DoD's $35.4M Solid State Laser Contract with BAE Systems Faces Scrutiny for R&D Value
Contract Overview
Contract Amount: $35,441,806 ($35.4M)
Contractor: BAE Systems Space & Mission Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2018-10-24
End Date: 2026-10-24
Contract Duration: 2,922 days
Daily Burn Rate: $12.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT:: IGF SOLID STATE LASER EFFECTS AND MODELING (SSLEM)
Place of Performance
Location: BOULDER, BOULDER County, COLORADO, 80301
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $35.4 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: IGF::OT:: IGF SOLID STATE LASER EFFECTS AND MODELING (SSLEM) Key points: 1. The contract focuses on advanced R&D in laser technology, a critical but complex sector. 2. BAE Systems is a major defense contractor, indicating significant competition in the broader market. 3. The 'Cost Plus Fixed Fee' structure presents potential cost overrun risks. 4. Spending in the R&D sector can be highly variable, making direct benchmarks challenging.
Value Assessment
Rating: questionable
The $35.4M award for R&D is substantial. Without detailed performance metrics or comparable contracts for similar laser effects and modeling, assessing its value for money is difficult. The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly.
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. However, the specific nature of advanced R&D can sometimes limit the pool of truly capable bidders, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are allocated to advanced research, aiming for technological superiority. The effectiveness of this spending depends on the successful development of the laser technology and its future applications.
Public Impact
Advancement of critical laser technology for potential defense applications. Investment in cutting-edge research and development within the United States. Potential for future technological spin-offs impacting various industries. Ensuring U.S. technological advantage in a key scientific domain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (8 years)
- Lack of specific performance metrics in provided data
Positive Signals
- Awarded under full and open competition
- Focus on critical R&D area
- Experienced contractor (BAE Systems)
Sector Analysis
This contract falls within the Research and Development sector, specifically physical sciences. Spending in this area is characterized by high uncertainty and potential for groundbreaking innovation, making direct cost comparisons difficult. Benchmarks often relate to R&D intensity as a percentage of revenue for similar firms.
Small Business Impact
The contract data indicates the prime contractor is BAE SYSTEMS SPACE & MISSION SYSTEMS INC., a large business. There is no information provided on subcontracting to small businesses, which is a missed opportunity for broader economic impact.
Oversight & Accountability
The contract is managed by the Department of the Air Force. Oversight would typically involve monitoring research progress, adherence to cost controls, and achievement of milestones. The CPFF structure necessitates robust oversight to prevent cost overruns.
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
- Potential for cost overruns due to CPFF structure
- Difficulty in benchmarking R&D spending
- Long contract duration may not align with rapid technological shifts
- Lack of small business participation indicated
- Uncertainty inherent in advanced research projects
Tags
research-and-development-in-the-physical, department-of-defense, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.4 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. IGF::OT:: IGF SOLID STATE LASER EFFECTS AND MODELING (SSLEM)
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 $35.4 million.
What is the period of performance?
Start: 2018-10-24. End: 2026-10-24.
How will the effectiveness of the Solid State Laser Effects and Modeling research be measured against the $35.4M investment?
Effectiveness will likely be measured through a series of technical milestones and deliverables outlined in the contract. These could include successful modeling of laser phenomena, validation of theoretical predictions through experimentation, and the development of predictive algorithms. The ultimate measure of success will be the demonstrated advancement in understanding and capability related to solid-state laser effects, contributing to future technological applications.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) structure for this advanced R&D contract?
The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed plus a fixed fee. For R&D, this is compounded by the inherent uncertainty; unforeseen technical challenges could significantly increase costs. The government bears the brunt of cost overruns, potentially exceeding the initial $35.4M estimate if not rigorously managed and overseen.
Given the 'full and open competition' award, what is the potential impact on innovation compared to other contracting methods for R&D?
Full and open competition theoretically allows the widest range of innovative solutions by enabling any qualified source to bid. However, for highly specialized R&D like advanced laser modeling, the initial qualification criteria might still narrow the field. While it promotes a competitive environment, the focus on meeting specific solicitation requirements might sometimes constrain truly 'out-of-the-box' thinking compared to more flexible, partnership-based R&D approaches.
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
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: $36,043,319
Exercised Options: $36,043,319
Current Obligation: $35,441,806
Actual Outlays: $7,287,450
Subaward Activity
Number of Subawards: 76
Total Subaward Amount: $13,687,471
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-10-24
Current End Date: 2026-10-24
Potential End Date: 2026-10-24 00:00:00
Last Modified: 2025-12-09
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