DoD Awards $834M for Combat Assault Vehicles, Sole-Sourced to BAE Systems
Contract Overview
Contract Amount: $1,072,665,462 ($1.1B)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2000-12-08
End Date: 2013-01-30
Contract Duration: 4,436 days
Daily Burn Rate: $241.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200103!000622!2100!AE07 !TACOM - WARREN !DAAE0701CN030 !A!N!*!N! !20001208!20030903!834476079!824825459!175406842!N!UNITED DEFENSE, L P !1100 BAIRS ROAD !YORK !PA!17405!87048!133!42!YORK !YORK !PENN !+000022158138!N!N!000000000000!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A1A!AIRFRAMES AND SPARES !1AIA!BLACKHAWK (UH-60) UTTAS !332912!*!*!3! ! ! !*!*!*!B!*!*!A! !C !N!J!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001!
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $1.07 billion to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: 200103!000622!2100!AE07 !TACOM - WARREN !DAAE0701CN030 !A!N!*!N! !20001208!20030903!834476079!824825459!175406842!N!UNITED DEFENSE, L P !1100 BAIRS ROAD !YORK !PA!17405!87048!133!42!YORK !YORK !PENN !+000022158138!N!N!000000000000!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A1A!… Key points: 1. Significant contract value of $834M for tracked combat vehicles. 2. Sole-source award to BAE Systems raises competition concerns. 3. Long contract duration of over 12 years may indicate potential for cost overruns. 4. Spending concentrated in the Defense sector, specifically armored vehicle manufacturing.
Value Assessment
Rating: concerning
The contract value of $834M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar armored vehicle contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this large sole-source award likely results in a higher cost to taxpayers than a competitively bid contract.
Public Impact
Taxpayers may be overpaying for combat vehicles due to the sole-source nature of the award. The extended contract period could lead to unforeseen costs and inefficiencies. Lack of transparency in the procurement process raises accountability questions. Potential for reduced innovation due to absence of competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
- Potential for cost overruns
Positive Signals
- Definitive contract provides clear terms
- Firm fixed price contract limits cost risk for government
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of military armored vehicles. The value of $834M is significant for this niche, and the sole-source nature warrants scrutiny.
Small Business Impact
The data does not indicate any subcontracting to small businesses. This contract appears to be fully executed by a large prime contractor, potentially missing opportunities for small business participation.
Oversight & Accountability
The sole-source award and long duration suggest a need for robust oversight to ensure the contractor is meeting performance requirements and delivering value. Accountability for cost and schedule 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 limits competition and price discovery.
- Long contract duration increases risk of cost overruns and inefficiencies.
- Lack of transparency in procurement justification.
- Potential for contractor lock-in.
- No indication of small business participation.
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 $1.07 billion to BAE SYSTEMS LAND & ARMAMENTS L.P.. 200103!000622!2100!AE07 !TACOM - WARREN !DAAE0701CN030 !A!N!*!N! !20001208!20030903!834476079!824825459!175406842!N!UNITED DEFENSE, L P !1100 BAIRS ROAD !YORK !PA!17405!87048!133!42!YORK !YORK !PENN !+000022158138!N!N!000000000000!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A1A!AIRFRAMES AND SPARES !1AIA!BLACKHAWK (UH-60) UTTAS !332912!*!*!3! ! ! !*!*!*!B!*!*!A! !C !N!J!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !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 $1.07 billion.
What is the period of performance?
Start: 2000-12-08. End: 2013-01-30.
What is the justification for the sole-source award, and was a full and open competition truly not feasible?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without detailed documentation, it's impossible to confirm if a full and open competition was genuinely not feasible. This lack of transparency hinders the assessment of whether taxpayers received the best possible value.
How does the per-unit cost compare to similar tracked combat vehicles procured competitively?
Without competitive benchmarks, it is challenging to determine if the pricing is fair. A comparative analysis with similar vehicles procured through competitive means would be necessary to assess if the government is paying a premium due to the sole-source nature of this contract.
What mechanisms are in place to ensure cost control and performance throughout the 12-year contract duration?
Given the extensive 12-year duration, robust oversight mechanisms are critical. This includes regular performance reviews, audits, and clear contract clauses for managing scope changes and cost escalations. The firm fixed-price nature offers some protection, but vigilance is needed to prevent scope creep or quality degradation.
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $71,368,750
Exercised Options: $71,368,750
Current Obligation: $1,072,665,462
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2000-12-08
Current End Date: 2013-01-30
Potential End Date: 2013-01-30 00:00:00
Last Modified: 2023-06-14
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