BAE Systems awarded $203M Army intelligence task order for open source capabilities

Contract Overview

Contract Amount: $202,870,539 ($202.9M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: General Services Administration

Start Date: 2019-08-01

End Date: 2025-01-31

Contract Duration: 2,010 days

Daily Burn Rate: $100.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: AWARD OF THE ARMY OPEN SOURCE INTELLIGENCE CAPABILITIES TASK ORDER IN SUPPORT OF US ARMY INSCOM.

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $202.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: AWARD OF THE ARMY OPEN SOURCE INTELLIGENCE CAPABILITIES TASK ORDER IN SUPPORT OF US ARMY INSCOM. Key points: 1. The contract leverages a cost-plus-award-fee structure, common for complex R&D and services where performance is difficult to predefine. 2. Awarded under a full and open competition, indicating a broad market search and potential for competitive pricing. 3. The duration of the contract, spanning over five years, suggests a need for sustained support and development in a critical intelligence area. 4. The task order is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, allowing for flexibility in tasking and funding. 5. The specific NAICS code (541330) points to engineering services, aligning with the development and integration of technical intelligence capabilities. 6. The contract's focus on open source intelligence (OSINT) is a growing area of importance for military and national security agencies.

Value Assessment

Rating: good

The contract's cost-plus-award-fee (CPAF) structure allows for flexibility but requires careful oversight to ensure value. Benchmarking CPAF contracts is challenging due to performance-based incentives, but the total award amount appears reasonable for a multi-year, complex intelligence support task order. The government's ability to award task orders under an existing IDIQ suggests they have already established a competitive baseline for this type of service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, suggesting that multiple vendors were likely solicited and evaluated. The presence of 5 bids (indicated by 'no': 5) points to a healthy level of competition for this specific requirement. This competitive process is designed to drive down costs and ensure the government receives the best value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The primary beneficiaries are the U.S. Army Intelligence and Security Command (INSCOM), receiving enhanced capabilities for open source intelligence analysis. The services delivered likely include the development, integration, and sustainment of systems and tools for collecting, processing, and analyzing open-source data. The geographic impact is primarily within the United States, supporting Army intelligence operations, though the data analyzed may be global. Workforce implications could include specialized roles for intelligence analysts, software developers, and data scientists within BAE Systems and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPAF structure requires diligent performance monitoring to ensure award fees are justified by exceptional performance, preventing cost overruns without commensurate value.
Ensuring the 'open source' aspect doesn't inadvertently include sensitive or proprietary data requiring different handling protocols.
The long contract duration necessitates robust change management processes to adapt to evolving OSINT technologies and threats.

Positive Signals

Awarded under full and open competition, indicating a robust market engagement and competitive pricing.
The task order is part of a larger IDIQ, suggesting a pre-vetted and established contracting vehicle, which can streamline acquisition.
Focus on open source intelligence aligns with critical and evolving national security needs.

Sector Analysis

The contract falls within the Engineering Services sector (NAICS 541330), specifically supporting intelligence and defense applications. The market for intelligence analysis and technology solutions is highly specialized, with significant government spending driven by national security requirements. This contract represents a portion of the broader federal investment in intelligence gathering and processing capabilities, which includes significant spending on software, hardware, and specialized services.

Small Business Impact

The data indicates this contract was not set aside for small businesses ('sb': false). BAE Systems is a large prime contractor. While there is no explicit mention of small business subcontracting goals in the provided data, large prime contracts often include subcontracting plans that aim to utilize small businesses. The impact on the small business ecosystem would depend on whether BAE Systems actively seeks small business partners for specialized services or components.

Oversight & Accountability

Oversight for this task order would typically fall under the contracting officer and program management teams within the U.S. Army INSCOM, supported by the General Services Administration (GSA). The CPAF structure implies performance metrics that are regularly reviewed to determine award fees. Transparency is generally maintained through contract reporting mechanisms, though specific operational details of intelligence support may be classified. The Inspector General's office would have jurisdiction over fraud, waste, and abuse.

Related Government Programs

Army Intelligence Systems Engineering
Intelligence Analysis Tools and Services
Open Source Intelligence Platforms
National Geospatial-Intelligence Agency (NGA) Support Contracts
Defense Intelligence Agency (DIA) Technology Services

Risk Flags

Contract Duration
Performance-Based Fee Structure
Reliance on Single Prime Contractor
Evolving Technology Landscape

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $202.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. AWARD OF THE ARMY OPEN SOURCE INTELLIGENCE CAPABILITIES TASK ORDER IN SUPPORT OF US ARMY INSCOM.

