GSA awards $143M contract for operational environment and core functions support to BAE Systems

Contract Overview

Contract Amount: $143,105,944 ($143.1M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: General Services Administration

Start Date: 2009-08-27

End Date: 2012-10-26

Contract Duration: 1,156 days

Daily Burn Rate: $123.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRADOC G-2 OPERATIONAL ENVIRONMENT AND CORE FUNCTIONS

Place of Performance

Location: FORT MONROE, HAMPTON (CITY) County, VIRGINIA, 23651, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $143.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: TRADOC G-2 OPERATIONAL ENVIRONMENT AND CORE FUNCTIONS Key points: 1. Contract value of $143.1 million over three years indicates significant investment in specialized consulting services. 2. Competition was robust with 5 bidders, suggesting a healthy market for these management consulting services. 3. The contract's fixed-price nature aims to control costs and provide predictable spending. 4. Performance period of nearly three years allows for sustained support and integration of services. 5. This contract falls under administrative management and general management consulting, a common service category for federal agencies. 6. The award to a single contractor, BAE Systems, highlights their capability in this specific niche.

Value Assessment

Rating: good

The contract value of $143.1 million for a duration of 1156 days (approximately 3 years) suggests a substantial investment. Benchmarking against similar contracts for administrative management and general management consulting services would be necessary for a precise value-for-money assessment. However, the competitive nature of the award (5 bidders) generally points towards a fair market price being established. The firm-fixed-price contract type also helps in managing cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, with five distinct bidders vying for the opportunity. The presence of multiple bidders indicates a competitive marketplace for these specialized administrative and management consulting services. A higher number of bidders typically leads to more competitive pricing and a wider range of proposed solutions, benefiting the government.

Taxpayer Impact: The robust competition for this contract suggests that taxpayer dollars were likely used efficiently, as multiple companies worked to offer their best pricing and capabilities to secure the award.

Public Impact

The primary beneficiaries are the TRADOC (Training and Doctrine Command) units requiring support for their operational environment and core functions. Services delivered likely include strategic planning, process improvement, and management consulting to enhance military training and doctrine development. The geographic impact is primarily within the purview of TRADOC's operations, which are extensive across various military installations. Workforce implications may involve the direct employment of consultants and analysts by BAE Systems, as well as indirect impacts on military personnel benefiting from improved training support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'operational environment and core functions' is not tightly managed.
Reliance on a single contractor for critical support functions could pose a risk if performance falters.
Ensuring continuous alignment with evolving military doctrine and training needs requires proactive contractor engagement.

Positive Signals

The firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
The competitive award process suggests a strong pool of qualified bidders, indicating high capability.
A multi-year contract allows for sustained focus and deep integration of services, potentially leading to greater effectiveness.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions from strategic planning to operational efficiency. The market for these services is competitive, with numerous firms offering specialized expertise. Comparable spending benchmarks would typically be found within GSA schedules or other agency-specific consulting procurements.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, BAE Systems, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this data snippet. The impact on the small business ecosystem would depend on whether BAE Systems engages small businesses as subcontractors for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) through its Federal Acquisition Service, in coordination with the requiring agency, TRADOC. Accountability measures are embedded in the firm-fixed-price contract terms, with performance expectations likely outlined in a Performance Work Statement (PWS). Transparency is generally maintained through federal procurement databases like FPDS-NG (where this data originates). Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

TRADOC Training Support Services
DoD Management and Consulting Services
GSA Professional Services Contracts
Federal Management Consulting
Operational Readiness Support

Risk Flags

Potential for vendor lock-in
Performance degradation risk
Scope creep management
Ensuring knowledge transfer

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $143.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. TRADOC G-2 OPERATIONAL ENVIRONMENT AND CORE FUNCTIONS

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $143.1 million.

What is the period of performance?

Start: 2009-08-27. End: 2012-10-26.

