DoD Awards $21M BAE Systems Contract for BFIST to ODS SA Conversion
Contract Overview
Contract Amount: $21,000,000 ($21.0M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2026-09-30
Contract Duration: 733 days
Daily Burn Rate: $28.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIS REQUIREMENT IS FOR A CONVERSION OF 15EA BFIST TO 15EA ODS SA.
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $21.0 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: THIS REQUIREMENT IS FOR A CONVERSION OF 15EA BFIST TO 15EA ODS SA. Key points: 1. Contract value of $21 million for a specific military equipment conversion. 2. Sole-source award to BAE Systems, raising questions about competition. 3. High risk associated with sole-source procurement and potential cost overruns. 4. Engineering services sector, with a focus on defense equipment modernization.
Value Assessment
Rating: questionable
The contract value of $21 million for 15 units is significant. Without competitive bids, it's difficult to assess if this price is optimal compared to similar defense equipment conversion contracts.
Cost Per Unit: $1,400,000
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 result in a higher cost than if multiple vendors had bid.
Taxpayer Impact: The lack of competition for this $21 million contract raises concerns about taxpayer value, as a potentially lower price may have been achievable through a competitive bidding process.
Public Impact
Military readiness: The conversion of BFIST to ODS SA is crucial for modernizing defense capabilities. Defense industry: This contract supports a major defense contractor, BAE Systems. Taxpayer funds: Significant government expenditure on specialized military equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus contract type
Positive Signals
- Supports critical defense modernization
- Award to established defense contractor
Sector Analysis
This contract falls within the Engineering Services sector, specifically for defense equipment. The $21 million value is substantial for a single conversion project, and benchmarks for similar sole-source defense modernization efforts are often higher due to specialized requirements.
Small Business Impact
The contract was awarded to BAE Systems, a large defense contractor. There is no indication that small businesses were involved in this specific sole-source award, which is common for large, specialized defense procurements.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the final cost is justified and that the conversion meets all technical specifications. Accountability for performance and budget adherence is critical.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition and potentially increases cost.
- Cost-plus contract type can lead to cost overruns if not managed tightly.
- Dependency on a single contractor (BAE Systems) for critical modernization.
- Potential for schedule delays impacting military readiness.
Tags
engineering-services, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.0 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. THIS REQUIREMENT IS FOR A CONVERSION OF 15EA BFIST TO 15EA ODS SA.
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND & ARMAMENTS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $21.0 million.
What is the period of performance?
Start: 2024-09-27. End: 2026-09-30.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. A thorough review should confirm that no other qualified vendors could meet the specifications or that the cost of re-competing would outweigh the potential savings.
How will the cost-plus fixed fee structure be managed to prevent cost overruns?
Cost-plus fixed fee contracts require robust oversight. The government must closely monitor all incurred costs, ensure they are reasonable and allocable, and verify that the fixed fee remains appropriate. Clear milestones and performance metrics are essential to control spending and ensure the contractor remains incentivized to manage costs effectively.
What are the key performance indicators for this conversion, and how will success be measured?
Success will be measured by the timely and successful conversion of 15 BFIST units to ODS SA, meeting all specified technical and operational requirements. Key performance indicators likely include adherence to schedule, quality of the conversion work, system functionality post-conversion, and overall reliability of the upgraded equipment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912CH24R0197
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 1100 BAIRS RD, YORK, PA, 17408
Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations
Financial Breakdown
Contract Ceiling: $21,000,000
Exercised Options: $21,000,000
Current Obligation: $21,000,000
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $1,200,498
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-09-27
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-11-19
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