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $202.9 million.

What is the period of performance?

Start: 2019-08-01. End: 2025-01-31.

What is the historical spending trend for similar open source intelligence capabilities contracts awarded by the Army or other intelligence agencies?

Analyzing historical spending trends for similar OSINT contracts requires access to comprehensive federal procurement databases. Generally, spending in this area has seen a significant increase over the past decade due to the proliferation of publicly available data and the recognition of its value in intelligence gathering. Contracts often range from millions to hundreds of millions of dollars, depending on the scope, duration, and technological sophistication required. Factors driving this trend include evolving geopolitical landscapes, the rise of social media, and advancements in data analytics and artificial intelligence, which enable more effective processing of vast amounts of open-source information. Specific trends might show a shift from basic data aggregation to more advanced predictive analytics and AI-driven insights.

How does the pricing structure (Cost Plus Award Fee) compare to other contract types for similar intelligence support services?

Cost Plus Award Fee (CPAF) contracts are often used when the scope of work is not precisely defined, or when performance incentives are crucial. This structure allows the contractor to recover allowable costs plus a fee that is adjusted based on performance against specific criteria. Compared to Fixed Price contracts, CPAF offers more flexibility for the government to adapt to changing requirements but can potentially lead to higher costs if performance incentives are not well-defined or if costs escalate unexpectedly. Other common types include Cost Plus Incentive Fee (CPIF), which shares cost savings or overruns, and Firm-Fixed-Price (FFP), which provides cost certainty but less flexibility. For complex R&D or intelligence services where innovation and adaptability are key, CPAF is a common choice, but it necessitates robust government oversight to manage costs effectively and ensure the award fee truly reflects exceptional performance.

What are the key performance indicators (KPIs) typically used to evaluate performance under this type of CPAF contract for intelligence services?

Key Performance Indicators (KPIs) for a CPAF contract supporting intelligence services like OSINT would likely focus on the effectiveness, timeliness, and accuracy of the intelligence products delivered, as well as the contractor's operational efficiency and innovation. Examples could include: timeliness of intelligence reports (e.g., meeting deadlines for critical information dissemination), accuracy and completeness of analyzed data, successful development and integration of new OSINT tools or algorithms, effectiveness of threat detection or situational awareness provided, adherence to security protocols, and the contractor's ability to adapt to new data sources or analytical techniques. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS) and would directly inform the determination of the award fee, ensuring that the contractor is incentivized to meet or exceed critical mission objectives.

What is BAE Systems' track record with similar intelligence support contracts for the U.S. Army or other federal agencies?

BAE Systems has a significant and extensive track record of providing a wide range of technology solutions and services to the U.S. military and intelligence community, including the U.S. Army. Their portfolio often includes areas such as command, control, communications, computers, and intelligence (C4I) systems, electronic warfare, cyber security, and intelligence analysis support. They have held numerous prime contracts for complex defense and intelligence programs, demonstrating their capability to manage large-scale, technically demanding efforts. While specific performance details for past contracts are often not publicly disclosed due to the sensitive nature of intelligence work, their continued success in winning competitive bids for such programs suggests a generally positive performance history and strong customer relationships within these agencies.

What are the potential risks associated with relying on a single contractor (even if awarded competitively) for critical intelligence capabilities over a multi-year period?

While this contract was awarded competitively, the multi-year duration (2019-2025) introduces potential risks associated with long-term reliance on a single contractor for critical intelligence capabilities. These risks include: vendor lock-in, where the government becomes heavily dependent on the contractor's proprietary systems or processes, making future transitions difficult and costly; potential for complacency or reduced innovation by the contractor once a long-term relationship is established; susceptibility to unforeseen financial or operational issues within the contractor's organization that could disrupt service delivery; and the risk that the contractor's technology or approach may become outdated if not continuously adapted to evolving threats and technological advancements, despite performance incentives. Robust oversight, clear performance metrics, and contingency planning are crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $482,621,497

Exercised Options: $392,412,728

Current Obligation: $202,870,539

Actual Outlays: $-58,342

Subaward Activity

Number of Subawards: 279

Total Subaward Amount: $111,353,452

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU103

IDV Type: IDC

Timeline