DoD Awards BAE Systems $181M Engineering Services Contract Amidst Full and Open Competition

Contract Overview

Contract Amount: $181,099,672 ($181.1M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2014-12-18

End Date: 2028-06-30

Contract Duration: 4,943 days

Daily Burn Rate: $36.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: RCS ENGINEERING AND TECHNICAL SERVICES

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $181.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: RCS ENGINEERING AND TECHNICAL SERVICES Key points: 1. Significant contract value of $181M awarded to BAE Systems. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration extends to June 2028, indicating a long-term engagement. 4. The contract is for engineering services, a critical sector for defense operations.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. However, the fixed fee component provides some predictability. Benchmarking against similar large-scale engineering services contracts is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple bidders to compete, theoretically driving down costs and ensuring the government receives competitive pricing.

Taxpayer Impact: Taxpayer funds are being utilized through a competitive process, aiming for value. The long-term nature of the contract means sustained investment, requiring ongoing scrutiny for efficiency.

Public Impact

Ensures continued engineering support for naval operations. Supports technological advancement and maintenance within the Department of Defense. Potential for job creation within BAE Systems and its subcontractors. Long-term commitment may indicate stable, ongoing defense needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs.
Long contract duration (over 13 years) increases risk of scope creep and cost escalation.
No indication of small business participation.

Positive Signals

Full and open competition utilized.
Contract awarded to a major defense contractor with established capabilities.
Clear definition of engineering services required.

Sector Analysis

This contract falls within the Engineering Services sector, a vital component of the Department of Defense's operational capabilities. Spending benchmarks for similar large-scale engineering support contracts are typically in the tens to hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). There is no specific mention of subcontracting goals for small businesses within this award, suggesting limited direct impact on the small business sector.

Oversight & Accountability

The Department of the Navy is the awarding agency, implying established oversight mechanisms. However, the long duration and CPFF structure necessitate robust monitoring to ensure cost control and performance accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type.
Long contract duration.
No small business participation noted.
Broad definition of engineering services.
Potential for cost escalation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $181.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. RCS ENGINEERING AND TECHNICAL SERVICES

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 $181.1 million.

What is the period of performance?

Start: 2014-12-18. End: 2028-06-30.

What specific engineering services are included in this $181M contract, and how do they align with current and future naval technological needs?

The contract is for 'Engineering Services' (NAICS 541330), which is broad. Specific services likely encompass design, development, testing, and integration of systems for the Department of the Navy. Alignment with future needs requires detailed review of the contract's statement of work and the Navy's strategic modernization plans, particularly concerning advanced platforms and cybersecurity.

Given the Cost Plus Fixed Fee structure, what are the primary cost drivers, and what mechanisms are in place to mitigate potential cost overruns?

Primary cost drivers in CPFF contracts often include labor (salaries, benefits), materials, and indirect costs. Mitigation mechanisms typically involve detailed cost accounting standards, regular audits, performance metrics tied to fee, and strong program management oversight by the Navy to scrutinize expenditures and ensure efficiency.

How does the long contract duration (2014-2028) impact the government's ability to adapt to evolving technological requirements and potentially seek more innovative solutions?

A long duration can provide stability but may also create inertia, making it harder to pivot to new technologies or approaches. The government's ability to adapt depends on contract flexibility clauses, regular performance reviews, and proactive engagement with the contractor to incorporate advancements. Periodic re-competition or contract modifications might be necessary.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042110R1042

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $196,263,396

Exercised Options: $196,263,396

Current Obligation: $181,099,672

Actual Outlays: $1,586,566

Subaward Activity

Number of Subawards: 306

Total Subaward Amount: $41,256,745

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline