DoD Awards BAE Systems $120.9M for Foreign Military Sales Communications Equipment

Contract Overview

Contract Amount: $12,093,698 ($12.1M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2025-06-16

End Date: 2027-09-15

Contract Duration: 821 days

Daily Burn Rate: $14.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO PURCHASE THE RT-1987, AM-7565, AM-7566, MT-7166, MT-7168, AND MT-7321 FOR FOREIGN MILITARY SALES CASES EG-B-VGG/EG-B-VGF (EGYPT), HR-B-UCH (CROATIA), LO-B-UCI (SLOVAK REPUBLIC), AND SW-B-WBV (SWEDEN).

Place of Performance

Location: FORT WAYNE, ALLEN County, INDIANA, 46818

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: TO PURCHASE THE RT-1987, AM-7565, AM-7566, MT-7166, MT-7168, AND MT-7321 FOR FOREIGN MILITARY SALES CASES EG-B-VGG/EG-B-VGF (EGYPT), HR-B-UCH (CROATIA), LO-B-UCI (SLOVAK REPUBLIC), AND SW-B-WBV (SWEDEN). Key points: 1. Significant award for critical communications hardware supporting allied nations. 2. Sole-source procurement raises questions about price discovery and competition. 3. Long-term contract (821 days) with firm fixed-price terms. 4. Focus on Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $120.9 million for specialized communications equipment appears substantial. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively assess if this pricing is competitive. The lack of competition is a primary driver for this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for this significant award may result in taxpayers bearing a premium price for the equipment.

Public Impact

Enhances interoperability and security capabilities for allied forces in Egypt, Croatia, Slovakia, and Sweden. Supports U.S. foreign policy objectives through military sales. Potential for follow-on sustainment and training contracts. Impacts the domestic manufacturing base for advanced communications systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpricing

Positive Signals

Supports critical foreign military sales
Firm fixed-price contract
Long-term delivery schedule

Sector Analysis

This award falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area is often driven by defense modernization and international security cooperation, with significant R&D investment required for advanced systems.

Small Business Impact

The awardee, BAE Systems, is a large defense contractor. There is no indication that small businesses were involved in this specific sole-source procurement, limiting opportunities for SMB participation.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is the contracting agency. Oversight will be crucial to ensure the equipment meets specifications and that the pricing, despite being sole-source, remains reasonable throughout the contract duration.

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 competitive bidding
Potential for inflated pricing
Limited transparency in cost justification
Dependency on a single supplier for future needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. TO PURCHASE THE RT-1987, AM-7565, AM-7566, MT-7166, MT-7168, AND MT-7321 FOR FOREIGN MILITARY SALES CASES EG-B-VGG/EG-B-VGF (EGYPT), HR-B-UCH (CROATIA), LO-B-UCI (SLOVAK REPUBLIC), AND SW-B-WBV (SWEDEN).

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 $12.1 million.

What is the period of performance?

Start: 2025-06-16. End: 2027-09-15.

What is the justification for the sole-source award, and were any market research efforts conducted to explore competitive options?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent requirements where only one source can fulfill the need. Agencies are generally required to conduct market research to determine if competitive sources exist. Without specific details on this contract's justification, it's presumed that such research either found no viable alternatives or identified a compelling reason for a sole-source approach.

How does the per-unit cost of this equipment compare to similar systems procured competitively by the U.S. or allied nations?

Benchmarking the per-unit cost is challenging without access to detailed pricing data and comparable contract awards. Given this is a sole-source procurement, direct comparison is difficult. A thorough review of historical data for similar, potentially competed, systems would be necessary to identify significant price variances and assess value for money.

What are the long-term sustainment and upgrade implications of this sole-source award for the recipient nations?

Sole-source awards can create long-term dependencies on the original equipment manufacturer for sustainment, spare parts, and future upgrades. This can limit flexibility and potentially increase lifecycle costs for the recipient nations. It is important to understand if provisions for competitive sustainment or open architecture were considered during the contract negotiation.

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: $12,093,698

Exercised Options: $12,093,698

Current Obligation: $12,093,698

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W91CRB23D5000

IDV Type: IDC

Timeline