DoD Awards $59M Engineering Services Contract to BAE Systems for NATO SEASPARROW Project

Contract Overview

Contract Amount: $59,082,069 ($59.1M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2017-09-29

End Date: 2024-09-28

Contract Duration: 2,556 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::OT::IGF TECHNICAL SUPPORT FOR NATO SEASPARROW PROJECT OFFICE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $59.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IGF::OT::IGF TECHNICAL SUPPORT FOR NATO SEASPARROW PROJECT OFFICE Key points: 1. Contract value of $59.1M for engineering services. 2. BAE Systems Technology Solutions & Services Inc. is the sole awardee. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The contract spans nearly 7 years, indicating a long-term need. 5. Sector is Engineering Services within the Defense industry.

Value Assessment

Rating: good

The contract value of $59.1M for a 7-year period appears reasonable for specialized engineering support. Benchmarking against similar long-term, complex project support contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a broad range of qualified contractors to bid. This method is expected to yield fair market value.

Taxpayer Impact: Taxpayer funds are being used for essential engineering support for a significant defense project, aiming for value through competitive procurement.

Public Impact

Supports a critical international defense project (NATO SEASPARROW). Ensures continued technical expertise for a long-duration program. Potential for technology transfer and collaboration within NATO allies. Impacts the defense industrial base through a significant contract award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 7 years) may present scope creep risks.
Sole awardee for delivery orders could limit future competition if not managed carefully.

Positive Signals

Full and open competition initially is a positive signal for value.
Contract supports a key international defense initiative.
Experienced contractor likely brings significant expertise.

Sector Analysis

This contract falls under Engineering Services, a critical sector for the Department of Defense, particularly for complex weapon systems like the NATO SEASPARROW. Spending in this area is benchmarked against similar long-term, specialized support contracts for major defense programs.

Small Business Impact

The data indicates the awardee is BAE Systems Technology Solutions & Services Inc., a large business. There is no explicit indication of small business participation in this specific award, which is common for large, complex defense contracts.

Oversight & Accountability

The contract's long duration and significant value warrant ongoing oversight to ensure performance, cost control, and adherence to the original scope. Regular reviews by the Department of the Navy are crucial.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration increases risk of cost overruns or scope creep.
Potential for vendor lock-in if follow-on work is heavily reliant on BAE Systems.
Lack of explicit small business subcontracting goals noted.
Dependence on a single contractor for critical technical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IGF::OT::IGF TECHNICAL SUPPORT FOR NATO SEASPARROW PROJECT OFFICE

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES 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 $59.1 million.

What is the period of performance?

Start: 2017-09-29. End: 2024-09-28.

What specific engineering services are being provided under this contract, and how do they align with the NATO SEASPARROW Project's evolving needs?

The contract provides technical support for the NATO SEASPARROW Project Office. Specific services likely include systems engineering, technical analysis, program management support, and potentially integration and testing. Alignment with evolving needs requires ongoing communication and potential contract modifications to adapt to technological advancements or changes in the project's strategic direction.

Given the full and open competition, what was the range of bids received, and how does the awarded price compare to the government's estimate?

While the data confirms full and open competition, it does not provide the number of bids received or the specific pricing details beyond the total award amount. A thorough analysis would require access to the bid tabulation and the government's independent cost estimate to assess the competitiveness and reasonableness of the final price.

How will the effectiveness of BAE Systems' technical support be measured throughout the contract's duration to ensure optimal value for the DoD?

Effectiveness is typically measured through performance metrics outlined in the contract's Performance Work Statement (PWS). These may include on-time delivery of technical reports, successful resolution of engineering issues, adherence to project milestones, and overall customer satisfaction surveys from the NATO SEASPARROW Project Office.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002416R3013

Offers Received: 5

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $100,362,649

Exercised Options: $69,368,883

Current Obligation: $59,082,069

Actual Outlays: $231,381

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $23,463,111

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4018

IDV Type: IDC

Timeline