DoD Spends $940M on Bradley Reset Long Lead Items with BAE Systems
Contract Overview
Contract Amount: $939,926,102 ($939.9M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2007-01-19
End Date: 2012-05-31
Contract Duration: 1,959 days
Daily Burn Rate: $479.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: LONG LEAD ITEMS FOR BRADLEY RESET
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $939.9 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: LONG LEAD ITEMS FOR BRADLEY RESET Key points: 1. Significant investment in Bradley Fighting Vehicle sustainment. 2. Sole-source award to BAE Systems raises competition concerns. 3. Long contract duration (1959 days) may indicate complex requirements or potential for cost overruns. 4. Focus on 'long lead items' suggests critical component availability is a priority.
Value Assessment
Rating: questionable
The contract is a Cost No Fee type, which offers less incentive for the contractor to control costs compared to fixed-price contracts. The total award amount is substantial, and without competitive pricing, it's difficult to assess value.
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 absence of competition on a nearly billion-dollar contract raises concerns about taxpayer value and whether a more cost-effective solution could have been achieved through a competitive process.
Public Impact
Ensures readiness of Bradley Fighting Vehicles, crucial for ground combat operations. Supports a major defense contractor and its supply chain. Potential for extended production timelines impacting overall military modernization schedules.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long duration
Positive Signals
- Addresses critical long-lead items
- Supports essential vehicle sustainment
Sector Analysis
This contract falls within the Defense sector, specifically military vehicle manufacturing and sustainment. Spending benchmarks for similar large-scale vehicle reset programs can vary significantly based on scope and technology.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this sole-source award. It is likely that BAE Systems, as the prime contractor, would manage subcontracts, but the direct impact on small businesses is not detailed here.
Oversight & Accountability
The contract was awarded by the Department of Defense, with oversight likely managed by the Defense Contract Management Agency. The 'Cost No Fee' structure requires diligent oversight to ensure costs are reasonable and allocable.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- Potential for cost overruns
- Limited transparency on specific items
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 $939.9 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. LONG LEAD ITEMS FOR BRADLEY RESET
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $939.9 million.
What is the period of performance?
Start: 2007-01-19. End: 2012-05-31.
What specific 'long lead items' are being procured, and what is the justification for their extended lead times?
The specific 'long lead items' are not detailed in the provided data. However, in the context of vehicle reset, these typically refer to components with complex manufacturing processes, specialized materials, or limited production capacity, such as advanced engine parts, specialized armor plating, or complex electronic systems. The justification for extended lead times usually stems from the inherent complexity of these items, the need for specialized tooling, or the contractor's existing production schedules.
What is the rationale behind awarding this contract on a sole-source basis instead of through full and open competition?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For military vehicles, this might be due to unique technical expertise, proprietary technology, existing infrastructure, or the need for commonality with existing fleets. However, without specific documentation, it's difficult to ascertain the precise justification for this particular award, and it warrants scrutiny to ensure competition was not feasible.
How will the 'Cost No Fee' contract type be managed to ensure cost efficiency and prevent potential overruns?
Managing a 'Cost No Fee' (CNF) contract requires robust government oversight and stringent cost controls. The government must actively monitor all incurred costs to ensure they are reasonable, allocable, and allowable under the contract terms. This involves detailed audits, regular progress reviews, and close collaboration with the contractor to identify potential inefficiencies early. The absence of a fee means the contractor's profit is not tied to cost performance, necessitating a focus on compliance and adherence to the contract's scope.
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: COST NO FEE (S)
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
Financial Breakdown
Contract Ceiling: $939,926,102
Exercised Options: $939,926,102
Current Obligation: $939,926,102
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV05G0005
IDV Type: IDC
Timeline
Start Date: 2007-01-19
Current End Date: 2012-05-31
Potential End Date: 2024-06-24 00:00:00
Last Modified: 2024-09-12
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