DoD's $32.4M NAWC Instrumentation Support Contract Awarded to BAE Systems

Contract Overview

Contract Amount: $32,446,357 ($32.4M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2021-01-14

End Date: 2026-09-30

Contract Duration: 2,085 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INSTRUMENTATION RANGE SUPPORT PROGRAM - NAVAL AIR WARFARE CENTER (NAWC)/WEAPONS DIVISION (WD) AT CHINA LAKE FOR ROUTINE MATERIAL ACQUISITION, REMANUFACTURE AND FABRICATION

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: INSTRUMENTATION RANGE SUPPORT PROGRAM - NAVAL AIR WARFARE CENTER (NAWC)/WEAPONS DIVISION (WD) AT CHINA LAKE FOR ROUTINE MATERIAL ACQUISITION, REMANUFACTURE AND FABRICATION Key points: 1. BAE Systems secures a significant contract for instrumentation support, indicating strong performance in a specialized defense sector. 2. The contract's Cost Plus Fixed Fee structure may lead to cost overruns if not closely managed. 3. Lack of small business participation is noted, potentially limiting broader economic impact. 4. The long duration (2085 days) suggests a critical, ongoing need for these specialized services.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex R&D, carries inherent risk of cost escalation. Benchmarking against similar CPFF contracts for instrumentation support is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific price discovery mechanisms within the CPFF structure are not detailed, making it hard to assess optimal price realization.

Taxpayer Impact: Taxpayer funds are allocated for essential defense instrumentation support. The CPFF structure necessitates vigilant oversight to ensure cost-effectiveness and prevent unnecessary expenditure.

Public Impact

Ensures continued operational readiness for naval air warfare capabilities. Supports advanced research and development in defense technology. Provides critical components and services for complex military systems. Potential for technological advancements stemming from the program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing structure
No small business participation
Long contract duration

Positive Signals

Full and open competition
Essential defense support program

Sector Analysis

This contract falls within the Defense sector, specifically supporting naval aviation systems. Spending benchmarks for similar instrumentation and technical support services can vary widely based on program complexity and duration.

Small Business Impact

The contract explicitly states no small business participation (sb: false). This indicates that the prime contractor, BAE Systems, is likely handling the entirety of the work, potentially missing opportunities to leverage small business expertise and foster economic diversity.

Oversight & Accountability

The Department of Defense, through NAWC WD, is the contracting agency. Oversight will be crucial to manage the CPFF structure effectively, ensuring costs align with deliverables and program objectives are met within the allocated timeframe.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing risk
Lack of small business involvement
Potential for technological obsolescence due to long duration
Limited transparency on specific performance metrics and cost drivers

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. INSTRUMENTATION RANGE SUPPORT PROGRAM - NAVAL AIR WARFARE CENTER (NAWC)/WEAPONS DIVISION (WD) AT CHINA LAKE FOR ROUTINE MATERIAL ACQUISITION, REMANUFACTURE AND FABRICATION

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 $32.4 million.

What is the period of performance?

Start: 2021-01-14. End: 2026-09-30.

What is the estimated profit margin for BAE Systems under this Cost Plus Fixed Fee contract, and how does it compare to industry standards for similar services?

The profit margin for a Cost Plus Fixed Fee (CPFF) contract is determined by the 'fixed fee' component, which is negotiated upfront as a percentage of the estimated cost. Without knowing the negotiated fee, it's impossible to determine the exact profit margin. However, typical fixed fees for CPFF contracts in defense services range from 7-15%. Comparing this to industry standards requires access to the specific contract's fee structure and broader market data on similar instrumentation support services.

Given the 'full and open competition' award, what were the key differentiating factors that led to BAE Systems being selected over other potential bidders?

While the award states 'full and open competition,' the specific differentiating factors are not detailed in the provided data. Typically, selection in such competitive bids hinges on a combination of technical capability, past performance, management approach, and price. BAE Systems likely demonstrated superior technical expertise, a proven track record in similar instrumentation support programs, and a compelling management plan that addressed the government's specific needs more effectively than competitors.

How will the long contract duration (2085 days) impact the government's ability to adapt to evolving technological requirements in instrumentation?

The long duration presents a risk of technological obsolescence. The government must ensure robust contract clauses for technical refresh, adaptation to new standards, and performance monitoring. Regular reviews and potential modifications will be necessary to ensure the instrumentation remains current and effective throughout the contract's life, mitigating the risk of the technology becoming outdated before the contract concludes.

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: FA252120R0006

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER RD, 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: $32,446,357

Exercised Options: $32,446,357

Current Obligation: $32,446,357

Subaward Activity

Number of Subawards: 64

Total Subaward Amount: $27,899,649

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA252120D0005

IDV Type: IDC

Timeline