DoD Buys 250 Computer Display Units for $24.9M, Lacking Competition

Contract Overview

Contract Amount: $24,915,967 ($24.9M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2018-02-14

End Date: 2022-06-30

Contract Duration: 1,597 days

Daily Burn Rate: $15.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PURCHASE QTY. 250 UPGRADED COMPUTER DISPLAY UNITS (CDUS) FOR PRODUCT MANAGER AVIATION MISSION EQUIPMENT (AME)

Place of Performance

Location: WAYNE, PASSAIC County, NEW JERSEY, 07470

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PURCHASE QTY. 250 UPGRADED COMPUTER DISPLAY UNITS (CDUS) FOR PRODUCT MANAGER AVIATION MISSION EQUIPMENT (AME) Key points: 1. Significant investment in specialized aviation mission equipment displays. 2. Sole-source award to BAE Systems raises concerns about price discovery. 3. Long contract duration (2018-2022) may indicate evolving requirements or slow delivery. 4. High per-unit cost suggests advanced, specialized technology.

Value Assessment

Rating: questionable

The total award of $24.9M for 250 units results in a per-unit cost of approximately $99,664. This is exceptionally high and likely reflects highly specialized, mission-critical hardware. Without comparable contract data for similar advanced display units, a precise benchmark is difficult, but the cost warrants scrutiny.

Cost Per Unit: $99,664

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to BAE Systems. This lack of competition limits the government's ability to ensure the best possible price and may lead to inflated costs. The rationale for the sole-source award is not provided.

Taxpayer Impact: The absence of competition for a nearly $25 million contract means taxpayers may have paid a premium for these computer display units.

Public Impact

Enhances critical aviation mission capabilities for the Department of the Army. Supports advanced navigation and situational awareness for aircrews. Procurement of specialized equipment may impact readiness if not acquired efficiently.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High per-unit cost
Long contract duration

Positive Signals

Supports critical defense mission
Award to established defense contractor

Sector Analysis

This procurement falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is typically characterized by high R&D costs, long product lifecycles, and significant reliance on specialized components, often leading to concentrated supplier bases.

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 or partners in this specific task order, suggesting missed opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. The Department of the Army should have robust internal review processes to justify non-competitive awards and track performance.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks transparency and competitive pricing.
Extremely high per-unit cost requires further justification.
Long contract duration may indicate inefficiencies or evolving needs.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. THE PURPOSE OF THIS TASK ORDER IS TO PURCHASE QTY. 250 UPGRADED COMPUTER DISPLAY UNITS (CDUS) FOR PRODUCT MANAGER AVIATION MISSION EQUIPMENT (AME)

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 Army).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2018-02-14. End: 2022-06-30.

What was the justification for awarding this contract on a sole-source basis, and were alternative solutions or vendors considered?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to understand the specific justification (e.g., unique capabilities, urgent need, lack of alternatives). Without this, it's impossible to definitively assess if competition was truly impossible or if opportunities were missed.

How does the per-unit cost of $99,664 compare to industry benchmarks for similar, albeit potentially less specialized, computer display units?

Benchmarking this specific unit is challenging due to its likely specialized nature for aviation missions. However, high-end commercial ruggedized displays or large format professional monitors typically range from $1,000 to $10,000. The $99,664 figure suggests either extreme specialization, significant embedded processing/software, or a lack of competitive pricing pressure.

Given the 2018 start and 2022 end date, what was the actual delivery timeline and were there any performance issues or contract modifications?

The contract duration spans 1597 days (approx. 4.3 years). Understanding the actual delivery schedule versus the planned schedule, and whether the full quantity was delivered on time and met specifications, is crucial. Any delays, performance issues, or modifications would impact the overall value and effectiveness assessment.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 164 TOTOWA RD, WAYNE, NJ, 07470

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,915,967

Exercised Options: $24,915,967

Current Obligation: $24,915,967

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $7,103,049

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T13DE013

IDV Type: IDC

Timeline