DoD Awards BAE Systems $75M for Instrumentation Range Support Through 2028
Contract Overview
Contract Amount: $75,078,653 ($75.1M)
Contractor: BAE Systems Technology Solutions & Services Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-26
End Date: 2028-02-29
Contract Duration: 1,251 days
Daily Burn Rate: $60.0K/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 $75.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: INSTRUMENTATION RANGE SUPPORT PROGRAM III Key points: 1. Significant contract value of $75M awarded to a major defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee contract type. 4. The contract falls within the IT and Defense sectors, focusing on navigation and guidance systems.
Value Assessment
Rating: good
The contract value of $75M over approximately 4 years appears reasonable for specialized instrumentation range support. Benchmarking against similar DoD contracts for navigation and guidance systems would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates a robust price discovery process. This method allows multiple vendors to bid, theoretically leading to more competitive pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
Ensures continued operational capability for critical Air Force testing and training ranges. Supports advanced navigation and guidance systems essential for national security. The contract duration of over 3 years provides stability for the contractor and program continuity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration may lead to scope creep or evolving requirements.
- Lack of small business participation noted.
Positive Signals
- Full and open competition utilized.
- Contract supports critical defense infrastructure.
- Clear end date provides budget certainty.
Sector Analysis
This contract is within the defense sector, specifically supporting instrumentation for testing and training ranges. Spending in this area is crucial for maintaining technological superiority and operational readiness for the Air Force.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it went to BAE Systems. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of the Air Force is the awarding agency, responsible for oversight. The contract type and duration will require diligent monitoring to ensure cost control and adherence to scope.
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 contract type.
- Long contract duration.
- No small business participation indicated.
- Potential for scope creep.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.1 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 $75.1 million.
What is the period of performance?
Start: 2024-09-26. End: 2028-02-29.
What is the historical cost performance of BAE Systems on similar Cost Plus Fixed Fee contracts with the Department of Defense?
Analyzing BAE Systems' past performance on Cost Plus Fixed Fee contracts is crucial for assessing future risk. If they have a history of cost overruns on similar programs, it raises concerns about the potential for this contract to exceed its $75M ceiling. Conversely, a strong track record of cost control would be a positive indicator.
How will the Air Force ensure that the 'fixed fee' component of this contract remains appropriate given potential technological advancements or changes in range requirements over the 4-year period?
The Air Force will likely employ robust contract management and oversight processes. This includes regular performance reviews, change control boards to manage any scope modifications, and potentially incentive structures tied to cost efficiency. Clear communication channels and defined procedures for addressing evolving requirements are essential to prevent the fixed fee from becoming misaligned with actual work performed.
What specific metrics will be used to evaluate the effectiveness of the instrumentation range support provided by BAE Systems?
Effectiveness will likely be measured through key performance indicators (KPIs) related to system uptime, accuracy of data collection, reliability of navigation and guidance systems, and responsiveness to support requests. The contract may also include specific deliverables and milestones that must be met. User feedback from range operators and adherence to technical specifications will also be critical evaluation factors.
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: Compagnie DE Developpement DE L'eau S.A.
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: $76,010,518
Exercised Options: $75,078,653
Current Obligation: $75,078,653
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $60,592,741
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
Start Date: 2024-09-26
Current End Date: 2028-02-29
Potential End Date: 2028-02-29 00:00:00
Last Modified: 2025-09-23
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