DoD Awards $34.1M for LAIRCM System Installation on KC-130J Aircraft

Contract Overview

Contract Amount: $34,176,593 ($34.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2020-04-07

End Date: 2026-10-01

Contract Duration: 2,368 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INSTALL OF LAIRCM SYSTEM ON KC-130J A/C.

Place of Performance

Location: NEW HYDE PARK, NASSAU County, NEW YORK, 11040

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $34.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: INSTALL OF LAIRCM SYSTEM ON KC-130J A/C. Key points: 1. The contract focuses on installing the LAIRCM system, a critical defense technology. 2. BAE Systems is the sole awardee, raising questions about competition. 3. The contract's duration and cost-plus-fixed-fee structure warrant scrutiny for potential cost overruns. 4. Spending falls within the Aircraft Manufacturing sector, which sees significant DoD investment.

Value Assessment

Rating: fair

The contract is a delivery order under a larger contract, making direct pricing comparisons difficult. The Cost Plus Fixed Fee (CPFF) structure can lead to costs exceeding initial estimates if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The award was a delivery order, suggesting it might be part of a pre-existing agreement or a limited competition scenario. The specific details of the competition method for this order are not fully clear, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are allocated for critical defense system upgrades. The effectiveness of the competition method will determine if the best possible price was achieved.

Public Impact

Enhances survivability of KC-130J aircraft with advanced threat detection and countermeasures. Supports military operations by ensuring the operational readiness of vital transport aircraft. Potential for follow-on contracts for maintenance, upgrades, and additional installations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition for this specific delivery order.
Cost-plus-fixed-fee contract type can incentivize higher costs.
Long contract duration increases risk of scope creep and cost escalation.

Positive Signals

Acquisition of critical defense technology.
Supports a vital military aircraft platform.
Potential for long-term sustainment and upgrades.

Sector Analysis

This contract falls under Aircraft Manufacturing, a sector heavily reliant on government funding, particularly from the Department of Defense. Benchmarks for similar system installations can vary widely based on complexity and aircraft type.

Small Business Impact

The awardee, BAE Systems, is a large defense contractor. There is no indication that small businesses were involved in this specific delivery order, which is common for large-scale defense system installations.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The delivery order structure within a larger contract may require careful monitoring to ensure adherence to original terms and effective cost control.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition noted for this delivery order.
Long contract duration increases risk exposure.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. INSTALL OF LAIRCM SYSTEM ON KC-130J A/C.

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 $34.2 million.

What is the period of performance?

Start: 2020-04-07. End: 2026-10-01.

What was the specific justification for limiting competition on this delivery order, and how does it align with DoD's full and open competition goals?

The data indicates this is a delivery order, which can sometimes be awarded under existing contract vehicles that may have undergone full and open competition previously. However, without more information on the parent contract or specific justifications for this order, it's difficult to definitively assess the level of competition. Agencies are expected to maximize competition whenever possible, even within limited scenarios.

How does the Cost Plus Fixed Fee (CPFF) structure mitigate or exacerbate risks associated with the installation of complex systems like LAIRCM?

CPFF contracts aim to provide the contractor with a fixed fee regardless of the final cost, incentivizing efficiency. However, the 'cost' portion is subject to fluctuations. For complex installations, unforeseen technical challenges can drive up costs, and the fixed fee might not adequately compensate for the contractor's risk if costs escalate significantly beyond projections.

What is the projected impact of the LAIRCM system installation on the operational effectiveness and survivability of the KC-130J fleet?

The LAIRCM (Large Aircraft Infrared Countermeasures) system is designed to protect large aircraft from infrared-guided missiles. Its installation on the KC-130J, a vital transport and aerial refueling platform, is expected to significantly enhance survivability in contested environments, thereby increasing mission assurance and reducing risk to aircrews and valuable assets.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042116R0040

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

Financial Breakdown

Contract Ceiling: $34,178,434

Exercised Options: $34,178,434

Current Obligation: $34,176,593

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $15,932,002

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042117D0045

IDV Type: IDC

Timeline