DoD's $27.9M R&D Contract for Avionics Cyber Vulnerability Mitigations Awarded to Ball Aerospace

Contract Overview

Contract Amount: $27,890,958 ($27.9M)

Contractor: Ball Aerospace & Technologies Corp.

Awarding Agency: Department of Defense

Start Date: 2017-05-23

End Date: 2023-03-30

Contract Duration: 2,137 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF AVIONICS CYBER VULNERABILITY MITIGATIONS TECHNOLOGIES

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80301

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $27.9 million to BALL AEROSPACE & TECHNOLOGIES CORP. for work described as: IGF::OT::IGF AVIONICS CYBER VULNERABILITY MITIGATIONS TECHNOLOGIES Key points: 1. Contract focuses on critical cybersecurity for aerospace systems, addressing a key national security need. 2. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a high-value sector for innovation. 3. The contract duration of 2137 days indicates a long-term commitment to developing advanced solutions. 4. Awarded via full and open competition, suggesting a robust market for these specialized services. 5. The use of Cost Plus Fixed Fee (CPFF) pricing indicates potential for cost overruns if not managed carefully. 6. The contractor, Ball Aerospace, is a significant player in the aerospace and defense industry.

Value Assessment

Rating: good

Benchmarking the value of R&D contracts is challenging due to their unique nature and evolving technological landscapes. However, the $27.9 million awarded over approximately six years for specialized cybersecurity research suggests a significant investment. Without specific performance metrics or comparable project costs, a precise value-for-money assessment is difficult. The CPFF contract type introduces some risk, as contractor profit is fixed regardless of cost efficiency, but it is common for R&D where scope can be uncertain.

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 were likely solicited and allowed to bid. This approach generally fosters a competitive environment, encouraging bidders to offer their best technical solutions and pricing to secure the award. The presence of two delivery orders suggests a structured procurement process that allowed for phased execution or specific tasking within the broader research scope.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices and encourages innovation, leading to better value for the government's investment in critical research.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, receiving advanced cybersecurity solutions for avionics systems. This contract supports the development of technologies to mitigate cyber vulnerabilities in critical aerospace platforms. The geographic impact is primarily within the United States, focusing on research and development activities. Workforce implications include highly skilled researchers, engineers, and cybersecurity professionals in the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not closely monitored for efficiency.
The long duration of the contract (2137 days) requires sustained oversight to ensure progress and prevent scope creep.
Cybersecurity R&D is inherently complex, with potential for unforeseen technical challenges and delays.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment that should drive value.
The contractor, Ball Aerospace, has a strong track record in aerospace and defense technologies.
Focus on critical cybersecurity for avionics addresses a significant and evolving national security threat.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). The aerospace and defense industry is a major consumer of R&D, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks for specialized cybersecurity R&D are difficult to establish due to the proprietary nature of much of this work, but the scale of this award reflects the importance placed on securing advanced aviation systems.

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 likely requiring specialized expertise and resources, it is probable that the prime contractor, Ball Aerospace, would engage subcontractors. The extent of small business subcontracting would depend on the specific technical requirements and the availability of small businesses with the necessary capabilities in cybersecurity and avionics.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Accountability measures would be tied to the contract's performance work statement, milestones, and deliverables. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) research initiatives
Air Force Research Laboratory (AFRL) programs
Cybersecurity research and development contracts
Avionics systems development
Aerospace technology innovation

Risk Flags

Potential for cost overruns due to CPFF contract type.
Long contract duration requires sustained oversight.
Complexity of R&D may lead to technical challenges or delays.
Dependence on contractor's ability to deliver innovative solutions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to BALL AEROSPACE & TECHNOLOGIES CORP.. IGF::OT::IGF AVIONICS CYBER VULNERABILITY MITIGATIONS TECHNOLOGIES

Who is the contractor on this award?

The obligated recipient is BALL AEROSPACE & TECHNOLOGIES CORP..

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 $27.9 million.

What is the period of performance?

Start: 2017-05-23. End: 2023-03-30.

What is Ball Aerospace's track record with similar government R&D contracts, particularly in cybersecurity?

