DoD Awards BAE Systems $40.4M for UAE Offset Costs in Electronic Components
Contract Overview
Contract Amount: $40,449,572 ($40.4M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2019-01-30
End Date: 2021-10-30
Contract Duration: 1,004 days
Daily Burn Rate: $40.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS ORDER IS TO PROCURE ESTIMATED OFFSET COSTS ASSOCIATED WITH THE ANTICIPATED ORDER FROM THE UAE
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060
Plain-Language Summary
Department of Defense obligated $40.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: THIS ORDER IS TO PROCURE ESTIMATED OFFSET COSTS ASSOCIATED WITH THE ANTICIPATED ORDER FROM THE UAE Key points: 1. Significant award for electronic components, potentially linked to international defense cooperation. 2. Sole-source award to BAE Systems raises questions about competition and price discovery. 3. Contract duration of 1004 days suggests a substantial, long-term requirement. 4. Focus on offset costs indicates a complex international procurement strategy.
Value Assessment
Rating: questionable
The award amount of $40.4M for 'Other Electronic Component Manufacturing' is difficult to benchmark without specific product details. The 'not competed' status and lack of a clear per-unit cost make value assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to BAE Systems. This limits price discovery and may not ensure the best value for taxpayer dollars.
Taxpayer Impact: The lack of competition for a $40.4M contract raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Taxpayers may be funding costs associated with international defense agreements. Lack of transparency in the procurement process could hide inefficiencies. Potential for higher costs due to the absence of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Unclear value proposition
- International offset costs
Positive Signals
- Supports potential international partnerships
- Procurement of critical electronic components
Sector Analysis
This award falls under 'Other Electronic Component Manufacturing,' a broad category. Without more specific details on the components, it's hard to benchmark against typical IT or defense electronics spending. The $40.4M is a notable sum for this NAICS code.
Small Business Impact
The awardee, BAE Systems, is a large defense contractor. There is no indication that small businesses were involved in this specific sole-source procurement.
Oversight & Accountability
The 'not competed' status warrants further oversight to ensure the justification for sole-source procurement is robust and that the pricing is fair and reasonable.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Opaque cost structure
- Limited public accountability
- Unclear specific deliverables
Tags
other-electronic-component-manufacturing, department-of-defense, nh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. THIS ORDER IS TO PROCURE ESTIMATED OFFSET COSTS ASSOCIATED WITH THE ANTICIPATED ORDER FROM THE UAE
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 $40.4 million.
What is the period of performance?
Start: 2019-01-30. End: 2021-10-30.
What specific electronic components are being procured, and how do their costs compare to market rates for similar items?
The data does not specify the exact electronic components. The award is for 'estimated offset costs associated with the anticipated order from the UAE.' Without this detail, a direct cost comparison is impossible. The $40.4M figure represents the total estimated value, not necessarily the direct cost of components alone.
What is the justification for awarding this contract sole-source, and what risks does this pose to cost-effectiveness?
The justification for a sole-source award is not provided in the data. This significantly increases the risk of paying above-market prices, as there was no competitive pressure to drive down costs. It also limits transparency regarding the necessity and pricing of the procured items.
How does this procurement contribute to the Department of Defense's strategic goals, particularly concerning international partnerships and offset agreements?
This procurement appears to be directly tied to fulfilling offset cost obligations related to an anticipated order from the UAE. This suggests it's a mechanism to support international defense cooperation and potentially facilitate future sales or partnerships, aligning with broader diplomatic and strategic objectives.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component 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
Parent Company: BAE Systems, Inc.
Address: 65 SPIT BROOK RD, NASHUA, NH, 03060
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: $40,449,572
Exercised Options: $40,449,572
Current Obligation: $40,449,572
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,316,715
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ13D0245
IDV Type: IDC
Timeline
Start Date: 2019-01-30
Current End Date: 2021-10-30
Potential End Date: 2021-10-30 12:10:00
Last Modified: 2022-04-02
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