DoD's $330M MK 41 VLS Canister Contract Awarded to BAE Systems Under Full and Open Competition
Contract Overview
Contract Amount: $329,788,378 ($329.8M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2013-06-28
End Date: 2022-02-07
Contract Duration: 3,146 days
Daily Burn Rate: $104.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MK 41 VLS CANISTER PRODUCTION FOR FY13-17 REQUIREMENTS.
Place of Performance
Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55421
Plain-Language Summary
Department of Defense obligated $329.8 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: MK 41 VLS CANISTER PRODUCTION FOR FY13-17 REQUIREMENTS. Key points: 1. The contract, valued at $329.8 million, covers MK 41 Vertical Launch System (VLS) canisters. 2. BAE Systems Land & Armaments L.P. was the awardee, indicating a single prime contractor for this specific production run. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract spans from FY13-17 requirements, with a long performance period ending in February 2022. 5. The absence of small business participation is noted.
Value Assessment
Rating: good
The contract's value of $329.8 million for VLS canisters appears reasonable given the specialized nature of defense hardware and the long production timeline. Benchmarking against similar complex defense systems would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The specific price discovery mechanisms within this competition are not detailed but the method itself is favorable.
Taxpayer Impact: Full and open competition aims to maximize taxpayer value by encouraging multiple bidders to offer competitive prices for defense systems like the MK 41 VLS canisters.
Public Impact
Ensures continued production of critical missile launch systems for naval vessels. Supports the operational readiness of the U.S. Navy's fleet. The long contract duration suggests a stable, long-term need for these components. Potential for follow-on contracts based on sustained demand.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation noted.
- Long contract duration could introduce risks related to obsolescence or changing technology.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Addresses critical defense requirements.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on guided missile and space vehicle parts. Spending in this area is driven by national security needs and technological advancements in weaponry. Benchmarks for such specialized components are often proprietary but are generally high due to R&D and manufacturing complexity.
Small Business Impact
The data indicates that this contract did not involve small business participation. This could be due to the specialized nature of the manufacturing or the prime contractor's capabilities, but it represents a missed opportunity for small business engagement in the defense supply chain.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), which provides contract administration services to ensure compliance and performance. The firm fixed price nature of the contract offers a degree of cost control, but ongoing oversight is crucial for delivery and quality.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- No small business participation.
- Long contract duration.
- Potential for supply chain vulnerabilities.
- Risk of technological obsolescence.
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, mn, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $329.8 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. MK 41 VLS CANISTER PRODUCTION FOR FY13-17 REQUIREMENTS.
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND & ARMAMENTS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $329.8 million.
What is the period of performance?
Start: 2013-06-28. End: 2022-02-07.
What was the competitive landscape like for this specific MK 41 VLS canister production, and did the full and open competition result in significant price advantages compared to potential sole-source
While awarded under full and open competition, the specific details of the bidding process and the number of competing offers are not provided. However, this method generally leads to better pricing than sole-source awards. The $329.8 million value over several years suggests a substantial investment, and the competitive nature likely secured a more favorable price for the government than if only one supplier was considered.
Given the long contract duration (2013-2022), what are the primary risks associated with technological obsolescence or supply chain disruptions for the MK 41 VLS canisters?
The extended performance period presents risks of technological obsolescence if newer, more advanced missile systems emerge, potentially rendering the MK 41 VLS less relevant. Supply chain disruptions are also a concern, especially for specialized components, as global events or manufacturing issues could impact BAE Systems' ability to deliver. Mitigation strategies likely involve robust supplier management and contingency planning by the DoD and the contractor.
How does the per-unit cost of these MK 41 VLS canisters compare to similar defense hardware, and what does this suggest about the overall value for money achieved?
A specific per-unit cost benchmark is not available in the provided data. However, the total contract value of $329.8 million spread over a significant number of units (implied by 'production') for a critical defense component suggests a high per-unit cost, typical for advanced military hardware. The value for money is primarily assessed through the competitive award process, which aims to ensure fair pricing for the capabilities delivered.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002412R5314
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC
Address: 4800 E RIVER RD, MINNEAPOLIS, MN, 55421
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $330,717,985
Exercised Options: $329,788,378
Current Obligation: $329,788,378
Actual Outlays: $34,817,102
Subaward Activity
Number of Subawards: 607
Total Subaward Amount: $151,414,615
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-06-28
Current End Date: 2022-02-07
Potential End Date: 2022-02-07 00:00:00
Last Modified: 2023-06-16
More Contracts from BAE Systems Land & Armaments L.P.
- Letter Contract for Early Procurement Material to Support the M109a7/M992a3 Vehicle Production — $2.9B (Department of Defense)
- Early Order Material in Support of the Future Purchase of 197 Ampvs and Facility Capacity Expansion Efforts to Increase the Ampv Production Rate to 197 Vehicles PER Year. Supports Ukraine Efforts — $2.5B (Department of Defense)
- 200612!007793!2100!w56hzv!tacom - Warren !w56hzv05g0005 !A!N! !N!0009 ! !20060726!20081231!834476079!824825459!217304393!n!bae Systems Land & Armaments I!1100 Bairs RD !york !pa!17404!87048!133!42!york !york !penn !+000192628556!n!n!000000000000!2350!combat Assault & Tactical VEH, Tracked !a4a!combat Vehicles !000 !NOT Discernable !336992!E! !4! ! ! ! ! !99990909!B! ! !A! !d!n!j!1!001!n!1g!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!y! ! ! ! ! ! !0001! ! — $1.6B (Department of Defense)
- 200112!001338!2100!AE07 !tacom - Warren !daae0701cm016 !A!N!*!N! !20010502!20041231!834476079!824825459!175406842!n!united Defense, L P !1100 Bairs Road !york !pa!17405!87048!133!42!york !york !penn !+000228044944!n!y!000681605313!2350!combat Assault & Tactical VEH, Tracked !a4a!combat Vehicles !1000!NOT Discernable or Classified !336992!*!*!3! ! ! !*!*!*!B!*!*!A! !D !n!j!1!001!n!1g!a!y!f! ! !N!C!N! ! ! !a!a!a!a!000!a!b!n! ! ! ! ! ! !0001! — $1.3B (Department of Defense)
- System Technical Support for Bradley Family of Vehicles, M113, M109, M992 Family of Vehicles, M9 ACE, Mlrs — $1.3B (Department of Defense)
View all BAE Systems Land & Armaments L.P. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)