DoD Awards BAE Systems $19.1M for Fire Support Sensor Systems, Lacking Competition
Contract Overview
Contract Amount: $19,100,483 ($19.1M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2012-12-21
End Date: 2016-05-25
Contract Duration: 1,251 days
Daily Burn Rate: $15.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 44 FIRE SUPPORT SENSOR SYSTEM AND 6 AUTHORIZED STOCKAGE LIST (ASL) KITS
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $19.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: 44 FIRE SUPPORT SENSOR SYSTEM AND 6 AUTHORIZED STOCKAGE LIST (ASL) KITS Key points: 1. Contract awarded to a single, established defense contractor. 2. Significant investment in military hardware, potentially impacting readiness. 3. Lack of competition raises concerns about price reasonableness and innovation. 4. Sector is dominated by large, specialized defense manufacturers.
Value Assessment
Rating: questionable
The contract value of $19.1M for 44 sensor systems and ASL kits appears high given the lack of competitive bidding. Without market research or competing offers, it's difficult to assess if this price reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This 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 incentive for the contractor to offer the lowest possible price.
Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Enhances battlefield awareness for Army units. Supports armored vehicle operations with critical sensor technology. Potential for extended deployment and operational use.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value without competitive benchmark
Positive Signals
- Essential military equipment
- Awarded to a known defense contractor
Sector Analysis
This contract falls within the defense manufacturing sector, specifically military armored vehicles and components. Spending in this area is often characterized by high unit costs, long development cycles, and significant government oversight due to national security implications.
Small Business Impact
The contract was awarded directly to BAE Systems Land & Armaments L.P., a large defense contractor. There is no indication of small business participation in this specific award, which is common for large, sole-source defense procurements.
Oversight & Accountability
While awarded as a sole-source contract, the Department of Defense is responsible for ensuring the necessity and reasonableness of the purchase. Further oversight would involve tracking performance, delivery, and any subsequent modifications or related procurements.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- 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 bidding.
- Limited transparency on justification for sole-source.
- No clear indication of small business involvement.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. 44 FIRE SUPPORT SENSOR SYSTEM AND 6 AUTHORIZED STOCKAGE LIST (ASL) 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 $19.1 million.
What is the period of performance?
Start: 2012-12-21. End: 2016-05-25.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. The Department of Defense should have documented these reasons and conducted market research to validate the necessity and explore potential competition, even if ultimately unsuccessful. Without this documentation, assessing fair pricing is challenging.
What are the long-term cost implications of procuring this system without competition?
Procuring systems without competition can lead to sustained higher costs over the system's lifecycle. Without competitive pressure, there's less incentive for the sole-source provider to innovate or reduce costs on future buys or sustainment contracts. This can result in a higher total ownership cost for the government compared to systems acquired through competitive means.
How does the performance of these sensor systems compare to similar systems acquired competitively?
Direct comparison is difficult without knowing the specific capabilities and intended use cases of these BAE Systems sensor systems versus competitively acquired alternatives. However, the lack of competition suggests that either these systems offer unique, indispensable capabilities or that the government did not adequately explore or incentivize competitive solutions, potentially impacting overall value for money.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV12R0236
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, 17408
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: $19,100,483
Exercised Options: $19,100,483
Current Obligation: $19,100,483
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $13,271,287
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-12-21
Current End Date: 2016-05-25
Potential End Date: 2016-05-25 00:00:00
Last Modified: 2016-08-10
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