DoD's $12.6M contract for Naval Air Warfare Center support awarded to BAE Systems

Contract Overview

Contract Amount: $12,659,716 ($12.7M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2020-01-13

End Date: 2020-12-31

Contract Duration: 353 days

Daily Burn Rate: $35.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FUNDING FOR MATERIAL ACQUISITION AND TRANSPORTATION FOR NAVAL AIR WARFARE CENTER WEAPONS DIVISION - CHINA LAKE SUPPORT

Place of Performance

Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: FUNDING FOR MATERIAL ACQUISITION AND TRANSPORTATION FOR NAVAL AIR WARFARE CENTER WEAPONS DIVISION - CHINA LAKE SUPPORT Key points: 1. Contract awarded to a single, large defense contractor, indicating a focus on specialized capabilities. 2. The contract duration of 353 days suggests a project with a defined, relatively short-term scope. 3. The 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code points to a highly technical and specialized area of defense support. 4. Awarded under full and open competition, suggesting a broad market solicitation despite the specialized nature of the work. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not closely managed. 6. This award represents a small fraction of the overall defense budget, highlighting its specific, targeted nature.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. While the total award amount is $12.6 million, the actual profit margin (the fixed fee) is not detailed here. Comparisons to similar contracts for specialized naval aviation support would be necessary to determine if the pricing is competitive. Without further data on the specific services rendered and their efficiency, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that the solicitation was made available to all responsible sources. The number of bidders is not specified, but the fact that it was competed broadly suggests an effort to ensure a competitive marketplace for these specialized services. The outcome of this competition, leading to an award to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC., implies that their proposal was deemed the most advantageous based on the evaluation criteria. The level of competition, even if only one bid was ultimately submitted, is a positive indicator for price discovery.

Taxpayer Impact: A full and open competition process aims to leverage market forces to secure the best possible pricing for taxpayers. By allowing all qualified vendors to bid, the government increases the likelihood of receiving competitive offers, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Naval Air Warfare Center Weapons Division, which receives critical support for its operations. Services delivered likely include research, development, testing, and evaluation support for naval aviation systems. The geographic impact is centered around the Naval Air Warfare Center Weapons Division facilities, primarily China Lake, California, though support functions might be distributed. Workforce implications include employment for highly skilled technical and engineering personnel within BAE Systems and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not rigorously monitored.
Lack of specific performance metrics makes it difficult to assess efficiency and true value.
Reliance on a single large contractor may limit future competition or innovation.

Positive Signals

Awarded through full and open competition, suggesting a structured procurement process.
BAE Systems is a well-established defense contractor with a track record in similar support roles.
The contract addresses a specific, critical need within naval air warfare capabilities.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on the manufacturing and support of advanced navigation and guidance systems for naval aviation. The market for such specialized defense support is characterized by high barriers to entry due to technological complexity and stringent security requirements. Major defense contractors like BAE Systems dominate this space. Spending in this sub-sector is driven by national security priorities and the continuous need to modernize military platforms and systems. Comparable spending benchmarks would involve analyzing other contracts for similar system development and sustainment services within the DoD.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, BAE Systems, is a large corporation. There is no explicit information provided regarding subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contractors often utilize small businesses for specialized components or services, which could indirectly benefit them. Further investigation into subcontracting reports would be needed for a comprehensive analysis.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management structures, likely involving the Naval Air Warfare Center Weapons Division. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting of costs and progress. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Research and Development
Naval Weapons Systems Support
Aeronautical Systems Engineering Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Potential for supply chain disruptions for specialized materials.
Risk of technological obsolescence in advanced systems.
Dependence on a single large contractor may limit future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. FUNDING FOR MATERIAL ACQUISITION AND TRANSPORTATION FOR NAVAL AIR WARFARE CENTER WEAPONS DIVISION - CHINA LAKE SUPPORT

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2020-01-13. End: 2020-12-31.

