DoD's $812M Bradley Reset Long Lead Material Contract Awarded to BAE Systems
Contract Overview
Contract Amount: $812,563,032 ($812.6M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2007-11-29
End Date: 2013-06-28
Contract Duration: 2,038 days
Daily Burn Rate: $398.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: FY09 BRADLEY RESET LONG LEAD MATERIAL
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $812.6 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: FY09 BRADLEY RESET LONG LEAD MATERIAL Key points: 1. Significant investment in armored vehicle readiness. 2. Sole-source award to BAE Systems raises questions about competition. 3. Long contract duration (2038) suggests ongoing program needs. 4. High value indicates critical component importance.
Value Assessment
Rating: questionable
The contract's total value is substantial. Without competitive bidding, it's difficult to assess if the pricing reflects fair market value or if taxpayers are receiving optimal value for this long-lead material.
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 for such a large contract may result in taxpayers paying a premium for the Bradley reset long lead material.
Public Impact
Ensures continued operational readiness of Bradley Fighting Vehicles. Supports critical defense manufacturing capabilities. Potential for cost overruns due to lack of competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long-term contract duration
- High dollar value
Positive Signals
- Supports critical defense asset readiness
- Potential for technology sustainment
Sector Analysis
This contract falls within the Defense sector, specifically related to military vehicle manufacturing and sustainment. Spending benchmarks for similar long-lead material procurements for armored vehicles can vary widely based on technological complexity and production volume.
Small Business Impact
The data indicates this contract was not awarded to small businesses. There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
Oversight is crucial for sole-source contracts of this magnitude to ensure cost reasonableness and prevent potential waste. The long duration necessitates continuous monitoring of performance and pricing.
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 lacks competitive pressure.
- Long contract duration increases risk of cost escalation and obsolescence.
- Cost-reimbursable contract type offers limited incentive for contractor cost control.
- Potential for overpayment due to lack of price discovery.
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 $812.6 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. FY09 BRADLEY RESET LONG LEAD MATERIAL
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 $812.6 million.
What is the period of performance?
Start: 2007-11-29. End: 2013-06-28.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure price reasonableness?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure price reasonableness, the government should have conducted a thorough cost analysis, reviewed historical pricing, and potentially engaged in negotiation with the sole provider.
What are the specific risks associated with the long duration of this contract extending to 2038?
The primary risks include potential obsolescence of technology, significant price fluctuations over time, and the government's reduced flexibility to adapt to changing military requirements or explore more cost-effective alternatives. Maintaining oversight and incorporating price adjustment clauses are critical.
How does the 'COST NO FEE' contract type impact the government's ability to control costs and ensure contractor performance?
'COST NO FEE' contracts are generally used when the final cost is uncertain. While it covers all allowable costs, it offers minimal incentive for the contractor to control costs, as they are reimbursed regardless. This places a heavy burden on the government to meticulously track and audit costs.
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: $812,563,032
Exercised Options: $812,563,032
Current Obligation: $812,563,032
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: 2007-11-29
Current End Date: 2013-06-28
Potential End Date: 2013-06-28 12:06:00
Last Modified: 2022-09-15
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