Dod's $35.3M Seeker Cost Transformation Contract Awarded to BAE Systems

Contract Overview

Contract Amount: $35,319,083 ($35.3M)

Contractor: BAE Systems Information & Electronic Systems Integration Inc

Awarding Agency: Department of Defense

Start Date: 2022-07-31

End Date: 2025-06-30

Contract Duration: 1,065 days

Daily Burn Rate: $33.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SEEKER COST TRANSFORMATION

Place of Performance

Location: MERRIMACK, HILLSBOROUGH County, NEW HAMPSHIRE, 03054

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $35.3 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC for work described as: SEEKER COST TRANSFORMATION Key points: 1. The contract focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. BAE Systems Information & Electronic Systems Integration Inc. is the prime contractor. 3. The contract was awarded under full and open competition. 4. This is a Cost Plus Fixed Fee contract with a duration of 1065 days.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount of $35.3 million for R&D is within a typical range for this type of project, but the final cost is subject to actual expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for research and development.

Public Impact

Advancement in physical, engineering, and life sciences research. Potential for technological innovation and application by the Department of Defense. Investment in advanced R&D capabilities for national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risk of cost escalation.
The specific R&D outcomes and their ultimate value are uncertain at the outset.

Positive Signals

Awarded under full and open competition.
Contract awarded to a reputable defense contractor.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is critical for maintaining technological superiority but can be subject to long development cycles and uncertain outcomes.

Small Business Impact

The contract was awarded to BAE Systems Information & Electronic Systems Integration Inc., a large business. There is no indication of small business participation in the provided data.

Oversight & Accountability

The Department of the Air Force is the awarding agency, implying oversight through their contracting and program management structures. The fixed fee component provides some level of cost control, but ongoing monitoring is crucial for Cost Plus contracts.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Research and Development inherently carries uncertainty.
No explicit mention of small business subcontracting.
Potential for cost overruns if not closely managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.3 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC. SEEKER COST TRANSFORMATION

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION 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 $35.3 million.

What is the period of performance?

Start: 2022-07-31. End: 2025-06-30.

What specific cost transformation goals are being pursued under this R&D contract?

The contract aims to achieve cost transformation within the SEEKER program. While the exact nature of this transformation isn't detailed, it likely involves exploring innovative approaches, technologies, or methodologies to reduce future costs associated with the SEEKER system or its operational lifecycle. This could encompass areas like material science, manufacturing processes, or system design efficiencies.

What are the primary risks associated with the Cost Plus Fixed Fee structure for this R&D effort?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is that the contractor may have less incentive to control costs once the fixed fee is established. If the actual costs exceed initial estimates, the government bears the burden. For R&D, the inherent uncertainty of achieving specific outcomes also adds risk, as the 'cost' might be incurred without the desired 'transformation' being fully realized.

How will the effectiveness of the 'cost transformation' be measured and validated?

Effectiveness will likely be measured through a combination of technical reviews, milestone achievements, and the demonstration of proposed cost-saving solutions. The Department of the Air Force will need to establish clear metrics and performance standards tied to the R&D objectives. Validation may involve pilot programs, simulations, or comparative analyses to quantify the actual cost reductions or efficiencies achieved post-transformation.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 144 DANIEL WEBSTER HWY #24, MERRIMACK, NH, 03054

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: $35,319,083

Exercised Options: $35,319,083

Current Obligation: $35,319,083

Actual Outlays: $4,363,121

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $7,610,504

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline