DoD awards $88.7M for multi-band lasers, with BAE Systems securing the sole-source contract

Contract Overview

Contract Amount: $88,736,208 ($88.7M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2008-08-05

End Date: 2010-09-30

Contract Duration: 786 days

Daily Burn Rate: $112.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MULTI BAND LASERS 22 EACH

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $88.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: MULTI BAND LASERS 22 EACH Key points: 1. The contract value of $88.7 million for 22 units suggests a significant investment in advanced laser technology. 2. Sole-source procurement raises questions about potential price inflation and the absence of competitive pressure. 3. The contract duration of approximately 786 days indicates a substantial development or deployment timeline. 4. The specific application of these multi-band lasers within the Department of the Army warrants further investigation for performance context. 5. BAE Systems' established presence in defense electronics positions them as a capable, albeit sole, provider for this specialized equipment.

Value Assessment

Rating: questionable

The contract value of $88.7 million for 22 units results in a per-unit cost of approximately $4.03 million. Without comparable contract data for similar multi-band laser systems, it is difficult to definitively benchmark this price. However, given the specialized nature of the technology and the sole-source award, there is a risk that the price may not reflect optimal value for money compared to a competitively bid scenario.

Cost Per Unit: $4,031,645 per unit

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, BAE Systems, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that might have emerged from a broader solicitation.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value for its investment.

Public Impact

The primary beneficiary of this contract is the Department of the Army, which will receive advanced multi-band laser systems. These lasers are likely intended for critical military applications, potentially enhancing surveillance, targeting, or communication capabilities. The geographic impact is primarily within the United States, related to the manufacturing and deployment of the systems. The contract supports specialized roles within the defense industry, potentially involving highly skilled engineers and technicians at BAE Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to the absence of multiple bids.
Potential for cost overruns if not managed tightly due to lack of competitive pressure.
Dependence on a single contractor for critical technology.

Positive Signals

Award to a known defense contractor with expertise in electronic systems.
Procurement of advanced technology likely to enhance military capabilities.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

The defense electronics sector is characterized by high research and development costs, long product cycles, and significant government procurement. Companies like BAE Systems operate in a market where specialized technological capabilities are paramount. The market for advanced laser systems is niche, with a limited number of prime contractors capable of producing such sophisticated equipment. This contract represents a significant investment within this specialized segment of the defense industry.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, there is no explicit mention of subcontracting plans for small businesses. The sole-source nature of the award further reduces opportunities for small businesses to participate in this specific procurement, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting oversight mechanisms. The firm fixed price contract type provides a degree of cost control. However, the sole-source nature necessitates robust monitoring of performance, quality, and delivery schedules to ensure accountability and prevent potential cost creep. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Laser Systems Procurement
Department of Defense Electronic Warfare Programs
BAE Systems Defense Contracts
Sole-Source Defense Acquisitions

Risk Flags

Sole-source award may result in higher costs.
Lack of competitive bidding limits price discovery.
Potential for cost overruns without competitive pressure.
Dependence on a single supplier for critical technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. MULTI BAND LASERS 22 EACH

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 $88.7 million.

What is the period of performance?

Start: 2008-08-05. End: 2010-09-30.

What is the specific military application for these multi-band lasers, and how do they enhance current operational capabilities?

The provided data does not specify the exact military application of these multi-band lasers. However, multi-band lasers are typically employed in advanced defense systems for a variety of purposes, including sophisticated targeting, electronic warfare, communications, and intelligence, surveillance, and reconnaissance (ISR) missions. Their ability to operate across multiple wavelengths allows for greater flexibility and effectiveness in diverse environmental conditions and against a wider range of targets. The enhancement to current operational capabilities would depend on the specific role these lasers are designed to fulfill, potentially offering improved precision, range, or resistance to countermeasures compared to existing systems.

What is the track record of BAE Systems in delivering similar advanced laser systems to the Department of Defense?

BAE Systems is a major defense contractor with a broad portfolio of electronic systems and advanced technologies. While the specific data here does not detail their history with multi-band lasers, the company has a significant presence in areas such as electro-optics, directed energy systems, and electronic warfare. They have been involved in numerous contracts for the Department of Defense, delivering complex systems. A deeper dive into their contract history would be needed to ascertain their specific experience and success rate in delivering comparable multi-band laser systems, including factors like on-time delivery, performance against specifications, and cost management on previous projects.

How does the per-unit cost of these multi-band lasers compare to industry benchmarks or similar government procurements?

The per-unit cost for these multi-band lasers is approximately $4.03 million ($88.7 million / 22 units). Benchmarking this figure is challenging without access to proprietary data or specific comparable contracts for similar advanced multi-band laser systems. The defense industry often sees high unit costs for cutting-edge technology due to extensive R&D, specialized manufacturing, and stringent quality requirements. Given that this was a sole-source award, the price may not reflect the lowest possible cost achievable through competition. A thorough market analysis or comparison with other government procurements of similar, albeit potentially less advanced, laser systems would be necessary for a more definitive benchmark.

What are the potential risks associated with a sole-source procurement for such critical defense technology?

Sole-source procurements carry several inherent risks, particularly for critical defense technology. The primary risk is the lack of competitive pressure, which can lead to inflated prices and reduced value for money. Without competing bids, the government may pay more than necessary. Another risk is the potential for the contractor to experience production issues or delays without the incentive of losing future business to competitors. Furthermore, sole-source awards can limit innovation, as alternative solutions or technological advancements from other companies are not considered. This can also create a dependency on a single supplier, which can be problematic if that supplier faces financial difficulties or strategic shifts.

What is the historical spending pattern for multi-band lasers or similar advanced optical systems within the Department of Defense?

Historical spending on multi-band lasers and similar advanced optical systems within the Department of Defense is likely to be characterized by significant, albeit potentially infrequent, large-value contracts. These systems represent cutting-edge technology often developed for specific, high-priority military applications. Spending in this area tends to fluctuate based on evolving threats, technological advancements, and budgetary allocations for research, development, testing, and evaluation (RDT&E) as well as procurement. While this specific $88.7 million award is substantial, it would need to be viewed within the broader context of the DoD's overall RDT&E and procurement budgets for advanced weapon systems and electronic components over several fiscal years to identify trends.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 65 SPIT BROOK ROAD, NASHUA, NH, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $88,736,208

Exercised Options: $88,736,208

Current Obligation: $88,736,208

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T04D0055

IDV Type: IDC

Timeline