DoD Awards $46.7M for System Engineering & Evaluation to BAE Systems
Contract Overview
Contract Amount: $46,745,505 ($46.7M)
Contractor: BAE Systems Technology Solutions & Services Inc.
Awarding Agency: Department of Defense
Start Date: 2016-08-23
End Date: 2021-08-20
Contract Duration: 1,823 days
Daily Burn Rate: $25.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF SYSTEM ENGINEERING&EVALUATION, SYSTEM ANALYSIS WORLDWIDE - CROSS-DOMAIN
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $46.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IGF::OT::IGF SYSTEM ENGINEERING&EVALUATION, SYSTEM ANALYSIS WORLDWIDE - CROSS-DOMAIN Key points: 1. Contract awarded to BAE Systems for critical system engineering and evaluation services. 2. The contract value of $46.7M is significant for custom computer programming services. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is Defense, a major area of federal spending.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount is substantial, and without specific benchmarks for similar system engineering contracts, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific impact on price discovery for these specialized services requires further analysis of the bidding process.
Taxpayer Impact: Taxpayer funds are being used for specialized defense system engineering. The competitive award process aims to ensure reasonable pricing, but the total cost effectiveness depends on the successful delivery of services.
Public Impact
Ensures critical defense systems are evaluated and engineered effectively. Supports advanced technological capabilities within the Department of Defense. Potential for job creation within the defense technology sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long duration (1823 days) increases risk of scope creep and cost escalation.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Services are critical for national defense.
- Experienced contractor (BAE Systems).
Sector Analysis
This contract falls within the IT and Defense sectors, specifically custom computer programming services. Federal spending in this area is substantial, driven by the need for advanced technological solutions in national security.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is not a small business. This suggests that small businesses may not have directly benefited from this prime contract award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, indicating oversight. However, the effectiveness of this oversight in controlling costs and ensuring performance for a Cost Plus Fixed Fee contract warrants attention.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Long contract duration increases risk.
- Lack of small business participation.
- Limited transparency on specific services and performance metrics.
Tags
custom-computer-programming-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IGF::OT::IGF SYSTEM ENGINEERING&EVALUATION, SYSTEM ANALYSIS WORLDWIDE - CROSS-DOMAIN
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 $46.7 million.
What is the period of performance?
Start: 2016-08-23. End: 2021-08-20.
What specific system engineering and evaluation tasks are included in this contract, and how do they align with current defense priorities?
The contract broadly covers 'SYSTEM ENGINEERING&EVALUATION, SYSTEM ANALYSIS WORLDWIDE'. Specific tasks likely include requirements analysis, design verification, performance testing, and risk assessment for various defense systems. Alignment with current priorities would depend on the specific systems being evaluated, which are not detailed in the provided data. Further inquiry into the SOW would clarify this.
How does the Cost Plus Fixed Fee structure impact the contractor's incentive to control costs for these specialized services?
The Cost Plus Fixed Fee (CPFF) structure provides the contractor with reimbursement for allowable costs plus a predetermined fixed fee. While the fee is fixed, the contractor is incentivized to incur costs to maximize profit if the 'cost' portion is not strictly controlled or if the fee is a significant portion of the total contract value. Effective oversight is crucial to mitigate potential cost overruns.
What is the benchmark for system engineering and evaluation services of this complexity and duration within the defense sector?
Benchmarking complex system engineering and evaluation services is challenging due to the highly specialized nature and variability of defense projects. However, comparing the $46.7M award over approximately five years against similar large-scale, long-term defense IT and engineering contracts, considering the scope and criticality, would be necessary. The absence of specific performance metrics makes a definitive benchmark difficult without more data.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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
Solicitation ID: FA875016R0093
Offers Received: 2
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: $48,423,255
Exercised Options: $48,423,255
Current Obligation: $46,745,505
Subaward Activity
Number of Subawards: 35
Total Subaward Amount: $59,487,211
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA873215D0002
IDV Type: IDC
Timeline
Start Date: 2016-08-23
Current End Date: 2021-08-20
Potential End Date: 2021-08-20 00:00:00
Last Modified: 2025-08-26
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