DoD's $6M R&D Contract for EW Tech Awarded to BAE Systems, Highlighting Critical Technology Evaluations

Contract Overview

Contract Amount: $6,066,987 ($6.1M)

Contractor: BAE Systems Space & Mission Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2024-06-13

End Date: 2027-09-13

Contract Duration: 1,187 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TRUSTED AND ELASTIC MILITARY PLATFORMS AND ELECTRONIC WARFARE SYSTEM TECHNOLOGIES - RADIO FREQUENCY ELECTRONIC WARFARE FOCUSED LABORATORY EVALUATIONS OF CRITICAL TECHNOLOGIES

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $6.1 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: TRUSTED AND ELASTIC MILITARY PLATFORMS AND ELECTRONIC WARFARE SYSTEM TECHNOLOGIES - RADIO FREQUENCY ELECTRONIC WARFARE FOCUSED LABORATORY EVALUATIONS OF CRITICAL TECHNOLOGIES Key points: 1. Contract focuses on evaluating critical technologies for military platforms and electronic warfare systems. 2. BAE Systems, a major defense contractor, secured this award. 3. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 4. It involves laboratory evaluations, suggesting a focus on technical validation. 5. The duration of the contract extends over three years, indicating a sustained effort. 6. This award falls under the Department of the Air Force's purview within the DoD. 7. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee.

Value Assessment

Rating: fair

The contract value of $6,066,987 for a three-year R&D effort focused on specialized electronic warfare technologies appears within a reasonable range for such complex research. Benchmarking against similar R&D contracts in advanced defense technologies is challenging due to the niche nature of the work. However, the Cost Plus Fixed Fee (CPFF) structure means that costs are reimbursed, plus a fixed fee, which can sometimes lead to less price certainty compared to fixed-price contracts. The value-for-money assessment will depend heavily on the successful development and validation of the critical technologies evaluated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was intended. This approach generally aims to foster a wider range of technical solutions and potentially more competitive pricing by allowing any qualified vendor to participate.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it increases the likelihood of obtaining the best value through a wider pool of potential offerors and encourages competitive pricing.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Air Force, who will receive advanced evaluations of critical electronic warfare technologies. The services delivered include laboratory evaluations and research to assess the viability and performance of these technologies. The geographic impact is primarily within the United States, likely at research facilities where BAE Systems operates. This contract supports a highly specialized segment of the defense technology workforce, including scientists, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize cost overruns if not closely monitored, as the contractor is reimbursed for allowable costs.
The specific nature of 'critical technologies' implies potential for high development costs and technical risks.
Reliance on a single contractor (BAE Systems) for this specific evaluation might limit future competitive options if unique expertise is developed.
The effectiveness of the R&D will depend on rigorous testing and validation, which is inherent to the contract's purpose but carries inherent uncertainty.

Positive Signals

Awarding to a known entity like BAE Systems suggests leveraging existing expertise in electronic warfare systems.
The focus on laboratory evaluations indicates a structured approach to technology assessment, aiming for objective results.
Full and open competition, even if the awardee is a large prime, suggests a robust initial bidding process.
The contract duration allows for thorough research and development, potentially leading to more mature technologies.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical, engineering, and life sciences, with a specialization in electronic warfare (EW). The EW market is a critical and growing segment of the defense industry, driven by the increasing reliance on electromagnetic spectrum dominance. Spending in this area is characterized by high innovation, long development cycles, and significant government investment. Comparable spending benchmarks are difficult to pinpoint precisely due to the specialized nature of EW technologies, but R&D in advanced defense systems often involves multi-million dollar contracts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. BAE Systems is a large defense contractor. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, although large primes may engage small businesses as subcontractors on such projects.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring of incurred costs to ensure they remain reasonable and allocable to the contract. Transparency is typically maintained through regular reporting requirements from the contractor and potential site visits or audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DoD Electronic Warfare Systems
Advanced Technology Development Programs
Air Force Research Laboratory Contracts
Defense Science and Technology Research
Military Platform Modernization R&D

Risk Flags

Cost Overrun Risk (CPFF)
Technical Feasibility Uncertainty
Definition of 'Critical Technologies'
Long-term R&D Success Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.1 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. TRUSTED AND ELASTIC MILITARY PLATFORMS AND ELECTRONIC WARFARE SYSTEM TECHNOLOGIES - RADIO FREQUENCY ELECTRONIC WARFARE FOCUSED LABORATORY EVALUATIONS OF CRITICAL TECHNOLOGIES

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS SPACE & MISSION SYSTEMS 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 $6.1 million.

