DoD Awards $38.3M for Tactical Signal Intelligence Logistics Support to BAE Systems

Contract Overview

Contract Amount: $38,334,331 ($38.3M)

Contractor: BAE Systems Information & Electronic Systems Integration Inc

Awarding Agency: Department of Defense

Start Date: 2019-01-25

End Date: 2023-06-09

Contract Duration: 1,596 days

Daily Burn Rate: $24.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TASK ORDER 0002 AWARD UNDER INDEFINITE DELIVERY INDEFINITE CONTRACT W56KGY-16-D-0013 FOR TACTICAL SIGNAL INTELLIGENCE PAYLOAD INTERIM CONTRACTOR LOGISTICS SUPPORT. THIS PARTICULAR EFFORT FUNDS SUSTAINMENT AND OPERATIONS.

Place of Performance

Location: HUDSON, HILLSBOROUGH County, NEW HAMPSHIRE, 03051

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $38.3 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC for work described as: TASK ORDER 0002 AWARD UNDER INDEFINITE DELIVERY INDEFINITE CONTRACT W56KGY-16-D-0013 FOR TACTICAL SIGNAL INTELLIGENCE PAYLOAD INTERIM CONTRACTOR LOGISTICS SUPPORT. THIS PARTICULAR EFFORT FUNDS SUSTAINMENT AND OPERATIONS. Key points: 1. This contract focuses on sustainment and operations for tactical signal intelligence payloads. 2. BAE Systems is the sole awardee, indicating a non-competitive procurement. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The duration of nearly 4 years suggests a significant, ongoing need for these services.

Value Assessment

Rating: fair

The contract value of $38.3M over approximately 4 years is substantial. Without specific benchmarks for similar logistics support contracts for tactical signal intelligence, it's difficult to definitively assess pricing. However, the Cost Plus Fixed Fee structure warrants close monitoring for cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition. This limits price discovery and potentially leads to higher costs than a competitive process might yield. The justification for sole-source is not provided.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition. The Cost Plus Fixed Fee structure also introduces risk of costs exceeding initial estimates.

Public Impact

Ensures continued operational readiness of critical tactical signal intelligence systems. Supports military intelligence gathering capabilities. Provides essential logistics and sustainment services, potentially impacting mission success. Funds a long-term contract, indicating sustained reliance on these capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Lack of detailed justification for sole-source award.

Positive Signals

Addresses a critical need for tactical signal intelligence sustainment.
Long contract duration suggests stable support for essential functions.
Award to an established contractor with likely relevant expertise.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330). Spending in this sector is often driven by defense needs for specialized technical support, research, and development. Benchmarks vary widely based on the specific engineering discipline and contract complexity.

Small Business Impact

The awardee, BAE Systems Information & Electronic Systems Integration Inc, is a large business. There is no indication that small businesses were subcontracted for this specific task order, which is common in large sole-source defense contracts.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure fair pricing and effective performance. The Department of the Army's contracting activity should closely monitor expenditures and deliverables under the Cost Plus Fixed Fee structure.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding.
Potential for cost overruns due to CPFF structure.
Absence of justification for sole-source award.
Limited transparency on performance metrics.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.3 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC. TASK ORDER 0002 AWARD UNDER INDEFINITE DELIVERY INDEFINITE CONTRACT W56KGY-16-D-0013 FOR TACTICAL SIGNAL INTELLIGENCE PAYLOAD INTERIM CONTRACTOR LOGISTICS SUPPORT. THIS PARTICULAR EFFORT FUNDS SUSTAINMENT AND OPERATIONS.

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION & 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 $38.3 million.

What is the period of performance?

Start: 2019-01-25. End: 2023-06-09.

What was the specific justification for awarding this contract on a sole-source basis, and were any alternatives considered?

The provided data does not include the justification for the sole-source award. Typically, sole-source procurements are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this information, it's impossible to assess if competition was genuinely not feasible or if opportunities for small business participation were overlooked.

How does the Cost Plus Fixed Fee structure impact cost control and potential for contractor profit in this specific contract?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost to the government can fluctuate based on actual expenses. This structure incentivizes cost control to some extent, as the contractor's profit is fixed, but it still carries a risk of cost overruns if actual costs are higher than anticipated.

What are the key performance indicators (KPIs) and metrics used to measure the effectiveness of the sustainment and operations provided under this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or metrics for this contract. Effective sustainment and operations would typically be measured by factors such as system uptime, response times for support, successful maintenance and repair rates, and adherence to operational schedules. Robust oversight would involve tracking these metrics to ensure the contractor is meeting performance expectations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 65 RIVER RD, HUDSON, NH, 03051

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: $50,805,367

Exercised Options: $43,749,760

Current Obligation: $38,334,331

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $873,506

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56KGY16D0013

IDV Type: IDC

Timeline