DoD Awards BAE Systems $528M for Weather Satellite Microwave System Design
Contract Overview
Contract Amount: $528,456,116 ($528.5M)
Contractor: BAE Systems Space & Mission Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2017-11-15
End Date: 2028-01-15
Contract Duration: 3,713 days
Daily Burn Rate: $142.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: WEATHER SYSTEM FOLLOW-ON - MICROWAVE - SYSTEM DESIGN OF SATELLITE WITH MICROWAVE RADIOMETER AND SENSOR
Place of Performance
Location: BOULDER, BOULDER County, COLORADO, 80301
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $528.5 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: WEATHER SYSTEM FOLLOW-ON - MICROWAVE - SYSTEM DESIGN OF SATELLITE WITH MICROWAVE RADIOMETER AND SENSOR Key points: 1. Significant investment in advanced weather monitoring technology for defense. 2. BAE Systems is a major defense contractor, indicating established capabilities. 3. Long contract duration (2017-2028) suggests complex development and integration. 4. Cost-plus incentive fee contract type may incentivize efficiency but requires close oversight.
Value Assessment
Rating: good
The contract value of $528M over 11 years is substantial. Benchmarking against similar satellite system design contracts is difficult without more specific technical details, but the scale suggests a complex and critical system.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely drove price discovery. The definitive contract award indicates a structured procurement.
Taxpayer Impact: Taxpayer funds are supporting the development of critical weather intelligence capabilities for national security, with the potential for cost efficiencies through incentive fees.
Public Impact
Enhances military operational planning by providing crucial weather data. Supports civilian weather forecasting and disaster response capabilities. Advances technological capabilities in space-based sensing and satellite design. Contributes to the broader aerospace and defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contracts can lead to cost overruns if not managed tightly.
- Long-term contracts carry inherent schedule and technical risks.
- Reliance on a single contractor for a critical system component.
Positive Signals
- Awarded through full and open competition.
- Incentive fee structure aims to control costs.
- Addresses a critical national security need for weather data.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a high-tech area with significant government investment. Spending benchmarks are difficult without specific program comparisons, but satellite development is typically a multi-million to billion-dollar endeavor.
Small Business Impact
The contract was awarded to BAE Systems, a large prime contractor. There is no explicit indication of small business subcontracting in the provided data, which warrants further investigation to ensure small business participation.
Oversight & Accountability
The cost-plus incentive fee structure necessitates robust oversight from the Department of the Air Force to ensure performance targets are met and costs are controlled. Regular reviews and audits will be crucial.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns in cost-plus contracts.
- Long contract duration increases risk of obsolescence or changing requirements.
- Dependence on a single large contractor for a critical capability.
- Complexity of integrating new satellite technology into existing defense infrastructure.
- Ensuring adequate small business participation in subcontracting.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, co, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $528.5 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. WEATHER SYSTEM FOLLOW-ON - MICROWAVE - SYSTEM DESIGN OF SATELLITE WITH MICROWAVE RADIOMETER AND SENSOR
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 $528.5 million.
What is the period of performance?
Start: 2017-11-15. End: 2028-01-15.
What specific weather phenomena will this microwave system be designed to detect and measure, and how does this capability compare to existing or planned systems?
The system is designed for microwave radiometry and sensing, likely to measure atmospheric temperature, water vapor, and precipitation. This advanced capability aims to improve the accuracy and resolution of weather prediction models crucial for military operations, potentially offering enhanced performance over current systems in specific conditions like cloud cover.
What are the key performance metrics and incentive structures within the cost-plus incentive fee contract that will drive BAE Systems' performance and cost control?
The contract likely includes specific technical performance parameters (e.g., sensor accuracy, data latency) and cost targets. The incentive fee structure would reward BAE Systems for exceeding performance goals and staying under budget, while penalizing them for shortfalls, thereby aligning contractor and government interests.
How will the data generated by this satellite system be integrated into existing military decision-making processes and potentially shared with civilian agencies?
The data integration plan is critical. It will likely involve establishing secure communication channels and data formats compatible with existing military command and control systems. Protocols for sharing relevant, non-sensitive data with civilian agencies like NOAA would also need to be established to maximize public benefit.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA881017R0004
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $834,667,469
Exercised Options: $549,067,469
Current Obligation: $528,456,116
Actual Outlays: $22,534,386
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $8,469,908
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-11-15
Current End Date: 2028-01-15
Potential End Date: 2028-01-15 00:00:00
Last Modified: 2026-01-14
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