DoD awards $45.1M for CH-47 helicopter countermeasures, citing urgent need for critical spares

Contract Overview

Contract Amount: $45,142,216 ($45.1M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2009-07-01

End Date: 2010-08-31

Contract Duration: 426 days

Daily Burn Rate: $106.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LETTER CONTRACT ISSUED UNDER THE AUTHORITY FOR UNUSUAL AND COMPELLING URGENCY FOR SIXTY (60) INFRARED JAM HEADS (IRJHS), THIRTY-FIVE (35) MULTI-BAND LASERS (MBLS), AND EIGHT (8) JAM HEAD CONTROL UNITS (JHCUS) NEEDED AS LINE REPLACEABLE UNIT (LRU) SPARES FOR THE CH-47 HELICOPTER ADVANCED THREAT INFRARED COUNTERMEASURES (ATIRCM) QUICK REACTION CAPABILITY (QRC).

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $45.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: LETTER CONTRACT ISSUED UNDER THE AUTHORITY FOR UNUSUAL AND COMPELLING URGENCY FOR SIXTY (60) INFRARED JAM HEADS (IRJHS), THIRTY-FIVE (35) MULTI-BAND LASERS (MBLS), AND EIGHT (8) JAM HEAD CONTROL UNITS (JHCUS) NEEDED AS LINE REPLACEABLE UNIT (LRU) SPARES FOR THE CH-47 HELICOPTER A… Key points: 1. Urgent need for critical CH-47 helicopter spares drove this sole-source award. 2. The contract covers infrared jam heads, multi-band lasers, and control units. 3. BAE Systems is the sole contractor, raising questions about competition. 4. The sector is aerospace and defense, specifically electronic warfare systems.

Value Assessment

Rating: fair

The total award is $45.1M for a mix of components. Without specific unit pricing or historical data for these specialized LRUs, a direct comparison is difficult. The firm-fixed-price contract provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under unusual and compelling urgency, bypassing full and open competition. This likely limited price discovery and potentially increased costs for taxpayers.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding on this urgent requirement.

Public Impact

Ensures operational readiness of CH-47 helicopters by providing essential spare parts. Supports critical defense capabilities in infrared countermeasures. Highlights reliance on specific contractors for specialized military equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Urgency clause may obscure true cost.
Lack of detailed cost breakdown.

Positive Signals

Addresses critical operational need.
Firm-fixed-price contract.

Sector Analysis

This award falls within the aerospace and defense sector, specifically focusing on electronic warfare and aircraft components. Spending benchmarks for such specialized, low-volume spares are difficult to establish due to unique requirements and limited production runs.

Small Business Impact

The contract was awarded to BAE Systems, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The use of the 'unusual and compelling urgency' justification warrants scrutiny to ensure it was appropriately applied and that competitive alternatives were genuinely unavailable. Oversight should focus on the necessity and duration of such sole-source awards.

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.
Urgent and compelling justification.
Lack of competition.
Potential for inflated pricing.
Limited transparency on cost breakdown.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. LETTER CONTRACT ISSUED UNDER THE AUTHORITY FOR UNUSUAL AND COMPELLING URGENCY FOR SIXTY (60) INFRARED JAM HEADS (IRJHS), THIRTY-FIVE (35) MULTI-BAND LASERS (MBLS), AND EIGHT (8) JAM HEAD CONTROL UNITS (JHCUS) NEEDED AS LINE REPLACEABLE UNIT (LRU) SPARES FOR THE CH-47 HELICOPTER ADVANCED THREAT INFRARED COUNTERMEASURES (ATIRCM) QUICK REACTION CAPABILITY (QRC).

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 $45.1 million.

What is the period of performance?

Start: 2009-07-01. End: 2010-08-31.

What was the specific threat or operational scenario that necessitated such an urgent, sole-source procurement of these specific components?

The data indicates the components are Line Replaceable Units (LRUs) for the CH-47 helicopter's Advanced Threat Infrared Countermeasures (ATIRCM) Quick Reaction Capability (QRC). The urgency likely stemmed from an immediate, unforeseen operational requirement or a critical failure of existing systems that threatened mission effectiveness or crew safety, making a lengthy competitive process infeasible.

How does the pricing of these components compare to similar, albeit potentially less advanced, systems acquired through competitive means?

Direct comparison is challenging due to the specialized nature and sole-source acquisition. However, the absence of competition typically leads to higher prices. Future procurements should aim for competitive bidding or robust cost analysis to ensure fair pricing for these critical, yet expensive, components.

What measures are in place to ensure the long-term availability and affordability of these critical spares beyond this initial urgent award?

Given this was a sole-source award for urgent needs, long-term strategy likely involves developing alternative sources or negotiating longer-term agreements with BAE Systems. The DoD should explore options for competitive prototyping or second-sourcing to mitigate future supply chain risks and control costs.

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: 65 SPIT BROOK RD, NASHUA, NH, 02

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: $45,142,216

Exercised Options: $45,142,216

Current Obligation: $45,142,216

Contract Characteristics

Cost or Pricing Data: YES

Timeline