DoD awards $30M for AN/ALR-56M Shipsets to BAE Systems, impacting C-130J aircraft

Contract Overview

Contract Amount: $30,132,486 ($30.1M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2010-11-15

End Date: 2013-03-31

Contract Duration: 867 days

Daily Burn Rate: $34.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/ALR-56M SHIPSETS APPLICABLE TO C-130J AIRCRAFT. TAS 97 8242 000

Place of Performance

Location: GREENLAWN, SUFFOLK County, NEW YORK, 11740, UNITED STATES OF AMERICA

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $30.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: AN/ALR-56M SHIPSETS APPLICABLE TO C-130J AIRCRAFT. TAS 97 8242 000 Key points: 1. The contract is for electronic warfare systems, crucial for aircraft survivability. 2. BAE Systems is a major defense contractor, indicating potential market concentration. 3. The award value is significant, requiring careful cost analysis. 4. The 'Other Electronic Component Manufacturing' NAICS code suggests a specialized, potentially high-barrier-to-entry sector.

Value Assessment

Rating: fair

The award value of $30,132,486 for 1 unit over 867 days suggests a high per-unit cost. Without specific unit details or comparable contract data, it's difficult to definitively assess pricing.

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 for taxpayers as competition is absent.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these specialized electronic systems.

Public Impact

Enhances survivability of C-130J aircraft, a critical asset for military operations. Supports the defense industrial base by contracting with a major aerospace and defense company. Potential for follow-on contracts if the system proves effective and meets operational needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
High per-unit cost potential due to lack of competitive bidding.
Long contract duration may not reflect current market pricing.

Positive Signals

Addresses a critical defense need for aircraft survivability.
Utilizes a known, established defense contractor.
Firm Fixed Price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the Defense sector, specifically related to electronic warfare systems. Spending in this area is driven by military modernization and operational requirements, often involving specialized components and high R&D costs.

Small Business Impact

The contract was awarded to BAE Systems, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The Department of Defense, through the Defense Logistics Agency, awarded this contract. Oversight would typically involve contract performance monitoring and financial audits to ensure compliance and value.

Related Government Programs

Other Electronic Component Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award
Potential for high cost due to lack of competition
Limited transparency on pricing justification
Long contract duration may not reflect current market value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. AN/ALR-56M SHIPSETS APPLICABLE TO C-130J AIRCRAFT. TAS 97 8242 000

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 (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $30.1 million.

What is the period of performance?

Start: 2010-11-15. End: 2013-03-31.

What is the specific technical capability provided by the AN/ALR-56M Shipsets, and how does it compare to alternative solutions?

The AN/ALR-56M is an advanced airborne radar warning receiver system designed to detect and identify hostile radar threats. It provides crucial situational awareness to aircrews, enabling them to take evasive action or employ countermeasures. While specific technical details are often classified, its role is vital for survivability in contested airspace. Alternative solutions might involve different generations of radar warning receivers or integrated electronic warfare suites, but the AN/ALR-56M is a proven system.

Given the sole-source nature, what mechanisms were in place to ensure the government received fair and reasonable pricing?

Even in sole-source procurements, agencies are required to obtain fair and reasonable pricing. This typically involves conducting thorough price analyses using historical data, cost proposals from the contractor, and market research. For complex systems like this, the Defense Contract Audit Agency (DCAA) might be involved in auditing the contractor's cost and pricing data to verify its accuracy and allowability, ensuring the government isn't overpaying.

What is the expected operational lifespan and sustainment plan for these AN/ALR-56M Shipsets on the C-130J aircraft?

The contract duration is 867 days, suggesting the initial procurement and integration phase. The operational lifespan of the Shipsets themselves would likely extend well beyond this period, potentially for decades, depending on the system's reliability and maintainability. A comprehensive sustainment plan, including maintenance, repair, and potential upgrades, would be crucial for ensuring the long-term effectiveness and availability of these systems throughout the C-130J's service life.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 100 CAMPUS RD STE 1, TOTOWA, NJ, 07512

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $30,132,486

Exercised Options: $30,132,486

Current Obligation: $30,132,486

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPM4AX08D9416

IDV Type: IDC

Timeline