DoD Awards $12.8M Radio Equipment Contract to BAE Systems, Not Competed
Contract Overview
Contract Amount: $12,828,310 ($12.8M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2024-04-24
End Date: 2027-04-14
Contract Duration: 1,085 days
Daily Burn Rate: $11.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR CLIN'S 4027, 4004, 4006, AND 4012.
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03061
Plain-Language Summary
Department of Defense obligated $12.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: DELIVERY ORDER FOR CLIN'S 4027, 4004, 4006, AND 4012. Key points: 1. Significant award to a single large defense contractor. 2. Lack of competition raises concerns about price discovery. 3. Contract duration extends over three years. 4. Focus on specialized communications equipment manufacturing.
Value Assessment
Rating: questionable
The $12.8 million award for radio and wireless communications equipment is not competed, making a direct pricing assessment difficult. Without competitive bids, it's hard to determine if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition scenario. This approach can lead to higher prices as there is no market pressure to offer the best value.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this specialized equipment.
Public Impact
Military communications capabilities are enhanced through this award. Potential for reliance on a single supplier for critical equipment. Impact on the defense industrial base and supply chain resilience.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Supports critical defense needs
- Award to established contractor
Sector Analysis
This award falls within the defense sector, specifically for radio and wireless communications equipment manufacturing. Spending in this area is crucial for military operations, but competitive procurement is vital to ensure cost-effectiveness.
Small Business Impact
The awardee, BAE Systems, is a large defense contractor. There is no indication that small businesses were involved in this specific procurement, which is common for large, specialized defense contracts.
Oversight & Accountability
The 'NOT COMPETED' status suggests that standard competitive oversight may have been bypassed. Further review of the justification for this sole-source award is warranted to ensure accountability.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency
- Long-term vendor lock-in
- No small business participation evident
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, nh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. DELIVERY ORDER FOR CLIN'S 4027, 4004, 4006, AND 4012.
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2024-04-24. End: 2027-04-14.
What was the justification for not competing this significant contract, and what steps were taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a documented justification, such as the existence of only one responsible source or urgent and compelling needs. Without this justification, it's impossible to assess the fairness of the pricing or the effectiveness of oversight in ensuring value for taxpayer money.
What are the risks associated with awarding a multi-year contract for critical communication equipment on a sole-source basis?
The primary risks include potential cost overruns due to the absence of competitive pressure, reduced innovation from the supplier, and a lack of flexibility if technology or requirements change. It also creates a dependency on a single vendor, which can be a vulnerability in the supply chain and may limit future procurement options.
How does this sole-source award impact the overall effectiveness of the Department of Defense's procurement strategy for communication equipment?
Sole-source awards, while sometimes necessary, can undermine the overall effectiveness of procurement strategies aimed at maximizing competition and achieving best value. Frequent reliance on non-competitive awards may signal systemic issues in market research, planning, or the ability to foster a competitive environment for essential defense technologies.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Compagnie DE Developpement DE L'eau S.A.
Address: 65 SPIT BROOK RD, NASHUA, NH, 03060
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,828,310
Exercised Options: $12,828,310
Current Obligation: $12,828,310
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $627,643
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRBL119D0075
IDV Type: IDC
Timeline
Start Date: 2024-04-24
Current End Date: 2027-04-14
Potential End Date: 2027-04-14 12:04:00
Last Modified: 2025-11-13
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