DARPA awards BAE Systems $71M R&D contract for advanced defense technologies

Contract Overview

Contract Amount: $71,023,545 ($71.0M)

Contractor: BAE Systems Information & Electronic Systems Integration Inc

Awarding Agency: Department of Defense

Start Date: 2021-02-26

End Date: 2026-10-22

Contract Duration: 2,064 days

Daily Burn Rate: $34.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA RESEARCH PROGRAM

Place of Performance

Location: MERRIMACK, HILLSBOROUGH County, NEW HAMPSHIRE, 03054

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $71.0 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC for work described as: DARPA RESEARCH PROGRAM Key points: 1. Contract focuses on cutting-edge research and development in physical, engineering, and life sciences. 2. BAE Systems, a major defense contractor, will lead the effort. 3. The contract duration is over 5 years, indicating a significant, long-term project. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 6. The base value is $34.4M, with potential for significant growth. 7. This award aligns with DoD's strategic goals for technological superiority.

Value Assessment

Rating: good

The contract's base value of $34.4M for a 5-year R&D effort appears reasonable given the scope of advanced research. While specific performance metrics are not detailed, the Cost Plus Fixed Fee structure allows for flexibility in research while aiming for cost efficiency. Benchmarking against similar large-scale R&D contracts within DARPA suggests this award is within expected parameters for complex technological development.

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,' indicating that multiple bidders were likely considered. This competitive approach is designed to ensure the government receives the best value and innovative solutions. The presence of multiple bidders typically drives down costs and encourages higher quality proposals.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by ensuring that the selected contractor offers the most advantageous technical and cost solutions, preventing potential overpayment associated with less competitive solicitations.

Public Impact

The primary beneficiaries are the Department of Defense and national security, through advancements in defense technologies. The contract will deliver novel research and development outputs in physical, engineering, and life sciences. The geographic impact is primarily centered around BAE Systems' operations, likely in New Hampshire, but the technological advancements will have national implications. Workforce implications include highly skilled R&D personnel, engineers, and scientists employed by BAE Systems and potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
The long duration of the contract presents a risk of scope creep or evolving technological requirements.
Reliance on a single large contractor, BAE Systems, could limit broader industry innovation if not managed effectively.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
BAE Systems is a reputable defense contractor with a strong track record in R&D.
The contract's focus on advanced R&D aligns with critical national security needs.
The fixed fee component provides some cost certainty for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical, engineering, and life sciences. This is a critical area for defense innovation, aiming to maintain technological superiority. Comparable spending in this sector involves significant investments by agencies like DARPA, DoD, and other research-focused government bodies in areas such as artificial intelligence, advanced materials, and next-generation sensing technologies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While BAE Systems is a large prime contractor, there is potential for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on BAE Systems' procurement practices and the specific needs of the research program.

Oversight & Accountability

Oversight will likely be conducted by the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), responsible for monitoring performance, costs, and compliance. DARPA program managers will provide technical oversight. Transparency is facilitated through contract award databases, though specific research details may be classified.

Related Government Programs

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

Risk Flags

Cost Overrun Risk
Scope Creep Potential
Long-Term Project Management
Technological Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.0 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC. DARPA RESEARCH PROGRAM

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 (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $71.0 million.

What is the period of performance?

Start: 2021-02-26. End: 2026-10-22.

What is BAE Systems' track record with DARPA and similar R&D contracts?

BAE Systems has a significant history of contracting with the Department of Defense, including DARPA, across various advanced technology domains. They have a proven capability in complex research and development projects, often involving systems integration, electronics, and cyber technologies. Their past performance with DARPA likely includes successful delivery on challenging research objectives, though specific details of past R&D contracts are often proprietary. The company's extensive experience suggests a strong foundation for undertaking this new research program, with established processes for managing complex technical challenges and government oversight.

How does the $71M award compare to other DARPA R&D contracts of similar scope?

The total potential value of $71M for this 5-year contract is substantial, aligning with the typical scale of major DARPA research initiatives. DARPA often awards large contracts for groundbreaking research that requires significant investment over extended periods. Contracts in areas like advanced materials, AI, or next-generation defense systems can easily reach tens or even hundreds of millions of dollars. This award appears to be within the expected range for a comprehensive R&D effort managed by DARPA, reflecting the complexity and potential impact of the research objectives.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?

The primary risks with a CPFF contract structure, especially in R&D, revolve around cost control and potential for overruns. While the 'fixed fee' provides a defined profit margin for the contractor, the 'cost plus' portion means the government reimburses allowable costs. If research proves more complex or expensive than initially anticipated, costs can escalate significantly. Effective oversight is crucial to ensure that all incurred costs are reasonable, allocable, and necessary for the research. There's also a risk that the contractor might not be sufficiently incentivized to find the most cost-effective solutions if cost overruns are readily reimbursed.

What is the expected program effectiveness and impact of this research?

The expected effectiveness and impact of this research are centered on advancing U.S. national security through technological innovation. DARPA's mission is to make pivotal investments in breakthrough technologies for national security. Therefore, the success of this contract is measured by its ability to yield novel capabilities that provide a strategic advantage. The impact could range from enhanced intelligence gathering and processing to improved defense systems and operational effectiveness. The specific outcomes will depend on the breakthroughs achieved in the physical, engineering, and life sciences domains targeted by the program.

How has DARPA's spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category evolved over the past five years?

DARPA's spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541715) category has historically been substantial and relatively consistent, reflecting its core mission. While precise year-over-year figures fluctuate based on specific program needs and appropriations, DARPA consistently allocates a significant portion of its budget to this broad R&D area. Trends often show increased investment in emerging fields like artificial intelligence, quantum computing, advanced materials, and biotechnology, driven by evolving national security threats and technological opportunities. This contract aligns with that ongoing investment strategy.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HR001118S0006

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 144 DANIEL WEBSTER HWY #24, MERRIMACK, NH, 03054

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

Financial Breakdown

Contract Ceiling: $82,821,431

Exercised Options: $82,821,431

Current Obligation: $71,023,545

Subaward Activity

Number of Subawards: 60

Total Subaward Amount: $15,354,295

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline