DoD's $17.1M Apache Helicopter Night Vision System Upgrade Leverages BAE Systems for Critical Battlefield Operations

Contract Overview

Contract Amount: $17,122,804 ($17.1M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2007-07-03

End Date: 2009-11-30

Contract Duration: 881 days

Daily Burn Rate: $19.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 700 EACH COOLER/DEWAR GROUP OR-336/A COMMON MODULE. THIS IS A FIRST GENERATION FORWARD LOOKING INFRARED COMMON MODULE USED IN THE AN/AAQ-11 PILOT NIGHT VISION SENSOR. THIS COMMON MODULE IS USED IN THE APACHE HELICOPTER TO MAINTAIN NIGHT VISION MISSION CAPABILITIES. IT ENABLES PILOTS TO VIEW THE BATTLEFIELD AT NIGHT OR DURING PERIODS OF OBSCURED VISIBILITY (I.E., SMOKE, DUST, FOG) AND THEREFORE, IS ESSENTIAL FOR BATTLEFIELD OPERATIONS.

Place of Performance

Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: 700 EACH COOLER/DEWAR GROUP OR-336/A COMMON MODULE. THIS IS A FIRST GENERATION FORWARD LOOKING INFRARED COMMON MODULE USED IN THE AN/AAQ-11 PILOT NIGHT VISION SENSOR. THIS COMMON MODULE IS USED IN THE APACHE HELICOPTER TO MAINTAIN NIGHT VISION MISSION CAPABILITIES. IT ENABLES … Key points: 1. The contract supports essential night vision capabilities for Apache helicopter pilots, directly impacting battlefield effectiveness. 2. This upgrade focuses on a first-generation Forward Looking Infrared Common Module, indicating a need for modernization. 3. The sole-source nature of this award warrants scrutiny regarding potential cost efficiencies and alternative solutions. 4. The contract duration of 881 days suggests a significant integration and testing period for the new module. 5. While specific performance metrics are not detailed, the module's role in obscured visibility is critical for mission success. 6. The award falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code.

Value Assessment

Rating: questionable

The total award of $17,122,804 for 700 units of a common module for the AN/AAQ-11 Pilot Night Vision Sensor appears high without further benchmarking. Given the 'not competed' status and the age of the technology (first-generation), it is difficult to assess value for money. A comparison to similar upgrades or commercial off-the-shelf solutions would be necessary to determine if this represents a fair price. The lack of competition raises concerns about potential overpricing.

Cost Per Unit: Approximately $24,461 per unit. This figure needs to be benchmarked against similar infrared module procurements or commercial equivalents to assess its competitiveness.

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. The Department of the Army likely determined that BAE Systems was the only responsible source capable of providing the required common module. This approach limits the government's ability to explore a wider range of technical solutions and potentially secure more competitive pricing.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the absence of competition reduces pressure on the contractor to offer the lowest possible price.

Public Impact

Apache helicopter pilots will benefit from enhanced night vision capabilities, improving mission safety and effectiveness. The services delivered include the provision of critical infrared common modules essential for night operations. The geographic impact is primarily within military aviation units operating Apache helicopters. Workforce implications include the continued operation and maintenance of advanced aviation systems within the Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for innovation.
First-generation technology may indicate a need for more advanced, potentially more cost-effective, modern solutions.
Lack of detailed performance metrics makes it difficult to fully assess the value delivered.
High per-unit cost requires further justification through benchmarking.

Positive Signals

Directly supports critical warfighter capabilities for night operations.
BAE Systems is an established defense contractor with relevant expertise.
Contract ensures continued operational readiness of the Apache helicopter fleet.

Sector Analysis

This contract falls within the defense electronics sector, specifically focusing on sensor and navigation systems. The market for such components is characterized by high technological barriers to entry and significant government investment. Comparable spending benchmarks would involve analyzing procurements of similar infrared or night vision modules for other military platforms. The overall defense electronics market is substantial, with a significant portion dedicated to avionics and sensor upgrades.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans to small businesses. The focus on a specialized component from a large prime contractor suggests limited direct opportunities for small businesses within this specific award, though they may be involved in the supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the firm fixed-price contract terms, requiring delivery of the specified common modules. Transparency is limited due to the sole-source nature and the proprietary aspects of defense technology. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

AN/AAQ-11 Pilot Night Vision Sensor
Apache Helicopter Modernization Programs
Forward Looking Infrared (FLIR) Systems
Defense Avionics and Sensor Procurement

Risk Flags

Sole-source award
Potential for outdated technology
Lack of competitive benchmarking
High per-unit cost without clear justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. 700 EACH COOLER/DEWAR GROUP OR-336/A COMMON MODULE. THIS IS A FIRST GENERATION FORWARD LOOKING INFRARED COMMON MODULE USED IN THE AN/AAQ-11 PILOT NIGHT VISION SENSOR. THIS COMMON MODULE IS USED IN THE APACHE HELICOPTER TO MAINTAIN NIGHT VISION MISSION CAPABILITIES. IT ENABLES PILOTS TO VIEW THE BATTLEFIELD AT NIGHT OR DURING PERIODS OF OBSCURED VISIBILITY (I.E., SMOKE, DUST, FOG) AND THEREFORE, IS ESSENTIAL FOR BATTLEFIELD OPERATIONS.

