DoD Awards $15.3M for MRAP STS, Sole-Sourced to BAE Systems

Contract Overview

Contract Amount: $15,270,058 ($15.3M)

Contractor: BAE Systems Tactical Vehicle Systems LP

Awarding Agency: Department of Defense

Start Date: 2009-05-08

End Date: 2016-09-30

Contract Duration: 2,702 days

Daily Burn Rate: $5.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MRAP STS CONTRACT

Place of Performance

Location: SEALY, COLORADO County, TEXAS, 77474

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $15.3 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP for work described as: MRAP STS CONTRACT Key points: 1. Contract awarded to BAE Systems for MRAP STS, indicating a specific capability need. 2. Sole-source award suggests limited competition, potentially impacting price discovery. 3. High value contract for armored vehicles highlights defense spending in manufacturing. 4. Long duration (2702 days) suggests a sustained program requirement.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive benchmarks, assessing value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning BAE Systems was the only source considered. This limits price negotiation and may not yield the best value for taxpayers.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers compared to competitive procurements.

Public Impact

Ensures continued availability of critical armored vehicles for military operations. Supports BAE Systems' manufacturing operations and associated workforce. Potential for increased costs due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competitive pricing data

Positive Signals

Addresses a specific military vehicle requirement
Long-term contract provides stability

Sector Analysis

This contract falls within the Defense sector, specifically Military Armored Vehicle manufacturing. Spending in this area is driven by operational needs and technological advancements in defense.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false).

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency, responsible for ensuring contractor performance and compliance.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee contract type can lead to cost overruns.
Lack of transparency in pricing due to no-bid award.
Long contract duration may not reflect current market conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP. MRAP STS CONTRACT

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $15.3 million.

What is the period of performance?

Start: 2009-05-08. End: 2016-09-30.

What was the justification for awarding this contract on a sole-source basis?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs where competition is not feasible or practical. A thorough review of the contract file would be necessary to determine the specific justification used in this instance.

How does the Cost Plus Fixed Fee structure impact the government's risk in this contract?

The Cost Plus Fixed Fee (CPFF) structure shifts some risk to the government. While the contractor's profit is fixed, the government bears the risk of cost overruns. Effective oversight and robust cost controls are crucial to mitigate this risk and ensure the final cost remains reasonable.

What is the estimated per-unit cost of the MRAP STS under this contract?

The provided data does not include the number of units procured or the total value breakdown per unit. Therefore, calculating an accurate per-unit cost is not possible with the given information. Further details on the quantity of MRAP STS vehicles delivered under this contract would be needed.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie DE Developpement DE L'eau S.A.

Address: 2941 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $15,270,058

Exercised Options: $15,270,058

Current Obligation: $15,270,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline