DoD Awards BAE Systems $85.4M for Bradley Fighting Vehicle Refurbishment and Training in Croatia
Contract Overview
Contract Amount: $85,351,440 ($85.4M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2023-07-27
End Date: 2026-12-31
Contract Duration: 1,253 days
Daily Burn Rate: $68.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: REFURBISHMENT OF BRADLEY FIGHTING VEHICLES AND ASSOCIATED NEW EQUIPMENT TRAINING IN CROATIA.
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $85.4 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: REFURBISHMENT OF BRADLEY FIGHTING VEHICLES AND ASSOCIATED NEW EQUIPMENT TRAINING IN CROATIA. Key points: 1. Contract awarded to BAE Systems for refurbishment and training of Bradley Fighting Vehicles. 2. Significant investment in military hardware modernization and international partnership. 3. Potential for long-term sustainment and follow-on work. 4. Focus on armored vehicle manufacturing sector.
Value Assessment
Rating: fair
The contract value of $85.4 million for refurbishment and training is substantial. Without specific benchmarks for similar refurbishment projects or training packages, it's difficult to definitively assess pricing. However, the firm-fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited source justification. This limits price discovery and potentially increases costs compared to a competitive bidding process. The specific reasons for limited competition are not detailed.
Taxpayer Impact: Taxpayer funds are allocated for military equipment modernization and international cooperation, supporting defense capabilities and alliances.
Public Impact
Enhances military readiness and interoperability with allied nations. Supports the defense industrial base and associated jobs. Contributes to the strategic positioning of U.S. military assets abroad. Potential for technology transfer and shared defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs.
- Long-term sustainment costs are not detailed.
- Geopolitical risks associated with operating in Croatia.
Positive Signals
- Modernizes critical military hardware.
- Strengthens international defense partnerships.
- Utilizes a firm-fixed-price contract to manage costs.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on military armored vehicle manufacturing and associated training. Spending in this area is driven by geopolitical needs and modernization efforts, with significant government investment typical for complex platforms like the Bradley Fighting Vehicle.
Small Business Impact
The contract was awarded to BAE Systems Land & Armaments L.P., a large prime contractor. There is no indication of small business participation in this specific award, suggesting potential missed opportunities for subcontracting to smaller firms within the defense supply chain.
Oversight & Accountability
The Department of the Army is the awarding agency. Oversight will focus on contract performance, delivery schedules, and adherence to the firm-fixed-price terms. Accountability for the successful refurbishment and training outcomes rests with the contractor and the contracting officer.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition raises cost concerns.
- Potential for cost overruns if unforeseen issues arise.
- Dependence on a single contractor for critical services.
- Geopolitical risks in the operating location.
- Lack of transparency on 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 $85.4 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. REFURBISHMENT OF BRADLEY FIGHTING VEHICLES AND ASSOCIATED NEW EQUIPMENT TRAINING IN CROATIA.
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 $85.4 million.
What is the period of performance?
Start: 2023-07-27. End: 2026-12-31.
What is the projected return on investment for refurbishing these Bradley Fighting Vehicles in terms of extended operational life and enhanced combat effectiveness?
The return on investment is primarily measured by extending the operational lifespan of critical armored platforms, thereby delaying the need for costly new vehicle procurement. Enhanced combat effectiveness stems from updated systems and improved reliability, contributing to mission success and troop safety. Quantifying this ROI precisely requires detailed analysis of projected service life extension and comparative combat performance data.
What are the specific risks associated with conducting refurbishment and training operations in Croatia, and what mitigation strategies are in place?
Risks include logistical challenges in a foreign operating environment, potential political instability, differing regulatory frameworks, and security concerns. Mitigation strategies likely involve robust security protocols, close coordination with Croatian authorities, contingency planning for logistical disruptions, and adherence to international legal and operational standards. The contract's limited competition may also obscure specific risk assessments.
How does the cost per refurbished vehicle compare to the cost of new procurement or refurbishment by other allied nations, and does this represent good value?
Without comparative data on new procurement costs or refurbishment expenses by other nations for similar platforms, assessing value is challenging. The firm-fixed-price nature suggests cost control, but the lack of competition limits benchmarking. Value is likely determined by the urgency of the need, the strategic importance of the upgrade, and the overall cost-effectiveness compared to alternative solutions or inaction.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV22R0141
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
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: $85,351,440
Exercised Options: $85,351,440
Current Obligation: $85,351,440
Subaward Activity
Number of Subawards: 64
Total Subaward Amount: $18,835,220
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-07-27
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-12
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