What is the track record of BAE Systems Technology Solutions & Services Inc. in delivering similar operational environment and core functions support to federal agencies?

BAE Systems Technology Solutions & Services Inc. has a substantial history of providing a wide range of technical, engineering, and professional services to the U.S. Department of Defense and other federal agencies. Their expertise often encompasses complex program management, systems engineering, simulation and training, and IT support. For contracts specifically related to 'operational environment and core functions,' their experience would likely involve supporting strategic planning, doctrine development, training analysis, and simulation-based environments. A deeper dive into their past performance on similar GSA Schedule or other large-scale contracts would reveal specific project successes, challenges, and client satisfaction levels. Their extensive portfolio suggests a strong capability to handle the scope and complexity required by TRADOC.

How does the awarded price of $143.1 million compare to similar contracts for administrative management and general management consulting services?

Directly comparing the $143.1 million award to 'similar' contracts requires careful consideration of scope, duration, and specific services. This contract, spanning approximately three years, represents a significant but not necessarily outlier investment for comprehensive support to a major command like TRADOC. The average annual value is around $47.7 million. Benchmarking against other large-scale management consulting contracts awarded by agencies like DoD, DHS, or even civilian agencies for strategic planning, organizational development, and operational analysis would provide context. GSA's Multiple Award Schedule (MAS) for professional services, particularly the category for Management and Management Consulting Services (NAICS 541611), would be a primary source for identifying comparable contract values and rates. The competitive nature of this award suggests the price was deemed fair and reasonable within the market.

What are the key performance indicators (KPIs) likely used to assess the performance of BAE Systems on this contract?

Key Performance Indicators (KPIs) for this contract would be tailored to the specific objectives outlined in the Performance Work Statement (PWS). Given the nature of 'operational environment and core functions support,' KPIs could include metrics related to the accuracy and timeliness of analytical reports, the effectiveness of strategic recommendations implemented, the successful development or enhancement of training simulations or environments, and the efficiency of process improvements. Other potential KPIs might focus on user satisfaction (e.g., feedback from TRADOC personnel), adherence to project milestones, and the successful integration of new concepts or technologies into the operational environment. The firm-fixed-price structure implies that meeting these defined performance standards is critical for full payment and successful contract completion.

What is the historical spending pattern for TRADOC's operational environment and core functions support, and how does this award fit within that trend?

Analyzing historical spending for TRADOC's operational environment and core functions support would require accessing detailed federal procurement data over several years. This specific $143.1 million award covers a three-year period. To understand the trend, one would need to examine previous contracts awarded for similar services to TRADOC or its predecessors. Were there prior sole-source awards, or has this function consistently been competed? Has the overall spending in this area increased, decreased, or remained stable? This award, being competitively sourced, suggests a potential shift towards leveraging market competition for these services. If previous spending was significantly higher or lower, or if it was awarded differently (e.g., sole-source), this contract represents a notable data point in TRADOC's procurement strategy for essential support functions.

What are the potential risks associated with relying on BAE Systems for critical operational environment and core functions support, and what mitigation strategies are in place?

Potential risks include over-reliance on a single contractor, leading to a loss of institutional knowledge within the government if the contractor departs or performance degrades. There's also the risk of vendor lock-in, where the government becomes dependent on the contractor's proprietary systems or processes. Performance degradation, failure to adapt to evolving requirements, or cost overruns (despite the fixed-price nature, scope changes can occur) are other concerns. Mitigation strategies typically involve robust contract management, including regular performance reviews, clear definition of deliverables and success criteria in the PWS, maintaining government expertise to oversee the contractor, and potentially incorporating options for knowledge transfer or phased transitions. The competitive nature of the initial award helps mitigate the risk of selecting an underqualified vendor.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $144,582,024

Exercised Options: $143,343,444

Current Obligation: $143,105,944

Parent Contract

Parent Award PIID: GS10F0047J

IDV Type: FSS

Timeline