DoD's $38M ARGUS-IS surveillance system contract awarded to BAE Systems faced full and open competition
Contract Overview
Contract Amount: $38,254,084 ($38.3M)
Contractor: BAE Systems Advanced Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2007-09-04
End Date: 2014-05-30
Contract Duration: 2,460 days
Daily Burn Rate: $15.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: AUTONOMOUS REAL-TIME GROUND UBIQUITOUS SURVEILANCE-IMAGING SYSTEM (ARGUS-IS)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20037
Plain-Language Summary
Department of Defense obligated $38.3 million to BAE SYSTEMS ADVANCED TECHNOLOGIES INC for work described as: AUTONOMOUS REAL-TIME GROUND UBIQUITOUS SURVEILANCE-IMAGING SYSTEM (ARGUS-IS) Key points: 1. The $38.25M contract for the ARGUS-IS surveillance system was awarded to BAE Systems. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The system falls under Research and Development in Physical, Engineering, and Life Sciences. 4. The contract duration was 2460 days, spanning from 2007 to 2014.
Value Assessment
Rating: fair
The contract type was Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The total award was $38.25M over 2460 days.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the CPFF contract type may still present cost control challenges.
Taxpayer Impact: Taxpayer funds were used for R&D in advanced surveillance technology. The competitive award aims to ensure value, but CPFF contracts require diligent oversight to control costs.
Public Impact
Advanced surveillance technology development for potential military applications. Investment in R&D for national security capabilities. Potential for dual-use technology with civilian applications. Long-term development cycle indicates significant technological advancement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize contractor to increase costs.
- Long contract duration increases risk of scope creep and cost escalation.
- Lack of specific performance metrics makes it hard to assess value for money.
Positive Signals
- Awarded under full and open competition.
- Focus on critical R&D for defense sector.
Sector Analysis
The Department of Defense's spending on Research and Development (NAICS 541710) is substantial, focusing on technological superiority. This contract for a surveillance system aligns with typical defense R&D investments.
Small Business Impact
The data indicates the award went to BAE Systems, a large defense contractor. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The Cost Plus Fixed Fee (CPFF) contract type necessitates strong oversight from the Department of the Air Force to ensure costs are controlled and the project stays within budget.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (2460 days).
- Lack of specific performance metrics in provided data.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.3 million to BAE SYSTEMS ADVANCED TECHNOLOGIES INC. AUTONOMOUS REAL-TIME GROUND UBIQUITOUS SURVEILANCE-IMAGING SYSTEM (ARGUS-IS)
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS ADVANCED TECHNOLOGIES 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 $38.3 million.
What is the period of performance?
Start: 2007-09-04. End: 2014-05-30.
What were the specific performance objectives and key milestones for the ARGUS-IS system, and how were they measured to ensure the $38.25M investment yielded effective surveillance capabilities?
The provided data does not detail specific performance objectives or milestones for the ARGUS-IS system. To assess effectiveness, a review of the contract's Statement of Work (SOW), technical performance reports, and final system acceptance criteria would be necessary. Understanding how BAE Systems demonstrated the system's capabilities against its intended purpose is crucial for evaluating the $38.25M investment's value.
Given the CPFF contract type and long duration, what mechanisms were in place to mitigate the risk of cost overruns and ensure the final system met evolving technological requirements?
CPFF contracts inherently carry a risk of cost overruns. Mitigation strategies would typically involve rigorous Earned Value Management (EVM), regular progress reviews, strict change control processes, and clear definition of contract line item numbers (CLINs). For a long-duration R&D project, mechanisms to adapt to evolving requirements, such as phased development or flexible SOWs, would also be critical to manage technological obsolescence risk.
How did the full and open competition process for the ARGUS-IS system ensure the most innovative and cost-effective solution was selected for the Department of Defense?
Full and open competition allows any interested and qualified company to submit a bid, fostering a wide range of solutions and driving down prices through market forces. For ARGUS-IS, this process likely involved detailed technical requirements and evaluation criteria, enabling the Air Force to compare proposals not just on price but also on technical merit, innovation, and overall value. The competitive pressure encourages bidders to offer their best technical and cost solutions.
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
Solicitation Procedures: BASIC RESEARCH
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 1250 24TH ST NW STE 850, WASHINGTON, DC, 98
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $434,589,661
Exercised Options: $431,214,739
Current Obligation: $38,254,084
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-09-04
Current End Date: 2014-05-30
Potential End Date: 2014-05-30 00:00:00
Last Modified: 2013-09-23
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