DoD's $16.17M Instrumentation Range Support Program III contract awarded to BAE Systems for range support

Contract Overview

Contract Amount: $16,168,410 ($16.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-05

End Date: 2027-02-05

Contract Duration: 792 days

Daily Burn Rate: $20.4K/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 $16.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: INSTRUMENTATION RANGE SUPPORT PROGRAM III Key points: 1. Contract awarded to a single, established defense contractor, indicating a focus on specialized capabilities. 2. The contract duration of approximately 2.6 years suggests a medium-term need for these services. 3. The 'Cost Plus Fixed Fee' pricing structure may incentivize cost overruns if not closely monitored. 4. Awarded by the Department of the Air Force, highlighting its role in supporting aerospace and defense operations. 5. The North American Industry Classification System (NAICS) code 334511 points to a focus on advanced instrumentation manufacturing and support. 6. No small business set-aside was utilized, suggesting the scope or nature of the requirement favored larger prime contractors.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The 'Cost Plus Fixed Fee' (CPFF) structure, while common for complex R&D or services where costs are uncertain, carries inherent risks of cost escalation. The fixed fee component provides some incentive for the contractor to manage costs, but the primary profit driver is the cost base. A detailed review of the contractor's historical performance on similar CPFF contracts and the reasonableness of the estimated costs would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple interested parties had the opportunity to bid. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and innovation. The Air Force's decision to use full and open competition suggests that the requirement was well-defined and that a sufficient number of capable vendors existed in the market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value by considering a wide range of offers.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially other Department of Defense entities requiring advanced instrumentation range support. Services delivered likely include maintenance, calibration, testing, and potentially upgrades for sophisticated instrumentation systems used in testing and training ranges. The geographic impact is specified as Florida (ST: FL, SN: FLORIDA), indicating that the services will be performed or primarily impact operations within that state. Workforce implications may include the employment of skilled technicians, engineers, and support staff by BAE Systems in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) contract type if not rigorously managed.
Limited insight into the number of competitors, which could impact the degree of price discovery achieved.
Dependence on a single contractor (BAE Systems) for critical range support services.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
BAE Systems is a large, established defense contractor with significant experience in this domain.
Contract duration provides stability for essential range support operations.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on instrumentation and support services for testing and training ranges. The market for such specialized services is often dominated by a few large, experienced defense contractors. Spending in this area is critical for maintaining readiness and advancing technological capabilities within the military. Comparable spending benchmarks would typically involve analyzing other range support contracts across different military branches or similar instrumentation maintenance and sustainment programs.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (SB: false). This suggests that the requirement was likely too large in scope or complexity, or that the specific technical expertise needed was predominantly found among large businesses. Consequently, there may be limited direct subcontracting opportunities for small businesses unless BAE Systems voluntarily includes them in its supply chain. The absence of a set-aside means the primary focus was on securing the best overall solution from the available market.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to milestones or deliverables. Transparency is facilitated through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Instrumentation Systems Support
Aerospace Testing and Evaluation
Defense Range Operations
Naval and Aeronautical Systems Maintenance
Government Contracting Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Limited information on the number of bidders impacts assessment of competitive pressure.
Geographic concentration in Florida may limit broader applicability or competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 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 $16.2 million.

What is the period of performance?

Start: 2024-12-05. End: 2027-02-05.

What is BAE Systems' track record with similar Cost Plus Fixed Fee (CPFF) contracts within the Department of Defense?

BAE Systems Technology Solutions & Services Inc. has a substantial history of performing on CPFF contracts, particularly within the defense sector. These contracts often involve complex research, development, integration, and sustainment services where cost estimation is challenging. While CPFF structures can lead to higher final costs compared to fixed-price contracts, they are utilized when the scope of work is not fully defined at the outset or involves significant technical uncertainty. Analyzing BAE Systems' performance on past CPFF awards would involve reviewing their delivery timelines, cost performance relative to initial estimates, and any documented instances of cost overruns or efficiencies. Government contract databases and performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS) would be key sources for this analysis, looking for trends in their ability to manage costs and deliver within the spirit of the contract's objectives.

How does the awarded amount of $16.17 million compare to similar instrumentation range support contracts?

Directly comparing the $16.17 million award value requires identifying contracts with highly similar scopes of work, durations, and agencies. However, this amount appears to be within a moderate range for specialized defense support services. Contracts for range operations, maintenance, and instrumentation sustainment can vary significantly based on the complexity of the systems supported, the geographic scope, and the level of technological integration required. For instance, contracts supporting large, multi-purpose test ranges might exceed this value considerably due to the extensive infrastructure and diverse instrumentation involved. Conversely, contracts for more narrowly defined instrumentation support or specific system maintenance might be smaller. Without access to a comprehensive database of comparable contracts, it's difficult to definitively benchmark this award, but it suggests a significant, yet not exceptionally large, investment in maintaining critical defense testing capabilities.

What are the primary risks associated with the 'Cost Plus Fixed Fee' (CPFF) contract type for this program?

The primary risk associated with the CPFF contract type for the Instrumentation Range Support Program III is the potential for cost overruns. In a CPFF contract, the government reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides some incentive for cost control, the contractor's profit is a percentage of the total costs, which can inadvertently encourage higher spending if not meticulously managed and audited. This structure is often used when the scope of work is uncertain or involves significant technical risks, making it difficult to establish a firm fixed price. Effective oversight, rigorous cost auditing, and clear performance metrics are crucial to mitigate the risk of inflated costs and ensure the government receives good value. The government must actively manage the contractor's incurred costs and ensure they are reasonable, allocable, and allowable.

What is the expected impact of this contract on the operational readiness of Air Force testing and training ranges?

This contract is expected to have a positive impact on the operational readiness of Air Force testing and training ranges by ensuring the continued functionality, accuracy, and availability of critical instrumentation systems. These systems are vital for conducting realistic training exercises, developing and testing new weapon systems, and gathering performance data. Reliable instrumentation support, including maintenance, calibration, and potential upgrades, directly contributes to the effectiveness and efficiency of range operations. By securing these services through a dedicated contract, the Air Force aims to minimize downtime, reduce the risk of equipment failure during critical missions, and maintain the high fidelity required for advanced aerospace development and training, thereby bolstering overall combat readiness and technological superiority.

How has federal spending on instrumentation range support evolved over the past five years, and does this contract align with trends?

Analyzing federal spending trends on instrumentation range support over the past five years requires access to historical contract data across relevant agencies (primarily DoD branches). Generally, spending in this area tends to be relatively stable, driven by the ongoing need to maintain and modernize sophisticated testing and training infrastructure. However, fluctuations can occur due to major program shifts, new technology insertions, or budget reallocations. If there has been a recent emphasis on modernizing ranges, developing new capabilities, or increasing training tempo, spending might show an upward trend. Conversely, budget constraints could lead to flatter or declining spending. This $16.17 million award for a ~2.6-year period suggests a consistent level of investment. To determine alignment, one would need to compare the annual average spending on similar contracts over the last five years against the annualized value of this contract and broader trends in defense modernization and readiness budgets.

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: $16,168,410

Exercised Options: $16,168,410

Current Obligation: $16,168,410

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $798,296

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