DoD Spends $36.6M on 5,325 Ivee Windshield Kits from BAE Systems, Awarded in 2009
Contract Overview
Contract Amount: $36,598,653 ($36.6M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2009-07-14
End Date: 2010-08-09
Contract Duration: 391 days
Daily Burn Rate: $93.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: URGENT PURCAHSE OF 5325 IVEE WINDSHIELD KITS
Place of Performance
Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55421
Plain-Language Summary
Department of Defense obligated $36.6 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: URGENT PURCAHSE OF 5325 IVEE WINDSHIELD KITS Key points: 1. Significant expenditure on specialized vehicle components. 2. Sole-source award to BAE Systems suggests limited alternatives or specific requirements. 3. High cost per unit warrants scrutiny, especially given the 2009 award date. 4. The 'Flat Glass Manufacturing' NAICS code may not fully capture the complexity of the 'Ivee Windshield Kit'.
Value Assessment
Rating: questionable
The total award of $36.6 million for 5,325 kits results in a per-unit cost of approximately $6,873. This appears high for windshield kits, even specialized ones, and lacks clear justification without further detail on the technology and integration involved.
Cost Per Unit: $6,873
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for this substantial purchase raises concerns about whether the government achieved the best possible price.
Public Impact
Ensures operational readiness for specific military vehicles requiring specialized windshields. Potential for outdated technology given the 2009 award date and 2010 completion. Impact on vehicle maintenance and repair capabilities for the affected fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High per-unit cost
- Dated award information
- Potential for technology obsolescence
Positive Signals
- Addresses a specific, urgent need for vehicle components
- Awarded to a known defense contractor
Sector Analysis
The defense sector often involves specialized components with unique manufacturing requirements. Spending benchmarks for such niche items are difficult to establish without detailed specifications, but the high per-unit cost warrants comparison to similar advanced material or integrated systems.
Small Business Impact
The award went to BAE Systems, a large prime contractor, with no indication of small business participation in this specific contract. Opportunities for small businesses in supplying components or related services were likely missed.
Oversight & Accountability
The sole-source nature of this award suggests a need for robust justification and oversight to ensure fair pricing and necessity. Post-award reviews would be crucial to assess value and performance.
Related Government Programs
- Flat Glass Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- High per-unit cost
- Dated award and completion
- Potential for technology obsolescence
- Unclear justification for sole-source award
Tags
flat-glass-manufacturing, department-of-defense, mn, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.6 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. URGENT PURCAHSE OF 5325 IVEE WINDSHIELD KITS
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 $36.6 million.
What is the period of performance?
Start: 2009-07-14. End: 2010-08-09.
What specific technological advancements or unique features justify the high per-unit cost of these Ivee windshield kits compared to standard automotive glass?
The high per-unit cost of $6,873 likely stems from specialized features such as ballistic protection, integrated sensor mounts, advanced coatings for visibility in extreme conditions, or specific structural requirements for military vehicle integration. Without detailed specifications, it's difficult to pinpoint the exact drivers, but these factors differentiate them significantly from standard automotive glass.
Given the 2009 award date and 2010 completion, what is the risk of technology obsolescence or performance degradation for these windshield kits in current military operations?
There is a moderate to high risk of technology obsolescence, as defense technology evolves rapidly. While the core function of a windshield remains, newer threats or operational requirements might necessitate updated materials or integrated systems. Performance degradation over time is also a concern, depending on the materials used and environmental exposure.
How effectively did the Department of the Army ensure value for money through the sole-source procurement process for these windshield kits?
The effectiveness of value for money is questionable due to the sole-source nature. Without competition, the Army relied on BAE Systems' pricing and justification. While BAE is a reputable contractor, the absence of competitive bids limits the ability to definitively state that the best possible price was achieved for the taxpayer.
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
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, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,598,653
Exercised Options: $36,598,653
Current Obligation: $36,598,653
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2009-07-14
Current End Date: 2010-08-09
Potential End Date: 2010-08-09 00:00:00
Last Modified: 2010-08-17
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