DoD Awards $140M to BAE Systems for 134 Upgraded F-16 Aircraft
Contract Overview
Contract Amount: $139,963,796 ($140.0M)
Contractor: BAE Systems Technology Solutions & Services Inc.
Awarding Agency: Department of Defense
Start Date: 2014-05-08
End Date: 2015-11-05
Contract Duration: 546 days
Daily Burn Rate: $256.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 134 UPGRADED KOREAN F-16 AIRCRAFT
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $140.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: 134 UPGRADED KOREAN F-16 AIRCRAFT Key points: 1. Contract awarded to BAE Systems for aircraft upgrades. 2. Significant investment in enhancing existing F-16 fleet capabilities. 3. Potential for cost overruns or schedule delays in complex upgrade projects. 4. Focus on defense sector, specifically aircraft manufacturing and modernization.
Value Assessment
Rating: fair
The contract value of $140 million for 134 aircraft upgrades is difficult to assess without a per-unit cost benchmark. The firm fixed-price structure aims to control costs, but the complexity of upgrades can lead to unforeseen expenses.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited source selection. This lack of competition may have impacted price discovery and potentially led to a higher price than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds are being used for defense modernization. The absence of competition raises concerns about whether the best possible price was secured for these upgrades.
Public Impact
Enhances national defense capabilities through modernized F-16 fighter jets. Supports jobs in the aerospace and defense manufacturing sector. Ensures the continued operational readiness of a key military asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for scope creep in upgrade projects
Positive Signals
- Firm fixed-price contract
- Enhances critical defense asset
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending benchmarks for aircraft upgrades vary widely based on the complexity of the modernization, but $140 million for 134 aircraft suggests a moderate per-unit investment.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both the prime contractor (BAE Systems) and the small business indicator are not applicable. This suggests the primary award went to a large defense contractor.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Accountability for performance and cost control rests with these agencies, especially given the limited competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition may result in higher costs.
- Potential for schedule delays in complex aircraft modifications.
- Lack of detailed cost breakdown makes value assessment difficult.
- Scope creep could increase the final contract cost.
Tags
aircraft-manufacturing, department-of-defense, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $140.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. 134 UPGRADED KOREAN F-16 AIRCRAFT
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $140.0 million.
What is the period of performance?
Start: 2014-05-08. End: 2015-11-05.
What specific upgrades are included in this $140 million contract, and how do they enhance the F-16's capabilities?
The specific upgrades are not detailed in the provided data. However, F-16 modernization typically includes avionics enhancements, radar upgrades, structural improvements, and potential integration of new weapon systems. These aim to extend the aircraft's service life, improve situational awareness, and maintain combat effectiveness against evolving threats.
Given the limited competition, what mechanisms are in place to ensure BAE Systems is delivering value for taxpayer money?
While competition is limited, the firm fixed-price contract structure provides a ceiling on costs. Oversight by the Defense Contract Management Agency is crucial for monitoring performance, quality, and adherence to the contract's technical specifications. Any deviations or potential cost increases would require rigorous justification and approval.
How does this upgrade project contribute to the overall effectiveness and readiness of the U.S. Air Force's F-16 fleet?
Upgrading 134 F-16 aircraft significantly contributes to the fleet's effectiveness by incorporating modern technologies and addressing obsolescence. This ensures the aircraft can continue to perform their missions reliably and safely, maintaining a crucial component of the Air Force's combat power and operational readiness against current and future adversaries.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 520 GAITHER ROAD, 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: $139,963,796
Exercised Options: $139,963,796
Current Obligation: $139,963,796
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-05-08
Current End Date: 2015-11-05
Potential End Date: 2015-11-05 00:00:00
Last Modified: 2018-09-21
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