DoD Awards BAE Systems $82.5M for Countermeasure Systems, Lacking Competition

Contract Overview

Contract Amount: $82,543,088 ($82.5M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2013-03-08

End Date: 2016-01-31

Contract Duration: 1,059 days

Daily Burn Rate: $77.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF 18 CMWS AN/ARR-57(V)8&54 CMWS AN/ARR-57(V)8 SYSTEMS, 324 ELECTRONIC CONTROL UNITES (ECU),&324 USER DATA MODULES (UDM) IN SUPPORT OF A QUICK REACTION CAPABILITY (QRC) PROGRAM.

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $82.5 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: PROCUREMENT OF 18 CMWS AN/ARR-57(V)8&54 CMWS AN/ARR-57(V)8 SYSTEMS, 324 ELECTRONIC CONTROL UNITES (ECU),&324 USER DATA MODULES (UDM) IN SUPPORT OF A QUICK REACTION CAPABILITY (QRC) PROGRAM. Key points: 1. Significant investment in critical defense technology for rapid deployment. 2. Sole-source award to BAE Systems raises questions about price discovery. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on electronic warfare and navigation systems highlights evolving threats.

Value Assessment

Rating: questionable

The contract value of $82.5 million for 18 CMWS systems and associated units appears high given the lack of competition. Benchmarking against similar sole-source procurements or publicly available data on comparable systems is difficult but suggests potential overpricing.

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 as there was no market pressure to achieve the best possible price.

Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer value.

Public Impact

Enhances military situational awareness and survivability through advanced electronic warfare capabilities. Supports urgent operational needs with a Quick Reaction Capability (QRC) program. Procurement of specialized navigation and detection systems is crucial for modern military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpricing

Positive Signals

Supports critical defense capability
Addresses Quick Reaction Capability needs

Sector Analysis

This procurement falls within the defense sector, specifically focusing on electronic warfare and navigation systems. Spending in this area is driven by evolving geopolitical threats and the need for technological superiority.

Small Business Impact

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

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer money. Further review of the justification for not competing the award is recommended.

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 limits competition
Potential for inflated pricing
Lack of transparency in pricing justification
Limited opportunity for small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.5 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. PROCUREMENT OF 18 CMWS AN/ARR-57(V)8&54 CMWS AN/ARR-57(V)8 SYSTEMS, 324 ELECTRONIC CONTROL UNITES (ECU),&324 USER DATA MODULES (UDM) IN SUPPORT OF A QUICK REACTION CAPABILITY (QRC) PROGRAM.

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 $82.5 million.

What is the period of performance?

Start: 2013-03-08. End: 2016-01-31.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of available alternatives. Without specific documentation, it's difficult to ascertain the precise reason, but it suggests that only BAE Systems was deemed capable of meeting the requirement within the necessary timeframe or technical specifications.

How does the per-unit cost of these systems compare to similar systems procured competitively?

Direct comparison is challenging without access to detailed cost breakdowns and specific system configurations. However, sole-source contracts often carry a premium compared to competitively bid contracts due to the absence of market pressure. A thorough cost analysis would be needed to determine if this contract represents fair and reasonable pricing.

What is the long-term strategic value of these countermeasure systems for the Department of Defense?

These countermeasure systems are vital for enhancing aircraft survivability and operational effectiveness in contested environments. Their inclusion in a Quick Reaction Capability program indicates a direct response to current threats, providing the DoD with advanced electronic warfare and navigation tools to maintain a tactical advantage.

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: W15P7T13R0012

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, 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: $82,543,088

Exercised Options: $82,543,088

Current Obligation: $82,543,088

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline