Defense Threat Reduction Agency awards $177.8M contract to BAE Systems for R&D in Physical, Engineering, and Life Sciences

Contract Overview

Contract Amount: $48,367,059 ($48.4M)

Contractor: BAE Systems Information & Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2003-04-09

End Date: 2006-07-13

Contract Duration: 1,191 days

Daily Burn Rate: $40.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: 200312!000637!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0103D0007 !A!N! !N!0001 !20030409!20050331!177856163!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!9300 WELLINGTON ROAD !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000015469171!N!N!000000000000!AD11!RDTE/AMMUNITION-BASIC RESEARCH !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !5!B!S! ! !D!20080213!B! ! !A! !D!U!R!1!001!N!1A!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MANASSAS, MANASSAS (CITY) County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $48.4 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: 200312!000637!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0103D0007 !A!N! !N!0001 !20030409!20050331!177856163!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!9300 WELLINGTON ROAD !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANAS… Key points: 1. The contract, valued at $177.8 million, was awarded to BAE Systems Information and Electronic Systems Integration Inc. 2. The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. 3. The procurement method was 'NOT COMPETED', raising potential concerns about price discovery and competition. 4. The contract duration is 1191 days, indicating a long-term engagement for R&D services.

Value Assessment

Rating: questionable

The contract value of $177.8 million for R&D services is substantial. Without specific deliverables or benchmarks, it's difficult to assess its value against similar contracts. The 'NOT COMPETED' status further complicates a direct pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to the taxpayer compared to a competitively bid contract.

Taxpayer Impact: The lack of competition for a contract of this magnitude could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract suggests a critical need for the R&D services provided. The specific R&D focus is broad, potentially encompassing sensitive defense technologies. The contract's classification as 'NOT DISCERNABLE OR CLASSIFIED' for some aspects adds a layer of opacity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Oversight challenges due to classified/undisclosed details

Positive Signals

Long-term R&D engagement
Award to established contractor

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on Physical, Engineering, and Life Sciences. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value for money.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a large corporation like BAE Systems suggests a focus on established capabilities.

Oversight & Accountability

The 'NOT COMPETED' status warrants close oversight to ensure the contractor is delivering value and that the pricing is reasonable. Transparency regarding the specific R&D activities and outcomes would enhance accountability.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Defense Threat Reduction Agency Programs

Risk Flags

Lack of competition
Potential for inflated costs
Limited transparency on R&D scope
Difficulty in assessing value for money
No clear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.4 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC.. 200312!000637!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0103D0007 !A!N! !N!0001 !20030409!20050331!177856163!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!9300 WELLINGTON ROAD !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000015469171!N!N!000000000000!AD11!RDTE/AMMUNITION-BASIC RESEARCH !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !5!B!S! ! !D!20080213!B

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $48.4 million.

What is the period of performance?

Start: 2003-04-09. End: 2006-07-13.

What specific R&D objectives were pursued under this contract, and how do they align with the Defense Threat Reduction Agency's mission?

The contract's description as 'Research and Development in the Physical, Engineering, and Life Sciences' is broad. Without further details, it's challenging to ascertain the specific objectives. However, given the agency's mission, the R&D likely pertains to threat reduction technologies, potentially in areas like advanced materials, biological countermeasures, or novel detection systems.

What justification was provided for not competing this contract, and what measures were taken to ensure a fair price?

The data indicates the contract was 'NOT COMPETED'. Typically, justifications for sole-source awards include unique capabilities, urgent needs, or lack of available sources. Without the specific justification, it's impossible to assess its validity. Measures to ensure fair pricing in such cases often involve detailed cost analysis and negotiation, but the effectiveness is harder to gauge without competition.

How will the effectiveness and impact of the R&D conducted under this contract be measured and reported?

The effectiveness of R&D contracts is usually measured through milestones, deliverables, prototypes, and final reports. For this contract, the 'COST PLUS AWARD FEE' structure suggests that performance against defined criteria will influence the final payment. However, the specific metrics and reporting mechanisms are not detailed in the provided data, making it difficult to assess oversight.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 9300 WELLINGTON RD 110, MANASSAS, VA, 10

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTRA0103D0007

IDV Type: IDC

Timeline