DoD Awards $59.1M for 101 ILAV Vehicles to BAE Systems, Sole Source Contract
Contract Overview
Contract Amount: $59,104,747 ($59.1M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2010-10-29
Contract Duration: 394 days
Daily Burn Rate: $150.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 101 ILAV VEHICLES - ISSF
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $59.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: 101 ILAV VEHICLES - ISSF Key points: 1. Significant award to a single large defense contractor. 2. Sole-source nature raises questions about price discovery and competition. 3. Focus on armored vehicles indicates ongoing defense modernization needs. 4. Contract duration of 394 days suggests a focused, short-term requirement.
Value Assessment
Rating: fair
The award amount of $59.1 million for 101 vehicles is substantial. Without comparable contract data or a competitive bidding process, assessing the pricing's fairness is challenging. The firm-fixed-price contract type aims to control costs, but the lack of competition limits external benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to BAE Systems. This approach bypasses the competitive process, potentially leading to higher prices and reduced innovation compared to an open competition. The rationale for sole-source is not provided.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive pricing, potentially resulting in a less efficient use of resources.
Public Impact
Direct funding for military hardware procurement. Supports a major defense contractor and its supply chain. Impacts readiness and capabilities of Army ground forces. Potential for future, larger sole-source awards if justification is accepted.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source justification unclear
- Potential for cost overruns without competitive pressure
Positive Signals
- Firm-fixed-price contract
- Addresses specific military vehicle needs
Sector Analysis
The defense sector, particularly armored vehicle manufacturing, is characterized by high R&D costs and long production cycles. Spending benchmarks are difficult to establish due to the specialized nature of military equipment and the prevalence of sole-source or limited competition contracts.
Small Business Impact
This contract was awarded directly to BAE Systems, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on the justification for not competing the contract and ensuring that the final price reflects fair value, even in the absence of competitive bids. Transparency in the award process is crucial.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award justification
- No small business participation evident
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, pa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. 101 ILAV VEHICLES - ISSF
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 $59.1 million.
What is the period of performance?
Start: 2009-09-30. End: 2010-10-29.
What was the specific justification for awarding this contract on a sole-source basis rather than through full and open competition?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation into the contract file would be necessary to determine the official rationale.
How does the per-unit cost of these ILAV vehicles compare to similar armored vehicles procured through competitive means?
Without a competitive benchmark or data on similar vehicle procurements, it is impossible to definitively assess the per-unit cost. The firm-fixed-price nature aims to cap costs, but the lack of competition prevents a direct comparison to determine if the price is advantageous or disadvantageous to the government.
What is the expected impact of these 101 ILAV vehicles on the operational readiness and capabilities of the Department of the Army?
The acquisition of 101 Infantry Light Armored Vehicles (ILAV) is intended to enhance the operational readiness and capabilities of the Department of the Army. These vehicles likely provide improved protection, mobility, and firepower for ground units, contributing to mission effectiveness in various operational environments.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV09R0739
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 1100 BAIRS RD, YORK, PA, 10
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,104,747
Exercised Options: $59,104,747
Current Obligation: $59,104,747
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-30
Current End Date: 2010-10-29
Potential End Date: 2010-10-29 00:00:00
Last Modified: 2010-06-18
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