DoD's $10.9M Instrumentation Range Support Program III contract awarded to BAE Systems for range support

Contract Overview

Contract Amount: $10,889,312 ($10.9M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2023-11-15

End Date: 2026-09-04

Contract Duration: 1,024 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INSTRUMENTATION RANGE SUPPORT PROGRAM III

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: INSTRUMENTATION RANGE SUPPORT PROGRAM III Key points: 1. Contract awarded to BAE Systems for a period of 1024 days. 2. The contract is a Cost Plus Fixed Fee type, indicating potential for cost overruns. 3. This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code. 4. The contract was awarded via full and open competition. 5. The contract is for delivery order under an existing program. 6. The contract is for support services in Florida.

Value Assessment

Rating: fair

The contract's value of $10.9 million over approximately 3 years for range support services appears to be within a reasonable range for specialized defense support. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces some risk, as it allows for reimbursement of costs plus a fixed fee, which can sometimes lead to higher final costs than fixed-price contracts if not managed tightly. Benchmarking against similar range support contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally promotes competitive pricing and allows the government to select the best value offer. The open competition is a positive indicator for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: A full and open competition means that taxpayers benefit from potentially lower prices due to a wider pool of bidders vying for the contract. This process helps ensure that the government is not overpaying for the required services.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially other Department of Defense entities requiring instrumentation range support. Services delivered likely include maintenance, operation, and support of instrumentation systems used in testing and training ranges. The geographic impact is focused on Florida, where the services will be performed. The contract supports a specialized segment of the defense industry workforce involved in range operations and instrumentation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
Limited information on specific performance metrics and deliverables makes it difficult to assess performance outcomes.
The contract is a delivery order, implying it's part of a larger, potentially multi-year, indefinite-delivery/indefinite-quantity (IDIQ) contract, which can obscure total program spending.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract is for a defined period, providing some clarity on the duration of support.
The contractor, BAE Systems, is a well-established defense contractor with significant experience.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically supporting the operational readiness and testing capabilities of military ranges. The market for range support services is specialized, often involving a limited number of experienced contractors capable of meeting stringent technical and security requirements. Spending in this area is critical for maintaining the effectiveness of training and development programs for advanced defense systems. Comparable spending benchmarks would typically be found within the broader defense logistics and technical support services categories.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of instrumentation range support, it is possible that larger, more experienced contractors like BAE Systems are better positioned to fulfill the requirements. Subcontracting opportunities for small businesses may exist, but this would depend on BAE Systems' subcontracting plan, which is not detailed here. The overall impact on the small business ecosystem for this specific contract appears minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure costs are reasonable and allocable. Transparency is typically managed through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Instrumentation Systems Support
Range Operations and Maintenance
Defense Test and Evaluation Support
Aerospace Systems Support Services
Naval and Aeronautical Systems Support

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring to control costs.
Limited public detail on specific performance metrics and deliverables.
Potential for cost escalation inherent in CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. INSTRUMENTATION RANGE SUPPORT PROGRAM III

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 $10.9 million.

What is the period of performance?

Start: 2023-11-15. End: 2026-09-04.

What is the specific scope of services covered under the Instrumentation Range Support Program III?

The provided data indicates the contract is for 'INSTRUMENTATION RANGE SUPPORT PROGRAM III' and falls under NAICS code 334511 (Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing). While the exact scope is not detailed, it likely encompasses the provision, maintenance, operation, and technical support of instrumentation systems used at military training and testing ranges. This could include radar, telemetry, optical tracking, electronic warfare simulation, and data acquisition systems. The Cost Plus Fixed Fee (CPFF) nature suggests that the contractor will be reimbursed for allowable costs incurred, plus a negotiated fixed fee representing profit. The duration is approximately 1024 days, ending in September 2026.

How does the $10.9 million contract value compare to similar range support contracts awarded by the DoD?

Benchmarking the $10.9 million value requires comparing it to contracts with similar scope, duration, and complexity. Range support can vary significantly, from basic maintenance to complex system integration and operation. Contracts for similar services, especially those involving advanced instrumentation and operational support for major test ranges, can range from several million to tens or even hundreds of millions of dollars over their lifecycle. Given this contract is a delivery order under a larger program (implied by 'PROGRAM III' and 'DELIVERY ORDER'), its $10.9 million value represents a portion of a potentially larger overall investment. Without more specific details on the services and the parent IDIQ contract, a precise comparison is difficult, but it appears to be a moderate-sized award for specialized support.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for range support services?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor's fee is fixed, their incurred costs are reimbursed. If the contractor is inefficient or encounters unforeseen difficulties, the total cost to the government can escalate beyond initial projections. This necessitates robust government oversight to monitor costs, ensure efficiency, and verify that all expenditures are allowable and reasonable. For range support, risks could include unexpected equipment failures, the need for specialized technical expertise not initially anticipated, or changes in operational tempo requiring additional resources. Effective contract management and clear performance standards are crucial to mitigate these risks.

What is BAE Systems Technology Solutions & Services Inc.'s track record with similar DoD contracts?

BAE Systems is a major defense contractor with extensive experience in providing a wide array of services to the Department of Defense, including systems engineering, integration, logistics, and technical support. They have a significant history of managing complex programs and supporting critical defense infrastructure, which likely includes range operations and instrumentation. While specific details on their performance for 'INSTRUMENTATION RANGE SUPPORT PROGRAM III' are not provided, their established presence and broad capabilities suggest a strong capacity to execute such contracts. Government contract databases and performance reports (like Contractor Performance Assessment Reporting System - CPARS) would offer more granular insights into their past performance on similar engagements.

What are the implications of this contract being a 'Delivery Order' under a larger program?

A 'Delivery Order' signifies that this contract is a specific task order issued under a broader, pre-existing contract vehicle, likely an Indefinite Delivery/Indefinite Quantity (IDIQ) contract. This structure allows the government to procure services incrementally as needed, providing flexibility. For taxpayers, it means the total spending on the 'Instrumentation Range Support Program III' could exceed the $10.9 million awarded in this specific order over the life of the parent IDIQ contract. It also implies that the initial competition occurred when the parent IDIQ contract was awarded, and this delivery order was competed among eligible awardees or issued based on pre-negotiated terms. This approach can streamline procurement but requires careful management of the overall IDIQ ceiling and task order values.

How does the geographic focus on Florida impact the contract's execution and oversight?

The contract's focus on Florida means that BAE Systems will be deploying resources and personnel to specific locations within the state, likely associated with Air Force or other DoD testing and training ranges. This geographic concentration can simplify logistical planning and oversight compared to a geographically dispersed contract. However, it also means that any disruptions in Florida (e.g., weather events, local workforce availability) could directly impact contract performance. Oversight will involve on-site presence or regular visits by government representatives to monitor operations, ensure compliance, and manage the CPFF aspects of the contract. The concentration may also allow for more specialized local support networks.

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

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: $10,889,312

Exercised Options: $10,889,312

Current Obligation: $10,889,312

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $3,416,339

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