DoD Awards BAE Systems $59.6M Contract to Upgrade F-16 Radar Warning Receivers

Contract Overview

Contract Amount: $59,561,867 ($59.6M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2017-09-28

End Date: 2026-09-29

Contract Duration: 3,288 days

Daily Burn Rate: $18.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: UPGRADE OF KOREA F-16C/D LEGACY RADAR WARNING RECEIVER, THE AN/ALR-56M, TO A NEW CONFIGURATION, THE AN/ALR-56M(V)-1.

Place of Performance

Location: TOTOWA, PASSAIC County, NEW JERSEY, 07512

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $59.6 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: UPGRADE OF KOREA F-16C/D LEGACY RADAR WARNING RECEIVER, THE AN/ALR-56M, TO A NEW CONFIGURATION, THE AN/ALR-56M(V)-1. Key points: 1. Contract focuses on upgrading the AN/ALR-56M radar warning receiver to the AN/ALR-56M(V)-1 configuration for F-16 aircraft. 2. BAE Systems is the sole awardee, indicating a non-competitive procurement. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The engineering services sector is characterized by specialized technical expertise and often long-term development cycles.

Value Assessment

Rating: fair

The contract value of $59.6 million for radar system upgrades appears reasonable given the specialized nature of the technology and the long duration of the contract. However, without specific benchmarks for similar radar system upgrade programs, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no competition. This limits price discovery and potentially increases costs for the government as there is no market pressure to offer the best price.

Taxpayer Impact: The lack of competition raises concerns about potential overspending of taxpayer funds due to the absence of a competitive bidding process.

Public Impact

Enhances the survivability and situational awareness of F-16 fighter jets. Ensures continued operational readiness of a key component of the Air Force's fighter fleet. Supports advanced electronic warfare capabilities critical for modern air combat. Potential for follow-on contracts for integration and sustainment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration (over 5 years) increases exposure to changing requirements and economic factors.

Positive Signals

Upgrades critical defense technology for a major aircraft platform.
Awardee has established expertise in electronic warfare systems.
Contract supports modernization efforts for the Air Force fleet.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to defense electronics and avionics. Spending in this area is driven by the need for technological superiority and maintaining the effectiveness of aging military platforms through upgrades.

Small Business Impact

The contract was awarded to BAE Systems Information and Electronic Systems Integration Inc., a large business. There is no indication that small businesses were involved as subcontractors in this specific award, which is common for large, specialized defense contracts.

Oversight & Accountability

The contract is managed by the Department of the Air Force. Oversight will be crucial to monitor costs under the Cost Plus Fixed Fee structure and ensure the upgrade meets technical specifications and performance requirements within the awarded budget.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source procurement limits competitive pricing.
Cost Plus Fixed Fee contract type increases risk of cost escalation.
Long contract duration may lead to scope creep or requirement changes.
Lack of small business participation noted.
Potential for obsolescence if technology advances rapidly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.6 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. UPGRADE OF KOREA F-16C/D LEGACY RADAR WARNING RECEIVER, THE AN/ALR-56M, TO A NEW CONFIGURATION, THE AN/ALR-56M(V)-1.

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION 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 $59.6 million.

What is the period of performance?

Start: 2017-09-28. End: 2026-09-29.

What is the specific technical advantage gained by upgrading to the AN/ALR-56M(V)-1 configuration, and how does it improve F-16 combat effectiveness?

The upgrade to the AN/ALR-56M(V)-1 configuration is expected to enhance the F-16's ability to detect, identify, and locate radar threats more effectively. This improved situational awareness and threat warning capability is crucial for pilot survivability and mission success in contested airspace, allowing for better evasion tactics and targeting decisions.

Given the sole-source nature and Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure fair pricing?

While sole-source awards inherently limit competitive pressure, the government likely employs stringent oversight, detailed cost analysis, and performance metrics to manage the Cost Plus Fixed Fee contract. Regular audits, milestone reviews, and negotiation of fee structures based on performance can help control costs and ensure the contractor is incentivized to perform efficiently.

How does this upgrade align with the broader modernization strategy for the F-16 fleet and overall Air Force readiness?

This upgrade is a critical component of maintaining the relevance and effectiveness of the F-16, which remains a significant part of the Air Force's tactical fighter inventory. By enhancing its electronic warfare capabilities, the upgrade ensures the F-16 can continue to operate safely and effectively against evolving threats, supporting the Air Force's goal of maintaining air superiority and readiness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA852317R0016

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 100 CAMPUS RD STE 1, TOTOWA, NJ, 07512

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $65,067,548

Exercised Options: $59,561,867

Current Obligation: $59,561,867

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $924,998

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline