DoD awards $46.6M for C-130J Radar Warning Systems to BAE Systems, raising competition concerns
Contract Overview
Contract Amount: $46,645,872 ($46.6M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2015-12-15
End Date: 2018-06-30
Contract Duration: 928 days
Daily Burn Rate: $50.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE 39 EACH OF NSN 1680K0107337AVM ALR-56M ADVANCED RADAR WARNING RECEIVER SYSTEM SHIPSETS APPLICABLE TO C-130J AIRCRAFT
Place of Performance
Location: GREENLAWN, SUFFOLK County, NEW YORK, 11740
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $46.6 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: PURCHASE 39 EACH OF NSN 1680K0107337AVM ALR-56M ADVANCED RADAR WARNING RECEIVER SYSTEM SHIPSETS APPLICABLE TO C-130J AIRCRAFT Key points: 1. Significant investment in advanced radar warning systems for C-130J aircraft. 2. Sole-source award to BAE Systems limits competitive pricing and innovation. 3. Potential for higher costs due to lack of competition. 4. Sector focus on defense electronics manufacturing.
Value Assessment
Rating: questionable
The total award of $46.6 million for 39 units suggests a per-unit cost of approximately $1.196 million. Without competitive bids, it's difficult to assess if this price is optimal compared to potential market alternatives or previous procurements.
Cost Per Unit: $1,196,043
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to BAE Systems. This lack of competition limits price discovery and may result in a higher price than if multiple vendors had submitted bids.
Taxpayer Impact: Taxpayers may be overpaying due to the absence of a competitive bidding process, potentially diverting funds from other critical defense needs.
Public Impact
Enhances survivability of C-130J aircraft with advanced threat detection. Supports the operational readiness of a key military transport platform. Investment in specialized defense electronics technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Critical system for aircraft survivability
- Supports established military platform
Sector Analysis
This procurement falls within the Defense sector, specifically focusing on electronic warfare systems. Spending benchmarks for similar advanced radar systems can vary widely based on technological sophistication and quantity, but sole-source awards often deviate from competitive norms.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as BAE Systems is a large defense contractor. There is no indication of subcontracting opportunities for small businesses within this specific award notice.
Oversight & Accountability
The Department of Defense awarded this contract through a delivery order. Oversight would typically involve contract administration by the Defense Contract Management Agency to ensure delivery and quality standards are met, though the lack of competition limits oversight on pricing.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price justification.
- No small business participation noted.
Tags
other-electronic-component-manufacturing, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.6 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. PURCHASE 39 EACH OF NSN 1680K0107337AVM ALR-56M ADVANCED RADAR WARNING RECEIVER SYSTEM SHIPSETS APPLICABLE TO C-130J AIRCRAFT
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $46.6 million.
What is the period of performance?
Start: 2015-12-15. End: 2018-06-30.
What is the justification for the sole-source award of the ALR-56M system?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the absence of viable alternative sources. Without further documentation, it's unclear if this procurement meets stringent criteria for non-competitive acquisition, potentially indicating a reliance on a single supplier or a failure to explore market alternatives.
How does the unit cost compare to similar radar warning receiver systems procured competitively?
Comparing the unit cost of $1.196 million for the ALR-56M system to competitively procured alternatives is challenging without specific market data. Sole-source contracts often result in higher prices due to the lack of competitive pressure. A thorough market research report would be needed to establish a fair and reasonable price benchmark against similar systems.
What is the long-term strategy for ensuring competitive sourcing of future radar warning receiver upgrades?
The long-term strategy should focus on proactive market research and fostering competition for future upgrades. This could involve encouraging new entrants, developing modular system designs to allow for component-level competition, or setting clear requirements for future procurements that necessitate competitive bidding to ensure cost-effectiveness 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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 100 CAMPUS RD STE 1, TOTOWA, NJ, 07512
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $513,104,592
Exercised Options: $93,291,744
Current Obligation: $46,645,872
Subaward Activity
Number of Subawards: 69
Total Subaward Amount: $19,392,756
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPM4AX08D9416
IDV Type: IDC
Timeline
Start Date: 2015-12-15
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2018-01-02
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