DoD's $946M R&D Contract with BAE Systems: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $94,630,901 ($94.6M)
Contractor: BAE Systems Information & Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2004-07-21
End Date: 2012-05-31
Contract Duration: 2,871 days
Daily Burn Rate: $33.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78725
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $94.6 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: Key points: 1. Significant investment in R&D, focusing on physical, engineering, and life sciences. 2. BAE Systems, a major defense contractor, secured this substantial award. 3. Full and open competition was utilized, suggesting a potentially competitive bidding process. 4. The contract spanned nearly 8 years, indicating a long-term research objective.
Value Assessment
Rating: fair
The contract's value of $946 million over nearly 8 years suggests a substantial investment. Without specific deliverables or performance metrics, assessing the value for money is challenging. Benchmarking against similar large-scale R&D efforts would be necessary for a more precise evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the long duration and specialized nature of R&D can sometimes limit the number of truly competitive bids, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are allocated to advanced research and development, aiming for technological advancements. The effectiveness of this spending depends on the successful outcomes and future applications of the research conducted.
Public Impact
Supports advanced research and development in critical scientific fields. Potential for technological breakthroughs that could benefit national security. Long-term commitment to a single contractor may limit broader industry innovation. Significant allocation of taxpayer dollars requires robust oversight for accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may reduce flexibility.
- Lack of specific performance metrics makes value assessment difficult.
- Potential for cost overruns in complex R&D projects.
Positive Signals
- Awarded through full and open competition.
- Significant investment in critical R&D areas.
- Contractor has a strong track record in defense technology.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation but can be highly variable and difficult to benchmark due to the unique nature of research projects.
Small Business Impact
The data indicates this contract was awarded to a large prime contractor, BAE Systems. There is no direct information on small business participation or subcontracting opportunities within this award, which is a common challenge for large, complex R&D contracts.
Oversight & Accountability
The contract's long duration and significant value necessitate strong oversight from the Department of Defense and the Defense Contract Management Agency to ensure progress, manage risks, and maintain accountability for taxpayer funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns in R&D.
- Difficulty in measuring R&D success upfront.
- Long contract duration may lead to technological obsolescence.
- Limited visibility into small business participation.
- Reliance on a single large contractor.
Tags
research-and-development-in-the-physical, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $94.6 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC.. See the official description on USAspending.
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $94.6 million.
What is the period of performance?
Start: 2004-07-21. End: 2012-05-31.
What were the specific research objectives and expected outcomes of this $946 million contract?
The contract focused on Research and Development in the Physical, Engineering, and Life Sciences. Specific objectives and expected outcomes are not detailed in the provided data. Typically, such contracts aim for technological advancements, new capabilities, or solutions to complex scientific challenges relevant to the Department of Defense's mission.
How was the 'Cost Plus Incentive Fee' structure applied to manage costs and incentivize performance?
A Cost Plus Incentive Fee (CPIF) contract allows the contractor to be reimbursed for allowable costs plus a performance-based incentive fee. The fee is adjusted based on whether the final cost is below or above the target cost, incentivizing the contractor to control costs and achieve performance targets. Specific targets and adjustment formulas would be detailed in the contract.
What is the long-term strategic value of this investment in R&D for the Department of Defense?
This substantial investment likely aims to develop next-generation technologies, enhance existing capabilities, or address emerging threats. The long-term strategic value hinges on the successful translation of research findings into deployable systems or operational advantages, ensuring the DoD maintains a technological edge.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 6500 TRACOR LANE, AUSTIN, TX, 78725
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-07-21
Current End Date: 2012-05-31
Potential End Date: 2012-05-31 00:00:00
Last Modified: 2019-02-07
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