DoD's $29.8M contract for AN/ALR-56M radar warning systems and spares for C-130J aircraft awarded to BAE Systems

Contract Overview

Contract Amount: $29,852,436 ($29.9M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2014-07-01

End Date: 2016-10-04

Contract Duration: 826 days

Daily Burn Rate: $36.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE NSN 1680-K0-107-337AVM, AN/ALR-56M ADVANCED RADAR WARNING RECEIVER SYSTEM SHIPSETS, AND NSNS 5865-01-591-9809, 5865-01-324-7734, AND 5868-01-495-1126, ALL VARIOUS AN/ALR-56M SPARES APPLICABLE TO C-130J AIRCRAFT.

Place of Performance

Location: GREENLAWN, SUFFOLK County, NEW YORK, 11740

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: PURCHASE NSN 1680-K0-107-337AVM, AN/ALR-56M ADVANCED RADAR WARNING RECEIVER SYSTEM SHIPSETS, AND NSNS 5865-01-591-9809, 5865-01-324-7734, AND 5868-01-495-1126, ALL VARIOUS AN/ALR-56M SPARES APPLICABLE TO C-130J AIRCRAFT. Key points: 1. This contract focuses on critical electronic warfare components for C-130J aircraft, enhancing survivability. 2. The award to BAE Systems, a major defense contractor, suggests a reliance on established suppliers for specialized systems. 3. The firm-fixed-price contract type aims to control costs, but the lack of competition raises questions about optimal pricing. 4. The duration of the contract (826 days) indicates a significant supply chain and integration effort. 5. The absence of small business set-asides suggests the primary contractor is a large entity, with potential subcontracting opportunities. 6. The contract's value is moderate within the context of major defense procurements for aircraft systems.

Value Assessment

Rating: fair

The total award of $29.8 million for AN/ALR-56M radar warning receiver systems and spares appears to be a standard procurement for specialized defense electronics. Without direct comparative contract data for the same system or similar advanced radar warning systems, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract suggests an attempt to cap costs. The pricing would ideally be benchmarked against previous awards for the same NSNs or against industry standards for similar electronic warfare components, which are not readily available in this dataset.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the sole authorized source for a particular item. The lack of competition means that the government did not benefit from a bidding process that could drive down prices through market forces. While sole-source awards can be necessary for specialized or legacy systems, they warrant careful justification to ensure fair pricing and avoid potential overspending.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This necessitates robust negotiation and oversight by the contracting agency.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating C-130J Super Hercules aircraft, who will receive enhanced radar warning capabilities. The contract delivers advanced radar warning receiver systems and essential spare parts, crucial for maintaining aircraft operational readiness and survivability in contested environments. The geographic impact is primarily within the United States, where BAE Systems operates and where the C-130J fleet is based. This procurement supports specialized jobs in the defense electronics manufacturing sector, particularly within BAE Systems' facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher unit costs than a competed procurement.
Sole-source awards require strong justification to ensure the government is not overpaying for the system.
Reliance on a single supplier can create supply chain risks if that supplier faces production issues.

Positive Signals

Firm-fixed-price contract type helps to establish cost certainty for the government.
BAE Systems is a reputable defense contractor with a track record in electronic warfare systems.
The contract addresses a critical need for aircraft survivability systems.

Sector Analysis

This contract falls within the Defense Electronics sector, specifically focusing on electronic warfare systems. The market for such specialized components is often dominated by a few large, established defense contractors due to high research and development costs, stringent security requirements, and long product lifecycles. The AN/ALR-56M system is a known electronic warfare suite, and its integration into the C-130J platform highlights the ongoing need for advanced threat detection and countermeasures in military aviation. Comparable spending benchmarks would involve other advanced radar warning receiver procurements or electronic warfare system upgrades for various military platforms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The prime contractor, BAE Systems, is a large defense corporation. This suggests that subcontracting opportunities may exist for small businesses within BAE Systems' supply chain, particularly for components or services not directly provided by the prime. However, the absence of a specific small business set-aside means that there was no direct mandate for a portion of the work to be allocated to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, specifically the Defense Logistics Agency (DLA) which awarded the delivery order. As a sole-source award, there would be a heightened need for robust cost analysis and negotiation by the contracting officers. Transparency is generally maintained through contract award databases, though detailed justifications for sole-source awards may be less publicly accessible. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

AN/ALR-56M Radar Warning Receiver System
C-130J Super Hercules Aircraft Support
Electronic Warfare Systems Procurement
Defense Logistics Agency Contracts
BAE Systems Defense Contracts

Risk Flags

Sole-source award requires justification to ensure fair and reasonable pricing.
Potential for price escalation due to lack of competition.
Supply chain risk associated with single-source provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. PURCHASE NSN 1680-K0-107-337AVM, AN/ALR-56M ADVANCED RADAR WARNING RECEIVER SYSTEM SHIPSETS, AND NSNS 5865-01-591-9809, 5865-01-324-7734, AND 5868-01-495-1126, ALL VARIOUS AN/ALR-56M SPARES APPLICABLE TO C-130J AIRCRAFT.

