DoD awards BAE Systems $22.9M for CATV services, raising questions on value and competition
Contract Overview
Contract Amount: $22,896,264 ($22.9M)
Contractor: BAE Systems Land and Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2025-07-24
End Date: 2026-11-30
Contract Duration: 494 days
Daily Burn Rate: $46.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DELIVERY ORDER FOR CATV SERVICES
Plain-Language Summary
Department of Defense obligated $22.9 million to BAE SYSTEMS LAND AND ARMAMENTS L.P. for work described as: DELIVERY ORDER FOR CATV SERVICES Key points: 1. The contract's value appears high relative to the limited scope of CATV services. 2. Competition was full and open, but the number of bidders is not specified, impacting price discovery. 3. The duration of the contract (over a year) suggests ongoing service needs. 4. The specific nature of 'CATV services' within a defense context warrants further clarification. 5. The contractor, BAE Systems, is a large defense contractor, but this specific service is outside their core manufacturing. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.
Value Assessment
Rating: questionable
Benchmarking CATV services for the Department of Defense is challenging without more specific details on the scope of work. However, the reported value of $22.9 million for delivery order services over approximately 16 months appears substantial. Comparing this to typical commercial CATV installation and maintenance contracts suggests a potentially inflated cost, especially if the services are standard. Further analysis is needed to understand if specialized defense-grade infrastructure or unique operational requirements justify this expenditure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the absence of data on the number of bids received prevents a thorough assessment of the competitive landscape. A low number of responsive bidders could indicate limited market interest or specialized requirements that restrict competition, potentially leading to less favorable pricing for the government.
Taxpayer Impact: While full and open competition is the preferred method, the lack of specific bid counts means taxpayers cannot be assured that the lowest possible price was achieved.
Public Impact
Personnel within the Department of Defense requiring cable television services will benefit from this contract. The services delivered are related to the provision and maintenance of cable television infrastructure. The geographic impact is likely limited to the specific military installations where the services are deployed. There are no immediate or direct workforce implications beyond the potential need for specialized technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High cost for potentially standard services.
- Lack of transparency on the number of bidders.
- Unclear scope of 'CATV services' in a defense context.
- Contractor's primary expertise lies outside of CATV services.
Positive Signals
- Awarded through full and open competition.
- Contract duration suggests sustained need and potential for future service continuity.
Sector Analysis
The market for telecommunications and audiovisual services within the federal government is substantial, encompassing everything from basic connectivity to advanced integrated systems. While BAE Systems is a major player in defense manufacturing, their involvement in CATV services suggests a niche requirement or a subcontracting arrangement. Comparable spending benchmarks for similar services are difficult to ascertain without more granular data on the specific technical requirements and locations.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in providing these CATV services were likely limited or non-existent under this specific award.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Transparency is moderate, as the award is publicly visible, but details regarding the specific services, performance metrics, and competitive bids are not readily available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Communications Services
- Audiovisual Equipment and Services
- Telecommunications Infrastructure
Risk Flags
- Potential for cost overruns due to contractor's non-core service area.
- Lack of transparency regarding competitive bidding details.
- Unclear definition of 'CATV services' in a defense context.
Tags
defense, department-of-defense, department-of-the-army, delivery-order, full-and-open-competition, firm-fixed-price, transportation-equipment-manufacturing, large-contract, telecommunications, audiovisual
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.9 million to BAE SYSTEMS LAND AND ARMAMENTS L.P.. DELIVERY ORDER FOR CATV SERVICES
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND AND 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 $22.9 million.
What is the period of performance?
Start: 2025-07-24. End: 2026-11-30.
What is the specific scope of 'CATV services' being procured for the Department of Defense, and how does it differ from standard commercial offerings?
The term 'CATV services' typically refers to cable television services, including installation, maintenance, and content delivery. Within a Department of Defense context, this could range from providing entertainment channels to military personnel in barracks to more specialized applications like closed-circuit television (CCTV) for security monitoring or internal communication systems. Without further clarification from the contract details, it is difficult to ascertain the exact nature of the services. If it pertains solely to entertainment, the $22.9 million price tag for a 16-month period seems exceptionally high compared to commercial rates. If it involves specialized infrastructure, security protocols, or integration with other defense systems, the cost might be more justifiable, but this information is not provided in the summary data.
How many bids were received for this contract, and what was the range of proposed prices?
The provided data indicates that the contract was awarded under 'FULL AND OPEN COMPETITION,' which is a positive sign for market engagement. However, the data does not specify the number of bids received or the price range of those bids. This lack of detail hinders a comprehensive assessment of the competitive intensity and whether the government secured the best possible price. A low number of bids, even under full and open competition, could suggest limited market capacity or specialized requirements that deter potential offerors. Without this information, it's impossible to definitively state if taxpayers received optimal value from a pricing perspective.
What is BAE Systems' track record in providing CATV services, particularly to the federal government?
BAE Systems Land and Armaments L.P. is a major defense contractor primarily known for its work in developing and manufacturing armored vehicles, naval systems, and other complex defense equipment. Their core competencies do not typically include the provision of cable television services. While large defense conglomerates often have diverse portfolios and may engage in various support services, their primary expertise and historical performance data are usually concentrated in their main areas of operation. It is unclear from the provided data whether BAE Systems has significant prior experience in delivering CATV services, especially to government entities. This lack of direct experience in the stated service area could represent a potential risk factor regarding service quality and cost-effectiveness.
How does the $22.9 million contract value compare to historical spending on similar CATV services by the Department of Defense or other federal agencies?
Direct historical spending comparisons for 'CATV services' specifically for the Department of Defense are not readily available in the provided summary data. The total award amount of $22.9 million over approximately 16 months (from July 2025 to November 2026) translates to an average annual expenditure of roughly $17 million. This figure appears high when compared to typical commercial contracts for cable television installation and maintenance, which are often in the thousands or low millions of dollars, depending on scale. Without more detailed information on the scope, location, and specific requirements (e.g., security, bandwidth, number of users), it is difficult to establish a precise benchmark. However, the magnitude of this award suggests either a very large-scale deployment or highly specialized, potentially mission-critical, CATV-related functions.
What are the potential risks associated with awarding a significant CATV services contract to a company whose primary expertise lies elsewhere?
Awarding a substantial contract for CATV services to BAE Systems, a company primarily known for defense manufacturing, presents several potential risks. Firstly, there's a risk of suboptimal performance if the company lacks the specialized knowledge, skilled personnel, or established supply chains necessary for efficient and effective CATV service delivery. This could lead to delays, technical issues, or lower quality of service. Secondly, the cost-effectiveness might be compromised. If BAE Systems needs to acquire new capabilities or rely heavily on subcontractors, the overhead and management fees could inflate the overall price compared to a specialized CATV provider. Finally, there's a risk of misaligned priorities, where the focus on CATV services might be secondary to BAE's core defense contracts, potentially impacting responsiveness and attention to detail.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › All Other Transportation Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 34201 VAN DYKE AVE, STERLING HEIGHTS, MI, 48312
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,896,264
Exercised Options: $22,896,264
Current Obligation: $22,896,264
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV22D0082
IDV Type: IDC
Timeline
Start Date: 2025-07-24
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 12:11:00
Last Modified: 2025-12-18
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