NAWCAD awards $29M contract for telecom system support to BAE Systems

Contract Overview

Contract Amount: $29,042,481 ($29.0M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2014-09-03

End Date: 2024-01-26

Contract Duration: 3,432 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) SPECIAL COMMUNICATIONS REQUIREMENTS (SCR) DIVISION, CODE 4.5.11, ST. INIGOES HAS A REQUIREMENT TO PERFORM LIFE CYCLE SUPPORT (LCS) SERVICES TO SUPPORT VARIOUS NAVY, ARMY, AIR FORCE, SPECIAL OPERATIONS FORCES, AND OTHER AGENCIES TELECOMMUNICATION AND RELATED COMMUNICATION-ELECTRONIC (C-E) SYSTEMS.

Place of Performance

Location: BETHPAGE, NASSAU County, NEW YORK, 11714

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $29.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) SPECIAL COMMUNICATIONS REQUIREMENTS (SCR) DIVISION, CODE 4.5.11, ST. INIGOES HAS A REQUIREMENT TO PERFORM LIFE CYCLE SUPPORT (LCS) SERVICES TO SUPPORT VARIOUS NAVY, ARMY, AIR FORCE, SPECIAL OPERATIONS FORCES, AND OTHER AGENC… Key points: 1. Contract awarded to BAE Systems for comprehensive life cycle support of communication systems. 2. Services span multiple military branches and agencies, indicating broad utility. 3. Long contract duration (10 years) suggests a stable, ongoing need. 4. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring for cost overruns.

Value Assessment

Rating: good

The contract's value of $29M over 10 years averages $2.9M annually. This appears reasonable for extensive life cycle support of complex telecommunication systems across multiple agencies, though specific benchmarks are unavailable without more detailed service scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally effective in achieving fair market prices, although the specific pricing outcomes are not detailed here.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.

Public Impact

Ensures critical communication systems for Navy, Army, Air Force, and SOF remain operational. Supports advanced telecommunication and communication-electronic systems vital for national security. Long-term contract provides stability for essential support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) can lead to cost overruns if not managed tightly.
Long contract duration may reduce flexibility to adopt newer technologies.
Reliance on a single contractor for a decade could limit future innovation.

Positive Signals

Full and open competition indicates a potentially competitive pricing environment.
Long-term contract provides continuity of essential services.
Broad agency support suggests a critical and validated need.

Sector Analysis

This contract falls within Engineering Services (NAICS 541330), a sector critical for maintaining complex defense systems. Spending in this area is substantial, and effective contract management is key to ensuring value for taxpayer investment.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). There is no information provided on subcontracting opportunities for small businesses within this large contract.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which provides oversight for Department of Defense contracts. The long duration and CPFF structure necessitate robust oversight to ensure cost control and performance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing model risk.
Long contract duration (10 years) may lead to technology obsolescence.
Lack of explicit small business subcontracting goals.
Potential for cost overruns without stringent oversight.
Limited visibility into specific performance metrics and risk mitigation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) SPECIAL COMMUNICATIONS REQUIREMENTS (SCR) DIVISION, CODE 4.5.11, ST. INIGOES HAS A REQUIREMENT TO PERFORM LIFE CYCLE SUPPORT (LCS) SERVICES TO SUPPORT VARIOUS NAVY, ARMY, AIR FORCE, SPECIAL OPERATIONS FORCES, AND OTHER AGENCIES TELECOMMUNICATION AND RELATED COMMUNICATION-ELECTRONIC (C-E) SYSTEMS.

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 $29.0 million.

What is the period of performance?

Start: 2014-09-03. End: 2024-01-26.

How does the annual cost of this contract compare to similar life cycle support contracts for telecommunication systems in other agencies or branches?

Without specific details on the scope of services and the complexity of the systems supported, a direct comparison is challenging. However, an average annual cost of $2.9M for comprehensive life cycle support across multiple agencies suggests a significant investment. Benchmarking against similar contracts would require access to detailed service level agreements and system specifications to ensure a fair comparison of value.

What are the specific performance metrics and risk mitigation strategies in place for this CPFF contract to control costs and ensure quality?

The contract details do not specify performance metrics or explicit risk mitigation strategies for cost control under the CPFF structure. Effective oversight by DCMA is crucial. Agencies should ensure clear deliverables, regular performance reviews, and mechanisms to challenge cost increases not directly tied to scope changes or unforeseen technical challenges.

To what extent does this contract leverage modern communication technologies, and what is the plan for future technology integration?

The contract focuses on 'life cycle support' for 'various...telecommunication and related communication-electronic (C-E) systems,' implying support for existing infrastructure. The long 10-year duration raises questions about adaptability to rapidly evolving communication technologies. A clear roadmap for technology refresh or integration of newer systems should be part of the ongoing oversight.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002413R3463

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $39,382,609

Exercised Options: $39,382,609

Current Obligation: $29,042,481

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $6,491,721

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4018

IDV Type: IDC

Timeline