Army awards $29.1M bridge contract to BAE Systems for Bradley vehicle readiness
Contract Overview
Contract Amount: $29,103,154 ($29.1M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2015-09-01
End Date: 2017-05-29
Contract Duration: 636 days
Daily Burn Rate: $45.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF THE ARMY CONTRACTING ARMY CONTRACTING COMMAND - ROCK ISLAND (ACC-RI) HAS A REQUIREMENT TO AWARD A BRIDGE CONTRACT FOR REPAIRING, STORING, AND ISSUING MISSION READY BRADLEY VEHICLES.
Plain-Language Summary
Department of Defense obligated $29.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: IGF::OT::IGF THE ARMY CONTRACTING ARMY CONTRACTING COMMAND - ROCK ISLAND (ACC-RI) HAS A REQUIREMENT TO AWARD A BRIDGE CONTRACT FOR REPAIRING, STORING, AND ISSUING MISSION READY BRADLEY VEHICLES. Key points: 1. Contract awarded to incumbent BAE Systems for critical Bradley vehicle repair and logistics. 2. Significant value of $29.1 million highlights the importance of maintaining combat readiness. 3. Lack of competition raises concerns about potential overpricing and limited market engagement. 4. Focus on logistics and repair services falls within the professional services sector.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without benchmarks from competitive bids, it's hard to determine if the $29.1 million represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to BAE Systems. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The absence of competition for a substantial contract like this may result in taxpayers paying more than necessary for these critical vehicle readiness services.
Public Impact
Ensures continued operational readiness of essential Bradley fighting vehicles. Supports the U.S. Army's logistical capabilities and maintenance infrastructure. Potential for increased costs due to sole-source award impacts taxpayer funds. Reliability of BAE Systems as the sole provider for these specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Bridge contract nature
Positive Signals
- Ensures mission readiness
- Incumbent expertise
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically logistics consulting. The Army's spending in this area is substantial, driven by the need to maintain complex military equipment like the Bradley vehicles.
Small Business Impact
The data indicates this contract was not awarded to small businesses, nor does it appear to have provisions for subcontracting to small businesses. Further analysis would be needed to confirm any small business participation.
Oversight & Accountability
The non-competitive nature of this award warrants oversight to ensure the pricing is justified and that future requirements are competed to maximize value for the government.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract
- Bridge contract
- Lack of transparency in pricing justification
Tags
process-physical-distribution-and-logist, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. IGF::OT::IGF THE ARMY CONTRACTING ARMY CONTRACTING COMMAND - ROCK ISLAND (ACC-RI) HAS A REQUIREMENT TO AWARD A BRIDGE CONTRACT FOR REPAIRING, STORING, AND ISSUING MISSION READY BRADLEY VEHICLES.
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND & ARMAMENTS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $29.1 million.
What is the period of performance?
Start: 2015-09-01. End: 2017-05-29.
What is the justification for awarding this bridge contract on a sole-source basis instead of conducting a competitive procurement?
The justification for a sole-source bridge contract typically stems from an urgent need to maintain continuity of services while a more comprehensive, competitive procurement is underway. This avoids a gap in essential services, such as the repair and issuance of mission-ready Bradley vehicles, which are critical for national defense.
How will the government ensure cost reasonableness for this Cost Plus Fixed Fee contract without competitive pricing?
Ensuring cost reasonableness for a CPFF contract without competition relies heavily on robust government oversight, detailed cost analysis, and negotiation. The contracting officer must meticulously review BAE Systems' proposed costs, compare them to historical data and industry benchmarks where possible, and negotiate a fair fixed fee. Audits and performance monitoring are also crucial.
What is the long-term strategy to ensure competitive sourcing for Bradley vehicle maintenance and readiness services?
The long-term strategy should involve developing a comprehensive acquisition plan that outlines a clear path to a competitive procurement for these services. This includes defining the scope of work precisely, market research to identify potential offerors, and establishing evaluation criteria that promote fair competition and best value for the government, moving away from sole-source awards.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC
Address: 1100 BAIRS RD, YORK, PA, 17408
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,103,154
Exercised Options: $29,103,154
Current Obligation: $29,103,154
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-09-01
Current End Date: 2017-05-29
Potential End Date: 2017-05-29 12:05:00
Last Modified: 2022-10-28
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