DoD awards $11.7M for Wheeled Trucks, BAE Systems wins contract

Contract Overview

Contract Amount: $11,703,775 ($11.7M)

Contractor: BAE Systems Survivability Systems LLC

Awarding Agency: Department of Defense

Start Date: 2001-09-06

End Date: 2007-09-30

Contract Duration: 2,215 days

Daily Burn Rate: $5.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200112!002950!2100!AE07 !TACOM - WARREN !DAAE0701CS105 !A!N!*!N! !20010906!20060901!101487239!101487239!101487239!N!OGARA-HESS & EISENHARDT !9113 LE SAINT DRIVE !FAIRFIELD !OH!45014!25970!017!39!FAIRFIELD !BUTLER !OHIO !+000001332000!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4B!NON-COMBAT VEHICLES !1DAD!TRUCKS <1T !327910!*!*!3! ! ! !*!*!*!B!*!*!A! !D !N!U!1!001!N!1G!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: WEST CHESTER, BUTLER County, OHIO, 45014, UNITED STATES OF AMERICA

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to BAE SYSTEMS SURVIVABILITY SYSTEMS LLC for work described as: 200112!002950!2100!AE07 !TACOM - WARREN !DAAE0701CS105 !A!N!*!N! !20010906!20060901!101487239!101487239!101487239!N!OGARA-HESS & EISENHARDT !9113 LE SAINT DRIVE !FAIRFIELD !OH!45014!25970!017!39!FAIRFIELD !BUTLE… Key points: 1. Contract awarded to BAE Systems for non-combat vehicles. 2. Significant spending on trucks and truck tractors. 3. Potential for higher costs due to sole-source award. 4. IT sector not directly involved, but vehicle tech is relevant.

Value Assessment

Rating: fair

The contract value is $11,703,774.91. Without specific benchmarks for similar wheeled vehicle contracts, it's difficult to definitively assess pricing. However, the 'NOT COMPETED' status raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as competitive pressure is absent.

Taxpayer Impact: The lack of competition could result in the government paying more than necessary for these wheeled vehicles, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying due to the sole-source nature of the award. The Department of the Army is acquiring non-combat vehicles. The contract supports the manufacturing of trucks and truck tractors. The duration of the contract is over 2200 days.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Defense sector, specifically for wheeled vehicles. Spending benchmarks for this category can vary widely based on vehicle type and customization, but a lack of competition often inflates costs.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to BAE Systems, a large defense contractor.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further oversight is needed to ensure the pricing is fair and reasonable, and to understand why competition was not pursued.

Related Government Programs

Risk Flags

Tags

abrasive-product-manufacturing, department-of-defense, oh, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to BAE SYSTEMS SURVIVABILITY SYSTEMS LLC. 200112!002950!2100!AE07 !TACOM - WARREN !DAAE0701CS105 !A!N!*!N! !20010906!20060901!101487239!101487239!101487239!N!OGARA-HESS & EISENHARDT !9113 LE SAINT DRIVE !FAIRFIELD !OH!45014!25970!017!39!FAIRFIELD !BUTLER !OHIO !+000001332000!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4B!NON-COMBAT VEHICLES !1DAD!TRUCKS <1T !327910!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS SURVIVABILITY SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2001-09-06. End: 2007-09-30.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without specific documentation, it's impossible to determine the exact reason. However, the absence of competition raises concerns about whether the government explored all avenues to secure the best value.

How does the per-unit cost of these trucks compare to similar vehicles procured through competitive means?

Without access to specific unit cost data and comparable contract information, a direct per-unit cost comparison is not possible. However, sole-source contracts are generally expected to be less cost-effective than competitively awarded ones due to the lack of market pressure to reduce prices.

What is the long-term strategic value of this sole-source procurement for the Department of the Army?

The long-term strategic value depends on the specific role these trucks play in the Army's operations and logistics. If these vehicles are critical and BAE Systems is the only viable provider, the sole-source award might be strategically justified despite the cost implications. However, continuous evaluation is needed to ensure ongoing necessity.

Industry Classification

NAICS: ManufacturingOther Nonmetallic Mineral Product ManufacturingAbrasive Product Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DAAE0701RS173

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 9113 LE SAINT DR, FAIRFIELD, OH, 45014

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

Financial Breakdown

Contract Ceiling: $15,125,177

Exercised Options: $15,125,177

Current Obligation: $11,703,775

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2001-09-06

Current End Date: 2007-09-30

Potential End Date: 2007-09-30 00:00:00

Last Modified: 2015-05-06

More Contracts from BAE Systems Survivability Systems LLC

View all BAE Systems Survivability Systems LLC federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending