DoD Awards $818.6M for Combat Assault Vehicles, BAE Systems Secures Sole-Source Contract
Contract Overview
Contract Amount: $1,624,180,131 ($1.6B)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2006-07-26
End Date: 2011-12-31
Contract Duration: 1,984 days
Daily Burn Rate: $818.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200612!007793!2100!W56HZV!TACOM - WARREN !W56HZV05G0005 !A!N! !N!0009 ! !20060726!20081231!834476079!824825459!217304393!N!BAE SYSTEMS LAND & ARMAMENTS I!1100 BAIRS RD !YORK !PA!17404!87048!133!42!YORK !YORK !PENN !+000192628556!N!N!000000000000!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !336992!E! !4! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $1.62 billion to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: 200612!007793!2100!W56HZV!TACOM - WARREN !W56HZV05G0005 !A!N! !N!0009 ! !20060726!20081231!834476079!824825459!217304393!N!BAE SYSTEMS LAND & ARMAMENTS I!1100 BAIRS RD !YORK !PA!17404!87048!133!42!YORK !YORK… Key points: 1. The contract is for Combat Assault & Tactical Vehicles, Tracked, valued at $818.6 million. 2. BAE Systems Land & Armaments L.P. is the sole contractor, raising concerns about competition. 3. The contract duration is 1984 days, spanning from July 2006 to December 2011. 4. The spending falls within the Defense sector, specifically for armored vehicle manufacturing.
Value Assessment
Rating: questionable
The total award amount is $818,639,000. Without specific per-unit cost data or benchmarks for similar combat vehicles, a precise value assessment is difficult. However, the significant total value suggests a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, BAE Systems, was considered. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: Sole-source awards can result in less competitive pricing, potentially increasing the financial burden on taxpayers compared to a fully competed contract.
Public Impact
Taxpayers may be paying a premium due to the lack of competition. The contract supports the production of critical military hardware for the Department of the Army. The long duration of the contract indicates a sustained need for these vehicles. The award to a single large defense contractor concentrates significant spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of detailed cost breakdown makes value assessment difficult.
- Long contract duration could mask inefficiencies if not closely monitored.
Positive Signals
- Supports critical defense capabilities.
- Award to established prime contractor with relevant experience.
Sector Analysis
This contract falls under the Defense sector, specifically for the manufacturing of combat vehicles. Spending benchmarks for similar tracked armored vehicles are highly specialized and not readily available, but the $818.6 million award is substantial.
Small Business Impact
The data indicates this contract was awarded to BAE Systems Land & Armaments L.P., a large prime contractor. There is no explicit information regarding small business participation or subcontracting opportunities within this sole-source award.
Oversight & Accountability
Oversight of this sole-source contract would be crucial to ensure fair pricing and performance. The Department of the Army is responsible for monitoring BAE Systems' delivery and adherence to contract terms.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Limited price discovery
- Potential for inflated costs
- No small business participation evident
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, pa, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.62 billion to BAE SYSTEMS LAND & ARMAMENTS L.P.. 200612!007793!2100!W56HZV!TACOM - WARREN !W56HZV05G0005 !A!N! !N!0009 ! !20060726!20081231!834476079!824825459!217304393!N!BAE SYSTEMS LAND & ARMAMENTS I!1100 BAIRS RD !YORK !PA!17404!87048!133!42!YORK !YORK !PENN !+000192628556!N!N!000000000000!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !336992!E! !4! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND & ARMAMENTS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $1.62 billion.
What is the period of performance?
Start: 2006-07-26. End: 2011-12-31.
What is the estimated per-unit cost of the combat assault vehicles, and how does it compare to industry benchmarks for similar platforms?
The provided data does not include a specific per-unit cost for the combat assault vehicles. The total award is $818.6 million. Without this breakdown or access to classified industry benchmarks for highly specialized military hardware, a direct comparison is not possible. Further analysis would require detailed cost reporting from the contractor and the procuring agency.
What justification was provided for awarding this contract on a sole-source basis, and what steps were taken to ensure the government received the best possible price?
The data indicates the contract was 'NOT COMPETED,' implying a sole-source justification. Typically, sole-source awards require a documented justification, such as a lack of available competition or a unique capability. However, the specific justification is not detailed here. The government's ability to secure the best price is inherently limited without competitive bidding.
How effectively has BAE Systems delivered on this contract, and what is the overall impact on the Army's combat vehicle readiness?
The provided data covers the award and period of performance (2006-2011) but does not include performance metrics or delivery success rates. Assessing effectiveness would require reviewing contract performance reports, delivery schedules, and any associated quality or operational readiness data from the Department of the Army.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
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
Address: 1100 BAIRS RD, YORK, PA, 17408
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV05G0005
IDV Type: IDC
Timeline
Start Date: 2006-07-26
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2023-09-14
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