DoD awards $56.4M contract for HMMWV VEE items to BAE Systems, with no competition
Contract Overview
Contract Amount: $56,417,657 ($56.4M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2008-04-03
End Date: 2009-03-31
Contract Duration: 362 days
Daily Burn Rate: $155.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HMMWV VEE ITEMS
Place of Performance
Location: BUTLER, BUTLER County, PENNSYLVANIA, 16002
Plain-Language Summary
Department of Defense obligated $56.4 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: HMMWV VEE ITEMS Key points: 1. Significant award value of $56.4 million. 2. Sole-source award to BAE Systems raises competition concerns. 3. Contract duration of 362 days. 4. Awarded by the Department of the Army for HMMWV VEE items.
Value Assessment
Rating: questionable
The contract value of $56.4 million for HMMWV VEE items is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or industry benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award could result in taxpayers paying a premium for these HMMWV VEE items.
Public Impact
Military vehicle component procurement impacts operational readiness. Sole-source awards can limit innovation and drive up costs. Taxpayer funds are allocated without competitive market validation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Award to established defense contractor
- Addresses specific military vehicle needs
Sector Analysis
The defense sector frequently involves complex, specialized equipment like HMMWV components. Awarding such contracts without competition can be a concern, though sometimes justified by unique requirements or existing supplier relationships.
Small Business Impact
This contract was awarded to BAE Systems, a large defense contractor, and there is no indication that small businesses were involved in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best possible value and that the justification for not competing was sound.
Related Government Programs
- Flat Glass Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in price discovery
- No small business participation noted
Tags
flat-glass-manufacturing, department-of-defense, pa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.4 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. HMMWV VEE ITEMS
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 $56.4 million.
What is the period of performance?
Start: 2008-04-03. End: 2009-03-31.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as urgent and compelling needs, unique capabilities of a single source, or when only one responsible source can provide the required supplies or services. Further investigation into the contract file would be necessary to determine the exact rationale.
What is the benchmark price for HMMWV VEE items, and how does this award compare?
Without access to a comprehensive database of HMMWV VEE item procurements or industry pricing data, establishing a precise benchmark is challenging. The lack of competition in this $56.4 million award makes direct comparison difficult. A thorough market research analysis would be required to determine if the price paid was competitive.
What is the potential impact on future HMMWV upgrades or maintenance due to this sole-source award?
A sole-source award can set a precedent, potentially discouraging future competition for related HMMWV components if other suppliers perceive the market as closed. This could limit innovation and lead to sustained higher costs for the Army's vehicle sustainment and upgrade programs, impacting long-term budget predictability.
Industry Classification
NAICS: Manufacturing › Glass and Glass Product Manufacturing › Flat Glass Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV08R0428
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, 90
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: $56,417,657
Exercised Options: $56,417,657
Current Obligation: $56,417,657
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2008-04-03
Current End Date: 2009-03-31
Potential End Date: 2009-03-31 00:00:00
Last Modified: 2010-05-21
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