BAE Systems awarded $32.1M for communication equipment, with a 957-day duration and no competition

Contract Overview

Contract Amount: $32,112,001 ($32.1M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2005-08-17

End Date: 2008-03-31

Contract Duration: 957 days

Daily Burn Rate: $33.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200511!007041!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05DA003 !A!N! !N!0001 ! !20050817!20100809!194956751!876861790!217304393!N!BAE SYSTEMS INFORMATION & ELEC!164 TOTOWA RD !WAYNE !NJ!07470!77870!031!34!WAYNE !PASSAIC !NEW JERSEY!+000032112001!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334511!E! !5!B!S! ! ! !20200930!B! ! !A! !D!N!J!1!001!N!1G!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001! !

Place of Performance

Location: WAYNE, PASSAIC County, NEW JERSEY, 07470

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $32.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: 200511!007041!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05DA003 !A!N! !N!0001 ! !20050817!20100809!194956751!876861790!217304393!N!BAE SYSTEMS INFORMATION & ELEC!164 TOTOWA RD !WAYNE !NJ!07470!77870!031!34!WAYNE !PASS… Key points: 1. Contract awarded to a single, large defense contractor, indicating potential lack of competitive pressure on pricing. 2. The contract's duration of over 2.5 years suggests a need for sustained support or complex integration. 3. Absence of competition raises questions about whether the government secured the best possible value. 4. The specific product code (334511) relates to navigation, guidance, and control systems, suggesting specialized equipment. 5. Awarded by the Department of the Army, highlighting a focus on tactical or operational communication needs. 6. The firm-fixed-price contract type aims to transfer some risk to the contractor, but without competition, its effectiveness is limited.

Value Assessment

Rating: questionable

The contract value of $32.1 million for communication equipment over 957 days appears substantial. Without competitive bids, it is difficult to benchmark the pricing against market rates or similar government contracts. The lack of competition suggests that the government may not have achieved optimal value for money, as there was no incentive for contractors to offer their most competitive pricing. Further analysis would require comparing the scope of work and deliverables to other sole-source or non-competed contracts for similar equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The data does not provide information on the number of bidders, as it was not subject to a competitive solicitation process. This lack of competition means that the government did not explore offers from multiple vendors, potentially limiting price discovery and the opportunity to select the most innovative or cost-effective solution.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the price reflects fair market value.

Public Impact

The primary beneficiary is BAE Systems Information & Electronic Systems Integration Inc., a major defense contractor. The contract is expected to deliver miscellaneous communication equipment, likely for military operational use. The geographic impact is centered in New Jersey, where the contractor's facility is located. The contract supports the Department of the Army's communication and potentially navigation/guidance system needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce transparency and accountability in government spending.
Limited insight into the specific technological capabilities or advancements sought.
Potential for contractor lock-in due to the absence of competitive alternatives.

Positive Signals

Award to a known defense contractor with established capabilities.
Firm-fixed-price contract type can provide cost certainty if managed effectively.
Contract duration suggests a long-term need being addressed.

Sector Analysis

This contract falls within the broader electronics and communication equipment manufacturing sector. The North American Industry Classification System (NAICS) code 334511 covers Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. This is a specialized segment of the defense industrial base, often characterized by high research and development costs and long product lifecycles. Spending in this area is critical for national security and technological advancement. Comparable spending benchmarks would typically involve analyzing other contracts for similar specialized electronic systems awarded by the Department of Defense.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. There is no information provided regarding subcontracting plans or performance related to small businesses. Consequently, the direct impact on the small business ecosystem from this specific award is likely minimal, and there is no indication of efforts to leverage small business capabilities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a sole-source award, the justification for non-competition would be subject to review. Transparency is limited due to the lack of a competitive process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or execution.

Related Government Programs

Department of Defense Communication Systems
Army Tactical Communication Equipment
Navigation and Guidance Systems Procurement
Defense Electronics Manufacturing
Sole-Source Defense Contracts

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency
Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. 200511!007041!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05DA003 !A!N! !N!0001 ! !20050817!20100809!194956751!876861790!217304393!N!BAE SYSTEMS INFORMATION & ELEC!164 TOTOWA RD !WAYNE !NJ!07470!77870!031!34!WAYNE !PASSAIC !NEW JERSEY!+000032112001!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334511!E! !5!B!S! ! ! !202

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 $32.1 million.

What is the period of performance?

Start: 2005-08-17. End: 2008-03-31.

What specific type of communication equipment was procured under this contract?

The contract specifies 'MISCELLANEOUS COMMUNICATION EQUIPMENT' under Product Service Code (PSC) A7, and the NAICS code 334511 relates to 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing'. While 'miscellaneous' is broad, the NAICS code suggests the equipment may be integrated into or related to navigation, guidance, or detection systems, rather than general-purpose communication devices. The exact nature of the equipment would require a deeper dive into the contract's statement of work or technical specifications, which are not fully detailed in the provided data.

Why was this contract awarded on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and awarded under 'A' justification, which typically signifies 'Only one responsible source and no other supplies or services will satisfy agency requirements.' Specific reasons for this determination, such as unique technical capabilities, proprietary technology, or urgent and compelling needs that preclude competition, are not detailed in the summary data. A full justification for other than full and open competition would typically be documented and available through agency procurement records.

How does the contract value compare to similar sole-source awards for communication equipment?

Direct comparison is challenging without knowing the precise nature of the 'miscellaneous communication equipment' and its intended application. However, $32.1 million for a nearly three-year contract (957 days) for specialized defense electronics is within a plausible range for sole-source awards, especially if the technology is unique or critical. Sole-source contracts often carry a price premium compared to competed ones. Benchmarking would require identifying other sole-source awards for comparable specialized systems from the Department of Defense or other agencies, considering factors like quantity, technical specifications, and contractor overhead.

What is the track record of BAE Systems Information & Electronic Systems Integration Inc. with the Department of the Army?

BAE Systems Information & Electronic Systems Integration Inc. is a major defense contractor with a significant history of working with the Department of Defense, including the Army. Their track record typically involves providing a wide range of defense electronics, C4ISR systems, and integration services. While this specific contract was sole-source, the company generally holds numerous contracts across various agencies. A comprehensive assessment would involve reviewing their past performance ratings, any documented issues on previous contracts, and their overall contribution to Army programs.

What are the potential risks associated with this sole-source contract?

The primary risk is the potential for inflated pricing due to the lack of competition, meaning the government may not have achieved the best possible value. Another risk is contractor lock-in, where the government becomes dependent on a single supplier for critical equipment, potentially limiting future flexibility and innovation. There's also a reduced incentive for the contractor to be highly efficient or innovative if they are the sole provider. Finally, the lack of transparency inherent in sole-source awards can obscure potential inefficiencies or issues.

What is the historical spending pattern for this type of equipment by the Department of the Army?

Historical spending on 'MISCELLANEOUS COMMUNICATION EQUIPMENT' and systems falling under NAICS 334511 by the Department of the Army is substantial, reflecting the critical role of advanced electronics in modern warfare. The Army consistently invests in communication, navigation, and sensor technologies. Analyzing past spending trends would reveal fluctuations based on modernization priorities, budget cycles, and specific operational requirements. This $32.1 million award represents one component of a larger, ongoing investment in these capabilities.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: 164 TOTOWA RD, WAYNE, NJ, 11

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T05DA003

IDV Type: IDC

Timeline