DoD's $90M NCTAMS Pacific Contract with BAE Systems Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $90,156,294 ($90.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2018-12-01

End Date: 2024-09-30

Contract Duration: 2,130 days

Daily Burn Rate: $42.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NCTAMS PACIFIC OPERATIONS AND MAINTENANCE HAWAII

Place of Performance

Location: WAHIAWA, HONOLULU County, HAWAII, 96786

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $90.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: NCTAMS PACIFIC OPERATIONS AND MAINTENANCE HAWAII Key points: 1. Contract awarded to BAE Systems for $90.16M for telecommunications services. 2. Full and open competition was used, but the impact on price discovery is unclear. 3. Potential risks include cost overruns and lack of clear performance metrics. 4. The contract falls under the 'All Other Telecommunications' sector, with limited public data for benchmarking. 5. Small business participation is noted as 'false', indicating no specific set-aside.

Value Assessment

Rating: fair

The contract value of $90.16M over 6 years appears high for 'All Other Telecommunications' services without clear performance benchmarks. Benchmarking against similar DoD contracts for telecommunications infrastructure and maintenance is difficult due to the broad PSC code.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized full and open competition, which is generally positive for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making it difficult to assess the effectiveness of this competition in securing the best value.

Taxpayer Impact: Taxpayer funds are being utilized for this contract. The value and effectiveness of the services rendered will determine the ultimate taxpayer impact.

Public Impact

Ensures critical telecommunications infrastructure for naval operations in the Pacific. Supports BAE Systems' presence and employment in Hawaii. Potential for cost savings or overruns impacts the defense budget and thus taxpayer funds. Lack of small business involvement may limit broader economic benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Unclear value for money given the broad service category.
Limited transparency on competition effectiveness.
Potential for cost creep in long-term contracts.
No small business participation.

Positive Signals

Utilizes full and open competition.
Supports critical national defense infrastructure.
Long-term contract provides stability.

Sector Analysis

This contract falls under the 'All Other Telecommunications' sector, which is broad and can encompass a wide range of services. Benchmarking is challenging without more specific service details. DoD spending in telecommunications is substantial, but this specific sub-sector lacks readily available comparative data.

Small Business Impact

The data indicates 'sb' is false, meaning there was no specific small business set-aside for this contract. This suggests that large businesses were the primary focus or participants in the competition, potentially limiting opportunities for small businesses in this sector.

Oversight & Accountability

Oversight is primarily the responsibility of the Department of the Navy. The contract type (Firm Fixed Price) suggests a degree of cost control, but ongoing monitoring of performance and adherence to contract terms is crucial for accountability.

Related Government Programs

All Other Telecommunications
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for overpayment due to broad service category.
Lack of transparency on competition effectiveness.
Limited benchmarking data for 'All Other Telecommunications'.
No small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. NCTAMS PACIFIC OPERATIONS AND MAINTENANCE HAWAII

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 $90.2 million.

What is the period of performance?

Start: 2018-12-01. End: 2024-09-30.

What specific telecommunications services are included under 'All Other Telecommunications' for NCTAMS Pacific, and how does the $90M price tag compare to industry standards for similar operational sc

The 'All Other Telecommunications' category is broad, potentially covering network maintenance, communication systems operation, and infrastructure support. Without specific service details, a direct cost comparison is difficult. However, $90M over six years for operational support of a major naval command's telecommunications suggests a significant investment, warranting detailed justification and performance metrics to ensure value.

Given the full and open competition, what was the level of bidding interest, and how was the winning bid assessed to ensure it represented the best value and mitigated risks associated with long-term

While the contract states 'full and open competition,' the number of bids received and the specific evaluation criteria used to determine the 'best value' are not detailed. This lack of transparency raises questions about the thoroughness of the price discovery process and the potential risks of selecting a bid that may not be the most cost-effective or technically superior over the contract's duration.

How will the effectiveness of the BAE Systems contract be measured to ensure it meets the operational needs of NCTAMS Pacific and justifies the $90M expenditure, particularly in the absence of specifi

Effectiveness measurement relies on the Department of the Navy's oversight and the contract's performance work statement (PWS), which are not detailed here. Key performance indicators (KPIs) related to system uptime, response times, and service availability are essential. Without clear, measurable outcomes tied to the $90M investment, assessing the contract's true effectiveness and taxpayer value is challenging.

Industry Classification

NAICS: Information › Other Telecommunications › All Other Telecommunications

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0060418R4000

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie DE Developpement DE L'eau S.A.

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: $92,754,924

Exercised Options: $91,456,530

Current Obligation: $90,156,294

Actual Outlays: $37,125,476

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $14,679,504

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline