DoD Awards $84.7M for ALR-56M Radar Warning Receivers to BAE Systems, Lacking Competition
Contract Overview
Contract Amount: $84,688,780 ($84.7M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-08
End Date: 2026-10-30
Contract Duration: 1,148 days
Daily Burn Rate: $73.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ALR-56M RADAR WARNING RECEIVERS
Place of Performance
Location: TOTOWA, PASSAIC County, NEW JERSEY, 07512
Plain-Language Summary
Department of Defense obligated $84.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: ALR-56M RADAR WARNING RECEIVERS Key points: 1. Significant contract value of $84.7 million for critical defense electronics. 2. Sole-source award to BAE Systems raises concerns about competitive pricing. 3. Potential for higher costs due to lack of market competition. 4. Sector focus on Electronic Component Manufacturing, vital for defense capabilities.
Value Assessment
Rating: questionable
The contract value of $84.7 million for ALR-56M Radar Warning Receivers appears high given the sole-source nature. Without competitive bidding, it's difficult to benchmark against similar contracts or market rates, suggesting potential overpricing.
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 may result in less favorable terms for the government compared to a fully competed procurement.
Taxpayer Impact: The absence of competition could lead to taxpayers bearing a higher cost for these essential defense systems.
Public Impact
Ensures continued availability of critical radar warning systems for military aircraft. Supports BAE Systems' role as a key supplier in the defense electronics sector. Highlights potential inefficiencies in defense procurement processes when competition is absent.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
Positive Signals
- Ensures supply of critical defense technology
- Supports established defense contractor
Sector Analysis
This contract falls within the Other Electronic Component Manufacturing sector, a critical area for defense systems. The $84.7 million award is substantial and reflects the specialized nature of radar warning receivers, but the lack of competition is a concern for this sector.
Small Business Impact
The awardee, BAE Systems, is a large defense contractor. There is no indication in the provided data that small businesses were involved in this specific sole-source procurement, which is common for specialized defense systems.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving fair value. Further review of the justification for the sole-source award is recommended.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for above-market pricing.
- Lack of transparency in price justification.
- Dependency on a single supplier.
Tags
other-electronic-component-manufacturing, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $84.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. ALR-56M RADAR WARNING RECEIVERS
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 $84.7 million.
What is the period of performance?
Start: 2023-09-08. End: 2026-10-30.
What is the justification for awarding this contract on a sole-source basis, and has it been adequately documented?
The provided data indicates a sole-source award, but the specific justification is not detailed. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. A thorough review of the government's justification documentation is necessary to confirm the validity of this approach and ensure it was not due to a lack of market research or planning.
How does the awarded price compare to historical pricing for similar ALR-56M systems or comparable radar warning receivers?
Without competitive bids, direct price comparison is challenging. However, an analysis of historical contract data for the ALR-56M or similar systems procured competitively could reveal significant deviations. The $84.7 million value, especially without competition, suggests a need for a detailed cost analysis to ensure it aligns with fair market value and avoids potential overpayment.
What is the long-term strategy for ensuring competitive sourcing for future radar warning receiver needs?
The current sole-source award highlights a potential gap in competitive sourcing for this critical technology. The Department of Defense should explore strategies to foster competition for future procurements, such as breaking down requirements, encouraging new entrants, or developing alternative systems. This proactive approach is crucial for long-term cost savings and technological advancement.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: SPRWA122R0022
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: $84,688,780
Exercised Options: $84,688,780
Current Obligation: $84,688,780
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: 2023-09-08
Current End Date: 2026-10-30
Potential End Date: 2026-10-30 00:00:00
Last Modified: 2025-12-04
More Contracts from BAE Systems Information and Electronic Systems Integration Inc.
- Limited Interim Missile Warning System (limws) A-Kits and B-Kits — $493.3M (Department of Defense)
- ALR 56C — $453.3M (Department of Defense)
- ALE-70 Production — $379.6M (Department of Defense)
- Digital Electronic Warfare System (dews) — $364.5M (Department of Defense)
- Global Positioning System Military Users Equipment Miniature Serial Interface Receiver Card Program With Next Generation Application Specific Integrated Circuit Increment 2 — $360.0M (Department of Defense)
View all BAE Systems Information and Electronic Systems Integration Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)