DoD's $17.6M R&D Contract for Commercial Space Internet Leverages Full and Open Competition

Contract Overview

Contract Amount: $17,573,626 ($17.6M)

Contractor: BAE Systems Space & Mission Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2020-08-06

End Date: 2025-10-31

Contract Duration: 1,912 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DEFENSE EXPERIMENTATION USING COMMERCIAL SPACE INTERNET (DEUCSI)

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80301

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: DEFENSE EXPERIMENTATION USING COMMERCIAL SPACE INTERNET (DEUCSI) Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences, excluding nanotechnology and biotechnology. 2. BAE Systems is the sole awardee for this definitive contract. 3. The contract duration is 1912 days, spanning from August 2020 to October 2025. 4. Awarded under full and open competition, indicating a broad solicitation process. 5. The contract type is Cost Plus Fixed Fee (CPFF), common for R&D where final costs are uncertain. 6. This contract is categorized under R&D in physical, engineering, and life sciences. 7. The contract value is approximately $17.6 million.

Value Assessment

Rating: good

The contract's value of $17.6 million for R&D in space internet capabilities appears reasonable given the specialized nature of the work. As a Cost Plus Fixed Fee (CPFF) contract, the government pays for allowable costs plus a fixed fee, which is typical for research and development where the final scope and cost can be uncertain. Benchmarking against similar R&D contracts in the defense space, particularly those involving advanced communication technologies and space systems, would provide a more precise value-for-money assessment. However, the fixed fee component provides some cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of Defense actively sought proposals from a wide range of qualified contractors. The solicitation process likely involved public announcements and a thorough evaluation of multiple bids. The level of competition, while not explicitly detailed in the provided data, is generally expected to drive more competitive pricing and innovative solutions. The fact that it was competed openly is a positive indicator for price discovery.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from the widest possible range of offers, potentially leading to better value and more cost-effective solutions for this critical defense research initiative.

Public Impact

The primary beneficiaries are the Department of Defense, which will gain enhanced capabilities in utilizing commercial space internet for experimentation and operations. The services delivered involve research and development to explore and integrate commercial space internet technologies into defense systems. The geographic impact is likely global, given the nature of space-based communication, with potential applications for deployed forces anywhere. Workforce implications may include specialized roles in aerospace engineering, telecommunications, cybersecurity, and R&D within BAE Systems and potentially supporting subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently, as the contractor is reimbursed for costs incurred.
The long duration of the contract (over 5 years) increases the risk of technological obsolescence or shifts in strategic requirements.
Reliance on commercial space internet may introduce vulnerabilities related to third-party service provider security and availability.

Positive Signals

Leveraging commercial space internet can potentially reduce development costs and accelerate deployment compared to building proprietary systems.
Full and open competition suggests a robust selection process, likely identifying a capable contractor with relevant expertise.
The R&D focus allows for exploration of cutting-edge technologies that could provide a significant operational advantage.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced communication technologies and their application in space. The market for space-based communication and internet services is rapidly growing, driven by both commercial and government demand. This contract aligns with the broader trend of the Department of Defense exploring commercial off-the-shelf (COTS) solutions and partnerships to enhance its capabilities, particularly in areas like satellite communications and resilient networks. Comparable spending benchmarks would involve other R&D contracts for advanced communication systems or space technology integration.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is not explicitly mandated or detailed for this contract. As a large contract awarded to BAE Systems, there may be opportunities for small businesses to participate as subcontractors. However, without specific set-aside requirements or subcontracting plans detailed in the award data, the direct impact on the small business ecosystem is unclear. Further investigation into BAE Systems' subcontracting practices for this contract would be necessary to assess its effect on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification from the contractor. Transparency is generally maintained through contract databases and reporting requirements, though specific R&D details might be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Space Force Communication Systems
Advanced Research Projects Agency (ARPA) Contracts
Department of Defense Research and Development Programs
Satellite Communication Technology Development
Commercial Satellite Services Integration

Risk Flags

Potential security vulnerabilities of commercial internet services.
Risk of service disruption from commercial providers.
Uncertainty in long-term availability and performance of commercial assets.
Challenges in ensuring data integrity and control over commercial networks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. DEFENSE EXPERIMENTATION USING COMMERCIAL SPACE INTERNET (DEUCSI)

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 $17.6 million.

What is the period of performance?

Start: 2020-08-06. End: 2025-10-31.

What is BAE Systems' track record with similar R&D contracts for the Department of Defense?

BAE Systems has a significant history of performing complex research and development contracts for the Department of Defense across various domains, including space, aerospace, and advanced electronics. Their portfolio often includes work on communication systems, satellite technology, and sensor development. While specific details on past R&D contracts related to commercial space internet integration are not provided here, BAE Systems' established presence and extensive experience in defense contracting suggest a strong capability to undertake this DEUCSI project. A deeper dive into their contract history, performance reviews, and past project outcomes would offer more granular insights into their specific expertise relevant to this particular award.

How does the $17.6 million value compare to similar R&D efforts in space-based communications?

The $17.6 million value for this R&D contract is moderate within the context of large-scale defense R&D projects, particularly those involving space technologies. Research and development in advanced communication systems, especially those leveraging emerging commercial capabilities like ubiquitous satellite internet, can range from tens to hundreds of millions of dollars depending on the scope, duration, and technological complexity. Given that this contract focuses on experimentation and integration rather than the development of entirely new satellite constellations, its value appears aligned with exploratory and developmental phases. Benchmarking against other DoD contracts for satellite communication R&D or integration of commercial technologies would provide a more precise comparison, but the figure is not inherently excessive for its stated purpose.

What are the primary risks associated with relying on commercial space internet for defense experimentation?

The primary risks associated with relying on commercial space internet for defense experimentation include security vulnerabilities, potential service disruptions, and issues related to data assurance and control. Commercial providers may not meet the stringent security requirements of military operations, potentially exposing sensitive data. Furthermore, commercial services are subject to factors beyond DoD control, such as satellite malfunctions, ground station issues, or even shifts in the provider's business strategy, which could lead to unpredictable service interruptions. Ensuring consistent bandwidth, low latency, and reliable connectivity in diverse operational environments also presents challenges. The DEUCSI contract aims to explore these aspects, but inherent risks remain in depending on non-dedicated, commercial infrastructure for critical defense functions.

What is the expected effectiveness of this contract in enhancing DoD's experimental capabilities?

This contract is expected to significantly enhance the DoD's experimental capabilities by providing a pathway to leverage the rapidly evolving commercial space internet infrastructure. By integrating and testing these commercial services, the DoD can explore new operational concepts, improve command and control, and enhance data dissemination in various scenarios without the extensive lead times and costs associated with developing bespoke military satellite systems. The research will likely identify optimal methods for utilizing commercial bandwidth, assess the security implications, and determine the feasibility of these services for tactical and strategic applications. Ultimately, the effectiveness hinges on successful integration and validation of these commercial solutions within the DoD's experimental framework.

What have been historical spending patterns for R&D related to space-based communication by the Department of Defense?

Historical spending patterns by the Department of Defense on R&D related to space-based communication have been substantial and consistent, reflecting the critical role of space assets in modern warfare and intelligence. Funding has historically supported the development of military-specific satellite constellations (e.g., WGS, GPS), secure communication payloads, advanced signal processing, and resilient network architectures. In recent years, there has been an increasing emphasis on integrating commercial technologies, including commercial satellite communications (COMSATCOM) and emerging LEO constellations, to augment military capabilities, increase bandwidth, and reduce costs. This shift reflects a strategic move towards leveraging commercial innovation, making contracts like DEUCSI indicative of evolving spending priorities within the R&D budget.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA865017S9300

Offers Received: 1

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, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $17,573,626

Exercised Options: $17,573,626

Current Obligation: $17,573,626

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $272,721

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline