DoD's $13M R&D contract for missile and space systems advanced tech development awarded to BAE Systems

Contract Overview

Contract Amount: $11,526,177 ($11.5M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2004-05-20

End Date: 2014-07-18

Contract Duration: 3,711 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200408!001724!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !DASG6002D0009 !A!N! !Y!0097 ! !20040520!20070423!130106867!876861790!217304393!N!BAE SYSTEMS ANALYTICAL SOLUTIO!1525 PERIMETER PARKWAY, SU!HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000001200000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!Y!2!003!K! !Z!N!Z! ! !N!B!Y!N! ! !Z! !B!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: 200408!001724!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !DASG6002D0009 !A!N! !Y!0097 ! !20040520!20070423!130106867!876861790!217304393!N!BAE SYSTEMS ANALYTICAL SOLUTIO!1525 PERIMETER PARKWAY, SU!HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADI… Key points: 1. Contract awarded for advanced technology development in missile and space systems. 2. BAE Systems, a major defense contractor, secured this significant R&D award. 3. The contract duration of over 10 years suggests a long-term need for these services. 4. The award falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 5. This contract represents a substantial investment in the defense sector's technological advancement. 6. The 'Full and Open Competition After Exclusion of Sources' indicates a specific procurement process was followed.

Value Assessment

Rating: fair

The total award amount of $13,010,686.79 over a period of approximately 10 years presents a complex value assessment. Without specific deliverables or performance metrics, it's challenging to benchmark against similar contracts. The contract type, Time and Materials, can sometimes lead to cost overruns if not managed tightly. However, the duration suggests a sustained need for the specialized R&D services provided.

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,' which implies that while the competition was intended to be open, certain sources may have been excluded based on specific criteria. The presence of 3 bids suggests a degree of competition, but the exclusion clause warrants further investigation into the rationale and its potential impact on the final price.

Taxpayer Impact: The competitive process, even with exclusions, aimed to secure the best value for taxpayers. The number of bidders provides some assurance against a lack of options, but the specifics of the exclusion could have influenced the final cost.

Public Impact

The primary beneficiaries are the Department of Defense and its agencies, specifically those involved in space and strategic defense. The contract supports the development of advanced technologies crucial for national security in missile and space systems. This investment is likely to foster innovation within the defense R&D sector. The contract's focus on advanced technology development may lead to the creation of highly skilled jobs in specialized engineering and scientific fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' could limit the pool of potential bidders, potentially impacting price competition.
Time and Materials contract type requires diligent oversight to prevent cost creep and ensure efficient resource utilization.
The long contract duration necessitates ongoing performance monitoring to ensure continued value and alignment with evolving defense needs.

Positive Signals

Award to a known major defense contractor like BAE Systems suggests a level of confidence in their capabilities.
The contract's focus on advanced R&D indicates a commitment to technological superiority.
The existence of multiple bids, even with exclusions, points to a structured procurement process.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced technologies for missile and space systems. The market for defense R&D is characterized by significant government investment, long development cycles, and the need for highly specialized expertise. Comparable spending benchmarks would typically be found within other advanced technology development contracts awarded by the Department of Defense or NASA, often involving complex systems integration and cutting-edge scientific research.

Small Business Impact

This contract does not appear to have a small business set-aside. The prime contractor, BAE Systems, is a large defense corporation. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem is likely minimal unless BAE Systems actively engages small businesses for specialized components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Accountability measures would be tied to the contract's performance metrics, milestones, and deliverables. Transparency is facilitated through contract databases like FPDS, but detailed operational oversight information is typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition due to exclusion of sources.
Need for robust oversight due to long contract duration.
Lack of specific technical details in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. 200408!001724!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !DASG6002D0009 !A!N! !Y!0097 ! !20040520!20070423!130106867!876861790!217304393!N!BAE SYSTEMS ANALYTICAL SOLUTIO!1525 PERIMETER PARKWAY, SU!HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000001200000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !5!B!M! !A! !999

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2004-05-20. End: 2014-07-18.

What specific advanced technologies were developed or researched under this contract?

The provided data indicates the contract was for 'Research and Development in the Physical, Engineering, and Life Sciences' with a focus on 'Missile and Space Systems - Advanced Tech Development' and 'MDA Support.' However, the specific nature of the advanced technologies developed is not detailed in the summary data. This would typically involve proprietary research into areas such as advanced materials, propulsion systems, guidance and control, sensor technology, or space-based defense applications. Further details would likely be found in the contract's statement of work or subsequent technical reports, which are not publicly available in this dataset.

How does the $13 million award compare to other R&D contracts in the missile and space systems sector?

Benchmarking this $13 million award requires comparing it to similar R&D contracts within the missile and space systems domain. Given the contract's duration of over 10 years (from May 2004 to July 2014), the annual average spending was approximately $1.3 million. This figure is moderate for advanced R&D in such a specialized and critical field. Larger, more complex programs can easily reach hundreds of millions or even billions of dollars. However, smaller, targeted research efforts can also be in this range. Without knowing the specific scope and deliverables, a precise comparison is difficult, but it suggests a focused research effort rather than a large-scale system development program.

What are the key risks associated with a Time and Materials (T&M) contract of this duration?

Time and Materials contracts, especially those spanning over a decade like this one, carry inherent risks. The primary concern is cost control; without fixed price ceilings or detailed task orders, the contractor could incur significant labor hours and material costs, potentially exceeding initial estimates. This necessitates robust government oversight to monitor hours, material usage, and ensure efficiency. Another risk is scope creep, where the project's objectives may expand over time without formal adjustments to the contract, leading to increased costs. For taxpayers, the risk is paying for inefficient work or services that do not deliver the expected technological advancements within a reasonable budget.

What does 'Full and Open Competition After Exclusion of Sources' imply for the procurement process?

This procurement method suggests an initial intent for broad competition, but with a subsequent decision to exclude certain potential sources. This exclusion must be justified by the agency, often based on factors like unique capabilities, existing infrastructure, or national security considerations. While it aims to ensure the best value, the exclusion of sources can limit the competitive landscape. It implies that the agency identified specific entities it believed could meet the stringent requirements, but potentially overlooked others. The number of bidders (3) indicates some level of competition was achieved, but the rationale behind the exclusions is crucial for understanding the full competitive dynamics and potential impact on pricing.

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

BAE Systems is a major global defense, aerospace, and security company with a long history of performing complex R&D and systems integration for government clients, including the U.S. Department of Defense. While this specific contract data doesn't detail their performance history, BAE Systems is generally recognized for its technical expertise in areas relevant to missile and space systems. Their extensive portfolio includes work on advanced electronics, communications, and platform integration. However, like any large contractor, they have likely experienced both successes and challenges on various contracts, underscoring the importance of ongoing performance monitoring for individual awards.

How has spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category evolved since this contract was awarded?

Since this contract was awarded (2004-2014), federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) category has seen fluctuations influenced by defense budgets, national priorities, and technological advancements. Generally, R&D spending, particularly in defense-related fields like missile and space systems, remains a significant portion of the federal budget. Post-2014, there has been a continued emphasis on areas like artificial intelligence, cybersecurity, hypersonics, and space exploration, often funded through similar R&D contracts. While specific year-over-year data requires detailed analysis of federal budget reports, the overall trend indicates sustained, albeit variable, investment in scientific and engineering research critical to national security and technological progress.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 308 VOYAGER WAY, HUNTSVILLE, AL, 05

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

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DASG6002D0009

IDV Type: IDC

Timeline