DoD's $39M REACH contract to BAE Systems aims to advance airman cognitive health research
Contract Overview
Contract Amount: $39,048,259 ($39.0M)
Contractor: BAE Systems Space & Mission Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2022-08-04
End Date: 2027-05-04
Contract Duration: 1,734 days
Daily Burn Rate: $22.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH FOR ENHANCING AIRMAN & COGNITIVE HEALTH (REACH)
Place of Performance
Location: BROOMFIELD, JEFFERSON County, COLORADO, 80021
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $39.0 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: RESEARCH FOR ENHANCING AIRMAN & COGNITIVE HEALTH (REACH) Key points: 1. Contract focuses on R&D for physical, engineering, and life sciences, excluding nano/biotech. 2. BAE Systems, a major defense contractor, secured this definitive contract. 3. The contract duration is over 4 years, indicating a long-term research commitment. 4. Performance is located in Colorado, potentially impacting the local scientific workforce. 5. The contract type is Cost Plus Fixed Fee, common for R&D projects. 6. This award represents a significant investment in understanding and improving airman cognitive well-being.
Value Assessment
Rating: good
Benchmarking R&D contracts is challenging due to unique scopes and intellectual property considerations. However, the $39 million award over approximately 4.5 years suggests a substantial investment in a specialized research area. The Cost Plus Fixed Fee (CPFF) structure is typical for R&D where costs can be variable, but the fixed fee component provides some cost control. Without specific performance metrics or comparable project costs, a precise value-for-money assessment is difficult, but the investment level indicates a high priority for the Air Force.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.
Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by encouraging multiple companies to offer their best technical solutions and pricing strategies.
Public Impact
Airmen and potentially other military personnel will benefit from research aimed at enhancing cognitive health. The contract supports research and development activities in physical, engineering, and life sciences. Geographic impact is concentrated in Colorado, where BAE Systems will conduct the research. The contract may have implications for the scientific and research workforce in Colorado. Advancements in understanding cognitive health could lead to improved training, operational readiness, and long-term well-being for service members.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely managed.
- The long duration of the contract requires sustained oversight to ensure progress and adherence to objectives.
- The specialized nature of cognitive health research may present unique challenges in defining and measuring success.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- The contract addresses a critical area of military readiness and personnel well-being.
- BAE Systems is a large, established defense contractor with significant R&D capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is substantial, with significant government investment aimed at maintaining technological superiority and improving personnel capabilities. Comparable spending benchmarks are difficult to establish for highly specialized R&D efforts like cognitive health, but the $39 million award reflects a significant commitment to this niche within the broader defense R&D landscape.
Small Business Impact
The contract details indicate that small business participation was not a specific set-aside criterion (ss: false, sb: false). As a large contract awarded to a major prime contractor, there may be subcontracting opportunities for small businesses, but this is not explicitly detailed in the provided data. The focus is on the prime contractor's capabilities for this specific R&D effort.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. As a Cost Plus Fixed Fee contract, rigorous financial oversight and progress monitoring are essential to ensure costs remain within reasonable bounds and that research objectives are being met. Transparency will depend on the reporting requirements stipulated in the contract and the agency's commitment to public disclosure of research outcomes.
Related Government Programs
- Air Force Research Laboratory (AFRL) programs
- Human Systems research initiatives
- Cognitive performance enhancement studies
- Military medical research and development
Risk Flags
- R&D Uncertainty
- Cost Control in CPFF
- Long-term Project Management
Tags
research-and-development, department-of-defense, department-of-the-air-force, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, cognitive-health, airmen-well-being, colorado, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.0 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. RESEARCH FOR ENHANCING AIRMAN & COGNITIVE HEALTH (REACH)
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 $39.0 million.
What is the period of performance?
Start: 2022-08-04. End: 2027-05-04.
What is the historical spending pattern for similar cognitive health research contracts within the Department of Defense?
