BAE Systems Awarded $160.7M for Bradley Fighting Vehicle Technical Support Services

Contract Overview

Contract Amount: $160,732,028 ($160.7M)

Contractor: BAE Systems Land & Armaments L.P.

Awarding Agency: Department of Defense

Start Date: 2012-12-18

End Date: 2017-12-15

Contract Duration: 1,823 days

Daily Burn Rate: $88.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF AS A RESULT OF SOLICITATION W56HZV-12-R-0294 AND SUBSEQUENT NEGOTIATIONS CONTRACT W56HZV-13-C-0018 IS HEREBY AWARDED TO BAE SYSTEMS,GROUND SYSTEMS DIVISION FOR THE ACQUISITION OF BRADLEY SYSTEMS TECHNICAL SUPPORT (STS) SERVICES. STS SERVICES CONSISTS OF: ENGINEERING,LOGISTICS, AND FIELDING SUPPORT FOR THE BRADLEY FIGHTING VEHICLE SYSTEMS (BFVS), OPERATION DESERT STORM-SITUATIONAL AWARENESS (ODS-SA), M7 BRADLEY FIRE SUPPORT TEAM SITUATIONAL AWARENESS (BFIST SA), A3 BFIST WITH FIRE SUPPORT SENSOR SYSTEM (FS3) INTEGRATION (A3 BFIST W/FS3), AND M7 BFIST SA WITH FS3 INTEGRATION (M7 BFIST SA WFS3).

Place of Performance

Location: SANTA CLARA, SANTA CLARA County, CALIFORNIA, 95050

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $160.7 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: IGF::OT::IGF AS A RESULT OF SOLICITATION W56HZV-12-R-0294 AND SUBSEQUENT NEGOTIATIONS CONTRACT W56HZV-13-C-0018 IS HEREBY AWARDED TO BAE SYSTEMS,GROUND SYSTEMS DIVISION FOR THE ACQUISITION OF BRADLEY SYSTEMS TECHNICAL SUPPORT (STS) SERVICES. STS SERVICES CONSISTS OF: ENGINEERING,… Key points: 1. Contract awarded to BAE Systems for essential technical support of Bradley Fighting Vehicle Systems. 2. Services include engineering, logistics, and fielding support for various BFVS configurations. 3. The contract was not competed, raising potential concerns about price discovery. 4. This spending falls within the Engineering Services sector, supporting critical defense platforms.

Value Assessment

Rating: questionable

The contract value is substantial at $160.7 million. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar technical support services for complex military hardware.

Cost Per Unit: N/A

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 there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in the government paying a premium for these critical technical support services, impacting overall taxpayer value.

Public Impact

Ensures continued operational readiness and maintenance for the Bradley Fighting Vehicle fleet. Supports advanced situational awareness systems crucial for battlefield effectiveness. Potential for increased costs due to sole-source award impacts taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Potential for cost overruns
  • Sole-source award

Positive Signals

  • Supports critical defense systems
  • Long-term contract duration

Sector Analysis

This contract falls under Engineering Services, a sector vital for maintaining and upgrading complex military equipment. Benchmarks for similar long-term technical support contracts for major defense platforms can vary widely, but a lack of competition often inflates costs.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The award was made to a large prime contractor, BAE Systems.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services efficiently and at a reasonable cost. Robust performance metrics and regular reviews are essential.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Sole-source award limits price competition.
  • Potential for inflated costs due to lack of market pressure.
  • Requires strong government oversight to ensure value.
  • No indication of small business participation.

Tags

engineering-services, department-of-defense, ca, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $160.7 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. IGF::OT::IGF AS A RESULT OF SOLICITATION W56HZV-12-R-0294 AND SUBSEQUENT NEGOTIATIONS CONTRACT W56HZV-13-C-0018 IS HEREBY AWARDED TO BAE SYSTEMS,GROUND SYSTEMS DIVISION FOR THE ACQUISITION OF BRADLEY SYSTEMS TECHNICAL SUPPORT (STS) SERVICES. STS SERVICES CONSISTS OF: ENGINEERING,LOGISTICS, AND FIELDING SUPPORT FOR THE BRADLEY FIGHTING VEHICLE SYSTEMS (BFVS), OPERATION DESERT STORM-SITUATIONAL AWARENESS (ODS-SA), M7 BRADLEY FIRE SUPPORT TEAM SITUATIONAL AWARENESS (BFIST SA), A3 BFIST WITH FIRE SU

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 $160.7 million.

What is the period of performance?

Start: 2012-12-18. End: 2017-12-15.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without further documentation, it's unclear if these criteria were met, but it's a critical point for ensuring fair pricing and avoiding unnecessary expenditure.

How will the government ensure cost-effectiveness without competitive pressure?

The government must implement rigorous cost control measures, including detailed performance monitoring, independent cost estimates, and potentially negotiating specific cost-saving initiatives throughout the contract's life. Regular audits and reviews of BAE Systems' pricing and efficiency are crucial to mitigate the risks associated with a non-competed award.

What is the long-term strategy for technical support of the Bradley Fighting Vehicle Systems?

Understanding the long-term strategy is important to determine if this sole-source award aligns with future modernization plans or if future requirements will be competed. This ensures sustained platform readiness and potentially better value through competition on subsequent contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV12R0294

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1205 COLEMAN AVE, SANTA CLARA, CA, 95050

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $160,732,028

Exercised Options: $160,732,028

Current Obligation: $160,732,028

Actual Outlays: $-9,632

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $4,407,677

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2012-12-18

Current End Date: 2017-12-15

Potential End Date: 2017-12-15 00:00:00

Last Modified: 2025-11-25

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