DoD Awards $42.2M for RT-1987 Receiver Transmitters via Foreign Military Sales

Contract Overview

Contract Amount: $42,186,494 ($42.2M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-03

End Date: 2031-04-02

Contract Duration: 2,311 days

Daily Burn Rate: $18.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO PURCHASE THE RT-1987 RECEIVER TRANSMITTER, AM-7565, AM-7566 AND MT-7166. FOREIGN MILITARY SALES (FMS) CASES KS-B-ZJG (KOREA), GY-B-XBT (GERMANY), AT-B-ULV (AUSTRALIA), GR-B-XOZ (GREECE), HR-B-UCH (CROATIA), AND BR-B-UAJ(BRAZIL).

Place of Performance

Location: FORT WAYNE, ALLEN County, INDIANA, 46818

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $42.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: TO PURCHASE THE RT-1987 RECEIVER TRANSMITTER, AM-7565, AM-7566 AND MT-7166. FOREIGN MILITARY SALES (FMS) CASES KS-B-ZJG (KOREA), GY-B-XBT (GERMANY), AT-B-ULV (AUSTRALIA), GR-B-XOZ (GREECE), HR-B-UCH (CROATIA), AND BR-B-UAJ(BRAZIL). Key points: 1. Significant contract value of $42.2 million for specialized communication equipment. 2. Sole-source procurement raises questions about price discovery and competition. 3. Foreign Military Sales (FMS) involve multiple allied nations, indicating international cooperation. 4. Contract duration extends to 2031, suggesting long-term equipment needs.

Value Assessment

Rating: questionable

The contract value of $42.2 million for specialized receiver transmitters is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts or market prices to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition approach. This method can lead to higher prices due to a lack of market pressure and potentially less favorable terms for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this equipment, as the government did not leverage market forces to secure the best possible price.

Public Impact

Supports military readiness and interoperability for the US and allied nations through FMS. Ensures availability of critical communication components for multiple international partners. Potential for increased costs due to sole-source procurement impacts taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of price competition
Long contract duration

Positive Signals

Supports allied nations
Critical communication equipment

Sector Analysis

This contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector is crucial for national security and defense communications, but often involves specialized, high-cost components.

Small Business Impact

The data indicates this contract was awarded to BAE Systems Information and Electronic Systems Integration Inc., a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The use of Foreign Military Sales (FMS) involves multiple international partners and requires careful oversight by the Department of Defense to ensure fair pricing and adherence to regulations for all involved parties.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency in price discovery
Long-term commitment without competitive validation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. TO PURCHASE THE RT-1987 RECEIVER TRANSMITTER, AM-7565, AM-7566 AND MT-7166. FOREIGN MILITARY SALES (FMS) CASES KS-B-ZJG (KOREA), GY-B-XBT (GERMANY), AT-B-ULV (AUSTRALIA), GR-B-XOZ (GREECE), HR-B-UCH (CROATIA), AND BR-B-UAJ(BRAZIL).

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 $42.2 million.

What is the period of performance?

Start: 2024-12-03. End: 2031-04-02.

What is the justification for the sole-source procurement of these specific receiver transmitters?

The justification for sole-source procurement typically involves unique capabilities, proprietary technology, or a lack of alternative suppliers meeting the stringent requirements. Further investigation into the specific technical needs and market analysis would be required to fully understand why this item could not be competitively sourced.

How does the pricing compare to similar non-FMS procurements or commercial off-the-shelf alternatives?

Without access to detailed pricing data and competitive benchmarks, it is difficult to definitively assess the value. However, sole-source contracts often carry a price premium compared to competitively bid items. A thorough cost analysis and comparison with similar domestic procurements or available commercial alternatives would be necessary.

What are the long-term implications of this sole-source award on future procurement strategies for similar equipment?

A sole-source award, especially for a long duration, may signal a reliance on a single vendor, potentially limiting future competition and innovation. It could also set a precedent for similar procurements, making it harder to introduce new vendors or technologies unless a strong justification for continued sole-sourcing is established.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment 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

Address: 5001 US HIGHWAY 30 W, FORT WAYNE, IN, 46818

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: $42,186,494

Exercised Options: $42,186,494

Current Obligation: $42,186,494

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56JSR24D0002

IDV Type: IDC

Timeline