DoD Awards BAE Systems $17.15M for Wiring Devices, Extending Contract to 2027

Contract Overview

Contract Amount: $17,153,899 ($17.2M)

Contractor: BAE Systems Land & Armaments L.P.

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2027-08-31

Contract Duration: 1,065 days

Daily Burn Rate: $16.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIRST DO ISSUED FROM BASE CONTRACT SPRRA224D0024

Place of Performance

Location: YORK, YORK County, PENNSYLVANIA, 17408

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $17.2 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: FIRST DO ISSUED FROM BASE CONTRACT SPRRA224D0024 Key points: 1. Significant award to a large defense contractor. 2. Focus on wiring devices suggests critical infrastructure support. 3. Long-term contract duration indicates ongoing need. 4. No small business participation noted.

Value Assessment

Rating: fair

The award amount of $17.15M over 3 years appears reasonable for specialized defense components. However, without specific unit cost data or comparison to similar contracts, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been awarded through a competitive bidding process.

Public Impact

Ensures continued availability of critical wiring devices for defense operations. Supports BAE Systems' manufacturing capabilities and workforce in Pennsylvania. Potential for increased costs due to sole-source award impacts defense budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • No small business participation

Positive Signals

  • Ensures supply of critical components
  • Long-term contract provides stability

Sector Analysis

The defense sector relies heavily on specialized components like wiring devices for operational readiness. Spending in this area is critical but subject to scrutiny regarding cost-effectiveness, especially in sole-source awards.

Small Business Impact

This contract did not involve small businesses, either as prime contractors or subcontractors. This represents a missed opportunity to support small business growth within the defense supply chain.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. Transparency in the justification for non-competition is crucial.

Related Government Programs

  • Current-Carrying Wiring Device Manufacturing
  • Department of Defense Contracting
  • Defense Logistics Agency Programs

Risk Flags

  • Lack of competitive bidding
  • Potential for overpricing
  • No small business inclusion
  • Long contract duration without clear performance reviews

Tags

current-carrying-wiring-device-manufactu, department-of-defense, pa, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. FIRST DO ISSUED FROM BASE CONTRACT SPRRA224D0024

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS LAND & 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 $17.2 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-08-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent requirements where only one vendor can meet the need. Without specific details, it's difficult to ascertain the exact reason, but it implies a lack of readily available alternatives or a critical dependency on BAE Systems' specific product.

How does the pricing compare to industry benchmarks for similar wiring devices?

Benchmarking is difficult without specific product details and volume. However, sole-source contracts inherently carry a higher risk of inflated pricing due to the absence of competitive pressure. Further analysis would require detailed cost breakdowns and comparisons with commercially available or previously competed similar items.

What is the long-term strategic value of this sole-source contract for the DoD?

The long-term value lies in ensuring a consistent and reliable supply of potentially specialized wiring devices essential for defense systems. However, the strategic value must be weighed against the financial implications of a non-competitive award. Exploring future competitive opportunities or alternative solutions could enhance long-term value.

Industry Classification

NAICS: ManufacturingOther Electrical Equipment and Component ManufacturingCurrent-Carrying Wiring Device Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 1100 BAIRS RD, YORK, PA, 17408

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: $17,153,899

Exercised Options: $17,153,899

Current Obligation: $17,153,899

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPRRA224D0024

IDV Type: IDC

Timeline

Start Date: 2024-09-30

Current End Date: 2027-08-31

Potential End Date: 2027-08-31 12:08:00

Last Modified: 2025-10-20

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