DoD Awards $453M Contract to BAE Systems for Electronic Components, Lacking Competition
Contract Overview
Contract Amount: $453,253,550 ($453.3M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-23
End Date: 2026-06-30
Contract Duration: 2,472 days
Daily Burn Rate: $183.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ALR 56C
Place of Performance
Location: TOTOWA, PASSAIC County, NEW JERSEY, 07512
Plain-Language Summary
Department of Defense obligated $453.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: ALR 56C Key points: 1. Significant contract value of $453.3 million awarded. 2. Sole provider BAE Systems highlights potential lack of competitive pricing. 3. Long contract duration of 2472 days raises concerns about adaptability and value. 4. Spending falls within the 'Other Electronic Component Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $453.3 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar electronic component manufacturing contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a contract of this magnitude may result in taxpayers paying a premium for the required electronic components.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The long contract duration could lead to outdated technology or components. Reliance on a single vendor raises concerns about supply chain resilience.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- No small business participation indicated
Positive Signals
- Clear contract award with defined end date
Sector Analysis
This contract falls under 'Other Electronic Component Manufacturing,' a sector critical for defense systems. Spending benchmarks for this sector vary widely based on component complexity and volume.
Small Business Impact
The data indicates no specific provisions for small business participation in this contract. This represents a missed opportunity to support small businesses within the defense supply chain.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and performance. Accountability mechanisms should be robust given the significant taxpayer investment.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Long contract duration increases risk of obsolescence.
- No indication of small business involvement.
- Potential for vendor lock-in.
- Limited transparency in pricing due to sole-source award.
Tags
other-electronic-component-manufacturing, department-of-defense, nj, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $453.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. ALR 56C
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $453.3 million.
What is the period of performance?
Start: 2019-09-23. End: 2026-06-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet requirements. The contracting agency should have conducted a price analysis, comparing the proposed price to historical data, commercial prices, or independent government cost estimates to ensure fairness. Documentation of this analysis is crucial for accountability.
Given the 2472-day duration, what measures are in place to mitigate the risk of component obsolescence or technological irrelevance?
Mitigation strategies for long-duration contracts involving technology include incorporating clauses for obsolescence management, technology refresh, and price adjustments based on market changes. Regular reviews by the agency should assess the continued relevance of the components and the vendor's proactive management of potential obsolescence issues.
How does the performance of BAE Systems on this contract align with industry benchmarks for electronic component manufacturing, and what is the overall value for money achieved?
Assessing value for money requires performance metrics such as on-time delivery, quality defect rates, and adherence to specifications. Comparing these metrics against industry benchmarks and the contract's total cost, especially in the absence of competition, is essential. A thorough post-award review would be necessary to determine if the achieved value aligns with taxpayer expectations.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 100 CAMPUS RD STE 1, TOTOWA, NJ, 07512
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $453,253,550
Exercised Options: $453,253,550
Current Obligation: $453,253,550
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX15D9441
IDV Type: IDC
Timeline
Start Date: 2019-09-23
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-08
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