DoD Awards $510M for Bradley Reset Long Lead Items to BAE Systems
Contract Overview
Contract Amount: $510,129,795 ($510.1M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2009-06-30
End Date: 2014-10-31
Contract Duration: 1,949 days
Daily Burn Rate: $261.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS DELIVERY IS ESTABLISHED FOR THE LONG LEAD ITEMS (LLI) FOR THE BRADLEY FY10 RESET PROGRAM. THIS DELIVERY IS ON A COST, NO-FEE BASIS.
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $510.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: THIS DELIVERY IS ESTABLISHED FOR THE LONG LEAD ITEMS (LLI) FOR THE BRADLEY FY10 RESET PROGRAM. THIS DELIVERY IS ON A COST, NO-FEE BASIS. Key points: 1. Significant investment in armored vehicle sustainment. 2. Sole-source award to incumbent contractor. 3. Potential for cost overruns on long-lead items. 4. Focus on critical components for future resets.
Value Assessment
Rating: questionable
The contract is cost-plus, no-fee, which offers less incentive for the contractor to control costs compared to fixed-price contracts. The total value is substantial, and the lack of a fee structure warrants scrutiny regarding cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This award was not competed, likely due to the nature of long-lead items and existing program relationships. The lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a contract of this magnitude raises concerns about whether the government achieved the best possible price for these critical components.
Public Impact
Ensures continued readiness of the Bradley Fighting Vehicle fleet. Supports critical defense industrial base capabilities. Impacts long-term sustainment costs for armored vehicles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contract type
- Sole-source award
- Long lead time items
Positive Signals
- Supports critical weapon system
- Established contractor relationship
Sector Analysis
This contract falls within the Defense Industrial Base sector, specifically focusing on armored vehicle manufacturing and sustainment. Spending in this area is crucial for maintaining military readiness and technological superiority.
Small Business Impact
The awardee, BAE Systems Land & Armaments L.P., is a large business. There is no indication of small business participation in this specific delivery order, which is common for sole-source awards of this nature.
Oversight & Accountability
The cost-plus, no-fee structure necessitates robust oversight from the Department of the Army to ensure costs are reasonable and allocable. Auditing and verification of expenditures will be critical.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost-plus contract type may lead to higher costs.
- Sole-source award limits competitive pricing.
- Potential for cost overruns on long-lead items.
- Lack of small business participation.
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 $510.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. THIS DELIVERY IS ESTABLISHED FOR THE LONG LEAD ITEMS (LLI) FOR THE BRADLEY FY10 RESET PROGRAM. THIS DELIVERY IS ON A COST, NO-FEE BASIS.
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 $510.1 million.
What is the period of performance?
Start: 2009-06-30. End: 2014-10-31.
What is the projected total cost for the entire Bradley FY10 Reset Program, and how does this LLI award fit into that overall budget?
The provided data only details the cost for the Long Lead Items (LLI) for the Bradley FY10 Reset Program, amounting to $510,129,794.50. Information regarding the total projected cost for the entire reset program is not available in this dataset. Understanding the full program budget is essential to assess the significance of this LLI award and its impact on overall fiscal planning for the Bradley fleet's modernization and sustainment efforts.
Given the sole-source nature of this award, what mechanisms are in place to ensure cost reasonableness and prevent potential overpricing by BAE Systems?
As this is a sole-source, cost-plus, no-fee contract, robust government oversight is paramount. The Department of the Army must implement stringent auditing procedures to verify all incurred costs. This includes reviewing labor rates, material costs, and indirect expenses. Negotiation of target costs and continuous monitoring of performance against these targets, even without a fee, are crucial to mitigate the risk of inflated expenditures and ensure taxpayer funds are used efficiently.
What is the expected impact of these long-lead items on the overall timeline and effectiveness of the Bradley Reset Program?
Long-lead items are critical components that require significant manufacturing or procurement time, often preceding the main assembly or integration phases. Securing these items early, as this award aims to do, is vital for preventing delays in the overall Bradley Reset Program. Timely delivery and quality of these LLIs directly influence the program's ability to meet its schedule, maintain fleet readiness, and ultimately ensure the effectiveness of the modernized Bradley Fighting Vehicles.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
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: $510,129,795
Exercised Options: $510,129,795
Current Obligation: $510,129,795
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: W56HZV05G0005
IDV Type: IDC
Timeline
Start Date: 2009-06-30
Current End Date: 2014-10-31
Potential End Date: 2014-10-31 12:10:00
Last Modified: 2023-10-02
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