DoD Awards BAE Systems $16.5M for 2,876 Miscellaneous DVE Systems Under Full and Open Competition
Contract Overview
Contract Amount: $16,538,425 ($16.5M)
Contractor: BAE Systems Information & Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2009-09-25
End Date: 2011-07-29
Contract Duration: 672 days
Daily Burn Rate: $24.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FUNDING PROVIDED FOR 2,876 MISCELLANEOUS DVE SYSTEMS.
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78725
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $16.5 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: FUNDING PROVIDED FOR 2,876 MISCELLANEOUS DVE SYSTEMS. Key points: 1. Significant award to a major defense contractor for specialized systems. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The contract duration of 672 days indicates a medium-term project. 4. The North American Industry Classification System (NAICS) code 334511 points to a specific manufacturing sector.
Value Assessment
Rating: fair
The award amount of $16.5M for 2,876 systems results in a per-unit cost of approximately $5,750. Benchmarking against similar complex navigation and guidance systems is difficult without more specific technical details, but this price appears within a reasonable range for specialized defense electronics.
Cost Per Unit: $5,750
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited competition scenarios.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value for money in acquiring essential defense systems.
Public Impact
Enhances Department of Defense operational capabilities with critical DVE systems. Supports advanced technology manufacturing within the defense industrial base. Ensures the availability of specialized equipment for military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific system details makes independent cost validation challenging.
- Potential for cost overruns if unforeseen technical issues arise during production.
- Reliance on a single contractor for the full quantity could pose supply chain risks.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Clear contract end date provides budget certainty.
- Contract type (Firm Fixed Price) shifts cost risk to the contractor.
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is critical for national defense, with significant government investment in advanced technological systems.
Small Business Impact
The data indicates the prime contractor is BAE Systems, a large defense corporation. There is no explicit information provided regarding subcontracting opportunities for small businesses on this specific award.
Oversight & Accountability
The Department of the Army awarded this contract, implying internal oversight mechanisms are in place. Further review would be needed to assess the specific oversight applied to this procurement and its execution.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed technical specifications.
- Potential for scope creep in 'miscellaneous' systems.
- Reliance on a single large contractor.
- Limited insight into small business participation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.5 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC.. FUNDING PROVIDED FOR 2,876 MISCELLANEOUS DVE SYSTEMS.
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 $16.5 million.
What is the period of performance?
Start: 2009-09-25. End: 2011-07-29.
What are the specific functionalities and technical specifications of the 'miscellaneous DVE systems' to better assess their value and necessity?
The term 'miscellaneous DVE systems' is broad and lacks specific technical detail. DVE likely refers to 'Distributed Virtual Environment' or a similar acronym relevant to simulation or operational support. Understanding the precise function, technological sophistication, and intended use case is crucial for a thorough value assessment. Without this, it's difficult to determine if the $16.5M investment is optimally allocated or if alternative solutions could achieve similar operational outcomes more cost-effectively.
What is the historical performance and reliability record of BAE Systems in delivering similar complex electronic systems to the Department of Defense?
BAE Systems is a major defense contractor with a long history of delivering complex electronic systems. Their performance record on similar contracts would be a key indicator of risk. Assessing past delivery timelines, adherence to specifications, quality control, and post-delivery support is essential. A strong track record suggests lower execution risk, while past issues could signal potential delays or performance shortfalls, impacting the overall effectiveness and taxpayer value.
How does the per-unit cost of these systems compare to commercially available or similar government-procured systems, considering the competitive bidding process?
The per-unit cost of approximately $5,750 was determined through a full and open competition. While this suggests a degree of price discovery, a direct comparison to commercial off-the-shelf (COTS) or other government systems is challenging without knowing the exact specifications. If these are highly specialized, proprietary systems, the cost may be justified. However, if similar functionality exists in less specialized or more widely produced systems, the competitive process might not have fully optimized cost-effectiveness, warranting further investigation into the scope of competition.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 6500 TRACOR LANE, AUSTIN, TX, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,538,425
Exercised Options: $16,538,425
Current Obligation: $16,538,425
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T09DM403
IDV Type: IDC
Timeline
Start Date: 2009-09-25
Current End Date: 2011-07-29
Potential End Date: 2011-07-29 00:00:00
Last Modified: 2011-10-06
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