DoD Awards BAE Systems $12.8M for Army Systems Engineering Support, Not Competed

Contract Overview

Contract Amount: $12,839,349 ($12.8M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-12

End Date: 2025-01-31

Contract Duration: 507 days

Daily Burn Rate: $25.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SERVICES REQUIRED BY THE PERFORMANCE WORK STATEMENT (PWS) FOR THE LIMWS LCCS FY23 SYSTEMS ENGINEERING SUPPORT

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: SERVICES REQUIRED BY THE PERFORMANCE WORK STATEMENT (PWS) FOR THE LIMWS LCCS FY23 SYSTEMS ENGINEERING SUPPORT Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award limits competitive pricing and innovation. 3. Long-term contract duration (507 days) indicates ongoing need. 4. Focus on electronic systems integration highlights a critical defense sector.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competition, it's difficult to benchmark pricing against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these critical systems engineering services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced innovation as there's no market pressure to improve services. Ensuring effective oversight is crucial to manage costs and performance on sole-source contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of transparency in pricing

Positive Signals

Supports critical Army systems engineering needs
Long-term engagement ensures continuity of support

Sector Analysis

This contract falls within the IT and Defense sectors, specifically focusing on systems engineering for electronic components. Spending benchmarks for similar specialized engineering support can vary widely, but non-competitive awards often skew higher.

Small Business Impact

The data indicates this contract was awarded to a large business (BAE Systems) and does not show any specific set-asides or participation goals for small businesses.

Oversight & Accountability

Given the sole-source nature and cost-plus contract type, robust oversight from the Department of the Army is essential to ensure cost control, performance standards, and accountability throughout the contract's duration.

Related Government Programs

Other Electronic Component Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. SERVICES REQUIRED BY THE PERFORMANCE WORK STATEMENT (PWS) FOR THE LIMWS LCCS FY23 SYSTEMS ENGINEERING SUPPORT

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 $12.8 million.

What is the period of performance?

Start: 2023-09-12. End: 2025-01-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without this information, it's difficult to assess if the government received fair value or if competition was genuinely impossible.

How is cost growth being managed under this Cost Plus Fixed Fee contract?

Cost Plus Fixed Fee contracts require diligent oversight to manage the fixed fee component and monitor allowable costs. The agency must have strong financial controls and performance metrics in place to prevent excessive spending and ensure the contractor remains efficient.

What are the key performance indicators (KPIs) for this systems engineering support contract?

Key performance indicators would likely focus on the successful integration, testing, and maintenance of Army systems, adherence to project timelines, and the quality of engineering documentation. Effective KPIs are crucial for measuring contractor performance and ensuring mission success.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

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: $12,839,349

Exercised Options: $12,839,349

Current Obligation: $12,839,349

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ21D0023

IDV Type: IDC

Timeline