DoD awards $49.1M for Communication Equipment to BAE Systems, facing limited competition

Contract Overview

Contract Amount: $49,105,209 ($49.1M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2001-10-01

End Date: 2009-12-31

Contract Duration: 3,013 days

Daily Burn Rate: $16.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200210!008740!1700!AT726 !NAVAL AIR SYSTEMS COMMAND !N0001901C0271 !A!N! !N! !20001231!20061231!083489893!876861790!217304393!N!BAE SYSTEMS AEROSPACE INC !ONE HAZELTINE WAY !GREENLAWN !NY!11740!30543!103!36!GREENLAWN !SUFFOLK !NEW YORK !+000004305717!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !1! ! ! ! ! !99990909!B!B!N!A! !C!U!J!1!001!N!1G!Z!Y!C! ! !N!C!N! ! ! !A!A!A!A!000!A!D!Y! ! ! ! ! ! !0001!

Place of Performance

Location: GREENLAWN, SUFFOLK County, NEW YORK, 11740, UNITED STATES OF AMERICA

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $49.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: 200210!008740!1700!AT726 !NAVAL AIR SYSTEMS COMMAND !N0001901C0271 !A!N! !N! !20001231!20061231!083489893!876861790!217304393!N!BAE SYSTEMS AEROSPACE INC !ONE HAZELTINE WAY !GREENLAWN !NY!11740!30543!103!36!GREENLAWN !SUFFO… Key points: 1. The contract value is substantial at $49.1 million. 2. BAE Systems is a significant player in the defense electronics sector. 3. Limited competition raises concerns about potential overpricing and reduced innovation. 4. The sector is critical for national security, demanding high-quality equipment.

Value Assessment

Rating: fair

The contract value of $49.1 million for miscellaneous communication equipment needs comparison against similar DoD contracts. Without specific unit costs or detailed scope, a precise pricing assessment is difficult, but the 'NOT COMPETED' status suggests potential for higher pricing than a competitive bid.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a sole-source or limited competition award. This significantly impacts price discovery, as the government may not have received the best possible price due to the lack of multiple bids. The awardee, BAE Systems, likely had a strong position.

Taxpayer Impact: The lack of robust competition could lead to taxpayers paying more than necessary for this communication equipment, potentially diverting funds from other critical defense needs.

Public Impact

Ensures the availability of essential communication equipment for naval operations. Supports a major defense contractor, potentially impacting jobs and the defense industrial base. Highlights the ongoing reliance on specific, high-value defense suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for overpricing
Lack of transparency in award justification

Positive Signals

Ensures critical equipment for defense
Supports established defense contractor

Sector Analysis

This contract falls within the 'Electronics and Communication' sector, specifically for 'Miscellaneous Communication Equipment'. Spending in this area is crucial for maintaining modern military capabilities, but it's also an area where specialized contractors can command premium prices, especially with limited competition.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The award to a large prime contractor like BAE Systems suggests that small business participation, if any, would likely be as subcontractors, and their involvement is not detailed here.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for limited competition was sound and that the pricing was fair and reasonable. Agency-level reviews and potential Inspector General audits could provide accountability.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for price inflation
Limited transparency on justification
No small business set-aside indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.1 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. 200210!008740!1700!AT726 !NAVAL AIR SYSTEMS COMMAND !N0001901C0271 !A!N! !N! !20001231!20061231!083489893!876861790!217304393!N!BAE SYSTEMS AEROSPACE INC !ONE HAZELTINE WAY !GREENLAWN !NY!11740!30543!103!36!GREENLAWN !SUFFOLK !NEW YORK !+000004305717!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !1! ! ! ! ! !99990909!B

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $49.1 million.

What is the period of performance?

Start: 2001-10-01. End: 2009-12-31.

What was the specific justification for not competing this contract, and was it adequately documented?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require accessing the contract file to understand the specific justification, such as urgency, lack of available sources, or a sole-source justification. Without this documentation, it's impossible to assess the validity of the non-competitive award and ensure taxpayer funds were used appropriately.

How does the per-unit cost of this communication equipment compare to similar systems procured competitively?

The data lacks specific per-unit cost information and detailed technical specifications for the 'Miscellaneous Communication Equipment'. A meaningful comparison would require benchmarking against competitively procured systems with similar functionalities and performance characteristics. The absence of competition suggests a potential for higher costs than might be achieved through a bidding process.

What is the long-term strategic value of relying on BAE Systems for this type of communication equipment?

BAE Systems is a major defense contractor with significant expertise in electronics and communication systems. While this provides a reliable source for critical equipment, over-reliance on a single supplier, especially through non-competitive awards, can stifle innovation and create vulnerabilities. A strategic assessment should consider diversifying sources and fostering competition where feasible.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: ONE HAZELTINE WAY, GREENLAWN, NY, 11740

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline