DoD's $19.3M R&D Contract with BAE Systems: Long Duration, High Cost
Contract Overview
Contract Amount: $19,301,397 ($19.3M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2011-03-30
End Date: 2021-03-30
Contract Duration: 3,653 days
Daily Burn Rate: $5.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: WAND TECH ARA 5
Place of Performance
Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803
Plain-Language Summary
Department of Defense obligated $19.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: WAND TECH ARA 5 Key points: 1. Significant investment in R&D for advanced technologies. 2. BAE Systems is a major defense contractor, indicating potential for specialized expertise. 3. Long contract duration (10 years) may suggest complex or evolving requirements. 4. The 'Research and Development in Physical, Engineering, and Life Sciences' sector is critical for innovation.
Value Assessment
Rating: questionable
The contract's total value of $19.3M over 10 years averages $1.93M annually. Without specific deliverables or benchmarks for R&D, assessing value is difficult. The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and specific nature of R&D may limit the pool of qualified bidders over time.
Taxpayer Impact: Taxpayer funds are supporting advanced research, which can yield long-term benefits but carries inherent risks of R&D failure or limited practical application.
Public Impact
Supports technological advancement in defense capabilities. Potential for job creation within the defense R&D sector. Long-term commitment of funds for research may impact other program budgets. Outcomes of R&D are uncertain and may not directly translate to immediate public benefit.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years) increases risk of scope creep and cost escalation.
- CPFF contract type can incentivize higher spending.
- Lack of specific performance metrics makes value assessment difficult.
- Limited information on the specific R&D objectives.
Positive Signals
- Awarded through full and open competition.
- BAE Systems is a reputable defense contractor.
- Focus on R&D is crucial for future technological superiority.
Sector Analysis
This contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' sector, a critical area for national security and technological advancement. Annual spending in this NAICS code can vary significantly based on agency priorities and project complexity.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Large, long-term R&D contracts are often awarded to prime contractors with extensive resources and capabilities.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating oversight. However, the long duration and CPFF structure necessitate continuous monitoring to ensure cost control and adherence to research objectives.
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
- Long contract duration (10 years).
- Cost Plus Fixed Fee (CPFF) contract type.
- Lack of specific performance metrics.
- High total contract value ($19.3M).
- R&D contracts inherently carry risk of failure.
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 $19.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. WAND TECH ARA 5
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 $19.3 million.
What is the period of performance?
Start: 2011-03-30. End: 2021-03-30.
What specific research objectives were defined for this 10-year contract, and how were they aligned with DoD's strategic goals?
The provided data lacks specific details on the research objectives. For a 10-year R&D contract, clear alignment with evolving strategic goals is crucial. Without this, there's a risk of funding research that becomes obsolete or irrelevant. Further investigation into contract documentation would be needed to ascertain the specific objectives and their strategic linkage.
How was the fixed fee determined for this Cost Plus Fixed Fee contract, and what mechanisms were in place to control costs over its 10-year duration?
The determination of the fixed fee in a CPFF contract typically involves negotiation based on estimated costs, complexity, and risk. Over a 10-year period, robust oversight mechanisms, including regular audits and performance reviews, are essential to manage costs effectively and prevent potential overruns. The 'br' value of 5284 might represent a benchmark or a related metric, but its direct relation to cost control is unclear without further context.
Given the long duration and R&D nature, what metrics were used to assess the effectiveness and value of the research conducted by BAE Systems?
Assessing the effectiveness of long-term R&D is challenging. Metrics could include milestone achievements, prototype development, successful testing, patent filings, or contributions to scientific knowledge. The 'st' and 'sn' fields ('MA' for Massachusetts) might indicate a location of performance, but not the effectiveness metrics. Without explicit performance metrics tied to deliverables or outcomes, evaluating the contract's true value and effectiveness remains difficult.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC
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: $45,717,538
Exercised Options: $28,898,590
Current Obligation: $19,301,397
Actual Outlays: $62,377
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $852,760
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-03-30
Current End Date: 2021-03-30
Potential End Date: 2021-03-30 00:00:00
Last Modified: 2024-01-30
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