Plain-Language Summary

Department of Defense obligated $18.0 million to BCF DESIGNS LTD for work described as: 200511!384598!1700!N68335!NAVAL AIR ENGINEERING STATION !N6833504C0187 !A!N! !N! !P00004!20050831!20060901!770251296!770251296!770251296!N!B C F DESIGNS LTD !PHOENIX HO !CIRENCESTER !UK!* !00000! !UK!* !* … Key points: 1. The contract's value appears high relative to its duration and the specific equipment procured. 2. Limited public data makes it challenging to benchmark pricing against similar specialized equipment. 3. The contract was awarded through full and open competition, suggesting a competitive bidding process. 4. The specialized nature of the equipment may limit the pool of qualified bidders. 5. Performance context is minimal, with no specific details on delivery or acceptance criteria. 6. This contract falls under the 'Other Aircraft Equipment' category within the broader defense sector.

Value Assessment

Rating: fair

The total contract value of $17.9 million over approximately 4 years (2005-2009) for specialized test and handling equipment for nuclear ordnance seems substantial. Without detailed specifications of the equipment and its criticality, it's difficult to definitively assess value. However, the per-unit cost, if calculable, would likely be high given the specialized nature. Benchmarking against similar niche defense procurements would be necessary for a more precise evaluation, but such data is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the fact that it was competed suggests that multiple companies had the capability to provide the specialized test and handling equipment. This level of competition is generally favorable for price discovery.

Taxpayer Impact: A competitive bidding process for specialized defense equipment helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging cost-effective solutions.

Public Impact

The primary beneficiaries are likely entities within the Naval Air Engineering Station requiring specialized equipment for handling nuclear ordnance. The services delivered involve the provision of critical test and handling equipment, essential for safety and operational readiness. The geographic impact is localized to the Naval Air Engineering Station where the equipment will be deployed. Workforce implications are indirect, potentially involving personnel trained to operate and maintain the specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpricing due to the highly specialized nature of the equipment and limited market.
Lack of detailed performance metrics makes it difficult to assess if the equipment met all operational requirements.
The long duration of the contract (over 4 years) could introduce risks related to technological obsolescence or changing requirements.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contractor, BCF Designs Ltd., is based in the UK, potentially indicating access to specialized international suppliers or expertise.
The contract type is Firm Fixed Price, which shifts cost risk to the contractor and provides budget certainty.

Sector Analysis

This contract falls within the broader defense industrial base, specifically concerning the procurement of specialized equipment for handling sensitive materials. The market for such niche equipment is likely limited, with a few specialized manufacturers or integrators. Comparable spending benchmarks would be difficult to establish without knowing the exact specifications and criticality of the 'Specialized Test and Handling Equipment, Nuclear Ordnance.' However, defense spending on specialized testing and handling equipment is a consistent area of investment.

Small Business Impact

There is no indication that this contract involved small business set-asides. The nature of specialized nuclear ordnance handling equipment suggests that the primary contractors are likely large, specialized firms rather than small businesses. Subcontracting opportunities for small businesses are not detailed but could exist if specific components or services were outsourced.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the terms of the Firm Fixed Price contract, including delivery schedules and equipment specifications. Transparency is limited by the availability of detailed contract performance data in the public domain.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Defense Logistics Agency (DLA) Equipment Procurement
Nuclear Weapons Support Contracts
Specialized Test Equipment Procurement
Ordnance Handling and Storage Equipment

Risk Flags

High contract value for specialized equipment.
Limited public data on performance and specific equipment details.
Potential for niche market pricing inflation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.0 million to BCF DESIGNS LTD. 200511!384598!1700!N68335!NAVAL AIR ENGINEERING STATION !N6833504C0187 !A!N! !N! !P00004!20050831!20060901!770251296!770251296!770251296!N!B C F DESIGNS LTD !PHOENIX HO !CIRENCESTER !UK!* !00000! !UK!* !* !UNITED KIN!+000004496520!N!N!000000000000!1190!SPECILIZED TEST AND HANDLING EQ, NUCL ORD !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !334515!E! !3! ! !H! ! !202

Who is the contractor on this award?