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 $29.9 million.

What is the period of performance?

Start: 2014-07-01. End: 2016-10-04.

What is the historical spending trend for the AN/ALR-56M system and its spares across all Department of Defense contracts?

Analyzing historical spending for the AN/ALR-56M system requires aggregating data from multiple contract awards over time. This specific award represents $29.8 million for shipsets and spares for C-130J aircraft. To understand the trend, one would need to query contract databases for all awards associated with the AN/ALR-56M system (identified by its NSNs or system name) across different agencies and contract types. This would reveal the total investment in the system, identify periods of high procurement activity (e.g., initial fielding, major upgrades, or sustained sustainment), and highlight any significant fluctuations in contract values. Without access to a comprehensive historical database, it's difficult to provide a precise trend, but such an analysis would be crucial for long-term budget planning and assessing the overall lifecycle cost of the system.

How does the unit cost of the AN/ALR-56M spares in this contract compare to previous procurements or industry benchmarks?

Determining the unit cost comparison for the AN/ALR-56M spares requires breaking down the total contract value ($29.8 million) by the number of units procured for each specific NSN (5865-01-591-9809, 5865-01-324-7734, and 5868-01-495-1126). This data is not fully detailed in the provided summary. Once individual unit costs are calculated, they should be compared against: 1) Previous delivery orders or contracts for the same NSNs to identify price escalation or reduction. 2) Market research data or quotes from other manufacturers for comparable electronic warfare spares, if available. As this was a sole-source award, direct price comparisons might be limited, making it essential to rely on internal government cost estimates and historical pricing data to ensure reasonableness. The firm-fixed-price nature suggests a negotiated price, but its competitiveness hinges on the negotiation leverage and available market intelligence.

What are the specific risks associated with relying on a sole-source provider like BAE Systems for critical radar warning receiver components?

Relying on a sole-source provider like BAE Systems for critical components such as the AN/ALR-56M radar warning receiver system introduces several risks. Firstly, there is a significant risk of price escalation, as the government lacks competitive leverage to negotiate lower prices. This can lead to higher overall program costs for taxpayers. Secondly, dependence on a single supplier can create supply chain vulnerabilities; any production delays, quality issues, or business disruptions experienced by BAE Systems could directly impact the operational readiness of C-130J aircraft. Thirdly, it may stifle innovation, as there is less incentive for alternative solutions or technological advancements to emerge from a competitive market. Finally, long-term sustainment costs could be higher without the pressure of competition to drive efficiency.

What is the track record of BAE Systems in delivering electronic warfare systems, particularly for the C-130J platform?

BAE Systems has a substantial and well-established track record in the defense industry, with significant expertise in electronic warfare (EW) systems. They are a major global defense contractor involved in the design, development, and production of a wide array of EW capabilities, including radar warning receivers, jammers, and countermeasures. For the AN/ALR-56M system specifically, BAE Systems has been a key player, likely involved in its initial development, production, and ongoing sustainment. Their experience with the C-130J platform is also extensive, as they provide various systems and support for this widely used military transport aircraft. While specific performance metrics for this particular contract are not detailed, BAE Systems' overall reputation in delivering complex defense electronics suggests a high likelihood of successful execution, provided adequate oversight and management.

How does the $29.8 million contract value compare to the overall annual spending on C-130J sustainment or electronic warfare systems within the DoD?

The $29.8 million contract value for AN/ALR-56M systems and spares represents a specific procurement action for a critical component of the C-130J aircraft. To contextualize this amount, it needs to be compared against broader spending categories. Annual sustainment costs for the entire C-130J fleet can run into hundreds of millions or even billions of dollars, encompassing fuel, maintenance, personnel, and other support equipment. Similarly, the Department of Defense's total annual budget for electronic warfare systems across all platforms is in the tens of billions of dollars. Therefore, this $29.8 million contract, while significant for the specific system, is a relatively modest portion of the overall DoD defense spending pie. It highlights the specialized nature and cost associated with maintaining advanced avionics and survivability equipment on legacy and modern military aircraft.

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: $58,677,868

Exercised Options: $58,677,868

Current Obligation: $29,852,436

Subaward Activity

Number of Subawards: 64

Total Subaward Amount: $12,816,478

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPM4AX08D9416

IDV Type: IDC

Timeline