DoD Awards $13.2M Limited Interim Missile Warning System Contract to BAE Systems

Contract Overview

Contract Amount: $13,198,578 ($13.2M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-24

End Date: 2026-04-25

Contract Duration: 731 days

Daily Burn Rate: $18.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LIMITED INTERIM MISSILE WARNING SYSTEM CONTRACT, CONTRACTOR LOGISTIC SUPPORT TASK ORDER

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: LIMITED INTERIM MISSILE WARNING SYSTEM CONTRACT, CONTRACTOR LOGISTIC SUPPORT TASK ORDER Key points: 1. Contract awarded for logistical support of an interim missile warning system. 2. BAE Systems is the sole awardee, raising questions about competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Spending is categorized under 'Other Electronic Component Manufacturing'.

Value Assessment

Rating: questionable

The contract value of $13.2 million for a 2-year duration seems high for logistical support alone. Benchmarking against similar support contracts for defense systems is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the required logistical support.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The effectiveness of the interim missile warning system relies heavily on this logistical support. Potential for cost growth exists with the Cost Plus Fixed Fee contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost Plus Fixed Fee contract type
Lack of clear justification for limited competition

Positive Signals

Addresses a critical defense need for missile warning systems

Sector Analysis

This contract falls under the defense sector, specifically related to electronic components and support services. Defense spending on such systems is substantial, and efficient procurement is crucial.

Small Business Impact

There is no indication that small businesses were involved in this contract award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

Oversight is needed to ensure BAE Systems provides efficient and cost-effective logistical support. The Department of the Army should monitor costs closely given the contract type.

Related Government Programs

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

Risk Flags

Lack of competition
Cost Plus Fixed Fee contract type
Potential for cost escalation
No clear performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. LIMITED INTERIM MISSILE WARNING SYSTEM CONTRACT, CONTRACTOR LOGISTIC SUPPORT TASK ORDER

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 $13.2 million.

What is the period of performance?

Start: 2024-04-24. End: 2026-04-25.

What is the justification for awarding this contract on a limited competition basis instead of full and open competition?

The justification for limited competition is not provided in the data. Typically, such justifications involve urgent needs, unique capabilities, or specific circumstances that preclude broader competition. Without this information, it's difficult to assess if the limited approach was truly necessary or if it represents a missed opportunity for better pricing.

How does the Cost Plus Fixed Fee structure impact the potential for cost overruns and taxpayer expense?

The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it incentivizes cost control to some extent, it carries a risk of cost overruns if costs exceed projections. The government bears the risk of cost increases, potentially leading to higher taxpayer expense than anticipated.

What is the expected performance standard for the contractor's logistic support, and how will it be measured?

The provided data does not specify the performance standards or metrics for the contractor's logistic support. Effective oversight would require clearly defined performance requirements, key performance indicators (KPIs), and a robust system for monitoring and evaluating the contractor's adherence to these standards throughout the contract period.

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: $13,198,578

Exercised Options: $13,198,578

Current Obligation: $13,198,578

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $4,630,736

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