DARPA's JANUS Program awarded to BAE Systems for $82.6M, focusing on R&D in physical sciences

Contract Overview

Contract Amount: $82,620,020 ($82.6M)

Contractor: BAE Systems Information & Electronic Systems Integration Inc

Awarding Agency: Department of Defense

Start Date: 2022-11-28

End Date: 2027-03-26

Contract Duration: 1,579 days

Daily Burn Rate: $52.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA JANUS PROGRAM

Place of Performance

Location: MERRIMACK, HILLSBOROUGH County, NEW HAMPSHIRE, 03054

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $82.6 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC for work described as: DARPA JANUS PROGRAM Key points: 1. Contract value of $82.6 million over nearly 4 years suggests significant investment in advanced research. 2. Sole-source award raises questions about competition and potential for price optimization. 3. Focus on R&D in physical sciences indicates a high-risk, high-reward endeavor. 4. Contract duration of over 4 years allows for in-depth research and development. 5. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code points to a specialized technical area. 6. The contract's 'DEFINITIVE CONTRACT' type implies a clear scope and established terms.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific deliverables or comparable sole-source R&D contracts. The $82.6 million award over approximately 4 years suggests a substantial investment, but the lack of competition makes it difficult to assess if this represents fair market value. The 'COST PLUS FIXED FEE' pricing structure means that while the fee is fixed, the total cost can fluctuate, requiring close oversight to manage expenditures effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that BAE Systems was the only vendor considered. This approach is typically used when a unique capability or specialized expertise is required, or in cases of urgent need. However, the absence of a competitive bidding process limits the opportunity to explore alternative solutions or secure potentially lower pricing through market competition.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price discovery mechanisms inherent in a competitive environment.

Public Impact

The primary beneficiaries are expected to be the Department of Defense and potentially other government agencies that can leverage the research outcomes. The contract aims to deliver advancements in physical, engineering, and life sciences research, though specific applications are not detailed. The geographic impact is primarily centered in New Hampshire, where BAE Systems is located, but the research findings could have national implications. Workforce implications include the potential for highly skilled R&D jobs within BAE Systems and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Cost-plus-fixed-fee structure requires diligent oversight to control cost overruns.
The specific R&D outcomes and their applicability are not clearly defined in the provided data.

Positive Signals

Award to an established contractor like BAE Systems suggests a degree of confidence in their capabilities.
Long contract duration allows for focused and potentially groundbreaking research.
The contract is for research and development, which is crucial for future technological advancements.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, aiming to develop next-generation technologies. The market for such specialized R&D is often characterized by a limited number of highly capable contractors, making sole-source or limited competition awards more common. Comparable spending benchmarks are difficult to establish without knowing the specific research objectives, but significant government investment in R&D is typical for agencies like DARPA.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, BAE Systems, as a large prime contractor, may engage small businesses as subcontractors for specialized services or components, though this is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, under the broader Department of Defense. As a cost-plus-fixed-fee contract, rigorous financial oversight is essential to monitor expenditures against the fixed fee and ensure that costs remain reasonable and allocable to the contract's objectives. Transparency regarding research progress and outcomes would be subject to standard government reporting requirements and potentially classified information protocols, depending on the nature of the R&D.

Related Government Programs

DARPA Research Programs
Department of Defense Research and Development
Advanced Technology Development Contracts
Physical Sciences Research Initiatives

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
Long contract duration
Unspecified R&D outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.6 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC. DARPA JANUS 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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $82.6 million.

What is the period of performance?

Start: 2022-11-28. End: 2027-03-26.

What is the specific research focus of the DARPA JANUS Program?

The provided data indicates that the DARPA JANUS Program falls under the NAICS code 541715, which covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. While this gives a broad categorization, the specific research objectives, methodologies, and expected outcomes of the JANUS Program are not detailed. DARPA typically funds high-risk, high-reward research projects that aim to create breakthrough technologies for national security. Further information would be required from DARPA's program announcements or solicitations to understand the precise scientific or engineering challenges being addressed.

How does the 'COST PLUS FIXED FEE' contract type impact cost control and value for money?

A Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a fixed amount of profit (the fee). This structure is often used for research and development where the scope of work can be uncertain, making it difficult to estimate total costs accurately beforehand. While the fee is fixed, the total contract cost can vary significantly based on the actual allowable costs incurred by the contractor. For value for money, this necessitates robust government oversight to ensure that costs are reasonable, allocable, and allowable, and that the contractor is making efficient use of resources. Without strong oversight, there is a risk of cost overruns, as the contractor is incentivized to complete the work but not necessarily to minimize costs beyond what is necessary to achieve the fixed fee.

What are the implications of a sole-source award for this R&D contract?

A sole-source award, as seen with the DARPA JANUS Program to BAE Systems, means that the contract was not competed among multiple potential vendors. This approach is typically justified when only one source possesses the unique capability, technology, or expertise required for the project, or in situations of urgent and compelling need. For taxpayers, the primary implication is the potential absence of competitive pricing. Without the pressure of multiple bids, the negotiated price might be higher than what could be achieved through a competitive process. It also limits the government's ability to explore a wider range of innovative solutions that other companies might offer. However, for highly specialized R&D, a sole-source award might be necessary to access specific, critical expertise.

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

BAE Systems is a major defense contractor with extensive experience in research and development across various domains for government agencies. While specific details on their track record with DARPA or similar R&D programs are not provided in this data snippet, the company is known for its work in areas such as electronic systems, aerospace, and defense solutions. Their history includes numerous large-scale contracts with the Department of Defense and other federal agencies. A comprehensive assessment would require reviewing their past performance evaluations, contract history, and specific contributions to prior R&D initiatives to gauge their reliability, innovation, and cost-effectiveness in similar contexts.

How does the $82.6 million contract value compare to typical R&D spending in the physical sciences?

The $82.6 million contract value for the DARPA JANUS Program is substantial and falls within the range of significant investments made in advanced R&D by government agencies like DARPA. DARPA's budget often supports projects costing tens to hundreds of millions of dollars, particularly those involving complex, long-term research with potentially transformative outcomes. While this specific amount is considerable, it is not unusual for cutting-edge R&D initiatives that require extensive resources, specialized personnel, and advanced facilities. Benchmarking against other specific R&D contracts within the physical sciences would require detailed comparison of project scope, duration, and objectives, but $82.6 million represents a significant commitment to advancing scientific and technological capabilities.

What are the potential risks associated with this contract, beyond cost overruns?

Beyond cost overruns inherent in CPFF contracts, potential risks for this R&D endeavor include technical risks (failure to achieve desired research outcomes or breakthroughs), schedule risks (delays in research progress impacting timelines), and programmatic risks (the research becoming obsolete or irrelevant due to rapid technological advancements elsewhere). Given the sole-source nature, there's also a risk of vendor lock-in and potentially less innovation compared to a competitive environment. Furthermore, the long duration of the contract (nearly 4 years) increases exposure to evolving threats and technological landscapes, meaning the initial objectives might need adaptation.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HR001122S0042

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

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

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

Financial Breakdown

Contract Ceiling: $90,908,065

Exercised Options: $90,908,065

Current Obligation: $82,620,020

Subaward Activity

Number of Subawards: 43

Total Subaward Amount: $19,378,905

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline