DoD awards BAE Systems $30.4M for Engineering Services Task Order, citing no competition
Contract Overview
Contract Amount: $30,372,405 ($30.4M)
Contractor: BAE Systems Land and Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2021-12-17
End Date: 2024-08-15
Contract Duration: 972 days
Daily Burn Rate: $31.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TASK ORDER W56HZV-22-F-0023 IS ISSUED TO AWARD WD# FOV-R-21-F0023-001 SQT6 SOFTWARE RELEASE
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48312
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $30.4 million to BAE SYSTEMS LAND AND ARMAMENTS L.P. for work described as: TASK ORDER W56HZV-22-F-0023 IS ISSUED TO AWARD WD# FOV-R-21-F0023-001 SQT6 SOFTWARE RELEASE Key points: 1. Significant award to a single large business, BAE Systems. 2. Task order for engineering services, specifically software release. 3. No competition cited, raising questions about price discovery. 4. Long duration of 972 days suggests a complex or ongoing need.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. The benchmark for similar engineering services contracts is not readily available without further analysis, but the lack of competition is a primary concern.
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 competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition for a $30.4 million award means taxpayers may have paid more than necessary for these engineering services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The specific software release details are not public, limiting understanding of its impact. Reliance on a single vendor for critical engineering services could pose a long-term risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration
- No small business participation
Positive Signals
- Award to established contractor
- Clear statement of work (software release)
Sector Analysis
This award falls under Engineering Services (NAICS 541330). Spending in this sector can vary widely based on project complexity and agency needs. Benchmarks are difficult without specific service details, but competitive bidding is standard practice.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). There is no indication of subcontracting opportunities for small businesses within this task order.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lack of robust oversight in the initial procurement phase. Further review of the justification for sole-sourcing is needed to ensure accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Long contract duration (972 days) may indicate poor planning or scope creep.
- No small business participation noted.
- Potential for contractor to lack incentive for cost control.
Tags
engineering-services, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.4 million to BAE SYSTEMS LAND AND ARMAMENTS L.P.. TASK ORDER W56HZV-22-F-0023 IS ISSUED TO AWARD WD# FOV-R-21-F0023-001 SQT6 SOFTWARE RELEASE
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND AND 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 $30.4 million.
What is the period of performance?
Start: 2021-12-17. End: 2024-08-15.
What was the specific justification for not competing this $30.4 million task order, and was it adequately documented?
The provided data states 'NOT COMPETED' without further justification. A thorough review would require accessing the contract file to examine the sole-source justification, ensuring it meets regulatory requirements and was approved by appropriate authorities. This is crucial for understanding why competition was bypassed and if it was truly necessary.
How does the Cost Plus Fixed Fee structure impact the final cost given the 972-day duration and lack of competition?
The Cost Plus Fixed Fee (CPFF) structure, combined with a long duration and no competition, presents a significant risk of cost escalation. The government pays actual costs plus a fixed fee, but without competitive pressure or clear cost ceilings, the contractor has less incentive to control expenses, potentially leading to a final cost substantially higher than if it were competed.
What is the expected effectiveness and value of the SQT6 software release being developed under this task order?
The effectiveness and value of the SQT6 software release are not detailed in the provided data. Without knowing the software's intended purpose, its criticality to the Department of the Army's mission, and the expected benefits, it's impossible to assess its true value or whether the $30.4 million investment is justified, especially under a sole-source award.
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
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Compagnie DE Developpement DE L'eau S.A.
Address: 34201 VAN DYKE AVE, STERLING HEIGHTS, MI, 48312
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: $30,372,405
Exercised Options: $30,372,405
Current Obligation: $30,372,405
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $829,184
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV21D0018
IDV Type: IDC
Timeline
Start Date: 2021-12-17
Current End Date: 2024-08-15
Potential End Date: 2024-08-15 00:00:00
Last Modified: 2025-04-26
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