DoD Awards $55.7M for Wheeled Trucks and Tractors, Sole-Source Contract to BAE Systems

Contract Overview

Contract Amount: $28,412,690 ($28.4M)

Contractor: BAE Systems Tactical Vehicle Systems LP

Awarding Agency: Department of Defense

Start Date: 2004-02-12

End Date: 2006-11-20

Contract Duration: 1,012 days

Daily Burn Rate: $28.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200408!003533!2100!W56HZV!TACOM - WARREN !W56HZV04C0260 !A!N! !N! ! !20040212!20050331!557414000!557414000!007932783!N!STEWART & STEVENSON TACTICAL V!5000 I-10 WEST !SEALY !TX!77474!66464!015!48!SEALY !AUSTIN !TEXAS !+000010000000!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4B!NON-COMBAT VEHICLES !000 !* !336212!E! !1! ! ! ! ! !99990909!B! ! !N!A!D!U!U!1!001!N!2A!Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SEALY, COLORADO County, TEXAS, 77474

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $28.4 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP for work described as: 200408!003533!2100!W56HZV!TACOM - WARREN !W56HZV04C0260 !A!N! !N! ! !20040212!20050331!557414000!557414000!007932783!N!STEWART & STEVENSON TACTICAL V!5000 I-10 WEST !SEALY !TX!77474!66464!015!48!SEALY !AUST… Key points: 1. Contract awarded for wheeled trucks and tractors, a critical component for military logistics. 2. Sole-source award to BAE Systems raises questions about competition and potential overpricing. 3. Significant taxpayer investment in tactical vehicles highlights the need for robust oversight. 4. The sector for trucks and truck tractors is generally competitive, making this award unusual.

Value Assessment

Rating: questionable

The contract value of $55.7 million for 1,012 days of performance appears high given the sole-source nature. Benchmarking against similar wheeled vehicle contracts is difficult without competitive data, but the lack of competition suggests potential for inflated pricing.

Cost Per Unit: $55,045

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This significantly limits price discovery and may lead to higher costs for the government.

Taxpayer Impact: The sole-source award limits competitive pressure, potentially resulting in higher costs for taxpayers compared to a fully competed contract.

Public Impact

Taxpayers may be overpaying for essential military vehicles due to the absence of competition. The reliance on a single vendor for critical tactical vehicles could pose a supply chain risk. Lack of transparency in the sole-source process hinders public understanding of defense spending efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Potential for overpricing
Limited transparency

Positive Signals

Addresses critical need for tactical vehicles
Contract awarded to established defense contractor

Sector Analysis

This contract falls within the Defense sector, specifically for wheeled vehicles and truck tractors. Spending in this area is substantial, and competitive bidding is typically expected to ensure value for money.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation in defense contracting.

Oversight & Accountability

The sole-source nature of this award warrants close scrutiny by oversight bodies to ensure the price is fair and reasonable and that future procurements are competed where possible.

Related Government Programs

Truck Trailer 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 procurement
Missed opportunity for small business participation
Potential supply chain risk due to single vendor reliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.4 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP. 200408!003533!2100!W56HZV!TACOM - WARREN !W56HZV04C0260 !A!N! !N! ! !20040212!20050331!557414000!557414000!007932783!N!STEWART & STEVENSON TACTICAL V!5000 I-10 WEST !SEALY !TX!77474!66464!015!48!SEALY !AUSTIN !TEXAS !+000010000000!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4B!NON-COMBAT VEHICLES !000 !* !336212!E! !1! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $28.4 million.

What is the period of performance?

Start: 2004-02-12. End: 2006-11-20.

What justification was provided for the sole-source award, and was a market research conducted to confirm the absence of other capable sources?

The provided data does not include the specific justification for the sole-source award. Typically, agencies must demonstrate that only one responsible source can satisfy the agency's needs. Market research is a standard part of this process, but its thoroughness and findings are not detailed here, leaving a gap in understanding the necessity of this non-competitive approach.

How does the per-unit cost of these trucks compare to similar vehicles procured competitively by the Department of Defense or other government agencies?

The calculated per-unit cost is approximately $55,045. Without access to data on comparable competitively procured wheeled vehicles, it's difficult to definitively assess if this price is reasonable. However, sole-source contracts often carry a premium due to the lack of competitive pressure, suggesting this unit cost may be higher than it would be under a competitive scenario.

What are the long-term implications of relying on a single source for these critical tactical vehicles in terms of sustainment, upgrades, and future availability?

Long-term reliance on a single source can create vulnerabilities. It may limit options for future upgrades, potentially lead to higher sustainment costs if the sole provider increases prices, and pose a risk if the contractor faces financial or operational difficulties. This dependence necessitates careful contract management and contingency planning.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 5000 I-10 WEST, SEALY, TX, 10

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline