Dod Awards BAE Systems $65.6M for Idecm ALE-55 Subsystem Lrip IV
Contract Overview
Contract Amount: $65,600,107 ($65.6M)
Contractor: BAE Systems Information and Electronic Systems Integration I
Awarding Agency: Department of Defense
Start Date: 2008-06-26
End Date: 2011-02-28
Contract Duration: 977 days
Daily Burn Rate: $67.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IDECM ALE-55 SUBSYSTEM, LRIP IV
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03061
Plain-Language Summary
Department of Defense obligated $65.6 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION I for work described as: IDECM ALE-55 SUBSYSTEM, LRIP IV Key points: 1. The contract is for the Lot IV Low Rate Initial Production of the ALE-55 towed decoy system. 2. BAE Systems is the sole awardee, indicating a lack of competition for this specific phase. 3. The contract value is substantial, representing a significant investment in electronic warfare capabilities. 4. The system is crucial for protecting naval aircraft from missile threats.
Value Assessment
Rating: fair
The award value of $65.6 million for LRIP IV is difficult to benchmark without prior lot pricing or detailed cost breakdowns. The firm-fixed-price contract type provides some cost certainty, but the lack of competition limits external price validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the IDECM system and BAE Systems' established role. This sole-source award limits price discovery and potentially increases costs compared to a competitive procurement.
Taxpayer Impact: The lack of competition on this sole-source award may result in higher costs for taxpayers, as there was no market pressure to drive down prices.
Public Impact
Enhances survivability of naval aviation platforms against advanced threats. Supports ongoing modernization of electronic warfare capabilities within the Department of the Navy. Ensures continued availability of a critical defensive system for fleet readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns without competitive pressure.
- Long-term reliance on a single supplier.
Positive Signals
- Provides a critical defense capability.
- Firm-fixed-price contract offers some cost control.
- Supports established defense industrial base.
Sector Analysis
This contract falls within the Defense Industrial Base, specifically focusing on electronic warfare systems. Spending in this sector is driven by evolving threat landscapes and the need for advanced technological solutions to maintain military superiority.
Small Business Impact
This award went to a large prime contractor, BAE Systems. There is no indication of subcontracting opportunities for small businesses within the provided data, which is common for specialized defense systems.
Oversight & Accountability
The contract was awarded by the Department of the Navy. Oversight would typically involve program management reviews, technical inspections, and financial audits to ensure performance and proper use of funds.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source procurement
- Lack of price competition
- Potential for cost growth without oversight
- Limited transparency on cost drivers
- Long-term reliance on a single supplier
Tags
search-detection-navigation-guidance-aer, department-of-defense, nh, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.6 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION I. IDECM ALE-55 SUBSYSTEM, LRIP IV
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION I.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $65.6 million.
What is the period of performance?
Start: 2008-06-26. End: 2011-02-28.
What was the basis for the sole-source justification, and were alternative solutions considered?
The sole-source justification likely stems from the specialized technology and intellectual property associated with the IDECM ALE-55 system, potentially held exclusively by BAE Systems. While alternative solutions might be explored in broader technology development phases, for this specific LRIP, the focus is on producing an established system, making a sole-source award to the incumbent developer the most expedient path.
How does the unit cost of this LRIP IV compare to previous lots or similar systems?
Without access to historical pricing data for previous lots (LRIP I-III) or cost information for comparable towed decoy systems from other manufacturers, a direct unit cost comparison is not possible. The firm-fixed-price nature provides a set cost for this lot, but its value relative to production efficiency or market alternatives remains unverified due to the sole-source award.
What is the projected long-term sustainment cost and potential for future competition for the ALE-55 system?
The long-term sustainment costs are not detailed here but are typically significant for complex electronic warfare systems. Future competition might arise if the system's technology matures, intellectual property expires, or if the DoD actively seeks alternative solutions for next-generation EW capabilities. However, for the current production phase, competition is limited.
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
Solicitation ID: N0001905R0102
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 65 SPIT BROOK RD, NASHUA, NH, 02
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: $65,600,107
Exercised Options: $65,600,107
Current Obligation: $65,600,107
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2008-06-26
Current End Date: 2011-02-28
Potential End Date: 2011-02-28 00:00:00
Last Modified: 2011-07-15
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