Historical spending on cognitive health research within the DoD can vary significantly year-to-year and across different branches. While specific figures for 'cognitive health' as a standalone category are not readily available, related research areas such as human performance, neuroscience, and psychological resilience have seen consistent investment. For instance, programs focused on traumatic brain injury (TBI) and post-traumatic stress disorder (PTSD) have historically received substantial funding. The $39 million awarded to BAE Systems for the REACH program represents a notable investment in advancing the understanding and enhancement of cognitive functions specifically for airmen, suggesting a strategic focus on operational readiness and well-being in this domain. Tracking specific contract awards over time for similar R&D efforts would provide a clearer picture of trends and priorities.
How does the pricing structure (Cost Plus Fixed Fee) compare to other R&D contracts of similar scope?
The Cost Plus Fixed Fee (CPFF) pricing structure is a common and often appropriate choice for research and development (R&D) contracts where the scope of work can be uncertain and costs are difficult to predict precisely. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final project cost. Compared to other R&D contract types like Cost Plus Incentive Fee (CPIF) or Firm-Fixed-Price (FFP), CPFF offers a balance. FFP is generally unsuitable for R&D due to high uncertainty. CPIF introduces performance incentives tied to cost, schedule, or technical targets, which can drive better outcomes but also adds complexity. CPFF provides a degree of cost predictability for the government while allowing flexibility for the contractor to explore research avenues.
What are the key performance indicators (KPIs) expected for this REACH contract, and how will they be measured?
Specific Key Performance Indicators (KPIs) for the RESEARCH FOR ENHANCING AIRMAN & COGNITIVE HEALTH (REACH) contract are not detailed in the provided summary data. However, for an R&D contract of this nature, KPIs would typically focus on the successful completion of research objectives, milestones, and deliverables. This could include the development of validated cognitive assessment tools, the identification of factors influencing airman cognitive performance, the creation of effective intervention strategies, and the publication of research findings in peer-reviewed journals. Measurement would likely involve regular technical reviews, progress reports, prototype demonstrations, and potentially pilot studies to validate findings. The fixed fee component of the CPFF contract suggests that achieving these defined research outcomes will be critical for the contractor's profitability.
What is BAE Systems' track record in conducting similar large-scale R&D projects for the Department of Defense?
BAE Systems is a major global defense contractor with extensive experience in research and development across various domains, including aerospace, electronics, and cyber. The company has a well-established track record of executing large-scale, complex R&D projects for the Department of Defense (DoD) and other government agencies. While specific details on their past cognitive health R&D projects are not provided here, BAE Systems consistently secures significant R&D contracts related to advanced technologies, systems integration, and scientific research. Their history includes work on simulation, training systems, human factors engineering, and advanced materials, all of which can have relevance to cognitive performance and well-being. The company's size and established presence suggest they possess the necessary infrastructure, expertise, and security clearances to undertake demanding R&D efforts like the REACH program.
What are the potential risks associated with this contract, and what mitigation strategies are in place?
Potential risks for this contract include the inherent uncertainties in R&D, where outcomes are not guaranteed, and the possibility of cost overruns within the CPFF structure. Technical risks might involve the complexity of cognitive health research, challenges in accurately measuring cognitive function, and the difficulty in translating research findings into practical applications for airmen. Schedule risks could arise from unforeseen research challenges or delays in obtaining necessary approvals. Mitigation strategies typically involve robust project management, clear definition of research milestones, regular technical reviews, strong government oversight to monitor progress and costs, and flexibility within the contract to adapt to research findings. BAE Systems' experience and the DoD's oversight mechanisms are intended to manage these risks.
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: FA865020S6008
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: $60,164,328
Exercised Options: $60,164,328
Current Obligation: $39,048,259
Actual Outlays: $807,992
Subaward Activity
Number of Subawards: 39
Total Subaward Amount: $21,723,825
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-08-04
Current End Date: 2027-05-04
Potential End Date: 2027-05-04 00:00:00
Last Modified: 2026-01-08
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