What is the period of performance?

Start: 2024-06-13. End: 2027-09-13.

What is the track record of BAE Systems Space & Mission Systems Inc. in delivering similar electronic warfare R&D projects for the Department of Defense?

BAE Systems is a well-established defense contractor with a significant history of involvement in electronic warfare (EW) programs across various military branches. Their Space & Mission Systems division, specifically, has a portfolio that includes space systems, resilient communications, and advanced EW capabilities. While specific details on past EW R&D projects comparable to this contract's scope (laboratory evaluations of critical technologies) are not publicly detailed in this data, the company's overall experience in EW system development, integration, and testing suggests a strong capability. They have been involved in numerous contracts related to EW systems, including airborne, ground-based, and naval applications, often focusing on signal intelligence, jamming, and countermeasure technologies. Their track record generally indicates a capacity to handle complex R&D efforts, though the success and specific outcomes of any given project depend on numerous factors including funding, technical challenges, and program management.

How does the $6.07 million contract value compare to typical R&D spending for electronic warfare technologies within the Air Force?

The $6.07 million contract value for this specific R&D effort focused on laboratory evaluations of critical EW technologies represents a moderate investment. Within the broader context of Air Force R&D spending, which can encompass billions of dollars annually across various domains, this figure is relatively modest. However, for a focused project involving specialized laboratory work on critical technologies, it is a substantial amount. Comparable contracts can vary widely; some R&D efforts might be smaller, focused on specific component testing, while others, involving system prototyping or advanced simulation, could easily reach tens or hundreds of millions of dollars. This contract's value suggests a targeted research initiative rather than a large-scale system development program, aiming to validate specific technological concepts or components before committing to larger investments.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in electronic warfare?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in electronic warfare revolve around cost control and potential for scope creep. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This structure can reduce the contractor's financial risk, potentially making them more willing to undertake challenging R&D. However, it can also disincentivize cost efficiency, as the contractor is guaranteed reimbursement for costs. If not rigorously monitored, this can lead to cost overruns. For R&D, especially in a rapidly evolving field like EW, defining 'allowable costs' and ensuring they directly contribute to the contract's objectives can be complex. Scope creep is another risk; as research progresses, new avenues or requirements may emerge, potentially leading to increased costs beyond the initial estimates, even with a fixed fee. Effective oversight and clear contract definitions are crucial to mitigate these risks.

What is the expected program effectiveness or outcome of this contract for the Department of Defense?

The expected outcome of this contract is the thorough laboratory evaluation and validation of critical technologies related to military platforms and electronic warfare systems. Program effectiveness will be measured by the quality and comprehensiveness of these evaluations, providing the Department of Defense (DoD) and the Air Force with data-driven insights into the performance, feasibility, and potential applications of these technologies. Successful completion should enable informed decisions regarding future investments in EW capabilities, potentially leading to the development of more advanced and effective EW systems. The contract aims to reduce the risk associated with adopting new technologies by providing empirical evidence of their capabilities in a controlled environment before they are integrated into larger, more expensive platforms or programs.

How has the Department of Defense's spending on electronic warfare R&D evolved over the past five years, and where does this contract fit?

The Department of Defense's (DoD) spending on electronic warfare (EW) R&D has seen a consistent and often increasing trend over the past five years, driven by the recognition of EW as a critical domain for maintaining military superiority. Adversaries are increasingly sophisticated in their EW capabilities, necessitating continuous innovation and investment by the U.S. DoD. While specific aggregate figures for EW R&D fluctuate annually based on budget allocations and strategic priorities, the overall investment has been substantial, often in the billions of dollars across all services. This particular $6.07 million contract fits into this broader spending picture as a focused, targeted R&D effort. It represents a specific investment in evaluating foundational or advanced technologies that could eventually feed into larger EW programs. Such contracts are essential for exploring new concepts and validating technologies before committing to full-scale development or procurement.

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

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1600 COMMERCE ST UNIT 1, BOULDER, CO, 80301

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

Financial Breakdown

Contract Ceiling: $15,802,986

Exercised Options: $15,802,986

Current Obligation: $6,066,987

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $109,758

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA237724DB002

IDV Type: IDC

Timeline