DoD Awards $632M for 245 ODS SA Vehicles to BAE Systems
Contract Overview
Contract Amount: $632,372,831 ($632.4M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2011-09-30
End Date: 2016-03-31
Contract Duration: 1,644 days
Daily Burn Rate: $384.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS DELIVERY ORDER IS BEING ISSUED TO PROCURE MATERIAL AND SUPPORT LABOR TO PROCURE MATERIAL FOR 245 (EACH) OPERATIONAL DESERT STORM (ODS) SITUATIONAL AWARENESS (SA) VEHICLES, WHICH WILL GO THROUGH A RESET/CONVERSION EFFORT ON A FORTHCOMING ACTION.
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $632.4 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: THIS DELIVERY ORDER IS BEING ISSUED TO PROCURE MATERIAL AND SUPPORT LABOR TO PROCURE MATERIAL FOR 245 (EACH) OPERATIONAL DESERT STORM (ODS) SITUATIONAL AWARENESS (SA) VEHICLES, WHICH WILL GO THROUGH A RESET/CONVERSION EFFORT ON A FORTHCOMING ACTION. Key points: 1. Significant investment in military vehicle modernization. 2. Sole-source award to BAE Systems raises competition concerns. 3. Long-term contract duration (1644 days) suggests substantial project scope. 4. Focus on situational awareness technology highlights evolving defense needs.
Value Assessment
Rating: questionable
The total award of $632.37M for 245 vehicles is substantial. Without comparable contract data for similar vehicle resets and conversions, a precise per-unit cost benchmark is difficult to establish. The pricing appears high given the unit count.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to BAE Systems. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The sole-source nature of this award may result in taxpayers paying a premium due to the absence of competitive bidding.
Public Impact
Enhances military operational capabilities with upgraded situational awareness. Supports the modernization of armored vehicle fleets. Potential for job creation within BAE Systems and its supply chain. Ensures readiness for specific military operational environments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High total contract value
- Long contract duration
Positive Signals
- Modernization of critical defense assets
- Potential for technological advancement in SA systems
Sector Analysis
This contract falls within the defense manufacturing sector, specifically military vehicles. Spending in this area is driven by national security needs and technological advancements. Benchmarks for similar large-scale vehicle reset/conversion contracts are highly variable.
Small Business Impact
No information is provided regarding small business participation in this contract. Sole-source awards often limit opportunities for small businesses to compete for subcontracts.
Oversight & Accountability
The contract type is Firm Fixed Price, which shifts some risk to the contractor. However, the lack of competition warrants close oversight to ensure fair pricing and performance.
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 limits competition and price negotiation.
- High total contract value requires diligent oversight.
- Long contract duration increases risk of cost overruns or scope creep.
- Lack of transparency regarding specific vehicle upgrades and technology.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, pa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $632.4 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. THIS DELIVERY ORDER IS BEING ISSUED TO PROCURE MATERIAL AND SUPPORT LABOR TO PROCURE MATERIAL FOR 245 (EACH) OPERATIONAL DESERT STORM (ODS) SITUATIONAL AWARENESS (SA) VEHICLES, WHICH WILL GO THROUGH A RESET/CONVERSION EFFORT ON A FORTHCOMING ACTION.
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 $632.4 million.
What is the period of performance?
Start: 2011-09-30. End: 2016-03-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award is typically based on factors like unique capabilities, urgent need, or lack of other responsible sources. Without specific documentation, it's unclear why this contract wasn't competed. Agencies should explore competitive options whenever feasible to ensure best value and taxpayer savings.
How does the per-unit cost of this reset/conversion compare to industry benchmarks for similar military vehicles?
A direct per-unit cost comparison is challenging without detailed specifications of the 'reset/conversion effort' and the specific ODS SA vehicles. However, the total award of $632M for 245 units suggests a significant cost per vehicle. Further analysis is needed to determine if this aligns with or deviates from typical costs for comparable modernization programs.
What are the key performance metrics and deliverables for this contract to ensure effective execution?
Effective execution relies on clearly defined performance metrics and deliverables. These should include timelines for the reset/conversion, quality standards for materials and labor, and successful integration of situational awareness technology. Regular progress reviews and adherence to these metrics are crucial for accountability.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
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, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations
Financial Breakdown
Contract Ceiling: $632,372,831
Exercised Options: $632,372,831
Current Obligation: $632,372,831
Subaward Activity
Number of Subawards: 441
Total Subaward Amount: $312,910,815
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: W56HZV10G0003
IDV Type: BOA
Timeline
Start Date: 2011-09-30
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 12:03:00
Last Modified: 2022-09-26
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