DoD Awards $95.4M for Polish Missile Warning Systems to BAE Systems
Contract Overview
Contract Amount: $95,448,514 ($95.4M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2025-12-19
End Date: 2028-12-31
Contract Duration: 1,108 days
Daily Burn Rate: $86.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COMMON MISSILE WARNING SYSTEM (CMWS) PRODUCTION HARDWARE - FOREIGN MILITARY SALES (FMS) POLAND
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060
Plain-Language Summary
Department of Defense obligated $95.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: COMMON MISSILE WARNING SYSTEM (CMWS) PRODUCTION HARDWARE - FOREIGN MILITARY SALES (FMS) POLAND Key points: 1. Significant award for critical defense hardware to a single vendor. 2. Limited competition raises questions about price discovery and value. 3. Potential for higher costs due to sole-source nature. 4. Focus on foreign military sales highlights international defense cooperation.
Value Assessment
Rating: fair
The award amount of $95.4M for CMWS production hardware is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in less favorable terms for the government compared to a competitive process.
Taxpayer Impact: Taxpayer funds are being used for foreign military sales, supporting allied defense capabilities. The lack of competition means taxpayers may not be receiving the best possible price.
Public Impact
Enhances Poland's air defense capabilities, contributing to NATO security. Supports U.S. foreign policy objectives through military aid. Potential for follow-on sustainment and upgrade contracts. Impacts the defense industrial base, specifically electronic component manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Foreign Military Sale
Positive Signals
- Supports allied defense capabilities
- Long-term contract duration
Sector Analysis
This contract falls under Other Electronic Component Manufacturing, a segment of the broader defense industrial base. Spending in this sector is often driven by national security needs and international partnerships.
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 procurement.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and performance. The Department of the Army's contracting activity will be responsible for monitoring this delivery order.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for price escalation without competitive pressure.
- Reliance on a single vendor for critical defense technology.
- Foreign Military Sale may involve complex logistical and political considerations.
Tags
other-electronic-component-manufacturing, department-of-defense, nh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $95.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. COMMON MISSILE WARNING SYSTEM (CMWS) PRODUCTION HARDWARE - FOREIGN MILITARY SALES (FMS) POLAND
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $95.4 million.
What is the period of performance?
Start: 2025-12-19. End: 2028-12-31.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. The price is usually determined fair and reasonable through cost analysis, comparison to previous contracts, or market research, though the specifics for this contract are not detailed here.
What are the specific risks associated with procuring critical missile warning systems on a sole-source basis?
Sole-source procurement of critical systems like missile warning systems carries risks of inflated pricing, reduced innovation, and potential vendor lock-in. It also limits the government's leverage in negotiating terms and can create dependencies that are difficult to break, potentially impacting long-term sustainment and upgrade costs.
How does this FMS contract contribute to the overall effectiveness of Poland's defense posture and NATO's collective security?
By providing advanced Common Missile Warning Systems, this contract directly enhances Poland's ability to detect and respond to missile threats. This strengthens Poland's national defense and, by extension, improves the collective security of NATO's eastern flank, fostering interoperability and burden-sharing among allies.
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: 65 SPIT BROOK RD, NASHUA, NH, 03060
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: $95,448,514
Exercised Options: $95,448,514
Current Obligation: $95,448,514
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ21D0010
IDV Type: IDC
Timeline
Start Date: 2025-12-19
Current End Date: 2028-12-31
Potential End Date: 2028-12-31 12:12:00
Last Modified: 2025-12-19
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