DoD's $12.1M VEE WINDOWS contract awarded to BAE Systems for glass manufacturing, lacking competition

Contract Overview

Contract Amount: $12,108,750 ($12.1M)

Contractor: BAE Systems Land & Armaments L.P.

Awarding Agency: Department of Defense

Start Date: 2007-08-28

End Date: 2007-12-24

Contract Duration: 118 days

Daily Burn Rate: $102.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: VEE WINDOWS

Place of Performance

Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55421

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: VEE WINDOWS Key points: 1. The contract value of $12.1 million for glass product manufacturing appears significant for a single definitive contract. 2. Awarded as 'NOT COMPETED', this raises questions about potential missed savings from competitive bidding. 3. The short duration of 118 days suggests a specific, potentially urgent need rather than a long-term requirement. 4. The firm fixed-price contract type offers cost certainty to the government, but the lack of competition limits price discovery. 5. The contractor, BAE Systems, is a large defense contractor, indicating this may be a specialized component within a larger system. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to support small businesses.

Value Assessment

Rating: questionable

The contract value of $12.1 million for glass product manufacturing, specifically for 'VEE WINDOWS', is substantial. Without comparable contract data for similar specialized windows or a breakdown of the unit costs, it is difficult to definitively benchmark value. However, the 'NOT COMPETED' award type inherently limits the ability to assess if the government received the best possible price compared to a competitive scenario. The firm fixed-price nature provides cost certainty, but the lack of competition raises concerns about potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'NOT COMPETED' procedure, indicating that a full and open competition was not conducted. This typically occurs when only one source is capable of meeting the requirement, or in situations where urgency or national security concerns preclude competition. The lack of multiple bidders means that the government did not benefit from the price discovery mechanisms that competition provides, potentially leading to a higher price than might have been achieved otherwise.

Taxpayer Impact: Taxpayers may have paid a premium for these windows due to the absence of competitive pressure to drive down costs. The government missed an opportunity to leverage market forces for better value.

Public Impact

The primary beneficiaries are likely the Department of the Army, receiving specialized 'VEE WINDOWS' for their operational needs. The services delivered involve the manufacturing of glass products, specifically windows, likely for military vehicles or facilities. The geographic impact is centered in Minnesota (ST: MN, SN: MINNESOTA), where the contractor is located. Workforce implications include employment at BAE Systems' Minnesota facility involved in the production of these specialized windows.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price for taxpayers.
Limited transparency into the justification for sole-source award.
Short contract duration might indicate a reactive procurement rather than strategic planning.
No clear indication of small business participation or subcontracting opportunities.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a known defense contractor like BAE Systems suggests a level of established capability.
Specific product ('VEE WINDOWS') indicates a potentially critical or specialized requirement.

Sector Analysis

The contract falls within the 'Glass Product Manufacturing' sector, a niche within the broader manufacturing industry. This specific award is for specialized windows, likely for defense applications, given the contractor and agency. The market for such specialized defense-related glass products is often limited to a few key suppliers capable of meeting stringent military specifications. Benchmarking this spending is difficult without knowing the exact specifications and application of the 'VEE WINDOWS'.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by 'sb: false'. The award to BAE Systems, a large defense contractor, further suggests that subcontracting opportunities for small businesses might be limited unless explicitly mandated or pursued by the prime contractor. There is no information provided to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense's contracting and procurement regulations. As a definitive contract awarded by the Department of the Army, it is subject to standard government oversight mechanisms. However, the 'NOT COMPETED' nature might reduce the level of scrutiny typically applied during a competitive bidding process. Transparency regarding the justification for the sole-source award would be key to assessing accountability.

Related Government Programs

Department of Defense Procurement
BAE Systems Contracts
Glass and Glass Product Manufacturing
Military Vehicle Components
Sole-Source Defense Contracts

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency on Justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. VEE WINDOWS

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 $12.1 million.

What is the period of performance?

Start: 2007-08-28. End: 2007-12-24.

What is the specific military application or system for which these 'VEE WINDOWS' were procured?

The provided data identifies the product as 'VEE WINDOWS' and the procuring agency as the Department of the Army. However, the specific military application or system for which these windows were intended is not detailed in the available information. Typically, such specialized windows could be for armored vehicles, aircraft, or hardened facilities, requiring specific ballistic protection, optical clarity, or environmental resistance. Further investigation into the contract details or related procurement documents would be necessary to ascertain the precise use case and the technical specifications required.

What was the justification for awarding this contract on a sole-source basis without competition?

The contract was awarded under the 'NOT COMPETED' category, indicating a sole-source or limited competition procurement. The specific justification for this approach is not provided in the summary data. Common reasons for sole-source awards include the unavailability of other sources, urgent and compelling needs that preclude competition, or specific national security requirements. A review of the contract's justification and approval documents (J&A) filed with the Federal Procurement Data System (FPDS) would be required to understand the official rationale behind bypassing full and open competition for this $12.1 million award.

How does the $12.1 million contract value compare to historical spending on similar 'VEE WINDOWS' or related glass products by the Department of Defense?

Comparing the $12.1 million contract value for 'VEE WINDOWS' to historical spending requires access to more granular data on similar procurements. The provided data indicates this is a definitive contract awarded to BAE Systems for glass product manufacturing. Without knowing the exact specifications, quantity, and intended use of these windows, a direct comparison is challenging. However, given that it was a sole-source award for a specific product, it suggests a potentially specialized and high-value item. Analyzing past contracts for specialized military-grade glass or windows, especially those awarded non-competitively, would provide context on whether this amount is within a typical range or represents an outlier.

What is BAE Systems' track record in manufacturing specialized glass products for defense applications?

BAE Systems is a major global defense contractor with extensive experience in various defense systems, including land, sea, and air platforms. While their primary expertise often lies in larger systems integration, electronics, and ordnance, they also engage in the manufacturing of components. Their involvement in producing 'VEE WINDOWS' suggests they possess or have access to the necessary manufacturing capabilities and quality control processes required for defense-grade materials. Their track record in delivering complex defense components on time and to specification would be a key factor in assessing the reliability of this particular contract award.

What are the potential risks associated with a sole-source contract for specialized windows?

The primary risk associated with a sole-source contract for specialized windows is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible value for its expenditure. Other risks include a lack of innovation that competition might foster, and potential vendor lock-in, making it difficult to switch suppliers in the future. Furthermore, if the sole-source justification is weak or based on outdated information, it could indicate a failure in procurement oversight. Ensuring rigorous oversight and justification review is crucial to mitigate these risks.

Industry Classification

NAICS: Manufacturing › Glass and Glass Product Manufacturing › Glass Product Manufacturing Made of Purchased Glass

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

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: 4800 E RIVER RD, MINNEAPOLIS, MN, 55421

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,108,750

Exercised Options: $12,108,750

Current Obligation: $12,108,750

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline