BAE Systems awarded $12.77M for Integrated Cockpit Sensing R&D, focusing on enhanced performance technologies

Contract Overview

Contract Amount: $12,774,425 ($12.8M)

Contractor: BAE Systems Space & Mission Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2020-06-19

End Date: 2026-04-21

Contract Duration: 2,132 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: INTEGRATED COCKPIT SENSING (ICS) - AWARD CALL 1 ADVANCED DEVELOPMENT FOR ENHANCED PERFORMANCE TECHNOLOGIES (ADEPT) ADVANCED RESEARCH ANNOUNCEMENT (ARA)

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80301

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: INTEGRATED COCKPIT SENSING (ICS) - AWARD CALL 1 ADVANCED DEVELOPMENT FOR ENHANCED PERFORMANCE TECHNOLOGIES (ADEPT) ADVANCED RESEARCH ANNOUNCEMENT (ARA) Key points: 1. Contract value of $12.77 million for advanced research and development. 2. BAE Systems is the sole awardee for this specific research announcement. 3. The contract duration extends over 6 years, indicating a long-term research objective. 4. Research and Development in Biotechnology (except Nanobiotechnology) is the primary NAICS code. 5. The contract type is Cost Plus Fixed Fee, common for R&D where final costs are uncertain. 6. Awarded by the Department of the Air Force, suggesting a focus on aerospace or defense applications.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and the 'Cost Plus Fixed Fee' structure, which allows for cost overruns. The fixed fee component needs careful scrutiny to ensure it aligns with the effort required. Without comparable R&D awards in this specific niche, assessing true value-for-money is difficult. The $12.77 million award is for a multi-year research effort, so the annual spend is moderate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'Full and Open Competition' framework, indicating that all responsible sources were permitted to submit proposals. The data shows 7 proposals were received, suggesting a healthy level of interest and competition for this research opportunity. The competitive process likely contributed to establishing a reasonable baseline for the research effort, even with a Cost Plus Fixed Fee structure.

Taxpayer Impact: A competitive process for R&D ensures that taxpayer funds are directed towards the most promising research avenues, potentially leading to more innovative and cost-effective solutions in the long run.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially the broader defense sector, through advancements in cockpit sensing technologies. The services delivered involve advanced research and development aimed at enhancing performance technologies for integrated cockpit sensing. The geographic impact is primarily within the United States, with BAE Systems' operations likely centered in Colorado. Workforce implications include specialized R&D roles for scientists, engineers, and technicians within BAE Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The specialized nature of R&D makes direct cost comparisons difficult.
Long contract duration (over 6 years) requires sustained oversight to ensure progress.

Positive Signals

Full and open competition suggests a robust selection process.
Multiple proposals received (7) indicate strong interest and potential for innovation.
Focus on advanced technologies aligns with modernization efforts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced sensing technologies for aerospace applications. The market for defense R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would typically involve other advanced technology development contracts within the Department of Defense, particularly those related to aviation and sensor systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contractor, BAE Systems may engage small businesses as subcontractors, but specific subcontracting plans are not detailed in this award notice. The absence of a small business set-aside suggests the primary focus was on capabilities available from larger, specialized firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management teams within the Department of the Air Force. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and progress. Transparency is facilitated through contract award databases, though specific R&D progress reports are often sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Technology Development Programs
Aerospace Research and Development
Defense Sensor Technology
Integrated Systems Research

Risk Flags

Potential NAICS code misclassification.
Cost overruns inherent in CPFF R&D contracts.
Risk of technological obsolescence due to long development cycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. INTEGRATED COCKPIT SENSING (ICS) - AWARD CALL 1 ADVANCED DEVELOPMENT FOR ENHANCED PERFORMANCE TECHNOLOGIES (ADEPT) ADVANCED RESEARCH ANNOUNCEMENT (ARA)

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 $12.8 million.

What is the period of performance?

Start: 2020-06-19. End: 2026-04-21.

What is the specific technological advancement BAE Systems is expected to deliver under this contract?

The contract, 'INTEGRATED COCKPIT SENSING (ICS) - AWARD CALL 1 ADVANCED DEVELOPMENT FOR ENHANCED PERFORMANCE TECHNOLOGIES (ADEPT) ADVANCED RESEARCH ANNOUNCEMENT (ARA)', focuses on developing enhanced performance technologies for integrated cockpit sensing. While the precise technological advancements are not detailed in the award notice, this likely involves research into next-generation sensors, data fusion techniques, human-machine interface improvements, and advanced processing capabilities for aircraft cockpits. The goal is to provide pilots with more comprehensive, intuitive, and actionable information, potentially improving situational awareness and decision-making in complex operational environments. The R&D nature implies exploration of novel concepts and prototypes rather than immediate deployment of a finished product.

How does the $12.77 million award compare to typical R&D spending in this specific niche?

Directly comparing the $12.77 million award to 'typical' R&D spending in the niche of 'Integrated Cockpit Sensing' is challenging without access to proprietary market data or detailed historical spending reports for similar, highly specialized research efforts. However, for a multi-year (over 6 years) advanced development research announcement from the Department of the Air Force, this figure appears moderate. Large-scale R&D programs can range from tens to hundreds of millions of dollars. This award suggests a focused research effort rather than a broad, system-wide development initiative. The 'Cost Plus Fixed Fee' structure also means the final expenditure could vary, but the initial award value provides a benchmark for the planned investment.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of actual costs exceeding estimates. If the research proves more complex or requires more resources than initially anticipated, the government pays the actual costs plus the agreed-upon fee. This can lead to the final contract price being significantly higher than initially projected. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives value for its investment. Scope creep, where the project's objectives expand beyond the original agreement, is another significant risk.

What does the 'Research and Development in Biotechnology (except Nanobiotechnology)' NAICS code signify in the context of cockpit sensing?

The NAICS code '541714 - Research and Development in Biotechnology (except Nanobiotechnology)' appears to be a potential misclassification or an unusually broad categorization for a contract focused on 'Integrated Cockpit Sensing'. Typically, cockpit sensing and aerospace technology R&D would fall under NAICS codes related to aerospace engineering, electronics, or computer systems design (e.g., 541715 - Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology), or codes within the 541330 - Engineering Services or 541511 - Custom Computer Programming Services categories). Biotechnology R&D usually pertains to biological organisms, processes, or materials. It's possible the research involves bio-inspired sensing mechanisms or advanced materials with biological properties, but this specific NAICS code warrants further investigation for clarity on the research's core focus.

How does the duration of this contract (over 6 years) impact the assessment of its value and risk?

The extended duration of over 6 years (2132 days) for this R&D contract signifies a long-term commitment to developing advanced technologies. From a value perspective, it allows for in-depth research, iterative development, and testing, which can lead to more robust and innovative outcomes than shorter-term projects. However, this extended timeline also introduces risks. Market needs or technological landscapes can shift significantly over 6 years, potentially rendering the developed technologies obsolete before deployment. Furthermore, maintaining consistent oversight, managing contractor performance, and controlling costs over such a long period require sustained effort and resources from the government. The risk of project drift or loss of institutional knowledge within the government oversight team also increases.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA865020S6009

Offers Received: 7

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 and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,774,425

Exercised Options: $12,774,425

Current Obligation: $12,774,425

Actual Outlays: $1,505,481

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $684,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline