DoD Awards BAE Systems $41.5M for AN/APX-123A(V) CXP Technical Refresh

Contract Overview

Contract Amount: $41,485,323 ($41.5M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-27

End Date: 2026-09-30

Contract Duration: 764 days

Daily Burn Rate: $54.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TECHNICAL REFRESH FOR AN/APX-123A(V) CXP

Place of Performance

Location: GREENLAWN, SUFFOLK County, NEW YORK, 11740

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $41.5 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: TECHNICAL REFRESH FOR AN/APX-123A(V) CXP Key points: 1. Contract awarded to BAE Systems for a technical refresh of the AN/APX-123A(V) CXP. 2. The contract is a delivery order under an existing contract, indicating a continuation of services. 3. The award is for a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. 4. The NAICS code 334511 suggests a focus on manufacturing navigation and guidance systems.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type allows for costs plus a negotiated fee. Without detailed cost breakdowns, it's difficult to assess if the fixed fee is reasonable. The base award amount of $41.5M for a 764-day duration needs comparison to similar technical refresh contracts for avionics systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting it may be a sole-source award or a follow-on to a previous sole-source effort. Lack of competition limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The absence of competition may result in taxpayers paying more than if the contract had been competitively bid.

Public Impact

Ensures continued operational capability of critical navigation and identification systems for the Navy. Supports advanced technology integration for military aircraft. Potential for cost overruns due to CPFF contract type. Limited transparency on pricing due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
CPFF contract type
Lack of competition

Positive Signals

Supports critical defense systems
Long-term contract duration

Sector Analysis

The Department of Defense frequently procures complex electronic systems for aviation. Spending in this sector, particularly for navigation and identification systems, is substantial. Benchmarks for technical refreshes of this nature vary widely based on system complexity and technology insertion.

Small Business Impact

The awardee, BAE Systems, is a large defense contractor. There is no indication in the provided data that small businesses were involved in this specific award, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight will be crucial given the CPFF contract type and sole-source nature. The Department of the Navy must ensure rigorous monitoring of costs and performance to prevent waste and ensure value for taxpayer money.

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 and price discovery.
CPFF contract type carries a risk of cost overruns.
Lack of transparency on specific technical upgrades and their necessity.
Potential for contractor to not achieve efficiencies due to fixed fee structure.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.5 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. TECHNICAL REFRESH FOR AN/APX-123A(V) 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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $41.5 million.

What is the period of performance?

Start: 2024-08-27. End: 2026-09-30.

What is the justification for the sole-source award, and how was the fixed fee determined to be fair and reasonable?

The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or prior development investments. The fairness and reasonableness of the fixed fee are usually determined through cost analysis by the contracting officer, comparing it against historical data, industry standards, and the contractor's proposed costs. Without access to the justification and cost analysis documentation, it's difficult to definitively assess this aspect.

What are the specific technical improvements or upgrades included in this refresh, and how do they enhance warfighter capabilities?

This technical refresh likely addresses obsolescence, improves performance, or adds new functionalities to the AN/APX-123A(V) system. Enhancements could include better signal processing, increased data throughput, improved cybersecurity, or integration with newer communication protocols. These upgrades are critical for maintaining situational awareness, accurate navigation, and reliable identification of friendly and hostile assets in complex operational environments.

What is the projected total cost of the contract, including all potential option periods or contract modifications, and how does it compare to industry benchmarks?

The provided data shows an initial award of $41.5M with a duration of 764 days. The total contract value could increase significantly if options are exercised or modifications are made. Benchmarking this against similar avionics system refreshes is challenging without more specific details on the scope of work and the technologies involved. However, CPFF contracts inherently carry a risk of cost growth, making close monitoring essential.

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: 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: $41,485,323

Exercised Options: $41,485,323

Current Obligation: $41,485,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001922G0009

IDV Type: BOA

Timeline