What is the specific nature of the 'material acquisition and transportation' support provided under this contract?

The data provided indicates the contract is for 'FUNDING FOR MATERIAL ACQUISITION AND TRANSPORTATION FOR NAVAL AIR WARFARE CENTER WEAPONS DIVISION - CHINA LAKE SUPPORT'. While the NAICS code (334511) points to 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing', the specific 'material acquisition and transportation' likely refers to the procurement and logistical movement of specialized components, equipment, or materials necessary for the research, development, testing, or sustainment of these advanced naval aviation systems at the China Lake facility. This could include raw materials, specialized parts, prototypes, or testing apparatus. The acquisition aspect involves sourcing and purchasing these items, while transportation ensures they reach the designated location for use in support of the Naval Air Warfare Center Weapons Division's mission.

How does the Cost Plus Fixed Fee (CPFF) contract structure potentially impact cost control for this $12.6 million award?

The Cost Plus Fixed Fee (CPFF) structure means that BAE Systems will be reimbursed for all allowable costs incurred during the contract performance, plus a predetermined fixed fee representing their profit. This structure can be advantageous for complex projects where the scope or costs are difficult to estimate precisely upfront, as it allows for flexibility. However, it also presents a risk for cost control. Unlike fixed-price contracts, there is less direct financial incentive for the contractor to minimize costs, as their profit is fixed regardless of the final cost. Effective oversight, rigorous auditing of allowable costs, and clear performance metrics are crucial to prevent cost overruns and ensure value for money under a CPFF arrangement. The government must actively manage the contractor's spending to ensure it remains reasonable and necessary for contract completion.

What is BAE Systems' track record with similar contracts for the Naval Air Warfare Center?

BAE Systems is a major defense contractor with extensive experience supporting naval aviation and warfare centers. While specific details on their past performance with the Naval Air Warfare Center Weapons Division for 'material acquisition and transportation' are not provided in this data snippet, the company routinely engages in complex R&D, systems integration, and sustainment contracts for the U.S. Navy and other military branches. Their track record generally includes large-scale programs involving advanced technology development and manufacturing. A deeper dive into contract databases (like FPDS or SAM.gov) and performance review systems (like CPARS) would be necessary to assess their specific performance history, including timeliness, quality, and cost management on comparable naval aviation support contracts.

Can we compare the value of this $12.6 million contract to other similar support contracts within the DoD?

Directly comparing the 'value' of this $12.6 million contract without more context is difficult. The total award amount is a starting point, but 'value' encompasses efficiency, effectiveness, and the criticality of the support provided. To benchmark this contract, one would need to identify similar contracts awarded to other entities or by different Navy commands for comparable services (e.g., logistics, material acquisition, technical support for aeronautical systems) within a similar timeframe. Factors like contract duration, specific deliverables, labor rates, and overhead structures would need to be analyzed. The NAICS code 334511 suggests a specialized niche, making direct comparisons potentially limited. However, analyzing the cost per period (e.g., per month) or cost per deliverable, if known, against industry averages or similar government contracts could provide a basis for value assessment.

What are the potential risks associated with the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector for this contract?

The sector itself presents several inherent risks. Technological obsolescence is a significant concern, as advancements in sensor, navigation, and guidance systems can rapidly outpace existing platforms. The complexity of these systems means that development and integration challenges are common, potentially leading to schedule delays and cost overruns. Furthermore, the supply chain for specialized components can be fragile, susceptible to disruptions, and may involve single-source suppliers, increasing risk. Ensuring the reliability and accuracy of these critical systems is paramount, as failures can have severe operational consequences. Cybersecurity risks are also substantial, given the increasing connectivity and reliance on digital systems for navigation and guidance.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA252113R0008

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER ROAD, 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: $12,659,716

Exercised Options: $12,659,716

Current Obligation: $12,659,716

Actual Outlays: $1,072,771

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA252116D0010

IDV Type: IDC

Timeline