The obligated recipient is BCF DESIGNS LTD.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.0 million.

What is the period of performance?

Start: 2005-08-31. End: 2009-12-31.

What is the specific nature and criticality of the 'Specialized Test and Handling Equipment, Nuclear Ordnance' procured under this contract?

The contract data identifies the item as 'SPECILIZED TEST AND HANDLING EQ, NUCL ORD' under PSC code '334515' (Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals) and NAICS code '334515'. While the exact specifications are not publicly detailed, the description 'Nuclear Ordnance' implies equipment designed for the testing, handling, maintenance, or transport of nuclear weapons or their components. This suggests a high degree of criticality, requiring stringent safety, security, and reliability standards. Such equipment could range from specialized diagnostic tools and calibration devices to secure transport containers or robotic handling systems. The procurement likely addresses unique requirements for ensuring the integrity and safety of nuclear materials throughout their lifecycle within the naval aviation context.

How does the $17.9 million contract value compare to similar procurements for specialized defense equipment?

Benchmarking this $17.9 million contract is challenging due to the highly specialized nature of 'Nuclear Ordnance' handling equipment. Publicly available data on comparable procurements is scarce. However, for context, significant investments are made in specialized defense equipment. For instance, contracts for advanced radar systems, aircraft components, or complex simulation equipment can run into tens or hundreds of millions of dollars. The value of this contract, spread over approximately four years, suggests a significant investment in a niche capability. Without detailed specifications and performance requirements, a direct comparison is difficult, but the amount indicates a procurement of substantial importance and complexity within its specific domain.

What was the track record of BCF Designs Ltd. with the Department of Defense prior to or during this contract?

Information regarding BCF Designs Ltd.'s specific track record with the Department of Defense prior to or during this 2005-2009 contract is limited in publicly accessible databases. The contract itself, valued at $17.9 million, suggests a level of capability and trust placed in the company by the Naval Air Engineering Station. Further investigation into contract performance reports, past performance questionnaires, or other DoD contracting databases would be necessary to provide a comprehensive assessment of their historical performance, including any awards, penalties, or significant issues encountered on previous or concurrent contracts. The fact that they were awarded a 'full and open competition' contract implies they met the necessary qualifications.

What are the potential risks associated with procuring specialized nuclear ordnance handling equipment?

Procuring specialized nuclear ordnance handling equipment carries several significant risks. Firstly, the extreme criticality demands unparalleled reliability and safety; failure could have catastrophic consequences. Secondly, the niche market means fewer suppliers, potentially leading to higher costs and longer lead times. Technological obsolescence is a risk, as advancements in handling or safety protocols could render equipment outdated. Security risks are paramount, requiring robust measures to prevent unauthorized access or tampering. Furthermore, the specialized training required for personnel to operate and maintain such equipment adds complexity and cost. Ensuring compliance with stringent regulatory and safety standards throughout the equipment's lifecycle is also a critical risk factor.

How does the 'Firm Fixed Price' contract type impact cost certainty and risk for this procurement?

The 'Firm Fixed Price' (FFP) contract type provides significant cost certainty for the government in this procurement. Under an FFP agreement, the contractor, BCF Designs Ltd., is obligated to complete the work for a predetermined price, regardless of their actual costs. This shifts the primary financial risk from the buyer (the government) to the seller (the contractor). For the Department of Defense, this means the total expenditure is known upfront, simplifying budgeting and financial planning. However, it also means the contractor has a strong incentive to control costs and may be less inclined to accommodate changes or unforeseen issues without additional charges. For highly specialized equipment where costs can be unpredictable, an FFP contract can be advantageous if the contractor accurately estimates all potential expenses.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals

Product/Service Code: NUCLEAR ORDNANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Undersea Sensor Systems Inc (UEI: 349084822)

Address: PHOENIX HO, CIRENCESTER

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline