DoD's $21.5M R&D Contract for Space Memory Aims to Enhance Future Systems Performance

Contract Overview

Contract Amount: $21,559,726 ($21.6M)

Contractor: BAE Systems Information & Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2019-06-18

End Date: 2026-06-25

Contract Duration: 2,564 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS REQUIREMENT IS TO PERFORM RESEARCH AND DEVELOPMENT TO IMPROVE THE DENSITY, PERFORMANCE AND POWER CONSUMPTION OF FUTURE SPACE-SYSTEM MEMORY BY ADAPTING AND HARDENING ADVANCED STATE-OF-ART TECHNOLOGIES.

Place of Performance

Location: MANASSAS, MANASSAS CITY County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: THIS REQUIREMENT IS TO PERFORM RESEARCH AND DEVELOPMENT TO IMPROVE THE DENSITY, PERFORMANCE AND POWER CONSUMPTION OF FUTURE SPACE-SYSTEM MEMORY BY ADAPTING AND HARDENING ADVANCED STATE-OF-ART TECHNOLOGIES. Key points: 1. Focuses on advancing space-system memory technology through R&D, targeting improvements in density, performance, and power consumption. 2. The contract is a Cost Plus Fixed Fee type, indicating potential for cost overruns but allowing flexibility in research scope. 3. Awarded to BAE Systems, a major defense contractor with a significant presence in electronic systems integration. 4. The contract duration of over 7 years suggests a long-term commitment to developing and hardening advanced memory technologies. 5. The North American Industry Classification System (NAICS) code 541715 points to significant R&D investment in physical and engineering sciences. 6. This contract aligns with the Department of the Air Force's strategic goals for next-generation space capabilities.

Value Assessment

Rating: good

The contract's value of $21.5 million over approximately 7 years represents a substantial investment in specialized R&D. Benchmarking this against similar advanced technology development contracts is challenging due to the niche nature of space-hardened memory. However, the Cost Plus Fixed Fee structure, while common for R&D, necessitates close oversight to ensure cost efficiency. The fixed fee component provides some predictability for the contractor's profit margin.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. With 8 bidders, the competition level appears robust, which typically drives better pricing and innovation. This broad competition is a positive indicator for achieving value for taxpayer dollars in a specialized technology area.

Taxpayer Impact: A competitive bidding process for advanced R&D like this helps ensure that the government is not overpaying for the research and that the most innovative solutions are considered, ultimately benefiting taxpayers through more effective technology development.

Public Impact

The primary beneficiaries are future space missions requiring enhanced memory capabilities, leading to more robust and efficient satellite and spacecraft operations. Services delivered include research and development to adapt and harden state-of-the-art technologies for the demanding space environment. The geographic impact is national, supporting the U.S. space industrial base and technological leadership. Workforce implications include employment for highly skilled scientists, engineers, and technicians in the aerospace and defense sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The long duration of the contract requires sustained oversight to ensure progress and alignment with evolving technological needs.
The specialized nature of the R&D may limit the pool of truly competitive bidders in future related procurements.

Positive Signals

Awarded through full and open competition, indicating a healthy bidding environment.
The contract aims to develop critical future technology for national security space assets.
BAE Systems is a reputable contractor with extensive experience in defense electronics.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on advanced electronics and computing for space applications. The market for space-qualified components and R&D is highly specialized, driven by government agencies and a few prime contractors. Spending in this area is critical for maintaining technological superiority in space, with comparable investments often seen in areas like satellite development, launch services, and advanced sensor technology.

Small Business Impact

There is no indication of small business set-asides for this particular contract, nor are there explicit subcontracting requirements mentioned in the provided data. The prime contractor, BAE Systems, is a large defense corporation. Future opportunities for small businesses may arise through subcontracting roles, depending on BAE Systems' sourcing strategy for specialized components or research tasks.

Oversight & Accountability

The contract is managed by the Department of the Air Force, likely involving program managers and contracting officers responsible for oversight. Given the Cost Plus Fixed Fee structure, rigorous financial and technical monitoring will be essential to ensure the contractor adheres to the research objectives and manages costs effectively. Transparency would typically be maintained through regular reporting requirements and potential site visits.

