DoD Awards BAE Systems $11M for Mechanical Power Transmission Equipment, Ending December 2026
Contract Overview
Contract Amount: $11,044,863 ($11.0M)
Contractor: BAE Systems Land and Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2025-12-23
End Date: 2026-12-22
Contract Duration: 364 days
Daily Burn Rate: $30.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8511831963!DISPLAY UNIT
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48312
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $11.0 million to BAE SYSTEMS LAND AND ARMAMENTS L.P. for work described as: 8511831963!DISPLAY UNIT Key points: 1. Contract awarded to a single, established vendor. 2. Limited competition due to contract type. 3. Potential for higher costs without competitive bidding. 4. Sector focus on Defense Logistics Agency's equipment needs.
Value Assessment
Rating: fair
The contract value of $11,044,863.17 is for a 364-day duration. Without comparable contract data or a benchmark, assessing pricing against similar procurements is difficult. The firm fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is not available for competition, indicating a limited or sole-source approach. This limits price discovery and potentially leads to less favorable pricing for the government compared to a fully competitive process.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive bidding, which could result in a higher overall cost for the required equipment.
Public Impact
Ensures continued supply of critical mechanical power transmission equipment for defense operations. Supports a major defense contractor, potentially impacting jobs and the defense industrial base. Lack of competition raises questions about cost-effectiveness for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpayment
- Lack of transparency in pricing
Positive Signals
- Ensures supply chain continuity
- Firm fixed-price contract
Sector Analysis
This contract falls within the Manufacturing sector, specifically for Mechanical Power Transmission Equipment. Defense spending in this area is crucial for maintaining military readiness and operational capabilities. Benchmarks for this specific niche are not readily available.
Small Business Impact
This contract was awarded to BAE SYSTEMS LAND AND ARMAMENTS L.P., a large business. There is no indication of small business participation in this specific award, which is common for large, sole-source or limited-competition contracts.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for oversight. The firm fixed-price contract type provides some cost control, but the limited competition aspect warrants scrutiny to ensure fair pricing and value for taxpayer money.
Related Government Programs
- Mechanical Power Transmission Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on price justification
- No clear small business subcontracting plan mentioned
Tags
mechanical-power-transmission-equipment-, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.0 million to BAE SYSTEMS LAND AND ARMAMENTS L.P.. 8511831963!DISPLAY UNIT
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND AND ARMAMENTS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $11.0 million.
What is the period of performance?
Start: 2025-12-23. End: 2026-12-22.
What is the justification for limiting competition on this contract, and how was the price determined to be fair and reasonable?
The justification for limiting competition is not provided in the data. Typically, such limitations are based on factors like unique capabilities, urgent needs, or existing infrastructure. The determination of a fair and reasonable price in non-competitive scenarios often relies on historical pricing, commercial item pricing, or independent government cost estimates, requiring thorough documentation by the contracting officer.
What are the potential risks associated with awarding this contract without full and open competition?
The primary risk is paying a higher price than would be achieved in a competitive environment, leading to inefficient use of taxpayer funds. Other risks include reduced innovation, potential for vendor complacency, and a lack of transparency in the pricing structure. This can also set a precedent for future non-competitive awards.
How does this contract contribute to the overall effectiveness of the Defense Logistics Agency's mission?
This contract ensures the continued availability of essential mechanical power transmission equipment, which is vital for the maintenance and operation of various military platforms and systems managed by the DLA. Reliable access to such components is critical for sustaining military readiness and operational readiness across different branches of the armed forces.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Mechanical Power Transmission Equipment Manufacturing
Product/Service Code: OFFICE SUPPLIES AND DEVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: M6785420R0026
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 34201 VAN DYKE AVE, STERLING HEIGHTS, MI, 48312
Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations
Financial Breakdown
Contract Ceiling: $10,227,156
Exercised Options: $10,227,156
Current Obligation: $11,044,863
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE7LX26D0024
IDV Type: IDC
Timeline
Start Date: 2025-12-23
Current End Date: 2026-12-22
Potential End Date: 2026-12-22 00:00:00
Last Modified: 2026-02-24
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