Dod Awards $75M for Common IFF Digital Transponder (CXP) to BAE Systems, a Sole-Source Contract
Contract Overview
Contract Amount: $75,251,222 ($75.3M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2011-12-28
End Date: 2018-06-13
Contract Duration: 2,359 days
Daily Burn Rate: $31.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COMMON IFF DIGITAL TRANSPONDER (CXP)
Place of Performance
Location: GREENLAWN, SUFFOLK County, NEW YORK, 11740
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $75.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: COMMON IFF DIGITAL TRANSPONDER (CXP) Key points: 1. Contract awarded to a single vendor, BAE Systems, for a critical defense system. 2. The total award value is substantial at over $75 million. 3. The contract was not competed, raising questions about price discovery. 4. The sector is Defense, specifically navigation and guidance systems.
Value Assessment
Rating: questionable
The contract's value of $75.25M over its duration is significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar systems or potential alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for this $75M contract may result in taxpayers paying a premium for the COMMON IFF DIGITAL TRANSPONDER (CXP).
Public Impact
Ensures critical communication and identification capabilities for military platforms. Supports the operational readiness of Department of Defense assets. Potential for increased costs due to sole-source nature impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Essential defense system
- Awarded to established prime contractor
Sector Analysis
The Department of Defense frequently procures complex electronic systems for navigation and identification. Spending in this sub-sector can be substantial, with significant R&D investment and long product lifecycles.
Small Business Impact
No information is available regarding small business participation in this contract. Sole-source awards often bypass opportunities for small business subcontracting.
Oversight & Accountability
The Department of Defense's Contract Management Agency oversaw this award. Further oversight would be beneficial to ensure fair pricing and explore future competitive opportunities.
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
- Sole-source award limits price competition.
- Potential for overpayment without competitive benchmarking.
- Long contract duration may not reflect evolving technology.
- Lack of transparency on specific technical requirements driving sole-source decision.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. COMMON IFF DIGITAL TRANSPONDER (CXP)
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 $75.3 million.
What is the period of performance?
Start: 2011-12-28. End: 2018-06-13.
What is the justification for the sole-source award of the COMMON IFF DIGITAL TRANSPONDER (CXP)?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without specific documentation, it's presumed that BAE Systems possesses the exclusive ability to provide this specific CXP system, potentially due to prior development or integration.
What are the risks associated with a sole-source contract of this magnitude?
The primary risks of a sole-source contract of this magnitude include inflated pricing due to lack of competition, potential for vendor complacency, and missed opportunities for innovation from other market participants. Taxpayers may bear a higher cost, and the government has less leverage to negotiate favorable terms.
How does this contract contribute to the overall effectiveness of military operations?
The COMMON IFF DIGITAL TRANSPONDER (CXP) is crucial for identifying friendly forces and distinguishing them from adversaries, a fundamental aspect of modern warfare. Ensuring its availability and functionality directly supports operational safety, mission success, and reduces the risk of fratricide, thereby enhancing overall military effectiveness.
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: N0001911R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 450 PULASKI RD, GREENLAWN, NY, 11740
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: $75,251,222
Exercised Options: $75,251,222
Current Obligation: $75,251,222
Subaward Activity
Number of Subawards: 134
Total Subaward Amount: $29,894,934
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-12-28
Current End Date: 2018-06-13
Potential End Date: 2018-06-13 00:00:00
Last Modified: 2024-05-01
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