DoD awards $46.3M to BAE Systems for Egyptian Tank Plant Support, a sole-source contract
Contract Overview
Contract Amount: $46,276,179 ($46.3M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2009-03-13
End Date: 2013-08-31
Contract Duration: 1,632 days
Daily Burn Rate: $28.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FMS SUPPORT OF THE EGYPTIAN TANK PLANT
Place of Performance
Location: SANTA CLARA, SANTA CLARA County, CALIFORNIA, 95050
Plain-Language Summary
Department of Defense obligated $46.3 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: FMS SUPPORT OF THE EGYPTIAN TANK PLANT Key points: 1. Contract awarded to BAE Systems Land & Armaments L.P. for $46.3 million. 2. Focuses on FMS support for the Egyptian Tank Plant. 3. Sole-source award raises questions about competition and potential price discovery. 4. Sector is Military Armored Vehicle, Tank, and Tank Component Manufacturing.
Value Assessment
Rating: fair
The award amount of $46.3 million for FMS support of a tank plant appears significant. Without specific benchmarks for this niche service, a direct comparison is difficult, but the sole-source nature suggests limited market price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits the government's ability to ensure the best possible price through market forces and may lead to higher costs.
Taxpayer Impact: Taxpayer funds are used for Foreign Military Sales support, potentially at a non-competitive price, impacting the overall value for money.
Public Impact
Supports a foreign military partner's defense capabilities. Involves specialized manufacturing and support for armored vehicles. Funds allocated through the Foreign Military Sales program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in pricing due to no-bid contract.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Supports a key U.S. ally's defense needs.
- Leverages established contractor expertise in armored vehicle manufacturing.
Sector Analysis
The defense manufacturing sector, particularly armored vehicles, is highly specialized. Spending benchmarks are difficult to establish due to the unique nature of FMS contracts and specific platform requirements.
Small Business Impact
This contract was awarded to a large prime contractor, BAE Systems. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract falls under the Department of the Army's purview within the Department of Defense. Oversight would focus on contract performance, delivery schedules, and adherence to FMS program requirements.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Limited transparency in cost justification
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.3 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. FMS SUPPORT OF THE EGYPTIAN TANK PLANT
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 $46.3 million.
What is the period of performance?
Start: 2009-03-13. End: 2013-08-31.
What is the justification for the sole-source award, and were any attempts made to explore competitive options?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's unclear if alternative vendors were considered or if specific technical requirements necessitated BAE Systems' involvement exclusively. This lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
How does the pricing of this contract compare to similar FMS support contracts or domestic armored vehicle manufacturing contracts?
Direct price comparison is challenging due to the specialized nature of FMS support for a specific tank plant and the sole-source award. Benchmarking against similar contracts would require access to detailed cost breakdowns and market data for comparable services. The absence of competition inherently limits the ability to ascertain if the price achieved is competitive.
What is the long-term strategic value and effectiveness of this FMS support for the Egyptian Tank Plant?
The effectiveness hinges on the continued operational readiness and modernization of Egypt's armored fleet, contributing to regional stability. The strategic value lies in strengthening a key U.S. ally's defense capabilities. However, the long-term value is diminished if the support is procured at inflated prices due to a lack of competition.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV08R0213
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 2890 DE LA CRUZ BLVD, SANTA CLARA, CA, 17
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,276,179
Exercised Options: $46,276,179
Current Obligation: $46,276,179
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2009-03-13
Current End Date: 2013-08-31
Potential End Date: 2013-08-31 00:00:00
Last Modified: 2013-08-20
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