DoD Awards $82.6M for CMWS Systems and Spares to BAE Systems, Lacking Competition

Contract Overview

Contract Amount: $82,618,234 ($82.6M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2008-03-03

End Date: 2010-04-30

Contract Duration: 788 days

Daily Burn Rate: $104.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CMWS SYSTEMS AND SPARES

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $82.6 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: CMWS SYSTEMS AND SPARES Key points: 1. Significant award of $82.6 million for critical CMWS systems and spares. 2. Sole awardee, BAE Systems, raises questions about competitive pricing and innovation. 3. Contract awarded under 'NOT COMPETED' status, indicating potential lack of market research. 4. The sector is critical for military navigation and guidance systems.

Value Assessment

Rating: questionable

The award amount of $82.6 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or potential alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was 'NOT COMPETED,' suggesting a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in inflated prices, meaning taxpayers could be paying more than necessary for these essential systems and spares.

Public Impact

Ensures continued availability of crucial Combat Mission Vehicle Warning Systems (CMWS). Potential for higher costs due to lack of competitive bidding. Impacts the Department of the Army's operational readiness. Limited transparency on the justification for not competing the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Sole Source Award
Potential for Overpricing

Positive Signals

Essential System Procurement
Award to Established Contractor

Sector Analysis

This contract falls within the defense sector, specifically for the manufacturing of navigation and guidance systems. Spending benchmarks in this area are often high due to specialized technology and R&D costs, but competition is key to controlling these expenditures.

Small Business Impact

The contract data indicates the awardee is BAE Systems Information and Electronic Systems Integration Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, which is common in sole-source procurements.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for bypassing competition was sound and that the pricing is reasonable. Accountability for procurement decisions is crucial, especially when market research may have been insufficient.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of Competition
Sole Source Award
Potential for Overpricing
Limited Transparency on Justification
No Small Business Participation Indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.6 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. CMWS SYSTEMS AND SPARES

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 $82.6 million.

What is the period of performance?

Start: 2008-03-03. End: 2010-04-30.

What was the specific justification for awarding this contract on a sole-source basis, and was adequate market research conducted to ensure no other capable vendors could provide these systems and spa

The provided data states 'NOT COMPETED,' implying a sole-source or limited competition award. A thorough review would require access to the contract file to ascertain the documented justification, such as unique capabilities, urgent need, or lack of market availability. Without this, it's impossible to confirm if adequate market research was performed, raising concerns about potential missed opportunities for better pricing and innovation.

How does the awarded price of $82.6 million compare to industry benchmarks for similar CMWS systems and spares, considering the lack of competitive bidding?

Without competitive bids, establishing a precise benchmark is challenging. However, the absence of competition often leads to prices above market rates. A comparative analysis with publicly available data on similar defense electronics procurements, adjusted for system complexity and quantity, would be necessary. The $82.6 million figure, awarded non-competitively, suggests a potential risk of overpayment compared to what a competitive process might yield.

What is the long-term strategy for ensuring competitive procurement of CMWS systems and spares to maximize value and foster technological advancement within the Department of Defense?

The current sole-source award highlights a potential gap in the long-term strategy for CMWS procurement. Future strategies should prioritize market research to identify potential competitors, consider phased procurements to encourage new entrants, and explore performance-based contracts. Proactive engagement with industry and regular re-evaluation of the competitive landscape are essential to ensure sustained value and drive innovation in critical defense systems.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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 (UEI: 217304393)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $82,618,234

Exercised Options: $82,618,234

Current Obligation: $82,618,234

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T06DT206

IDV Type: IDC

Timeline