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 $17.1 million.

What is the period of performance?

Start: 2007-07-03. End: 2009-11-30.

What is the specific performance improvement expected from this first-generation common module upgrade compared to previous versions or existing capabilities?

The provided data indicates this is a 'first generation forward looking infrared common module used in the AN/AAQ-11 Pilot Night Vision Sensor' essential for Apache helicopter night vision mission capabilities. While the data emphasizes its importance for enabling pilots to view the battlefield at night or during obscured visibility, it does not specify the quantitative performance improvements this particular module offers over prior iterations or alternative systems. Further analysis would require access to technical specifications and performance benchmarks that compare resolution, range, sensitivity, or other relevant metrics against baseline capabilities or competing technologies. Without this, the exact nature of the 'upgrade' beyond ensuring continued functionality remains unclear.

How does the per-unit cost of $24,461 compare to industry benchmarks for similar infrared common modules?

Benchmarking the per-unit cost of $24,461 for this infrared common module is challenging without access to proprietary industry data or specific comparable government procurements. However, considering the context of defense electronics and specialized sensor components, this price point is not inherently unreasonable, but it warrants scrutiny due to the sole-source nature of the award. Similar modules for advanced targeting pods or reconnaissance systems can range significantly, often from tens of thousands to hundreds of thousands of dollars, depending on complexity, resolution, and technological sophistication. The fact that this is a 'first-generation' module for a specific platform (Apache) suggests it might be less complex than cutting-edge, multi-role sensors. Therefore, a detailed comparison against other sole-source awards for similar components or against commercial off-the-shelf (COTS) infrared modules, if applicable, would be necessary to definitively assess value for money.

What are the risks associated with relying on a sole-source provider for such a critical component of the Apache helicopter's night vision system?

Relying on a sole-source provider like BAE Systems for this critical Apache helicopter night vision component presents several risks. Firstly, it eliminates competitive pressure, potentially leading to higher costs for the government and taxpayers than if multiple bidders were involved. Secondly, it creates a dependency on a single supplier, which can lead to supply chain vulnerabilities; any disruption at BAE Systems could directly impact the operational readiness of the Apache fleet. Thirdly, the lack of competition may stifle innovation, as the sole provider might have less incentive to invest in developing more advanced or cost-effective solutions. Finally, it reduces the government's leverage in contract negotiations, potentially impacting terms related to delivery schedules, warranties, and long-term support.

Given the contract was awarded in 2007 and ends in 2009, what is the current status of this technology and the Apache helicopter's night vision systems?

This contract, awarded in 2007 and ending in 2009, pertains to a 'first-generation' common module for the AN/AAQ-11 Pilot Night Vision Sensor on the Apache helicopter. Technology, especially in defense electronics, advances rapidly. It is highly probable that by now, the U.S. Army has procured or is developing significantly more advanced night vision and infrared systems for the Apache fleet, potentially incorporating newer generations of sensors, higher resolutions, wider fields of view, or multi-spectral capabilities. The AN/AAQ-11 system itself may have been superseded or significantly upgraded. Therefore, while this contract was critical at the time, the technology it addresses is likely dated in the context of current military aviation capabilities.

What is BAE Systems' track record with the U.S. Army and specifically with Apache helicopter systems?

BAE Systems is a major global defense contractor with a substantial and long-standing relationship with the U.S. Army and other military branches. They have a proven track record in developing and manufacturing a wide array of defense systems, including avionics, sensors, electronic warfare systems, and vehicle components. Specifically concerning the Apache helicopter, BAE Systems has been involved in providing various upgrades and components over the years, contributing to the platform's advanced capabilities. Their expertise in infrared technology and sensor integration makes them a logical, albeit sole-source, provider for critical systems like the night vision common module addressed in this contract. Their extensive experience suggests a high likelihood of successful delivery, though the specific terms and value of individual contracts remain subject to review.

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

Solicitation ID: W15P7T07RW009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 2 FORBES RD, LEXINGTON, MA, 05

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,122,804

Exercised Options: $17,122,804

Current Obligation: $17,122,804

Contract Characteristics

Cost or Pricing Data: NO

Timeline