DoD's $59.4M Instrumentation Range Support Program III contract awarded to BAE Systems for range support

Contract Overview

Contract Amount: $59,445,837 ($59.4M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-16

End Date: 2028-03-31

Contract Duration: 1,323 days

Daily Burn Rate: $44.9K/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 $59.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: INSTRUMENTATION RANGE SUPPORT PROGRAM III Key points: 1. Contract value of $59.4 million over its period of performance. 2. BAE Systems Technology Solutions & Services Inc. is the primary contractor. 3. The contract is for instrumentation range support, crucial for testing and evaluation. 4. Awarded by the Department of the Air Force, indicating a focus on aerospace capabilities. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. The period of performance spans from August 2024 to March 2028. 7. This contract falls under the NAICS code 334511 for Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.

Value Assessment

Rating: fair

The contract value of $59.4 million for a period of approximately 5.5 years needs further benchmarking against similar instrumentation range support contracts. Without specific details on the scope of services and deliverables, it is difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type introduces a degree of risk, as costs can escalate beyond initial estimates, potentially impacting the overall value proposition if not rigorously overseen. Benchmarking against historical spending for similar support programs would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring that the government receives competitive pricing. The number of bidders and the specific evaluation criteria used would provide further insight into the intensity of the competition and its impact on the final award.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces, leading to a more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially other branches of the Department of Defense requiring advanced instrumentation range support. Services delivered include the maintenance, operation, and enhancement of instrumentation systems used in testing and evaluation environments. The geographic impact is likely concentrated in areas where the Air Force operates major testing and training ranges, such as Florida. Workforce implications may include the employment of skilled technicians, engineers, and support staff involved in maintaining and operating complex instrumentation systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
The broad scope of 'instrumentation range support' could lead to scope creep if not clearly defined and managed.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contractor, BAE Systems, is a large defense contractor with significant experience in similar programs.
The contract duration provides stability for essential range support services.

Sector Analysis

This contract falls within the defense sector, specifically supporting the operational readiness and testing capabilities of the U.S. Air Force. The market for instrumentation range support is specialized, involving companies with expertise in advanced sensor technology, data acquisition, and system integration. Comparable spending benchmarks would involve looking at other large-scale contracts for range operations and maintenance across military branches, which can run into hundreds of millions of dollars annually.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. However, the prime contractor, BAE Systems, may engage small businesses as subcontractors for specialized services or components, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures will be tied to the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification. Transparency will depend on the level of detail made public regarding contract performance and expenditures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Instrumentation Systems Support
Test and Evaluation Range Operations
Aerospace Systems Manufacturing
Defense Instrumentation and Control Systems

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Lack of detailed performance metrics makes objective assessment of value difficult.
Potential for scope creep if 'instrumentation range support' is not precisely defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.4 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 $59.4 million.

What is the period of performance?

Start: 2024-08-16. End: 2028-03-31.

What is the historical performance of BAE Systems Technology Solutions & Services Inc. on similar government contracts, particularly those involving instrumentation range support?

BAE Systems Technology Solutions & Services Inc. has a substantial track record with the U.S. government, including numerous contracts related to defense systems, engineering services, and operational support. For instrumentation range support, their experience likely encompasses the maintenance, upgrade, and operation of complex sensor networks, data processing systems, and communication infrastructure critical for testing and training environments. Analyzing their past performance on similar contracts would involve reviewing contract award histories, performance evaluations (e.g., CPARS reports if publicly available), and any documented instances of cost overruns or schedule delays. A review of their portfolio would likely reveal experience with large-scale, multi-year programs requiring significant technical expertise and program management capabilities, similar to the Instrumentation Range Support Program III.

How does the estimated cost per year for this contract compare to industry benchmarks for similar instrumentation range support services?

The total contract value is approximately $59.4 million over an estimated period of 1323 days (roughly 3.6 years of active performance, considering the start and end dates). This equates to an average annual cost of roughly $16.5 million. Benchmarking this figure requires detailed comparison with contracts for similar scope and complexity. Factors influencing cost include the specific types of instrumentation, the geographic location and size of the ranges, the level of technological sophistication required, and the specific services (e.g., maintenance, operation, upgrades). Without a detailed breakdown of the services and the specific ranges supported, a precise benchmark is challenging. However, for large-scale, specialized defense support services, this annual figure appears within a plausible range, though a deeper dive into the specific deliverables and market rates for comparable services would be necessary for a definitive assessment of value for money.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract, and how are they monitored?

The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. Typically, for instrumentation range support, KPIs might include system uptime/availability, data accuracy and integrity, response times for maintenance and repairs, successful completion of test events, and adherence to safety protocols. Monitoring these KPIs would usually involve regular reporting by the contractor, site inspections, and performance reviews conducted by the government's contracting officer's representative (COR) and program managers. The Cost Plus Fixed Fee structure necessitates close monitoring of costs against the fixed fee and the overall target cost, alongside performance against any defined technical or operational requirements.

What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) contract type in this context, and what mitigation strategies are in place?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as the government agrees to reimburse all allowable costs plus a predetermined fixed fee. This can lead to cost overruns if the initial cost estimates are inaccurate or if the contractor's efficiency is low. Mitigation strategies typically involve robust government oversight, detailed cost accounting standards, regular audits, and clear definition of allowable costs. The contracting officer and program team must diligently monitor expenditures, review contractor cost proposals, and ensure that all costs incurred are reasonable, allocable, and necessary for contract performance. Performance metrics, if established, also serve as a mitigation tool by linking fee realization to successful outcomes.

How does this contract align with the Department of the Air Force's broader strategic goals related to readiness, modernization, and technological advancement?

This contract directly supports the Department of the Air Force's strategic goals by ensuring the operational readiness of critical testing and evaluation ranges. These ranges are essential for developing, validating, and deploying advanced aerospace systems, which is fundamental to maintaining technological superiority. By providing reliable instrumentation range support, the contract enables the Air Force to conduct realistic training exercises and rigorous testing of new aircraft, weapons systems, and associated technologies. This, in turn, contributes to modernization efforts and fosters technological advancement by providing the infrastructure necessary for innovation and performance verification.

What is the historical spending trend for instrumentation range support programs within the Department of Defense or the Air Force?

Historical spending on instrumentation range support programs within the Department of Defense and the Air Force can be substantial and fluctuate based on modernization cycles, geopolitical needs, and specific program requirements. These programs are critical for maintaining the infrastructure that supports testing and evaluation of complex military systems. Annual spending can range from tens of millions to hundreds of millions of dollars across various contracts and programs supporting different ranges and services. Factors influencing spending include the age and complexity of existing instrumentation, the pace of technological upgrades required, and the operational tempo of testing activities. Analyzing past budgets and contract awards for similar support functions would reveal trends in investment and the types of services prioritized.

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: $59,445,837

Exercised Options: $59,445,837

Current Obligation: $59,445,837

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $17,911,375

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