DoD awards $20.7M contract to BAE Systems for Aircraft Manufacturing, ending Feb 2024

Contract Overview

Contract Amount: $20,719,551 ($20.7M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2008-04-01

End Date: 2024-02-22

Contract Duration: 5,805 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: MATERIAL TAS::17 1804::TAS

Place of Performance

Location: NEW HYDE PARK, NASSAU County, NEW YORK, 11040

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $20.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: MATERIAL TAS::17 1804::TAS Key points: 1. Contract value of $20.7M. 2. BAE Systems is the sole awardee. 3. Risk associated with sole-source award. 4. Spending in Aircraft Manufacturing sector.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed effectively. Benchmarking against similar aircraft manufacturing contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award type is a Delivery Order, and the specific details of price discovery for this order are not provided.

Taxpayer Impact: Taxpayer funds are used for aircraft manufacturing services. The competitive nature of the award aims to ensure fair pricing, but the Cost Plus Award Fee structure warrants oversight.

Public Impact

Supports critical defense capabilities through aircraft manufacturing. Ensures continued operation and maintenance of aircraft. Potential for technological advancements in aircraft production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contract type may inflate costs.
Limited transparency on specific cost drivers for this delivery order.

Positive Signals

Awarded under full and open competition.
Long contract duration suggests sustained need and potential for economies of scale.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, which is a significant part of the defense industrial base. Spending in this sector is often driven by national security requirements and technological advancements.

Small Business Impact

The data does not indicate any specific set-asides for small businesses on this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The Cost Plus Award Fee structure necessitates robust oversight to ensure performance and cost control.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Award Fee structure.
Potential for cost overruns.
Limited visibility into specific cost components.
Long contract duration increases exposure to changing economic conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. MATERIAL TAS::17 1804::TAS

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2008-04-01. End: 2024-02-22.

What is the breakdown of costs within the Cost Plus Award Fee structure for this delivery order?

A detailed breakdown of costs, including direct labor, materials, overhead, and the fee structure, is crucial for understanding the total expenditure. Without this, it's challenging to assess the efficiency and value for money achieved by BAE Systems on this specific delivery order.

How does the performance of BAE Systems on this contract compare to industry benchmarks for aircraft manufacturing?

Assessing performance against industry benchmarks requires access to key performance indicators such as on-time delivery, quality metrics, and cost variance. Understanding these metrics would provide insight into whether the government is receiving optimal value and if BAE Systems is meeting or exceeding expectations.

What is the long-term strategic value of this contract beyond the immediate aircraft manufacturing needs?

The long-term strategic value could lie in maintaining critical manufacturing capabilities, fostering innovation in aircraft technology, and ensuring supply chain resilience for national defense. The sustained relationship with BAE Systems might also facilitate future research and development efforts.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $20,802,736

Exercised Options: $20,802,736

Current Obligation: $20,719,551

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042106D0038

IDV Type: IDC

Timeline