DoD awards $148M for missile and space systems R&D, with BAE Systems as prime contractor

Contract Overview

Contract Amount: $147,953,424 ($148.0M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2005-05-12

End Date: 2024-01-26

Contract Duration: 6,833 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200508!501660!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !DASG6002D0009 !A!N! !Y!0105 ! !20050512!20070423!130106867!876861790!217304393!N!BAE SYSTEMS ANALYTICAL SOLUTIO!308 VOYAGER WAY !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000040000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !5!B!M! !A! !20200930!B! ! !A! !A!N!Y!2!007!K! !Z!N!Z! ! !N!B!Y!N! ! !Z! !B!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: BETHPAGE, NASSAU County, NEW YORK, 11714

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $148.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: 200508!501660!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !DASG6002D0009 !A!N! !Y!0105 ! !20050512!20070423!130106867!876861790!217304393!N!BAE SYSTEMS ANALYTICAL SOLUTIO!308 VOYAGER WAY !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADI… Key points: 1. Contract focuses on advanced technology development for missile and space systems. 2. BAE Systems is the prime contractor, indicating significant reliance on their expertise. 3. The contract duration is substantial, suggesting a long-term need for these services. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The award was made under full and open competition, suggesting a competitive process. 6. The contract is for Research and Development, a critical area for defense innovation.

Value Assessment

Rating: fair

The total award amount of $147,953,424.06 for R&D in missile and space systems appears to be within a reasonable range for complex defense projects. However, the Time and Materials (T&M) contract type, while flexible, can lead to cost overruns if not closely managed. Benchmarking T&M contracts in this specific R&D niche is challenging without more granular data on labor categories and material costs. The contract's extended duration also necessitates careful monitoring of spending against milestones.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was open, certain sources may have been excluded prior to the final award. The presence of 7 offers suggests a reasonably competitive environment. However, the 'exclusion of sources' clause warrants further investigation to understand its impact on the breadth of competition and potential price discovery.

Taxpayer Impact: The open competition, despite potential source exclusions, likely resulted in a more competitive pricing environment than a sole-source award, benefiting taxpayers. However, the specifics of the exclusion could have limited the ultimate number of competitive bids.

Public Impact

The primary beneficiaries are the Department of Defense and potentially national security through advancements in missile and space systems. Services delivered include research and development in advanced technologies for space and missile defense. The geographic impact is likely concentrated around BAE Systems' facilities in Huntsville, Alabama, and potentially other research hubs. Workforce implications include employment for highly skilled engineers, scientists, and technical personnel within BAE Systems and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation if not managed rigorously.
The 'exclusion of sources' in the competition process may have limited the number of potential bidders.
Long contract duration requires sustained oversight to ensure performance and cost control.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
BAE Systems is a large, established defense contractor with a track record in R&D.
The contract supports critical advancements in missile and space systems for national defense.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced technologies for missile and space systems. This is a highly specialized and critical area within the broader defense industry. The market for such R&D is characterized by high barriers to entry due to intellectual property, specialized expertise, and significant capital investment. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of R&D, but large-scale defense R&D contracts often run into hundreds of millions of dollars.

Small Business Impact

The contract data indicates that small business participation is not explicitly detailed as a set-aside. Given the prime contractor is BAE Systems, a large corporation, the focus is likely on prime contract performance. Subcontracting opportunities for small businesses may exist within BAE Systems' supply chain, but there is no direct indication of a small business set-aside for this specific award. Further analysis of BAE's subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contract management and oversight bodies, such as the Defense Contract Management Agency (DCMA). Accountability measures would be tied to performance milestones and deliverables outlined in the contract. Transparency is facilitated through contract award databases, but detailed project specifics and ongoing performance metrics are often considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Space Systems Development
Advanced Technology Research
Department of Defense R&D Programs
BAE Systems Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited transparency regarding the specific reasons for 'exclusion of sources' in competition.
Long contract duration requires sustained and effective government oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $148.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. 200508!501660!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !DASG6002D0009 !A!N! !Y!0105 ! !20050512!20070423!130106867!876861790!217304393!N!BAE SYSTEMS ANALYTICAL SOLUTIO!308 VOYAGER WAY !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000040000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !5!B!M! !A! !202

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES 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 $148.0 million.

What is the period of performance?

Start: 2005-05-12. End: 2024-01-26.

What is BAE Systems' track record with similar R&D contracts for the Department of Defense?

BAE Systems Technology Solutions & Services Inc. has a significant history of performing R&D and technical support services for the Department of Defense. They are a major defense contractor with extensive experience in areas like missile systems, space technology, and advanced engineering. Reviewing their past performance on contracts with similar scope, duration, and complexity, particularly within the Missile Defense Agency (MDA) or Space Force, would provide context. Analyzing past performance ratings, any contract disputes, or awards for exceptional performance would offer insights into their reliability and capability for this specific contract. Their established presence in Huntsville, Alabama, also suggests a deep integration with the defense research ecosystem in that region.

How does the $148 million award compare to historical spending on missile and space R&D by the DoD?

The $148 million award for missile and space R&D is a substantial sum, reflecting the high cost and critical nature of these technological advancements. To benchmark this against historical spending, one would need to examine the DoD's overall R&D budget allocations over several fiscal years, specifically those directed towards programs managed by entities like the Missile Defense Agency (MDA) or the U.S. Space Force. Comparing this single award to the total annual R&D expenditure in these categories can indicate its relative significance. For instance, if the DoD spends billions annually on space and missile R&D, this $148 million contract represents a notable but not dominant portion. Conversely, if it represents a large fraction of a specific program's budget, it highlights its importance to that initiative.

What are the primary risks associated with a Time and Materials (T&M) contract for advanced R&D?

The primary risk with a Time and Materials (T&M) contract for advanced R&D is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and material costs incurred, plus a fixed fee or profit. If the scope of work is not well-defined, or if the R&D effort encounters unforeseen complexities, the contractor may expend more hours or resources than initially anticipated, leading to a higher final cost. This necessitates robust oversight from the government to monitor labor hours, material usage, and ensure efficiency. Without stringent controls, T&M contracts can become significantly more expensive than initially projected, impacting the overall value for taxpayers.

What does the 'exclusion of sources' clause in the competition mean for taxpayers?

The 'exclusion of sources' clause in a 'full and open competition' award means that while the competition was generally open, certain potential bidders were explicitly prevented from participating. The specific reasons for exclusion are critical. If sources were excluded due to a lack of necessary qualifications, security clearances, or specialized capabilities essential for this advanced R&D, then the exclusion might be justified and could lead to a more focused competition among highly capable firms, potentially resulting in better technical outcomes. However, if sources were excluded for less justifiable reasons, it could limit competition, potentially leading to higher prices for taxpayers than if a broader range of bidders had been allowed to compete.

How does the contract's focus on 'Missile and Space Systems - Advanced Tech Dev' align with current defense priorities?

The contract's focus on 'Missile and Space Systems - Advanced Tech Dev' aligns directly with current and evolving Department of Defense priorities. In an era of increasing geopolitical competition and rapid technological advancement, maintaining superiority in missile defense, offensive missile capabilities, and space-based assets is paramount. Advancements in these areas are crucial for strategic deterrence, intelligence gathering, communication, navigation, and protecting national interests in both terrestrial and space domains. Funding R&D in these fields ensures the U.S. military can adapt to emerging threats, develop next-generation capabilities, and maintain a technological edge over potential adversaries.

What are the potential implications of this contract for future defense technology development?

This contract has significant implications for future defense technology development by fostering innovation in critical areas like missile defense and space systems. The R&D funded here could lead to breakthroughs in areas such as hypersonic missile technology, advanced satellite capabilities, counter-space systems, or improved missile defense interceptors. The knowledge and intellectual property generated could form the foundation for subsequent procurement programs, shaping the future force structure and technological landscape of the U.S. military. Furthermore, the success of BAE Systems on this contract could position them for future roles in developing and producing these advanced systems, influencing the competitive dynamics within the defense industrial base for years to come.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

Address: 308 VOYAGER WAY, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DASG6002D0009

IDV Type: IDC

Timeline