DoD Awards BAE Systems $56M for Thermal Weapon Sights, Year 4

Contract Overview

Contract Amount: $55,962,236 ($56.0M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2011-02-11

End Date: 2013-01-15

Contract Duration: 704 days

Daily Burn Rate: $79.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THERMAL WEAPON SIGHTS - YEAR 4

Place of Performance

Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $56.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: THERMAL WEAPON SIGHTS - YEAR 4 Key points: 1. Contract awarded to BAE Systems for thermal weapon sights. 2. Full and open competition was utilized. 3. The contract is for a fixed price. 4. This is the fourth year of the contract. 5. The total value is over $55.9 million.

Value Assessment

Rating: good

The contract value of $55.9 million over approximately two years suggests a reasonable price point for advanced thermal weapon sights. Benchmarking against similar DoD procurements for electro-optical systems would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, which typically drives competitive pricing and ensures the government receives the best value. The award to BAE Systems indicates they offered the most advantageous solution.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages multiple bidders to offer competitive pricing.

Public Impact

Enhances soldier capabilities with advanced thermal imaging technology. Supports ongoing military operations and readiness. Ensures modernization of essential battlefield equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in subsequent years.
Dependence on a single contractor for critical equipment.

Positive Signals

Utilizes full and open competition.
Firm fixed price contract structure limits cost overruns.
Supports critical defense capabilities.

Sector Analysis

The Department of Defense frequently procures advanced optical and electronic systems. Spending in this sector is driven by technological advancements and operational requirements, with significant investment in night vision and thermal imaging.

Small Business Impact

No specific small business participation was indicated in the provided data. Future contracts should explore opportunities for small business involvement in the supply chain or specialized components.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a robust initial oversight process. Continued monitoring of performance and adherence to contract terms is essential for accountability.

Related Government Programs

Optical Instrument and Lens Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for technology obsolescence
Sole-source dependency risk in future
Limited small business participation noted
Need for ongoing performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. THERMAL WEAPON SIGHTS - YEAR 4

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION AND 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 $56.0 million.

What is the period of performance?

Start: 2011-02-11. End: 2013-01-15.

What is the projected cost per unit for these thermal weapon sights?

The provided data does not specify a per-unit cost. The total award value of $55.9 million is for the entire contract duration. To determine a per-unit cost, the number of units procured would need to be known, which is not detailed in this summary.

Are there any identified risks associated with the long-term sustainment of these sights?

Potential risks include the obsolescence of technology over time, requiring upgrades or replacements. Dependence on a single supplier, BAE Systems, could also pose a risk if they face production issues or significant price increases in the future.

How does the performance of these sights compare to commercially available alternatives?

Military-grade thermal weapon sights typically offer superior durability, resolution, and specialized features compared to commercial versions, justifying their higher cost. However, a direct comparison would require detailed technical specifications for both.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 2 FORBES RD, LEXINGTON, MA, 05

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $55,962,236

Exercised Options: $55,962,236

Current Obligation: $55,962,236

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB07D0030

IDV Type: IDC

Timeline