DoD Awards BAE Systems $24M for 245 MARS RT-1987 Radios and Warranty

Contract Overview

Contract Amount: $24,037,412 ($24.0M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2024-06-28

End Date: 2027-12-25

Contract Duration: 1,275 days

Daily Burn Rate: $18.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS DELIVERY ORDER (DO) W15P7T-24-F-0089 TO CONTRACT W56JSR-24-D-0002 IS FOR THE ANNUAL BUY PROCUREMENT OF 245 (EA) MARS RT-1987 RADIOS & WARRANTY BUY.

Place of Performance

Location: FORT WAYNE, ALLEN County, INDIANA, 46818

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $24.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: THE PURPOSE OF THIS DELIVERY ORDER (DO) W15P7T-24-F-0089 TO CONTRACT W56JSR-24-D-0002 IS FOR THE ANNUAL BUY PROCUREMENT OF 245 (EA) MARS RT-1987 RADIOS & WARRANTY BUY. Key points: 1. Significant investment in critical communication equipment for the Army. 2. Sole-source award to BAE Systems raises questions about competition. 3. Long-term contract (2027) suggests ongoing need for these radios. 4. Focus on radio manufacturing aligns with sector trends in defense tech.

Value Assessment

Rating: fair

The total award of $24,037,412 for 245 radios and warranty appears high on a per-unit basis. Without specific feature comparisons, it's difficult to benchmark against similar advanced tactical radio systems.

Cost Per Unit: $98,112 per unit (radio + warranty)

Competition Analysis

Competition Level: sole-source

This delivery order was not competed, indicating a sole-source award to BAE Systems. This lack of competition limits price discovery and may result in a higher cost to the government.

Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these radios due to the absence of competitive bidding.

Public Impact

Ensures continued operational readiness for Army units relying on MARS RT-1987 radios. Supports a key defense contractor, BAE Systems, in the communications sector. Potential for future sustainment and upgrade contracts related to this radio system. Highlights the government's reliance on specialized, potentially proprietary, communication technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High per-unit cost
Long contract duration

Positive Signals

Procurement of essential communication equipment
Supports established defense contractor

Sector Analysis

This procurement falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in defense communications equipment is substantial, driven by the need for secure, reliable, and advanced systems for military operations.

Small Business Impact

The awardee, BAE Systems, is a large defense contractor. There is no indication that small businesses were involved in this specific delivery order, either as subcontractors or direct awardees.

Oversight & Accountability

The contract type is Firm Fixed Price, which shifts cost risk to the contractor. However, the lack of competition for this sole-source award warrants scrutiny to ensure fair pricing and value for taxpayer dollars.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competitive pricing.
High per-unit cost requires further justification.
Potential for vendor lock-in with specialized equipment.
Long contract duration may not account for technological advancements.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. THE PURPOSE OF THIS DELIVERY ORDER (DO) W15P7T-24-F-0089 TO CONTRACT W56JSR-24-D-0002 IS FOR THE ANNUAL BUY PROCUREMENT OF 245 (EA) MARS RT-1987 RADIOS & WARRANTY BUY.

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 $24.0 million.

What is the period of performance?

Start: 2024-06-28. End: 2027-12-25.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's unclear if alternatives were explored. A thorough review would assess if the unique nature of the MARS RT-1987 radio truly precluded competition or if market research could have identified other viable sources.

How does the per-unit cost of $98,112 compare to similar advanced tactical radio systems in the market?

Benchmarking this per-unit cost requires detailed comparison with radios offering similar features, range, security protocols, and ruggedization. Advanced tactical radios can range significantly in price. If this system offers standard capabilities, the cost may be high. Conversely, if it possesses unique, mission-critical features, the price might be justified, but this needs explicit validation.

What is the long-term strategy for maintaining and upgrading these radios, and does this contract adequately address future needs?

The contract extends to December 2027, suggesting a medium-term need. However, the rapid evolution of communication technology necessitates a forward-looking strategy. The current award focuses on procurement and warranty. Future oversight should ensure plans are in place for obsolescence management, software updates, and potential integration with newer systems to maintain operational effectiveness.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5001 US HIGHWAY 30 W, FORT WAYNE, IN, 46818

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: $24,037,412

Exercised Options: $24,037,412

Current Obligation: $24,037,412

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56JSR24D0002

IDV Type: IDC

Timeline