DoD awards $42.9M for MRAP sustainment spare parts, including axles and engines, to BAE Systems
Contract Overview
Contract Amount: $42,933,400 ($42.9M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2008-09-24
End Date: 2010-01-01
Contract Duration: 464 days
Daily Burn Rate: $92.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MINE RESISTANT AMBUSH PROTECTED (MRAP) SUSTAINMENT SPARE PARTS (AXLES; ENGINE, DIESEL; TRANSMISSION, DRESSED; DRUM, WINCH)
Place of Performance
Location: ANNISTON, CALHOUN County, ALABAMA, 36207
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $42.9 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: MINE RESISTANT AMBUSH PROTECTED (MRAP) SUSTAINMENT SPARE PARTS (AXLES; ENGINE, DIESEL; TRANSMISSION, DRESSED; DRUM, WINCH) Key points: 1. The contract focuses on critical sustainment parts for Mine Resistant Ambush Protected (MRAP) vehicles. 2. BAE Systems Land & Armaments L.P. is the sole awardee, indicating a lack of competition. 3. The award was made under a firm fixed-price contract type. 4. The contract duration is 464 days, ending January 1, 2010. 5. The total award amount is $42,933,400.18.
Value Assessment
Rating: fair
The award amount of $42.9M for sustainment parts is significant. Without comparable contract data for similar MRAP parts or services, a precise pricing assessment is difficult. The firm fixed-price contract type aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive environment.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential MRAP sustainment parts.
Public Impact
Ensures operational readiness of MRAP vehicles by providing critical spare parts. Supports military operations by maintaining the availability of a key vehicle platform. The sole-source nature raises questions about cost-effectiveness for taxpayers. The contract duration is relatively short, suggesting ongoing sustainment needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of transparency in pricing due to no-bid award.
- Potential for cost overruns if pricing is not rigorously managed.
- Dependence on a single supplier for critical parts.
Positive Signals
- Addresses critical sustainment needs for MRAP vehicles.
- Firm fixed-price contract provides cost certainty.
- Ensures availability of essential parts for military operations.
Sector Analysis
This contract falls under the 'All Other Motor Vehicle Parts Manufacturing' sector. Spending in this sector is crucial for maintaining military vehicle fleets, especially for specialized vehicles like MRAPs. Benchmarks are difficult without specific data on MRAP parts.
Small Business Impact
This contract was awarded to BAE Systems Land & Armaments L.P., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste. Oversight should focus on validating the necessity of the sole-source justification and monitoring contract performance.
Related Government Programs
- All Other Motor Vehicle Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency in cost justification
- Dependence on a single supplier
Tags
all-other-motor-vehicle-parts-manufactur, department-of-defense, al, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.9 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. MINE RESISTANT AMBUSH PROTECTED (MRAP) SUSTAINMENT SPARE PARTS (AXLES; ENGINE, DIESEL; TRANSMISSION, DRESSED; DRUM, WINCH)
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 (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $42.9 million.
What is the period of performance?
Start: 2008-09-24. End: 2010-01-01.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves factors such as unique capabilities of the contractor, urgent need, or lack of viable alternatives. Without the specific justification document, it's impossible to confirm the exact reasons. However, for specialized military vehicle parts, a sole-source award might be deemed necessary if only one manufacturer possesses the proprietary knowledge or tooling to produce them, or if the need is exceptionally time-sensitive.
How does the unit cost of these spare parts compare to industry benchmarks or previous procurements of similar components?
Benchmarking the unit cost of these specific MRAP spare parts (axles, diesel engines, transmissions, winch drums) is challenging without access to detailed cost breakdowns or comparable market data. The firm fixed-price nature of the contract aims to cap costs, but the absence of competition means there's no direct market comparison to assess if the price is optimal. Further analysis would require access to the contractor's cost data or independent government cost estimates.
What measures are in place to ensure the quality and timely delivery of these critical sustainment parts, given the sole-source nature of the contract?
Quality and timely delivery are typically managed through contract clauses, performance metrics, and government quality assurance representatives. For a sole-source award, the government must rely heavily on its inspection and acceptance processes. This includes pre-award audits, source inspections, and post-delivery quality checks to ensure parts meet specifications and are delivered on schedule to maintain MRAP operational readiness.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › All Other Motor Vehicle Parts Manufacturing
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: 1805 COLEMAN RD, ANNISTON, AL, 03
Business Categories: Category Business, Federally Funded Research and Development Corp, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations
Financial Breakdown
Contract Ceiling: $42,933,400
Exercised Options: $42,933,400
Current Obligation: $42,933,400
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2008-09-24
Current End Date: 2010-01-01
Potential End Date: 2010-01-01 00:00:00
Last Modified: 2009-12-08
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