DoD Spent $181M on Thermal Weapon Sights, Awarded to BAE Systems Under Full and Open Competition
Contract Overview
Contract Amount: $181,442,392 ($181.4M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2007-07-01
End Date: 2010-03-29
Contract Duration: 1,002 days
Daily Burn Rate: $181.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THERMAL WEAPON SIGHTS
Place of Performance
Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421
Plain-Language Summary
Department of Defense obligated $181.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: THERMAL WEAPON SIGHTS Key points: 1. Significant investment in advanced optics for defense. 2. BAE Systems is a major defense contractor, indicating established capabilities. 3. Full and open competition suggests a potentially competitive pricing environment. 4. The sector is critical for military modernization and operational effectiveness.
Value Assessment
Rating: good
The total award value of $181.4M over approximately 3 years suggests a substantial procurement. Without specific per-unit data or comparison to similar systems, a precise value assessment is difficult, but the competitive nature of the award provides some assurance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders. This method is expected to foster price discovery and potentially lead to more competitive pricing for the government.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a more efficient allocation of resources and potentially lower prices compared to sole-source or limited solicitations.
Public Impact
Enhances soldier visibility and targeting capabilities in various conditions. Supports ongoing military operations and readiness. Contributes to technological advancement in defense optics. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data for detailed value analysis.
- Potential for obsolescence of technology over time.
- Dependence on a single contractor for a critical component.
Positive Signals
- Awarded through full and open competition.
- Significant investment indicates strategic importance.
- Contract type (firm fixed price) provides cost certainty.
Sector Analysis
The Department of Defense is a major consumer of advanced optical instruments. Spending benchmarks for similar thermal weapon sights can vary widely based on technological sophistication and quantity, but $181M represents a considerable investment in this category.
Small Business Impact
The data indicates the primary award went to BAE Systems, a large defense contractor. There is no explicit information provided regarding the involvement or subcontracting opportunities for small businesses in this specific contract.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the DoD. Standard oversight mechanisms for defense procurements would apply, including contract performance monitoring and financial accountability measures.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed cost breakdown.
- Potential for technology obsolescence.
- Long-term sustainment costs not detailed.
- Limited insight into small business participation.
Tags
optical-instrument-and-lens-manufacturin, department-of-defense, ma, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $181.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. THERMAL WEAPON SIGHTS
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 $181.4 million.
What is the period of performance?
Start: 2007-07-01. End: 2010-03-29.
What is the average per-unit cost of these thermal weapon sights compared to industry benchmarks for similar capabilities?
Without specific unit counts and detailed specifications, calculating a precise per-unit cost is not possible from the provided data. However, given the $181M total award and the nature of advanced thermal optics, the per-unit cost is likely substantial, potentially ranging from several thousand to tens of thousands of dollars depending on features and performance.
What are the primary risks associated with the long-term sustainment and technological relevance of these thermal weapon sights?
Key risks include technological obsolescence, as defense optics rapidly evolve. Maintenance and sustainment costs over the lifespan of the equipment could be significant. Furthermore, reliance on a single prime contractor for critical components or upgrades might pose supply chain or pricing risks if not managed proactively.
How effectively does the firm fixed-price contract structure mitigate cost overruns and ensure value for taxpayer money in this procurement?
A firm fixed-price (FFP) contract is designed to provide cost certainty to the government, shifting most of the cost overrun risk to the contractor. This structure is generally effective in controlling final costs, assuming the initial price accurately reflects the scope of work and market conditions. It encourages contractor efficiency.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 2 FORBES RD, LEXINGTON, MA, 05
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $181,442,392
Exercised Options: $181,442,392
Current Obligation: $181,442,392
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB07D0030
IDV Type: IDC
Timeline
Start Date: 2007-07-01
Current End Date: 2010-03-29
Potential End Date: 2010-03-29 00:00:00
Last Modified: 2010-12-09
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