DoD Awards BAE Systems $13.7M R&D Contract for Physical, Engineering, and Life Sciences Research

Contract Overview

Contract Amount: $13,782,083 ($13.8M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2003-12-31

End Date: 2025-07-31

Contract Duration: 7,883 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: Key points: 1. Contract awarded to BAE Systems for R&D in physical, engineering, and life sciences. 2. Full and open competition after exclusion of sources indicates a specific, competitive process. 3. Contract duration is substantial, spanning over 20 years, suggesting long-term research objectives. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but carries inherent risk. 5. The award amount is $13.7 million, a moderate sum for long-term R&D.

Value Assessment

Rating: good

The $13.7 million award for a multi-year R&D effort appears reasonable given the contract's extensive duration and the nature of research and development. Benchmarking against similar long-term, complex R&D contracts would provide a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process where specific sources were initially considered but ultimately opened to broader competition. This method aims to ensure fair pricing and access to the best solutions.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving fair value for the research and development services procured.

Public Impact

Advancement in physical, engineering, and life sciences research could lead to future technological innovations. Long-term contract may foster sustained development and expertise within BAE Systems. Potential for breakthroughs that could impact national security or civilian applications. The research focus could address critical scientific challenges.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 20 years) increases risk of cost overruns and scope creep.
Cost Plus Fixed Fee contract type can lead to less incentive for contractor to control costs.
Research and Development inherently carries a high risk of not achieving desired outcomes.

Positive Signals

Full and open competition suggests a robust procurement process.
Award to established contractor BAE Systems indicates potential for reliable execution.
Focus on R&D aligns with strategic government investment in innovation.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement and national competitiveness, with benchmarks varying widely based on project scope and duration.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The award to BAE Systems, a large defense contractor, suggests that small business participation may be indirect through subcontracting, if at all.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance. The long duration necessitates ongoing oversight to manage risks and ensure value.

Related Government Programs

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

Risk Flags

Long contract duration (over 20 years).
Cost Plus Fixed Fee contract type.
Inherent risks of R&D projects.
Potential for scope creep over the extended period.
Limited visibility into specific research outcomes without further detail.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 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 $13.8 million.

What is the period of performance?

Start: 2003-12-31. End: 2025-07-31.

What specific research objectives are outlined in this contract, and how do they align with current DoD priorities?

The contract specifies 'Research and Development in the Physical, Engineering, and Life Sciences.' While the exact objectives are not detailed here, such R&D typically aims to advance fundamental scientific understanding, develop new technologies, and enhance existing capabilities relevant to national defense. Alignment with DoD priorities would likely involve areas such as advanced materials, artificial intelligence, cyber capabilities, or biotechnologies, contributing to future military superiority and addressing emerging threats.

What are the primary risks associated with a Cost Plus Fixed Fee contract for long-term R&D, and how are they mitigated?

The primary risks include contractor cost overruns (as the government absorbs costs beyond the fixed fee) and potential for reduced incentive to control expenses. Mitigation strategies often involve stringent oversight, clear performance metrics, phased funding, and robust negotiation of the fixed fee based on realistic cost estimates and risk assessments. The government also retains the right to audit costs.

How does the 'Full and Open Competition After Exclusion of Sources' process impact the overall value and effectiveness of this R&D award?

This procurement method suggests an initial limited pool of potential offerors was identified, but the competition was then opened broadly. This can balance the benefit of leveraging specialized knowledge from specific sources with the advantages of wider competition, potentially leading to better value and innovation. It aims to ensure the government receives the most advantageous offer while still allowing for a competitive marketplace.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6 NEW ENGLAND EXECUTIVE PARK, BURLINGTON, MA, 01803

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

Cost or Pricing Data: YES

Timeline