Ball Aerospace & Technologies Corp. has a substantial history of performing complex research and development for the U.S. government, particularly within the defense and intelligence sectors. While specific details on their cybersecurity R&D portfolio for avionics are often classified or proprietary, their broader experience includes developing advanced sensors, space systems, and communication technologies that inherently require robust cybersecurity measures. They have been a prime contractor on numerous DoD programs, demonstrating a capacity to manage large, technically challenging projects. Their involvement in projects related to mission assurance and system resilience suggests a relevant background for this contract. Further analysis would require examining specific past performance evaluations and contract awards related to cyber vulnerability mitigation in aerospace applications.

How does the $27.9 million cost compare to similar R&D efforts in avionics cybersecurity?

Directly comparing the $27.9 million cost to 'similar' R&D efforts in avionics cybersecurity is challenging due to the highly specialized and often classified nature of such projects. R&D costs are heavily influenced by the specific technologies being developed, the complexity of the threat landscape addressed, the duration of the research, and the required level of innovation. Contracts for developing foundational technologies or addressing novel cyber threats can vary significantly. However, the amount suggests a substantial, multi-year effort focused on critical vulnerabilities. Without access to detailed statements of work and performance metrics for comparable contracts, a precise benchmark is difficult. It indicates a significant investment by the Air Force in addressing a high-priority cybersecurity challenge within its aviation systems.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, revolve around cost control and contractor efficiency. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. If the R&D effort proves more costly than initially estimated, the government bears the burden of these increased costs, while the contractor's fee remains unchanged. This can disincentivize the contractor from aggressively seeking cost savings. For R&D, where the scope and technical challenges are often uncertain, CPFF is used to encourage innovation and allow flexibility. However, it necessitates robust government oversight to monitor costs, ensure efficiency, and prevent scope creep that could inflate expenses without commensurate technical advancement.

How effective is the 'full and open competition' approach likely to be for securing advanced avionics cybersecurity solutions?

The 'full and open competition' approach is generally considered the most effective method for the government to secure a wide range of advanced solutions and achieve the best possible value. By allowing all responsible sources to submit proposals, it maximizes the pool of potential innovators and encourages robust competition. This competitive pressure typically leads to more innovative technical approaches and more competitive pricing. For a specialized field like avionics cybersecurity, this approach increases the likelihood that the most capable and cost-effective solutions will be identified. The success of this approach hinges on a well-defined solicitation that clearly articulates the government's needs and evaluation criteria, ensuring that proposals are evaluated fairly and objectively.

What are the potential long-term implications of this contract for the cybersecurity posture of Air Force avionics?

This contract has the potential for significant positive long-term implications for the cybersecurity posture of Air Force avionics. By investing in research and development to mitigate cyber vulnerabilities, the Air Force aims to proactively address threats before they can be exploited. Successful outcomes could lead to the implementation of new security protocols, hardware, or software that enhance the resilience of aircraft systems against cyberattacks. This could range from protecting flight control systems and communication networks to safeguarding sensitive mission data. Ultimately, this R&D effort seeks to ensure the continued operational effectiveness and safety of Air Force platforms in an increasingly contested cyber domain, reducing the risk of mission failure or catastrophic incidents due to cyber intrusion.

How does this contract align with broader trends in defense spending on cybersecurity and R&D?

This contract aligns strongly with the broader trend of increasing defense spending on cybersecurity and research and development. As adversarial nations and non-state actors enhance their cyber capabilities, the Department of Defense has prioritized bolstering its cyber defenses across all domains, including aviation. R&D is crucial for staying ahead of evolving threats, and significant investments are being made to develop next-generation technologies. This contract, focusing on critical avionics cybersecurity, represents a specific application of this broader strategic focus. It reflects the recognition that cybersecurity is not merely an IT issue but a fundamental component of mission assurance and operational readiness for advanced military platforms.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corp

Address: 1600 COMMERCE ST, BOULDER, CO, 80301

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

Financial Breakdown

Contract Ceiling: $29,885,697

Exercised Options: $29,885,697

Current Obligation: $27,890,958

Actual Outlays: $517,798

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $2,591,728

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865016D1878

IDV Type: IDC

Timeline