DoD awards $480M for airborne radar equipment, with BAE Systems securing the contract

Contract Overview

Contract Amount: $47,988,596 ($48.0M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2002-12-27

End Date: 2008-02-15

Contract Duration: 1,876 days

Daily Burn Rate: $25.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200303!000095!5700!GU72 !ASC/RWKR !F3365703C4315 !A!N! !N! !20021227!20070203!795958482!876861790!217304393!N!BAE SYSTEMS INFORMATION & ELEC!450 PULASKI ROAD !GREENLAWN !NY!11740!30543!103!36!GREENLAWN !SUFFOLK !NEW YORK !+000023875000!Y!N!000047750000!5841!RADAR EQUIPMENT, AIRBORNE !A1C!OTHER AIRCRAFT EQUIPMENT !3000!NOT DISCERNABLE OR CLASSIFIED !336413!E! !1! ! ! ! ! !99990909!B! ! !N!Z!B!N!J!1!001!N!4A!Z!Y!A! ! !N!C!N! ! ! !A!A!A!A!* !A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: GREENLAWN, SUFFOLK County, NEW YORK, 11740

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $48.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: 200303!000095!5700!GU72 !ASC/RWKR !F3365703C4315 !A!N! !N! !20021227!20070203!795958482!876861790!217304393!N!BAE SYSTEMS INFORMATION & ELEC!450 PULASKI ROAD !GREENLAWN !NY!11740!30543!103!36!GREENLAWN !SUFFO… Key points: 1. Contract value of $479.9M over its period of performance. 2. BAE Systems Information and Electronic Systems Integration Inc. is the sole contractor. 3. The contract was awarded by the Department of Defense. 4. The period of performance spans from December 2002 to February 2008. 5. The contract is for airborne radar equipment. 6. The North American Industry Classification System (NAICS) code is 336413, indicating a focus on other aircraft parts and auxiliary equipment manufacturing.

Value Assessment

Rating: fair

The total contract value is approximately $480 million. Without specific details on the quantity of radar equipment or associated services, a precise value-for-money assessment is challenging. However, the duration of the contract (over 5 years) suggests a significant, long-term need for these components. Benchmarking against similar airborne radar systems would require more granular data on specifications and performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed and was awarded on a sole-source basis to BAE Systems Information and Electronic Systems Integration Inc. The data does not provide the justification for this sole-source award, which could be due to proprietary technology, existing system integration, or other factors. The lack of competition means there was no opportunity for price discovery through a bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices.

Public Impact

The primary beneficiaries are the Department of Defense and its aviation units requiring advanced airborne radar capabilities. The contract delivers essential radar equipment, crucial for surveillance, targeting, and navigation in military aircraft. The geographic impact is primarily within the United States, where BAE Systems operates and where the equipment will be deployed. This contract supports jobs within the defense manufacturing sector, specifically in the area of electronic systems and aircraft components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced innovation.
Limited transparency regarding the justification for a sole-source award.
The long performance period could indicate potential for cost overruns if not managed effectively.

Positive Signals

Award to a known defense contractor (BAE Systems) suggests a level of established capability and reliability.
The contract addresses a critical defense need for advanced radar technology.
The fixed-price nature of the contract (Firm Fixed Price) can provide cost certainty if well-defined.

Sector Analysis

The defense electronics sector is characterized by high technological complexity, significant R&D investment, and long product lifecycles. Airborne radar systems are a critical component of modern military aviation, contributing to situational awareness and mission effectiveness. Spending in this area is substantial, driven by continuous technological advancements and evolving geopolitical threats. BAE Systems is a major player in this market, providing a wide range of defense electronics and aerospace solutions.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely limited unless BAE Systems engages in subcontracting with small businesses for specific components or services. Further investigation into BAE Systems' subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management and acquisition oversight bodies, such as the Defense Contract Management Agency (DCMA). Accountability measures would be defined by the contract terms, including performance standards and reporting requirements. Transparency is limited by the sole-source nature and the lack of publicly available justification for the award.

Related Government Programs

Airborne Surveillance Systems
Defense Electronics Manufacturing
Aircraft Radar Technology
Military Aviation Equipment

Risk Flags

Sole-source award lacks competitive justification.
Limited public information on contract specifics and performance.
Long contract duration may present management challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. 200303!000095!5700!GU72 !ASC/RWKR !F3365703C4315 !A!N! !N! !20021227!20070203!795958482!876861790!217304393!N!BAE SYSTEMS INFORMATION & ELEC!450 PULASKI ROAD !GREENLAWN !NY!11740!30543!103!36!GREENLAWN !SUFFOLK !NEW YORK !+000023875000!Y!N!000047750000!5841!RADAR EQUIPMENT, AIRBORNE !A1C!OTHER AIRCRAFT EQUIPMENT !3000!NOT DISCERNABLE OR CLASSIFIED !336413!E! !1! ! ! ! ! !99990909!B

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $48.0 million.

What is the period of performance?

Start: 2002-12-27. End: 2008-02-15.

What was the specific justification for awarding this contract on a sole-source basis to BAE Systems?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services. This could be due to factors such as proprietary technology, unique capabilities, urgent and compelling needs, or the need for compatibility with existing systems. Without this justification, it is difficult to assess whether the sole-source nature was appropriate and if it resulted in fair pricing for the government.

How does the contract value of $479.9 million compare to similar airborne radar equipment procurements by the DoD?

A direct comparison of the $479.9 million contract value to similar procurements is challenging without more specific details about the scope of work, the type and quantity of radar equipment, and the technological sophistication involved. Airborne radar systems can vary significantly in complexity and cost. To benchmark effectively, one would need to identify contracts for radar systems with comparable specifications, performance capabilities, and intended use (e.g., fighter jets vs. surveillance aircraft). The duration of this contract (over 5 years) also influences the total value, making a simple dollar-for-dollar comparison potentially misleading.

What are the key performance indicators (KPIs) associated with this contract, and how has BAE Systems performed against them?

The provided data does not specify the key performance indicators (KPIs) established for this contract. Typically, defense contracts include detailed performance requirements related to system functionality, reliability, maintainability, and delivery schedules. Assessing BAE Systems' performance would require access to contract performance reports, acceptance records, and any documented instances of contractor non-compliance or exceptional performance. Without this information, it is impossible to evaluate the contractor's track record on this specific award.

What is the historical spending pattern for airborne radar equipment by the Department of Defense, and how does this contract fit within that trend?

Historical spending on airborne radar equipment by the Department of Defense is substantial and fluctuates based on modernization programs, new platform acquisitions, and geopolitical requirements. This $479.9 million contract, awarded between 2002 and 2008, represents a significant investment during that period for a specific type of radar system. To understand its place in the trend, one would need to analyze DoD's overall budget allocations for radar systems across different fiscal years and compare the value and scope of this contract to other major radar procurements during the same timeframe.

Are there any known risks associated with BAE Systems' performance on defense contracts of this nature?

BAE Systems is a large, established defense contractor with a long history of delivering complex systems. While major contractors generally have robust processes, risks can still arise. Potential risks could include schedule delays, cost overruns (though less likely with firm-fixed-price contracts if scope is well-defined), technical performance issues, or integration challenges with existing platforms. A thorough risk assessment would involve reviewing past performance records, any contract disputes, and the specific technical challenges inherent in advanced radar systems. However, the provided data does not highlight any specific, widely known risks directly tied to BAE Systems' performance on this particular contract.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 450 PULASKI ROAD, GREENLAWN, NY, 01

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline