DoD awards $23.7M R&D contract to BAE Systems under full and open competition
Contract Overview
Contract Amount: $23,743,572 ($23.7M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2010-09-24
End Date: 2015-12-31
Contract Duration: 1,924 days
Daily Burn Rate: $12.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 34
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CRASH
Place of Performance
Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803
Plain-Language Summary
Department of Defense obligated $23.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: CRASH Key points: 1. Contract value of $23.7M for R&D services. 2. BAE Systems Information and Electronic Systems Integration Inc. is the sole awardee. 3. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The NAICS code 541712 suggests research and development in physical, engineering, and life sciences.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to higher costs than fixed-price contracts. Without specific benchmarks for similar R&D projects, assessing the value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure may limit the direct impact of competition on final price discovery.
Taxpayer Impact: Taxpayer funds are being used for research and development, with the final cost influenced by the contract type and the efficiency of the contractor.
Public Impact
Research and Development funding supports innovation within the Department of Defense. The contract duration of 1924 days (approx. 5.3 years) indicates a long-term R&D effort. Award to a large corporation suggests a focus on established capabilities rather than emerging technologies from smaller firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Long contract duration may lead to scope creep or evolving requirements.
- Lack of specific performance metrics makes it hard to gauge R&D effectiveness.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical R&D for the Department of Defense.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this sector is crucial for technological advancement but can be subject to cost overruns due to the inherent uncertainties in R&D.
Small Business Impact
The contract was awarded to BAE Systems, a large corporation, and there is no indication of small business subcontracting. This suggests limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, indicating standard oversight for DoD contracts. However, the Cost Plus Fixed Fee structure requires diligent monitoring to control costs and ensure value.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of specific performance metrics.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. CRASH
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS INFORMATION AND 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 $23.7 million.
What is the period of performance?
Start: 2010-09-24. End: 2015-12-31.
What specific R&D objectives were prioritized, and how does the $23.7M award align with achieving those objectives effectively?
The provided data does not detail the specific R&D objectives. To assess effectiveness, one would need to review the contract's statement of work, milestones, and deliverables. Understanding the intended outcomes and comparing them against the awarded amount and duration is crucial for determining if the investment is likely to yield the desired technological advancements for the Department of Defense.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate cost overruns and ensure efficient use of taxpayer funds?
Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Effective oversight would involve rigorous auditing of contractor expenses, clear definitions of allowable costs, and performance incentives tied to cost control. Regular reviews and audits by the Defense Contract Management Agency are essential to ensure the contractor operates efficiently and within reasonable cost parameters.
How does the competitive landscape for this specific R&D area compare, and did the full and open competition truly drive the best possible price for the government?
While the contract was awarded under full and open competition, the Cost Plus Fixed Fee structure means the final price is not fixed upfront. The government benefits from competition in attracting qualified bidders, but the ultimate cost is realized as the project progresses. A thorough analysis would require comparing the negotiated fee and projected costs against similar R&D contracts awarded through different pricing structures to ascertain if the best value was achieved.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 34
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6 NEW ENGLAND EXECUTIVE PARK, BURLINGTON, MA, 01803
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,743,572
Exercised Options: $23,743,572
Current Obligation: $23,743,572
Subaward Activity
Number of Subawards: 41
Total Subaward Amount: $5,957,585
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-24
Current End Date: 2015-12-31
Potential End Date: 2015-12-31 00:00:00
Last Modified: 2025-10-14
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