DoD Awards $194.9M for Radar Equipment, Airborne Services to BAE Systems
Contract Overview
Contract Amount: $19,044,511 ($19.0M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2005-08-26
End Date: 2007-10-30
Contract Duration: 795 days
Daily Burn Rate: $24.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200511!007554!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CD026 !A!N! !N! ! !20050826!20090701!194956751!876861790!217304393!N!BAE SYSTEMS INFORMATION & ELEC!164 TOTOWA RD !WAYNE !NJ!07470!77870!031!34!WAYNE !PASSAIC !NEW JERSEY!+000009668260!N!N!000000000000!5841!RADAR EQUIPMENT, AIRBORNE !S1 !SERVICES !000 !* !334511!E! !1! ! ! ! ! !20200930!B! ! !N!A!D!N!J!1!001!N!2A!A!Y!C! ! !N!C!N! ! ! !A!A!A!A!000!A!A!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: WAYNE, PASSAIC County, NEW JERSEY, 07470
Plain-Language Summary
Department of Defense obligated $19.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: 200511!007554!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CD026 !A!N! !N! ! !20050826!20090701!194956751!876861790!217304393!N!BAE SYSTEMS INFORMATION & ELEC!164 TOTOWA RD !WAYNE !NJ!07470!77870!031!34!WAYNE !PASS… Key points: 1. Contract awarded to BAE Systems for airborne radar equipment and services. 2. Significant portion of the contract value is for services, not just hardware. 3. The contract was not competed, raising potential concerns about price discovery. 4. Spending is concentrated in the Defense sector, specifically Army aviation systems.
Value Assessment
Rating: fair
The contract value of $194.9M is substantial for radar equipment and related services. Benchmarking against similar airborne radar systems and associated support contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit opportunities for price negotiation and potentially lead to higher costs for the government.
Taxpayer Impact: The absence of competition could result in taxpayers paying a premium for the radar equipment and services.
Public Impact
Enhances military surveillance and targeting capabilities. Supports critical defense operations for the Department of the Army. Potential for long-term sustainment and upgrade contracts. Impacts the aerospace and defense manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for cost overruns without competitive pressure.
- Long contract duration (795 days) increases exposure to market changes.
Positive Signals
- Addresses a critical defense need for advanced radar systems.
- Award to an established defense contractor with relevant expertise.
- Firm fixed price contract provides some cost certainty.
Sector Analysis
This contract falls within the Defense sector, specifically for electronic warfare and radar systems. Defense spending on such equipment is typically high, driven by technological advancements and operational requirements.
Small Business Impact
The award went to BAE Systems, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Oversight would focus on contract performance, adherence to specifications, and justification for the sole-source award. The Department of Defense's contracting oversight mechanisms are in place, but the lack of competition warrants close monitoring.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price escalation
- Long-term contract duration
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. 200511!007554!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CD026 !A!N! !N! ! !20050826!20090701!194956751!876861790!217304393!N!BAE SYSTEMS INFORMATION & ELEC!164 TOTOWA RD !WAYNE !NJ!07470!77870!031!34!WAYNE !PASSAIC !NEW JERSEY!+000009668260!N!N!000000000000!5841!RADAR EQUIPMENT, AIRBORNE !S1 !SERVICES !000 !* !334511!E! !1! ! ! ! ! !202
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $19.0 million.
What is the period of performance?
Start: 2005-08-26. End: 2007-10-30.
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 the absence of other qualified sources capable of meeting the specific requirements within the necessary timeframe. Further documentation from the agency would be needed to confirm the precise reasons for this non-competitive procurement.
How does the pricing compare to similar airborne radar systems procured competitively?
Without access to competitive benchmark data for similar airborne radar systems, a direct comparison is difficult. However, sole-source contracts inherently carry a higher risk of inflated pricing due to the lack of competitive pressure. A thorough cost analysis by the agency would be crucial.
What is the expected impact of this radar system on operational effectiveness?
This radar system is expected to significantly enhance the Department of the Army's situational awareness, target detection, and engagement capabilities. Improved performance in these areas directly translates to increased operational effectiveness and mission success for deployed units.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 164 TOTOWA RD, WAYNE, NJ, 11
Business Categories: Category Business, Not Designated a Small Business
Timeline
Start Date: 2005-08-26
Current End Date: 2007-10-30
Potential End Date: 2007-10-30 00:00:00
Last Modified: 2010-04-24
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