DoD's $23.7M R&D contract for NET TRACK PHASE 2 software system awarded to BAE Systems

Contract Overview

Contract Amount: $23,747,402 ($23.7M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2008-08-01

End Date: 2012-10-31

Contract Duration: 1,552 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NET TRACK PHASE 2 SOFTWARE SYSTEM

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: NET TRACK PHASE 2 SOFTWARE SYSTEM Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. BAE Systems, a major defense contractor, secured this definitive contract. 3. The contract was awarded under full and open competition. 4. Performance period spanned over 4 years, indicating a substantial development effort. 5. The contract type was Cost Plus Fixed Fee, common for R&D projects. 6. This contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 7. The contract was managed by the Defense Contract Management Agency.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) structure means the government pays the actual costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Comparing it to similar R&D efforts in software systems development would require access to proprietary cost data from other contracts. However, the total award amount of $23.7 million over approximately 4 years suggests a moderate investment for a complex software system development project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive bidding process, which theoretically should lead to better pricing and value. The number of bidders is not specified, but the 'full and open' designation implies a robust competition was sought.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiary is the Department of Defense, which receives the NET TRACK PHASE 2 software system. The system is intended for research and development purposes within physical, engineering, and life sciences. The geographic impact is likely within the operational areas of the DoD, though the R&D itself may be localized. Workforce implications include skilled R&D personnel, software engineers, and project managers employed by BAE Systems and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overruns are a potential risk with CPFF contracts if not rigorously monitored.
Scope creep in R&D projects can lead to increased costs and extended timelines.
The effectiveness of the developed software system for its intended R&D purpose needs to be validated post-delivery.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
BAE Systems is a large, established defense contractor with a track record in complex systems.
The contract duration of over 4 years indicates a significant commitment to developing a robust system.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on software systems for physical, engineering, and life sciences. The R&D services market is substantial, with significant government investment. Comparable spending benchmarks would involve looking at other large-scale software development contracts awarded by the DoD or other federal agencies for similar complex systems, though specific R&D software projects can vary widely in cost and scope.

Small Business Impact

There is no indication that this contract included small business set-asides. As a large definitive contract awarded to a major defense contractor, the primary focus was likely on technical capability rather than small business participation. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would have been provided by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with contract terms and conditions. Accountability measures would include performance reviews, cost reporting, and adherence to the fixed fee structure. Transparency is generally limited for specific R&D contract details due to proprietary and national security considerations.

Related Government Programs

Department of Defense Research and Development Programs
Software Development Contracts
Information Technology R&D
Advanced Systems Development

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
R&D projects often face challenges with scope definition and management.
Performance effectiveness of the developed software system is not detailed.
Limited public information on specific functionality and intended use.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. NET TRACK PHASE 2 SOFTWARE SYSTEM

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 $23.7 million.

What is the period of performance?

Start: 2008-08-01. End: 2012-10-31.

What was the specific purpose and intended functionality of the NET TRACK PHASE 2 software system?

The provided data indicates the contract was for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' and specifically for the 'NET TRACK PHASE 2 SOFTWARE SYSTEM'. While the exact functionality is not detailed, the context suggests it's a system designed to support or advance R&D efforts within these scientific and engineering domains. This could range from data acquisition and analysis tools, simulation software, modeling platforms, or systems for managing complex research projects and their associated data. The 'Phase 2' designation implies it's an iterative development, building upon a previous phase or system.

How does the $23.7 million award compare to other similar R&D software development contracts within the DoD?

Direct comparison is difficult without specific details on the scope and complexity of other R&D software contracts. However, $23.7 million over approximately 4 years (1552 days) for a definitive contract suggests a significant, but not exceptionally large, investment for a specialized software system. Large-scale R&D software projects can range from tens of millions to hundreds of millions of dollars. The Cost Plus Fixed Fee (CPFF) structure is common for R&D where exact costs are hard to predict, but it necessitates strong oversight to manage expenditures. This award falls within a moderate range for complex government R&D software development.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D software development?

The primary risk with CPFF contracts is the potential for cost overruns. While the contractor's fee is fixed, the government bears the risk of actual costs exceeding estimates. For R&D software, this is amplified by the inherent uncertainties in development, potential for scope creep, and the difficulty in precisely defining requirements upfront. If not managed diligently, the government could end up paying significantly more than initially anticipated. Contractor performance monitoring, rigorous change control, and clear milestone definitions are crucial to mitigate these risks.

What is BAE Systems' track record with similar DoD R&D software contracts?

BAE Systems Information and Electronic Systems Integration Inc. is a major defense contractor with extensive experience in developing complex systems, including software, for the Department of Defense. While specific details on their track record for 'NET TRACK PHASE 2' are not provided, their general profile suggests they possess the technical capabilities and project management experience required for such endeavors. Their history includes numerous large-scale contracts across various defense domains, often involving sophisticated software and systems integration. Performance on this specific contract would be assessed through contract close-out reports and performance metrics, which are not publicly detailed here.

What were the historical spending patterns for the NET TRACK program prior to this contract?

The provided data pertains to a single definitive contract awarded in 2008 for 'NET TRACK PHASE 2'. It does not offer information on historical spending patterns for the NET TRACK program itself, nor does it indicate if there were previous phases or related contracts. To understand historical spending, one would need to query federal procurement databases for all contracts associated with 'NET TRACK' across different phases and years, and analyze the award amounts, contract types, and durations to identify trends and overall program investment.

How was the 'full and open competition' process managed to ensure fair evaluation of bids?

A 'full and open competition' implies that the solicitation was broadly advertised, allowing any responsible source to submit an offer. The management of this process would involve establishing clear evaluation criteria in the solicitation document, which could include technical approach, past performance, management capability, and price. A source selection plan would outline how proposals would be evaluated, scored, and compared. The evaluation would typically be conducted by a technical evaluation team and a source selection authority, ensuring that the contract is awarded to the offeror providing the best value to the government based on the stated criteria, not solely on the lowest price.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

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

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

Financial Breakdown

Contract Ceiling: $23,747,402

Exercised Options: $23,747,402

Current Obligation: $23,747,402

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline