DoD's $18M FORGE-IT contract to BAE Systems aims to enhance military readiness through rapid prototyping and technology

Contract Overview

Contract Amount: $18,049,542 ($18.0M)

Contractor: BAE Systems Space & Mission Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-10

End Date: 2029-03-09

Contract Duration: 1,460 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FORCE OPTIMIZATION THROUGH RAPID-PROTOTYPING, GEAR ENHANCEMENTS AND INNOVATIVE TECHNOLOGY (FORGE-IT)

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $18.0 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: FORCE OPTIMIZATION THROUGH RAPID-PROTOTYPING, GEAR ENHANCEMENTS AND INNOVATIVE TECHNOLOGY (FORGE-IT) Key points: 1. Contract focuses on advancing defense capabilities through technological innovation and gear improvements. 2. BAE Systems, a major defense contractor, is tasked with delivering these enhancements. 3. The contract duration of approximately four years suggests a sustained effort in R&D. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical area for modernization. 5. The contract's value, while significant, needs to be benchmarked against similar R&D efforts. 6. Performance will be key to ensuring the 'rapid-prototyping' aspect translates to tangible benefits.

Value Assessment

Rating: good

The contract value of $18.05 million over four years for R&D in advanced defense technologies appears reasonable. Benchmarking against similar rapid prototyping and technology enhancement contracts within the Department of Defense would provide a clearer picture of value for money. Given the specialized nature of R&D, direct comparisons can be challenging, but the cost-plus-fixed-fee structure allows for flexibility while incentivizing cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The specific number of bidders is not provided, but this competitive approach generally fosters better pricing and innovation. The Air Force's decision to use full and open competition suggests confidence in the market's ability to meet the complex R&D requirements.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and encourages a wider pool of innovative solutions, potentially leading to more effective defense capabilities for the allocated funds.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Air Force, which will receive enhanced technological capabilities. Services delivered include research, development, rapid prototyping, and gear enhancements for military applications. The geographic impact is likely focused on military installations and research facilities, with potential for broader national security implications. Workforce implications may include specialized R&D roles within BAE Systems and potentially increased demand for related technical expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in R&D projects, especially those involving rapid prototyping.
Ensuring the 'rapid' aspect of prototyping is met without sacrificing quality or thoroughness.
Measuring the tangible return on investment for advanced technological developments.
Dependence on a single contractor, BAE Systems, for critical R&D advancements.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
BAE Systems is a well-established defense contractor with a track record in space and mission systems.
The contract aims to directly address modernization needs within the Department of Defense.
The cost-plus-fixed-fee structure provides some cost certainty while allowing for R&D flexibility.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is characterized by significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by the DoD for similar technological advancements or prototyping efforts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale R&D effort awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the primary awardee is not a small business, and there's no explicit mention of small business subcontracting goals in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures will be tied to the milestones and deliverables outlined in the Cost Plus Fixed Fee (CPFF) contract. Transparency will depend on the DoD's reporting practices for R&D contracts and any public disclosures made by BAE Systems. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Technology Development
Rapid Prototyping Initiatives
Defense Research and Development
Military Technology Modernization
Aerospace and Defense R&D

Risk Flags

Cost Overrun Risk in R&D
Timeliness of Prototype Delivery
Effectiveness of Technological Enhancements
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.0 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. FORCE OPTIMIZATION THROUGH RAPID-PROTOTYPING, GEAR ENHANCEMENTS AND INNOVATIVE TECHNOLOGY (FORGE-IT)

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 $18.0 million.

What is the period of performance?

Start: 2025-03-10. End: 2029-03-09.

What is BAE Systems' track record with similar rapid prototyping and technology enhancement contracts for the Department of Defense?

BAE Systems has a substantial track record in defense contracting, including significant work in space and mission systems, which aligns with the 'FORGE-IT' contract's focus. While specific details on 'rapid prototyping' contracts are not provided in the summary data, the company's history suggests experience in developing and integrating advanced technologies for military applications. Their portfolio often includes complex R&D projects, system upgrades, and technological enhancements for various defense platforms. A deeper analysis would involve reviewing their past performance evaluations and contract awards specifically related to R&D and prototyping to assess their success rate, adherence to timelines, and innovation delivery in comparable projects.

How does the $18.05 million contract value compare to other DoD R&D contracts for similar technological advancements?

The $18.05 million value for this four-year R&D contract is moderate within the broader landscape of Department of Defense research and development spending. Large-scale defense R&D programs can range from tens of millions to billions of dollars. This specific contract appears to be focused on targeted enhancements and rapid prototyping rather than foundational, large-scale system development. To benchmark effectively, one would compare it to other contracts awarded under the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) for similar technological areas like advanced materials, sensor development, or electronic warfare enhancements. The cost-plus-fixed-fee (CPFF) structure also influences how value is assessed, as it allows for flexibility in R&D costs.

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

The primary risks associated with a CPFF contract for R&D, like the FORGE-IT initiative, revolve around cost control and the potential for scope creep. While the fixed fee provides a baseline profit for the contractor (BAE Systems), the government bears the risk of cost overruns if the actual costs exceed the estimated costs. In R&D, especially rapid prototyping, unforeseen technical challenges or evolving requirements can lead to increased expenses. Effective oversight is crucial to monitor expenditures, ensure efficient resource allocation, and manage any necessary changes to the project scope. The government must ensure that the contractor is diligently managing costs and that the final fee remains justified by the work performed and the value delivered.

How will the success of the 'rapid-prototyping' aspect of this contract be measured?

The success of the 'rapid-prototyping' aspect of the FORGE-IT contract will likely be measured through a combination of predefined metrics and milestones outlined in the contract's Statement of Work (SOW). Key indicators could include the speed at which functional prototypes are developed and delivered, the ability of these prototypes to meet specified performance requirements, and the effectiveness of iterative feedback loops between the government and BAE Systems. Success might also be gauged by the successful transition of prototypes into further development or operational testing phases. The contract's structure, focusing on R&D, implies that innovation and adaptability are core objectives, so the agility of the prototyping process itself will be a critical measure of success.

What is the historical spending pattern for R&D contracts under the Air Force's 'FORCE OPTIMIZATION' or similar initiatives?

Historical spending patterns for R&D under the Air Force, particularly for initiatives focused on force optimization, rapid prototyping, and technology enhancement, show a consistent and significant investment. The Air Force, like other branches of the DoD, prioritizes modernization to maintain a technological edge. Spending in this area typically fluctuates based on strategic priorities, emerging threats, and technological breakthroughs. Contracts under NAICS code 541715, especially those involving advanced engineering and physical sciences, represent a substantial portion of the Air Force's R&D budget. Analyzing past awards for similar 'rapid prototyping' or 'technology enhancement' programs would reveal trends in contract values, durations, and the types of technologies being pursued, providing context for the $18.05 million FORGE-IT award.

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: BASIC RESEARCH

Offers Received: 1

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $34,725,293

Exercised Options: $32,258,097

Current Obligation: $18,049,542

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline