DoD's $58M BAE Systems Contract for Medium Tactical Vehicles: A Non-Competed Award

Contract Overview

Contract Amount: $58,211,312 ($58.2M)

Contractor: BAE Systems Tactical Vehicle Systems LP

Awarding Agency: Department of Defense

Start Date: 2009-09-25

End Date: 2011-01-31

Contract Duration: 493 days

Daily Burn Rate: $118.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RESET OF MEDIUM TACTICAL VEHICLES

Place of Performance

Location: SEALY, COLORADO County, TEXAS, 77474

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $58.2 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP for work described as: RESET OF MEDIUM TACTICAL VEHICLES Key points: 1. Significant investment in tactical vehicle manufacturing. 2. Sole awardee BAE Systems dominates this niche. 3. Potential for higher costs due to lack of competition. 4. Focus on heavy-duty truck manufacturing sector.

Value Assessment

Rating: questionable

The award of $58.2 million for medium tactical vehicles was not competed. Without competitive bidding, it's difficult to assess if the 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 sole-source, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure to offer the best price.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these vehicles, as market forces were not leveraged to secure the most cost-effective solution.

Public Impact

Impacts military readiness and equipment availability. Affects the specific sector of heavy-duty truck manufacturing. Raises questions about procurement efficiency and cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No clear justification for sole-source

Positive Signals

Specific vehicle type procured
Firm fixed price contract

Sector Analysis

The Department of the Army's procurement of medium tactical vehicles falls within the heavy-duty truck manufacturing sector. Spending in this sector can vary significantly based on defense needs and technological advancements.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as BAE Systems is a large defense contractor. There is no indication of subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further investigation into the justification for not competing this contract would be beneficial for oversight and accountability.

Related Government Programs

Heavy Duty Truck Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks transparency.
Potential for inflated pricing due to no competition.
Limited market research evident.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.2 million to BAE SYSTEMS TACTICAL VEHICLE SYSTEMS LP. RESET OF MEDIUM TACTICAL VEHICLES

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $58.2 million.

What is the period of performance?

Start: 2009-09-25. End: 2011-01-31.

What was the justification for awarding this contract sole-source to BAE Systems, and were alternative solutions or vendors considered?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Without this information, it's impossible to determine if competitive alternatives were adequately explored or if this was the most efficient procurement method.

How does the cost of these medium tactical vehicles compare to similar vehicles procured through competitive means by other government agencies or allies?

Direct comparison is challenging without specific cost breakdowns and detailed specifications. However, the absence of competition inherently raises concerns about potential cost overruns. Benchmarking against similar, competitively procured vehicles would be crucial to assess value for money and identify potential savings.

What is the expected operational lifespan and maintenance cost of these BAE Systems vehicles, and how do they compare to industry standards?

The data provided does not include information on the operational lifespan or maintenance costs of the procured vehicles. This information is critical for a comprehensive total cost of ownership analysis and for evaluating the long-term value and effectiveness of this acquisition decision.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Heavy Duty Truck Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV09R0434

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 5000 INTERSTATE HWY 10 W, SEALY, TX, 10

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

Financial Breakdown

Contract Ceiling: $58,211,312

Exercised Options: $58,211,312

Current Obligation: $58,211,312

Contract Characteristics

Cost or Pricing Data: YES

Timeline