DoD Navy Awards $179M Engineering Services Contract to BAE Systems via Full and Open Competition

Contract Overview

Contract Amount: $179,268,327 ($179.3M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2020-01-21

End Date: 2025-04-30

Contract Duration: 1,926 days

Daily Burn Rate: $93.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AMENDMENT 02 UPDATES ATT 1, ATT 2, SECTION B, SECTION F, SECTION H, SECTION I, C-215-H002 CLAUSE IN SECTION C, SECTION L 2.2.5, 2.2.6, 4.2.3.1, 4.2.3.2, 4.5.1, 4.6.1, AND SECTION M 3.2.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $179.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: AMENDMENT 02 UPDATES ATT 1, ATT 2, SECTION B, SECTION F, SECTION H, SECTION I, C-215-H002 CLAUSE IN SECTION C, SECTION L 2.2.5, 2.2.6, 4.2.3.1, 4.2.3.2, 4.5.1, 4.6.1, AND SECTION M 3.2. Key points: 1. Contract awarded to BAE Systems for engineering services, with a total value of $179.3 million. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. This is a delivery order under a larger contract, with a significant duration extending to April 2025. 4. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 5. The NAICS code 541330 suggests a focus on engineering services.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable. Benchmarking against similar engineering services contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure may still lead to costs exceeding initial estimates if not managed effectively.

Taxpayer Impact: Taxpayer funds are being used for engineering services, with the competitive award aiming for value. The Cost Plus Fixed Fee nature necessitates oversight to prevent cost overruns.

Public Impact

Supports critical Department of the Navy operations through engineering services. The long contract duration suggests ongoing, potentially complex, engineering needs. The competitive award process is intended to ensure fair pricing for taxpayers. Amendments indicate ongoing adjustments and potential scope changes throughout the contract lifecycle.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Long contract duration
Multiple contract amendments

Positive Signals

Full and open competition
Awarded to established contractor

Sector Analysis

This contract falls within the Engineering Services sector, characterized by specialized technical expertise. Spending in this sector is crucial for government infrastructure and defense projects, with typical contract values varying widely based on scope and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large business (BAE Systems). There is no direct indication of small business subcontracting opportunities within this specific award data.

Oversight & Accountability

The presence of multiple amendments suggests active contract management and potential adjustments to scope or requirements. Oversight is crucial to ensure adherence to the Cost Plus Fixed Fee terms and prevent unnecessary cost escalation.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee structure
Potential for cost overruns
Long contract duration may indicate evolving or complex needs
Multiple contract amendments require careful review

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $179.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. AMENDMENT 02 UPDATES ATT 1, ATT 2, SECTION B, SECTION F, SECTION H, SECTION I, C-215-H002 CLAUSE IN SECTION C, SECTION L 2.2.5, 2.2.6, 4.2.3.1, 4.2.3.2, 4.5.1, 4.6.1, AND SECTION M 3.2.

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 $179.3 million.

What is the period of performance?

Start: 2020-01-21. End: 2025-04-30.

What specific engineering services are being provided under this contract, and how do they align with the Department of the Navy's strategic objectives?

The provided data does not detail the specific engineering services. However, given the awardee and the Department of the Navy, these likely encompass a range of technical support, design, analysis, or systems engineering critical for naval operations, potentially including platform development, maintenance, or modernization efforts.

How does the Cost Plus Fixed Fee structure impact the government's ability to control costs and ensure value for money compared to other contract types?

Cost Plus Fixed Fee contracts allow for flexibility when project scope is uncertain, but they shift cost risk to the government. While a fixed fee provides some predictability, the government bears the risk of cost overruns. Effective oversight and negotiation are paramount to ensure value, unlike fixed-price contracts where the contractor assumes more risk.

What is the potential impact of the multiple contract amendments on the overall cost and timeline of the project?

Multiple amendments can indicate evolving requirements, unforeseen challenges, or scope creep, potentially leading to increased costs and extended timelines. While some amendments are normal, a high frequency warrants scrutiny to ensure they are justified, well-documented, and do not significantly deviate from the original intent or budget.

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: N0016419R3508

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $188,046,995

Exercised Options: $188,046,995

Current Obligation: $179,268,327

Actual Outlays: $9,962,179

Subaward Activity

Number of Subawards: 275

Total Subaward Amount: $49,506,623

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7224

IDV Type: IDC

Timeline