DoD Awards BAE Systems $210M for Aircraft Manufacturing, Undisclosed Competition

Contract Overview

Contract Amount: $210,316,187 ($210.3M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2004-04-12

End Date: 2017-11-19

Contract Duration: 4,969 days

Daily Burn Rate: $42.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200407!000050!5700!GM14 !AAC/YAK !FA867504C0214 !A!N! !N! ! !20040412!20060815!786673517!876861790!217304393!N!BAE SYSTEMS INTEGRATED DEFENSE!6500 TRACOR LANE !AUSTIN !TX!78725!48452!029!06!MOJAVE !KERN !CALIFORNIA!+000015832617!N!N!000117175962!1550!DRONES !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336411!E! !3! ! ! ! ! !99990909!B!A!N!A! !C!N!J!1!001!N!1B!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $210.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: 200407!000050!5700!GM14 !AAC/YAK !FA867504C0214 !A!N! !N! ! !20040412!20060815!786673517!876861790!217304393!N!BAE SYSTEMS INTEGRATED DEFENSE!6500 TRACOR LANE !AUSTIN !TX!78725!48452!029!06!MOJAVE !KERN… Key points: 1. Significant contract value of $210.3 million awarded to BAE Systems. 2. Competition method is 'NOT COMPETED', raising questions about price discovery. 3. Risk associated with sole-source procurement and potential lack of competitive pricing. 4. Sector is Defense, specifically Aircraft Manufacturing, a critical area for national security.

Value Assessment

Rating: questionable

The contract value of $210.3 million for aircraft manufacturing is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts. The lack of competition is a primary concern.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded using a 'NOT COMPETED' method, indicating a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft manufacturing services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced innovation and efficiency without market pressure. National security implications if critical aircraft components are not procured at the best possible value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Sole-Source Award
Potential Overpricing

Positive Signals

Award to established defense contractor
Contract duration of nearly 5 years

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is critical for national security, but often involves complex, high-value procurements where competition can be challenging.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The 'NOT COMPETED' award status suggests that standard competitive oversight processes may have been bypassed. Robust oversight is crucial to ensure fair pricing and value for taxpayer money in sole-source procurements.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competitive bidding raises concerns about fair pricing.
Sole-source award may indicate limited market options or potential for contractor influence.
Significant contract value warrants close scrutiny of justification and oversight.
Absence of small business participation data could be a missed opportunity.
Contract duration extends over a decade, increasing long-term financial commitment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $210.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. 200407!000050!5700!GM14 !AAC/YAK !FA867504C0214 !A!N! !N! ! !20040412!20060815!786673517!876861790!217304393!N!BAE SYSTEMS INTEGRATED DEFENSE!6500 TRACOR LANE !AUSTIN !TX!78725!48452!029!06!MOJAVE !KERN !CALIFORNIA!+000015832617!N!N!000117175962!1550!DRONES !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336411!E! !3! ! ! ! ! !999

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 $210.3 million.

What is the period of performance?

Start: 2004-04-12. End: 2017-11-19.

What specific justification was provided for the 'NOT COMPETED' award, and does it align with federal procurement regulations for sole-source contracts?

The provided data does not include the specific justification for the 'NOT COMPETED' award. Federal regulations typically allow for sole-source procurement under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review of the contract file would be necessary to determine if the justification meets these stringent criteria and was properly documented.

What is the estimated cost savings or premium paid by the government due to the lack of competition for this $210 million contract?

Without a competitive bidding process, it is impossible to definitively quantify the cost savings or premium paid. However, standard procurement principles suggest that competition generally drives down prices. The absence of competition for a contract of this magnitude likely means the government paid more than it might have if multiple bids were solicited and evaluated.

How does the performance and pricing of BAE Systems on this contract compare to similar aircraft manufacturing contracts awarded through competitive means?

Direct comparison is challenging due to the sole-source nature of this award. Performance metrics and pricing would need to be benchmarked against industry standards and contracts for similar aircraft manufacturing services that *were* competitively procured. Any significant deviations in cost, schedule, or quality from competitive benchmarks would warrant further scrutiny.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

Address: 1601 RESEARCH BLVD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $212,018,475

Exercised Options: $212,018,475

Current Obligation: $210,316,187

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline