DoD Awards BAE Systems $26.9M for Transportation Equipment Manufacturing
Contract Overview
Contract Amount: $26,927,101 ($26.9M)
Contractor: BAE Systems Land and Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2024-02-15
End Date: 2025-09-17
Contract Duration: 580 days
Daily Burn Rate: $46.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DO
Plain-Language Summary
Department of Defense obligated $26.9 million to BAE SYSTEMS LAND AND ARMAMENTS L.P. for work described as: DO Key points: 1. Significant award to a major defense contractor. 2. Focus on 'All Other Transportation Equipment Manufacturing' suggests specialized needs. 3. Full and open competition indicates a competitive bidding process. 4. Firm fixed price contract aims to control costs.
Value Assessment
Rating: good
The award value of $26.9M for a 580-day duration appears reasonable given the firm fixed price structure. Benchmarking against similar transportation equipment contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders participated. This method typically drives competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, minimizing unnecessary taxpayer expenditure.
Public Impact
Ensures continued availability of specialized transportation equipment for military operations. Supports a key defense contractor and its supply chain. Highlights the Department of Defense's ongoing investment in its logistical capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs despite fixed price.
- Reliance on a single contractor for specialized equipment.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Full and open competition suggests a competitive market.
- Awarded by the Department of the Army, indicating a clear need.
Sector Analysis
This award falls within the manufacturing sector, specifically transportation equipment. Defense spending in this area is critical for maintaining operational readiness and logistical support for military forces.
Small Business Impact
The data indicates this award went to BAE SYSTEMS LAND AND ARMAMENTS L.P., a large business. There is no direct indication of small business participation in this specific award.
Oversight & Accountability
The use of full and open competition and a firm fixed price contract are positive oversight mechanisms. Further review of the contract's performance metrics and delivery schedule would be beneficial.
Related Government Programs
- All Other Transportation Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep impacting final cost.
- Dependence on a single large contractor for critical equipment.
- Lack of specific detail on the equipment type.
- Need for ongoing performance monitoring to ensure value.
Tags
all-other-transportation-equipment-manuf, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.9 million to BAE SYSTEMS LAND AND ARMAMENTS L.P.. DO
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 $26.9 million.
What is the period of performance?
Start: 2024-02-15. End: 2025-09-17.
What specific types of transportation equipment are being manufactured under this contract?
The contract specifies 'All Other Transportation Equipment Manufacturing' under NAICS code 336999. This broad category can encompass a wide range of specialized vehicles, trailers, or components not covered by more specific manufacturing codes. Further details would likely be found in the contract's statement of work.
What is the benchmark pricing for similar transportation equipment contracts awarded by the DoD?
Benchmarking requires access to historical contract data for comparable items. Without specific details on the equipment type, a precise benchmark is difficult. However, the award value of $26.9M over 580 days suggests a significant procurement, and comparison with other large-scale transportation equipment awards would be necessary for a thorough assessment.
How will the effectiveness of the delivered transportation equipment be measured?
Effectiveness is typically measured through performance metrics outlined in the contract's statement of work, such as reliability, durability, and operational readiness. Acceptance testing and post-delivery evaluations by the end-user (Department of the Army) would confirm if the equipment meets the required standards and contributes to mission success.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › All Other Transportation Equipment Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
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: $26,927,101
Exercised Options: $26,927,101
Current Obligation: $26,927,101
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV22D0082
IDV Type: IDC
Timeline
Start Date: 2024-02-15
Current End Date: 2025-09-17
Potential End Date: 2025-09-17 12:09:00
Last Modified: 2025-06-05
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