DoD Awards $37.4M BAE Systems Contract for Greek Missile Warning Systems

Contract Overview

Contract Amount: $37,404,780 ($37.4M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-12

End Date: 2028-12-29

Contract Duration: 1,113 days

Daily Burn Rate: $33.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COMMON MISSILE WARNING SYSTEM (CMWS) PRODUCTION HARDWARE - FOREIGN MILITARY SALES (FMS) DELIVERY ORDER FOR GREECE

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire 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: COMMON MISSILE WARNING SYSTEM (CMWS) PRODUCTION HARDWARE - FOREIGN MILITARY SALES (FMS) DELIVERY ORDER FOR GREECE Key points: 1. Contract awarded to BAE Systems for Common Missile Warning System (CMWS) production hardware. 2. This is a Foreign Military Sales (FMS) delivery order for Greece. 3. The contract is for Firm Fixed Price, indicating a defined cost for the goods. 4. The award value is $37.4 million with a duration of 1113 days. 5. The North American Industry Classification System (NAICS) code is 334419, Other Electronic Component Manufacturing.

Value Assessment

Rating: fair

The contract value of $37.4 million for CMWS hardware appears reasonable given the scope and duration. However, without specific unit details or comparison to similar FMS sales, a precise pricing assessment is difficult.

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 compared to a competitive process.

Taxpayer Impact: Taxpayer funds are not directly involved as this is an FMS sale, but the cost efficiency of the acquisition impacts the overall value for the allied nation.

Public Impact

Enhances Greece's defense capabilities with advanced missile warning technology. Supports interoperability and security within NATO alliances. Potential for follow-on sustainment and upgrade contracts. Ensures critical defense equipment is delivered to an allied nation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Reliance on a single supplier for critical defense hardware.
Potential for cost overruns if not closely managed.

Positive Signals

Provides essential defense capability to an allied nation.
Firm Fixed Price contract structure offers cost predictability.
Supports U.S. foreign policy objectives through military sales.

Sector Analysis

The defense electronics sector is characterized by high R&D costs and long product lifecycles. Spending benchmarks for similar electronic warfare or warning systems can vary significantly based on technology sophistication and quantity.

Small Business Impact

This contract was awarded directly to BAE Systems, a large defense contractor. There is no indication of subcontracting opportunities for small businesses within this specific delivery order.

Oversight & Accountability

As a Foreign Military Sales (FMS) case, oversight involves both the Department of Defense and the recipient nation (Greece). The firm fixed price contract provides a degree of financial accountability.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for price escalation without competitive bidding.
Dependency on a single contractor for critical technology.
Foreign Military Sales can be subject to geopolitical factors.

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.. COMMON MISSILE WARNING SYSTEM (CMWS) PRODUCTION HARDWARE - FOREIGN MILITARY SALES (FMS) DELIVERY ORDER FOR GREECE

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: 2025-12-12. End: 2028-12-29.

What is the specific technological advantage this CMWS provides compared to older systems, and how does that justify the cost?

The specific technological advantages of the CMWS are not detailed in the provided data. However, advanced missile warning systems typically offer improved detection ranges, faster threat identification, and enhanced countermeasures. The justification for the cost would likely stem from the criticality of protecting personnel and assets from evolving missile threats, a factor that often commands a premium in defense procurement.

What are the risks associated with a sole-source award for critical defense hardware like the CMWS?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. It also creates a dependency on a single supplier, making the government vulnerable to supply chain disruptions or unfavorable contract renegotiations. For critical defense hardware, this dependency can have significant national security implications if the supplier faces financial difficulties or geopolitical challenges.

How effective is the CMWS in real-world scenarios, and what metrics are used to assess its performance for Greece?

The effectiveness of the CMWS in real-world scenarios is typically measured through rigorous testing, simulations, and operational deployment data. Performance metrics often include detection probability, false alarm rates, and reaction times. For Greece, effectiveness would be assessed based on its ability to accurately detect and alert against relevant regional threats, contributing to the overall survivability of their air assets and ground forces.

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: 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: $37,404,780

Exercised Options: $37,404,780

Current Obligation: $37,404,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ21D0010

IDV Type: IDC

Timeline