DoD Awards BAE Systems $55.3M for Technical Refresh of Navigation Systems
Contract Overview
Contract Amount: $55,334,070 ($55.3M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2022-12-29
End Date: 2027-02-24
Contract Duration: 1,518 days
Daily Burn Rate: $36.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TECHNICAL REFRESH
Place of Performance
Location: GREENLAWN, SUFFOLK County, NEW YORK, 11740
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $55.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: TECHNICAL REFRESH Key points: 1. Significant award to a major defense contractor. 2. Focus on critical navigation systems highlights ongoing modernization needs. 3. Sole-source award raises questions about competition and potential cost savings. 4. The sector is characterized by high R&D investment and long product lifecycles.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Benchmarking against similar technical refresh contracts for navigation systems is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no open competition. This limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition for this $55.3 million award means taxpayers may not be receiving the best possible price for these critical navigation system updates.
Public Impact
Ensures continued operational capability for naval assets. Supports technological advancement in a critical defense sector. Potential for cost overruns due to sole-source nature. Impacts BAE Systems' revenue and market position.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Technical refresh ensures system modernization
- Supports critical naval navigation capabilities
- Long-term contract duration provides stability
Sector Analysis
The defense electronics sector, particularly navigation systems, involves complex technology and significant R&D. Spending benchmarks are highly variable due to the specialized nature of the equipment and the long development cycles.
Small Business Impact
This contract does not appear to have any specific set-asides for small businesses. The prime contractor, BAE Systems, is a large corporation, indicating limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and the scope of work aligns with the stated technical refresh needs. Robust contract management is crucial.
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 award limits competition.
- Cost-plus contract type can inflate costs.
- Lack of small business participation.
- Limited transparency on specific technological upgrades.
- Potential for cost overruns without strict oversight.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. TECHNICAL REFRESH
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 Navy).
What is the total obligated amount?
The obligated amount is $55.3 million.
What is the period of performance?
Start: 2022-12-29. End: 2027-02-24.
What specific technological advancements does this technical refresh entail, and how do they justify the sole-source award?
The data does not specify the exact technological advancements. A sole-source award typically implies unique capabilities, proprietary technology, or a critical need for continuity with an existing system. Further justification would likely be found in the contract's Justification and Approval (J&A) document, detailing why competition was not feasible or advantageous for this specific refresh.
What is the projected cost savings or efficiency gain expected from this technical refresh compared to maintaining the current system?
The provided data does not include projected cost savings or efficiency gains. Cost-plus fixed-fee contracts focus on covering costs plus a predetermined profit. Without a detailed cost-benefit analysis or comparison to alternative solutions, it's difficult to quantify the expected return on investment for taxpayers from this refresh.
How does the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code align with the specific systems being refreshed under this contract?
The NAICS code 334511 accurately covers the manufacturing of instruments for search, detection, navigation, and guidance. This aligns well with a technical refresh of naval navigation systems, suggesting the contract is appropriately categorized for the type of equipment and technology involved.
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: N0001917R0013
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 65 SPIT BROOK RD, NASHUA, NH, 03060
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: $55,334,070
Exercised Options: $55,334,070
Current Obligation: $55,334,070
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $925,275
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001922G0009
IDV Type: BOA
Timeline
Start Date: 2022-12-29
Current End Date: 2027-02-24
Potential End Date: 2027-02-24 00:00:00
Last Modified: 2025-08-19
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