DoD Awards BAE Systems $196M for Bradley A4 Production Early Order Material
Contract Overview
Contract Amount: $196,237,470 ($196.2M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2022-08-24
End Date: 2024-08-12
Contract Duration: 719 days
Daily Burn Rate: $272.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: BRADLEY A4 PRODUCTION EARLY ORDER MATERIAL UNDEFINITIZED CONTRACT ACTION.
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $196.2 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: BRADLEY A4 PRODUCTION EARLY ORDER MATERIAL UNDEFINITIZED CONTRACT ACTION. Key points: 1. Significant investment in armored vehicle production capabilities. 2. Sole-source award to BAE Systems raises competition concerns. 3. Potential for cost overruns due to fixed-price incentive contract type. 4. Focus on critical military hardware production.
Value Assessment
Rating: fair
The contract value of $196.2M for early order material for Bradley A4 production appears substantial. Benchmarking against similar sole-source production contracts for armored vehicles would be necessary to fully assess its pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to BAE Systems. The lack of competition limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Ensures continued production of vital armored vehicles. Supports BAE Systems' manufacturing operations and workforce. Potential impact on future defense budget allocations. Contributes to national defense readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Fixed-price incentive contract
- Lack of competition
Positive Signals
- Critical defense production
- Supports existing platform upgrades
Sector Analysis
This contract falls within the Defense sector, specifically military armored vehicle manufacturing. Spending in this area is driven by national security needs and technological advancements in warfare.
Small Business Impact
There is no indication of small business participation in this specific contract action. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The contract is managed by the Department of the Army. Oversight will be crucial to ensure BAE Systems meets production timelines and quality standards, especially given the sole-source nature.
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 competitive pricing.
- Fixed-price incentive contract carries cost overrun risk.
- Lack of transparency in pricing due to no competition.
- Potential for schedule delays if material is not procured efficiently.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, pa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $196.2 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. BRADLEY A4 PRODUCTION EARLY ORDER MATERIAL UNDEFINITIZED CONTRACT ACTION.
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 $196.2 million.
What is the period of performance?
Start: 2022-08-24. End: 2024-08-12.
What is the projected total cost for the Bradley A4 production program, and how does this early order material cost compare to the overall program budget?
The total cost for the Bradley A4 production program is not detailed in this specific contract action. This $196.2M award represents only the early order material. A comprehensive review of the full program budget and cost breakdowns is necessary to understand the overall financial commitment and how this initial phase fits within it.
What are the specific risks associated with the fixed-price incentive contract type for this sole-source award, and what mitigation strategies are in place?
The primary risk of a fixed-price incentive contract, especially when sole-sourced, is the potential for cost overruns if targets are not met or if the contractor's costs exceed projections. Mitigation strategies should include robust government oversight of contractor costs, clear performance metrics, and defined sharing arrangements for cost variances.
How will the effectiveness of this early order material procurement be measured in terms of its contribution to the timely and successful production of the Bradley A4?
Effectiveness will be measured by the timely delivery of the specified materials, their quality, and their seamless integration into the Bradley A4 production line. Key performance indicators should track the reduction of production delays, adherence to specifications, and the overall impact on the program's schedule and cost targets.
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
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Compagnie DE Developpement DE L'eau S.A.
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: $196,237,470
Exercised Options: $196,237,470
Current Obligation: $196,237,470
Subaward Activity
Number of Subawards: 191
Total Subaward Amount: $79,319,283
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV22D0083
IDV Type: IDC
Timeline
Start Date: 2022-08-24
Current End Date: 2024-08-12
Potential End Date: 2024-08-12 00:00:00
Last Modified: 2025-08-06
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