DoD Awards $37.4M Firm Fixed Price Order to BAE Systems for RT 1987 Transmitters
Contract Overview
Contract Amount: $37,444,820 ($37.4M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2020-06-01
End Date: 2024-12-02
Contract Duration: 1,645 days
Daily Burn Rate: $22.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FIRM FIXED PRICED DELIVERY ORDER UNDER IDIQ W56JSR-19-D-0014 FOR RT 1987 TRANSMITTER RECEIVERS.
Place of Performance
Location: FORT WAYNE, ALLEN County, INDIANA, 46818
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $37.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: FIRM FIXED PRICED DELIVERY ORDER UNDER IDIQ W56JSR-19-D-0014 FOR RT 1987 TRANSMITTER RECEIVERS. Key points: 1. Significant award for specialized communication equipment. 2. BAE Systems is a major defense contractor, indicating established capabilities. 3. Sole-source award raises questions about price discovery and competition. 4. Sector: IT/Communications equipment manufacturing.
Value Assessment
Rating: fair
The $37.4 million award is a substantial sum for specialized equipment. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar contracts or commercial offerings.
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 market pressure to offer the best price.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Ensures continued availability of critical communication equipment for the Army. Supports a major defense contractor's operations and workforce. Potential for higher costs due to sole-source nature impacts taxpayer value. Highlights reliance on specific vendors for specialized defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- High dollar value for a single delivery order.
- Long performance period (over 4 years).
Positive Signals
- Award to established prime contractor.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This award falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area is critical for national defense, but competitive procurement is essential to ensure cost-effectiveness.
Small Business Impact
The awardee, BAE Systems, is a large business. There is no indication of small business participation in this specific delivery order, which is common for large, sole-source awards.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure the contractor is meeting all requirements and that the pricing remains reasonable throughout the contract duration. The Department of the Army is responsible for this oversight.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition.
- Potential for overpricing.
- Long contract duration.
- Reliance on a single supplier for critical equipment.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. FIRM FIXED PRICED DELIVERY ORDER UNDER IDIQ W56JSR-19-D-0014 FOR RT 1987 TRANSMITTER RECEIVERS.
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $37.4 million.
What is the period of performance?
Start: 2020-06-01. End: 2024-12-02.
What is the justification for the sole-source award, and were alternative procurement methods considered?
The justification for a sole-source award is typically based on factors like unique capabilities, urgent need, or lack of viable alternatives. Without specific details, it's difficult to assess if other procurement methods were thoroughly explored. A detailed justification should be available within the contract file.
How does the unit cost of these transmitters compare to similar systems procured competitively?
Benchmarking the unit cost against competitively procured, similar systems is essential for value assessment. Given this is a sole-source award, such a comparison is challenging but necessary for future contract negotiations or to justify the current pricing.
What is the long-term strategic value of this specific transmitter receiver system to the Department of the Army?
Understanding the strategic importance and operational necessity of the RT 1987 transmitter receivers is key to evaluating the overall value. If these are critical, unique components with no immediate substitutes, the sole-source award might be more justifiable, though still requiring price scrutiny.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5001 US HIGHWAY 30 W, FORT WAYNE, IN, 46818
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,444,820
Exercised Options: $37,444,820
Current Obligation: $37,444,820
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56JSR19D0014
IDV Type: IDC
Timeline
Start Date: 2020-06-01
Current End Date: 2024-12-02
Potential End Date: 2024-12-02 12:12:00
Last Modified: 2024-11-12
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