DoD Awards $1.2B Bradley Remanufacture Contract to BAE Systems, Lacking Competition
Contract Overview
Contract Amount: $1,196,273,842 ($1.2B)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2008-05-23
End Date: 2013-11-20
Contract Duration: 2,007 days
Daily Burn Rate: $596.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: REQUIREMENT FOR FY08 BRADLEY REMANUFACTURE
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $1.20 billion to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: REQUIREMENT FOR FY08 BRADLEY REMANUFACTURE Key points: 1. Significant investment in armored vehicle readiness. 2. Sole-source award to BAE Systems raises competition concerns. 3. Long contract duration (2008-2013) may impact price competitiveness. 4. Focus on defense manufacturing sector, specifically armored vehicles.
Value Assessment
Rating: questionable
The total award value of $1.2 billion over five years for remanufacturing Bradley Fighting Vehicles is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or previous contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning BAE Systems was the only vendor considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to offer the best price.
Taxpayer Impact: The lack of competition on a $1.2 billion contract likely results in higher costs for taxpayers than if multiple vendors had vied for the work.
Public Impact
Ensures continued operational readiness of the Bradley Fighting Vehicle fleet. Supports jobs in the defense manufacturing sector, particularly in Pennsylvania. Potential for outdated technology if not managed effectively due to long duration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Supports critical defense asset
- Awarded to established prime contractor
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing and sustainment of armored vehicles. The $1.2 billion award is a significant portion of spending within this niche, highlighting the importance of the Bradley platform.
Small Business Impact
The data indicates this contract was not awarded to small businesses, and the prime contractor is BAE Systems, a large defense corporation. There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The sole-source nature of this large contract warrants close oversight to ensure fair pricing and effective execution. The Defense Contract Management Agency (DCMA) is responsible for oversight, but the lack of competition limits their ability to benchmark against market rates.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Sole-source award
- Potential for cost overruns
- Long contract duration may lead to outdated technology
- Limited transparency on pricing justification
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, pa, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.20 billion to BAE SYSTEMS LAND & ARMAMENTS L.P.. REQUIREMENT FOR FY08 BRADLEY REMANUFACTURE
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 $1.20 billion.
What is the period of performance?
Start: 2008-05-23. End: 2013-11-20.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as urgency, unique capabilities of a single provider, or the existence of only one responsible source. Further investigation into DoD procurement records would be needed to determine the specific rationale.
How does the per-unit cost of this remanufacture compare to industry benchmarks or previous Bradley upgrades?
Without a competitive bidding process or access to detailed cost breakdowns, it is impossible to establish a per-unit cost benchmark for this specific contract. The lack of competition prevents a direct comparison with other potential providers or historical data, making it difficult to assess cost-effectiveness.
What measures are in place to ensure the effectiveness and technological relevance of the remanufactured Bradleys over the contract's five-year duration?
The contract's long duration (2008-2013) necessitates robust oversight to ensure the remanufacturing process incorporates necessary technological updates and maintains effectiveness. Specific measures would likely include phased delivery schedules, performance reviews, and potentially contract modifications to address evolving threats and technological advancements.
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: 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, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership
Financial Breakdown
Contract Ceiling: $1,196,273,842
Exercised Options: $1,196,273,842
Current Obligation: $1,196,273,842
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: 2008-05-23
Current End Date: 2013-11-20
Potential End Date: 2013-11-20 00:00:00
Last Modified: 2023-02-27
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