DoD Awards $405M Bradley/MLRS Technical Support Contract to BAE Systems, Sole-Source
Contract Overview
Contract Amount: $405,299,424 ($405.3M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2022-09-16
End Date: 2027-09-15
Contract Duration: 1,825 days
Daily Burn Rate: $222.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SYSTEMS TECHNICAL SUPPORT AND SUSTAINMENT SYSTEMS TECHNICAL SUPPORT SERVICES, CONSISTING OF ENGINEERING, LOGISTICS, AND FIELDING SUPPORT FOR THE BRADLEY FIGHTING VEHICLE AND THE MULTIPLE LAUNCH ROCKET SYSTEM CARRIER FAMILIES OF VEHICLES.
Place of Performance
Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95119
Plain-Language Summary
Department of Defense obligated $405.3 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: SYSTEMS TECHNICAL SUPPORT AND SUSTAINMENT SYSTEMS TECHNICAL SUPPORT SERVICES, CONSISTING OF ENGINEERING, LOGISTICS, AND FIELDING SUPPORT FOR THE BRADLEY FIGHTING VEHICLE AND THE MULTIPLE LAUNCH ROCKET SYSTEM CARRIER FAMILIES OF VEHICLES. Key points: 1. Significant contract value for sustainment of critical combat vehicles. 2. Sole-source award to incumbent BAE Systems raises competition concerns. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Focus on engineering, logistics, and fielding support is vital for readiness.
Value Assessment
Rating: questionable
The $405M award for engineering, logistics, and fielding support is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or previous contracts for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, awarded directly to BAE Systems. This lack of competition limits price discovery and may result in higher costs for taxpayers than if multiple vendors had vied for the contract.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these essential sustainment services.
Public Impact
Ensures continued operational readiness of Bradley Fighting Vehicles and MLRS carriers. Supports military personnel by providing necessary technical and logistical assistance. Sustains jobs within BAE Systems and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of small business participation noted
Positive Signals
- Essential sustainment for critical defense platforms
- Long-term support contract
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense platforms. Spending benchmarks for similar sustainment contracts can vary widely based on system complexity and scope.
Small Business Impact
The data indicates no specific small business participation for this contract. Given the sole-source nature and the prime contractor, opportunities for small businesses may be limited unless subcontracted.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight will be crucial to ensure BAE Systems delivers on all engineering, logistics, and fielding requirements effectively and within budget constraints, especially given the contract type.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Cost Plus Fixed Fee contract type shifts cost overrun risk to the government.
- No indication of small business participation.
- Potential for vendor lock-in.
- Reliance on incumbent for critical sustainment.
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 $405.3 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. SYSTEMS TECHNICAL SUPPORT AND SUSTAINMENT SYSTEMS TECHNICAL SUPPORT SERVICES, CONSISTING OF ENGINEERING, LOGISTICS, AND FIELDING SUPPORT FOR THE BRADLEY FIGHTING VEHICLE AND THE MULTIPLE LAUNCH ROCKET SYSTEM CARRIER FAMILIES OF VEHICLES.
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 $405.3 million.
What is the period of performance?
Start: 2022-09-16. End: 2027-09-15.
What is the projected cost-effectiveness of this Cost Plus Fixed Fee contract over its full duration, considering the lack of competition?
The Cost Plus Fixed Fee (CPFF) structure, combined with a sole-source award, presents a risk to cost-effectiveness. While the fixed fee provides some incentive for the contractor to control costs, the government bears the risk of cost overruns. Without competitive benchmarking, it's challenging to ascertain if the total anticipated cost aligns with market rates for similar sustainment services.
What are the specific risks associated with relying solely on BAE Systems for sustainment of these critical vehicle platforms?
The primary risk is the potential for complacency and reduced innovation from the sole provider, leading to suboptimal service or higher costs over time. Dependency on a single vendor also creates vulnerability in the supply chain and limits the government's ability to leverage competitive market forces for better pricing or technological advancements.
How will the Department of the Army ensure effective performance and accountability from BAE Systems under this sole-source contract?
The Army must implement robust contract management and oversight. This includes detailed performance metrics, regular reviews of technical progress and financial expenditures, and clear communication channels to address any issues promptly. Active engagement with BAE Systems to ensure adherence to the Statement of Work and quality standards is paramount.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV21R0195
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6331 SAN IGNACIO AVE, SAN JOSE, CA, 95119
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $742,285,986
Exercised Options: $405,270,507
Current Obligation: $405,299,424
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $2,020,737
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-09-16
Current End Date: 2027-09-15
Potential End Date: 2029-09-15 00:00:00
Last Modified: 2026-01-14
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