Related Government Programs

Space Systems Development
Advanced Technology Research
Satellite Component Manufacturing
Defense Electronics R&D
Aerospace Engineering Services

Risk Flags

Cost Overrun Potential (CPFF)
Long-Term Project Management
Technology Obsolescence Risk
Dependence on Specialized Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC.. THIS REQUIREMENT IS TO PERFORM RESEARCH AND DEVELOPMENT TO IMPROVE THE DENSITY, PERFORMANCE AND POWER CONSUMPTION OF FUTURE SPACE-SYSTEM MEMORY BY ADAPTING AND HARDENING ADVANCED STATE-OF-ART TECHNOLOGIES.

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2019-06-18. End: 2026-06-25.

What is the historical spending pattern for similar space memory R&D contracts by the Department of Defense?

Historical spending on space memory R&D by the DoD is difficult to quantify precisely without access to detailed procurement databases. However, investments in this area are generally characterized by long-term, high-value contracts awarded to specialized contractors. These contracts often involve adapting commercial off-the-shelf (COTS) technologies and hardening them for the extreme conditions of space, including radiation and temperature fluctuations. The value of such contracts can range from tens to hundreds of millions of dollars over several years, reflecting the complexity and criticality of ensuring reliable memory for national security space assets. The trend has been towards increasing performance and density while reducing power consumption, mirroring advancements in terrestrial computing but with much higher reliability and longevity requirements.

How does the Cost Plus Fixed Fee (CPFF) contract type influence the risk for the government and the contractor?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work may evolve or is not precisely defined at the outset. For the government, the primary risk is that the final cost could exceed initial estimates, as the contractor is reimbursed for all allowable costs incurred. However, the 'fixed fee' portion provides the contractor with a predetermined profit margin, incentivizing them to complete the work efficiently to maximize their return. For the contractor, the risk is lower regarding cost overruns, as they are guaranteed to be reimbursed for legitimate expenses. Their main incentive is to achieve the fixed fee by successfully completing the contract's objectives within a reasonable timeframe and budget, without compromising quality or technical requirements.

What are the key performance indicators (KPIs) likely being used to measure the success of this R&D contract?

Key performance indicators (KPIs) for this R&D contract would likely focus on technical achievements and adherence to project milestones. These could include metrics related to memory density (e.g., bits per unit volume), performance (e.g., read/write speeds, latency), power consumption (e.g., watts per gigabyte), and radiation tolerance (e.g., Mean Time Between Failures (MTBF) under specific radiation doses). Milestones might involve successful completion of design reviews, prototype development, testing phases (including environmental and radiation testing), and final technology maturation. The contractor's ability to adapt and harden state-of-the-art technologies, as stated in the contract's objective, would also be a critical measure of success.

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

BAE Systems has a substantial and well-established track record with the Department of Defense (DoD) and other government agencies, particularly in areas related to electronic systems, command and control, and advanced technology development. They are a major prime contractor involved in numerous complex programs. While specific details on their past performance on space memory R&D contracts require deeper database analysis, their overall profile suggests significant experience in managing large-scale, technically challenging R&D efforts. Their history includes developing and integrating advanced electronic components and systems for various military platforms, including those operating in harsh environments like space. This extensive experience positions them as a capable contractor for this type of specialized research.

How does the geographic location of the contractor (Virginia) potentially impact contract performance or oversight?

The contractor, BAE Systems Information & Electronic Systems Integration Inc., is headquartered in Nashua, New Hampshire, but the data indicates 'VA' for Virginia, likely referring to a specific facility or operational presence within the state. Virginia has a significant concentration of defense contractors and government agencies, including those within the Department of Defense and NASA. This proximity can facilitate easier communication, site visits, and oversight by government personnel. It may also provide access to a skilled workforce and a robust ecosystem of supporting industries and research institutions within the region. However, the actual impact depends on the specific location of the R&D work and the government oversight team.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA945317S0005

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie DE Developpement DE L'eau S.A.

Address: 9300 WELLINGTON RD 110, MANASSAS, VA, 20110

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

Financial Breakdown

Contract Ceiling: $21,559,726

Exercised Options: $21,559,726

Current Obligation: $21,559,726

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline