DoD's $51M R&D Contract with BAE Systems: Long Duration, Full & Open Competition
Contract Overview
Contract Amount: $51,185,230 ($51.2M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2001-08-16
End Date: 2013-04-30
Contract Duration: 4,275 days
Daily Burn Rate: $12.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: GREENLAWN, SUFFOLK County, NEW YORK, 11740
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $51.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: Key points: 1. Significant investment in R&D for physical, engineering, and life sciences. 2. BAE Systems is a major defense contractor, indicating established capabilities. 3. Full and open competition after exclusion of sources suggests a specific justification for limited competition. 4. Long contract duration (over 11 years) may indicate complex or ongoing research needs.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific deliverables and comparable R&D projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'full and open competition after exclusion of sources' indicates a competitive process but with specific limitations. This method aims for best value while acknowledging unique circumstances, potentially impacting price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are directed towards advanced research and development, with the potential for significant technological advancements. The cost-plus-fixed-fee nature requires careful oversight to ensure value for money.
Public Impact
Supports advanced scientific and engineering research, potentially leading to new defense technologies. Investment in a major defense contractor like BAE Systems can foster innovation within the sector. Long-term commitment suggests a strategic focus on specific research areas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractor spending.
- Long contract duration increases risk of scope creep or evolving requirements.
- Exclusion of sources may limit competitive pricing opportunities.
Positive Signals
- Full and open competition, even with exclusions, suggests a structured procurement.
- BAE Systems is a reputable contractor with proven capabilities.
- Focus on R&D aligns with national security and technological advancement goals.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining technological superiority, with benchmarks varying widely based on the specific research domain and project complexity.
Small Business Impact
The data indicates the prime contractor is BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC., a large business. There is no explicit information on small business subcontracting in the provided data.
Oversight & Accountability
The 'full and open competition after exclusion of sources' suggests a specific justification was made, requiring oversight to ensure the exclusion was warranted and competitive principles were upheld. The long duration necessitates ongoing monitoring of performance and costs.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost-plus-fixed-fee contract type can lead to cost overruns.
- Long contract duration increases risk of scope creep and requirement changes.
- Exclusion of sources may limit competitive pricing and innovation.
- Lack of specific R&D outcome data makes value assessment difficult.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. See the official description on USAspending.
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 $51.2 million.
What is the period of performance?
Start: 2001-08-16. End: 2013-04-30.
What specific research outcomes were achieved, and did they align with the initial objectives and projected value for the $51M investment?
The value derived from this R&D contract hinges on the successful development of technologies or scientific advancements that meet or exceed the initial objectives. Without specific outcome data, it's challenging to definitively assess the return on investment. The long duration suggests a complex research path, and the cost-plus-fixed-fee structure requires diligent tracking to ensure funds were used efficiently towards achieving these outcomes.
How did the exclusion of sources impact the overall cost-effectiveness and innovation potential compared to a completely unrestricted competition?
Excluding sources, even after a period of full and open competition, can limit the pool of potential innovators and potentially lead to higher costs if the selected contractor does not face sufficient competitive pressure. While it may ensure specialized expertise, it risks overlooking potentially more cost-effective or innovative solutions from excluded entities. The long duration of this contract amplifies this risk.
What mechanisms were in place to ensure effective oversight and accountability for a contract spanning over 11 years with a cost-plus-fixed-fee structure?
Effective oversight for such a long-term, cost-plus-fixed-fee contract would typically involve rigorous milestone tracking, regular performance reviews, detailed cost audits, and a robust change management process. The Defense Contract Management Agency's involvement suggests a level of oversight, but the true effectiveness depends on the diligence and resources dedicated to monitoring expenditures and ensuring adherence to the contract's technical and financial requirements throughout its extended period.
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: BASIC RESEARCH
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Compagnie DE Developpement DE L'eau S.A.
Address: 5 CUBA HILL RD, GREENLAWN, NY, 11740
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2001-08-16
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2024-05-01
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