DoD Awards $834M for Combat Assault Vehicles, Sole-Source Contract to United Defense L.P
Contract Overview
Contract Amount: $1,338,155,303 ($1.3B)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2001-05-02
End Date: 2008-10-30
Contract Duration: 2,738 days
Daily Burn Rate: $488.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200112!001338!2100!AE07 !TACOM - WARREN !DAAE0701CM016 !A!N!*!N! !20010502!20041231!834476079!824825459!175406842!N!UNITED DEFENSE, L P !1100 BAIRS ROAD !YORK !PA!17405!87048!133!42!YORK !YORK !PENN !+000228044944!N!Y!000681605313!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A4A!COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !336992!*!*!3! ! ! !*!*!*!B!*!*!A! !D !N!J!1!001!N!1G!A!Y!F! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001!
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $1.34 billion to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: 200112!001338!2100!AE07 !TACOM - WARREN !DAAE0701CM016 !A!N!*!N! !20010502!20041231!834476079!824825459!175406842!N!UNITED DEFENSE, L P !1100 BAIRS ROAD !YORK !PA!17405!87048!133!42!YORK !YORK !PENN !+000228044944!N!Y!000681605313!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A4A!… Key points: 1. Significant investment in tracked combat vehicles. 2. Sole-source award raises competition concerns. 3. Long contract duration suggests ongoing need. 4. High value contract for specialized defense equipment.
Value Assessment
Rating: questionable
The contract value of $834M over approximately 7.5 years is substantial. Without comparable sole-source contracts for similar tracked combat vehicles, a direct per-unit cost benchmark is difficult to establish, raising questions about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this large contract likely results in a higher price than a competitively bid contract, impacting taxpayer funds negatively.
Public Impact
Enhances military ground force capabilities with advanced combat vehicles. Supports a specific defense contractor and its supply chain. Potential for long-term reliance on a single provider for critical equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in pricing.
- Long-term contract duration.
Positive Signals
- Addresses critical defense needs.
- Supports domestic manufacturing.
Sector Analysis
This contract falls within the Defense sector, specifically for the manufacturing of combat vehicles. Spending in this area is driven by national security requirements and technological advancements in military hardware.
Small Business Impact
The data does not indicate any specific provisions or subcontracting opportunities for small businesses within this sole-source contract. Further investigation would be needed to determine any small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Accountability for the justification of the sole-source award and contract performance is crucial.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited transparency
- Long contract duration
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, pa, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.34 billion to BAE SYSTEMS LAND & ARMAMENTS L.P.. 200112!001338!2100!AE07 !TACOM - WARREN !DAAE0701CM016 !A!N!*!N! !20010502!20041231!834476079!824825459!175406842!N!UNITED DEFENSE, L P !1100 BAIRS ROAD !YORK !PA!17405!87048!133!42!YORK !YORK !PENN !+000228044944!N!Y!000681605313!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A4A!COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !336992!*!*!3! ! ! !*!*!*!B!*!*!A! !D !N!J!1!001!N!1G!A!Y!F! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001!
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 $1.34 billion.
What is the period of performance?
Start: 2001-05-02. End: 2008-10-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without access to the specific contract file, it's impossible to detail the exact justification. However, the lack of competition inherently limits price discovery and suggests potential for higher costs compared to a fully competitive process.
How does the per-unit cost of these combat vehicles compare to similar, competitively procured systems, if any exist?
Direct comparison is challenging due to the sole-source nature and specific classification of the vehicles. However, sole-source contracts often carry a premium. A thorough cost analysis by the agency, comparing the awarded price to historical data or independent cost estimates, would be necessary to assess value for money and identify potential overpricing.
What measures are in place to ensure the effectiveness and timely delivery of these critical combat vehicles under a long-term, sole-source agreement?
Effectiveness and delivery are typically managed through performance metrics, milestones, and quality assurance clauses within the contract. The Defense Contract Management Agency (DCMA) would likely oversee performance. However, the lack of competition means the government has less leverage to drive down costs or improve terms if performance issues arise, making robust oversight essential.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: BAE Systems Land & Armaments, L.P. (UEI: 876861790)
Address: 1100 BAIRS ROAD, YORK, PA, 17405
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2001-05-02
Current End Date: 2008-10-30
Potential End Date: 2008-10-30 00:00:00
Last Modified: 2021-05-10
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