DoD awards BAE Systems $13.18M for automated tank gauging services, extending support through July 2026

Contract Overview

Contract Amount: $13,177,761 ($13.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-13

End Date: 2026-07-12

Contract Duration: 364 days

Daily Burn Rate: $36.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AUTOMATED TANK GAUGING (ATG) CONUS TASK ORDER YR. 4

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: AUTOMATED TANK GAUGING (ATG) CONUS TASK ORDER YR. 4 Key points: 1. Contract value appears reasonable for a one-year extension of critical infrastructure support. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. Task order structure allows for flexibility in addressing specific operational needs. 5. Performance period aligns with typical sustainment cycles for defense logistics. 6. Contract supports essential maintenance and operational readiness for fuel storage systems.

Value Assessment

Rating: good

The $13.18 million award for one year of automated tank gauging services appears to be a fair price for maintaining critical fuel infrastructure. While specific benchmarks for ATG services are not readily available, the firm-fixed-price structure provides cost certainty. The contract's value is consistent with similar task orders for sustainment and support services within the Department of Defense, suggesting a competitive and reasonable pricing strategy.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were solicited and allowed to bid. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This approach generally leads to better price discovery and ensures the government receives competitive offers, maximizing value for taxpayer dollars.

Taxpayer Impact: Full and open competition helps ensure that the government is not overpaying for services and that the most cost-effective solutions are considered, ultimately benefiting taxpayers through competitive pricing.

Public Impact

The Department of Defense benefits from reliable fuel inventory management and operational readiness. Services ensure accurate tracking of fuel levels, preventing shortages and optimizing supply chain operations. The contract supports critical infrastructure at military installations within the Continental United States (CONUS). Workforce implications include the need for skilled technicians to maintain and operate the ATG systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if additional unstated requirements emerge during the task order period.
Dependence on contractor expertise for critical system maintenance could pose a risk if key personnel depart.
Ensuring continued compliance with evolving cybersecurity standards for connected tank gauging systems.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a competitive market and potentially favorable pricing.
Task order structure allows for focused execution on specific, defined requirements.
Extension of services provides continuity for essential defense logistics operations.

Sector Analysis

The Automated Tank Gauging (ATG) market is a niche within the broader industrial controls and logistics support sector. This contract falls under engineering services, specifically supporting the maintenance and operation of critical fuel infrastructure. Comparable spending in this area is often tied to the operational tempo and infrastructure needs of military branches. The market is characterized by specialized providers capable of delivering reliable and secure solutions for sensitive environments.

Small Business Impact

The contract was awarded to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC., a large business. There is no indication of a small business set-aside for this specific task order. Subcontracting opportunities for small businesses may exist, depending on BAE Systems' procurement strategy, but are not explicitly detailed in the award information. The overall impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this task order will likely be managed by the Defense Logistics Agency (DLA) contracting officers and technical representatives. The firm-fixed-price nature of the contract provides a degree of accountability by limiting the government's financial exposure. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Fuel Operations
Department of Defense Infrastructure Maintenance
Automated Inventory Management Systems
Military Fuel Supply Chain Support

Risk Flags

Potential for vendor lock-in if competition is limited in future procurements.
Reliance on contractor for critical infrastructure maintenance requires robust oversight.
Cybersecurity vulnerabilities in connected systems could pose a risk to operational data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. AUTOMATED TANK GAUGING (ATG) CONUS TASK ORDER YR. 4

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 Logistics Agency).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2025-07-13. End: 2026-07-12.

What is the historical spending trend for Automated Tank Gauging (ATG) services by the Defense Logistics Agency?

Analyzing historical spending for ATG services by the DLA requires access to detailed contract databases over multiple fiscal years. Generally, sustainment and support contracts like this task order represent a recurring need for the DoD to maintain operational readiness. Spending can fluctuate based on infrastructure upgrades, system modernization efforts, and the overall operational tempo of military activities. Without specific historical data for this particular ATG service line, it's difficult to pinpoint precise trends. However, it is reasonable to assume that consistent funding is allocated to ensure the reliable operation of fuel storage and distribution systems, which are critical for military operations globally. The current award of $13.18 million for one year suggests a stable, ongoing requirement.

How does the pricing of this contract compare to similar ATG services awarded to other large defense contractors?

Benchmarking the pricing of this $13.18 million task order against similar Automated Tank Gauging (ATG) services requires access to a comprehensive database of federal contracts, including details on scope of work, duration, and specific services rendered. As this is a firm-fixed-price contract for a one-year period, it aims for cost certainty. Comparisons would ideally involve contracts with similar service levels, geographic coverage (CONUS), and system complexities. Given that BAE Systems is a major defense contractor, their pricing is likely competitive within the established defense industrial base. However, without direct comparative data on per-unit costs or equivalent service packages from other vendors, a definitive value-for-money assessment relative to competitors is challenging. The use of full and open competition suggests the DLA sought competitive bids to ensure reasonable pricing.

What are the key performance indicators (KPIs) used to evaluate BAE Systems' performance under this contract?

While the specific Key Performance Indicators (KPIs) for this task order are not publicly detailed, typical performance metrics for automated tank gauging and related logistics support contracts often include system uptime and availability, accuracy of inventory readings, response times for maintenance and repairs, and adherence to safety and environmental compliance standards. The government, through the Defense Logistics Agency, would likely monitor these metrics to ensure the contractor is meeting the defined service levels. Successful performance would be demonstrated by the consistent and reliable operation of the ATG systems, accurate fuel level reporting, and timely resolution of any technical issues, all contributing to the overall readiness and efficiency of fuel management operations.

What is the potential risk associated with the single-year duration of this task order extension?

The single-year duration of this task order extension presents a moderate risk related to continuity and potential disruption. While it provides flexibility for the government to reassess needs annually, it may also create uncertainty for the contractor regarding long-term commitment, potentially impacting resource allocation and strategic planning. For the government, a short-term extension could necessitate frequent re-procurement processes, incurring administrative costs and potential gaps in service if a new contract is not awarded seamlessly. However, it also allows the DLA to adapt to changing requirements or budget constraints more readily. The risk is mitigated by the fact that this appears to be an extension of existing services, implying a known requirement and a potentially streamlined re-competition process if needed.

Does the contract specify requirements for cybersecurity measures related to the automated tank gauging systems?

Federal contracts, especially those involving IT-connected systems like automated tank gauging, typically include cybersecurity requirements. While not explicitly detailed in the provided award summary, it is highly probable that this task order incorporates clauses mandating compliance with relevant Department of Defense cybersecurity standards (e.g., NIST guidelines, DoD Instruction 8500.01). These requirements would likely cover aspects such as data protection, network security, access controls, and vulnerability management to safeguard sensitive fuel inventory data and prevent unauthorized access or system compromise. BAE Systems would be obligated to implement and maintain these security measures throughout the contract period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP470220R0032

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $13,177,761

Exercised Options: $13,177,761

Current Obligation: $13,177,761

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $353,376

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SP470221D0005

IDV Type: IDC

Timeline