DoD's $6.66M IRREL Contract Awarded to BAE Systems for R&D
Contract Overview
Contract Amount: $6,658,993 ($6.7M)
Contractor: BAE Systems Space & Mission Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2020-07-09
End Date: 2026-10-10
Contract Duration: 2,284 days
Daily Burn Rate: $2.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: INFRARED RADIATION EFFECTS LABORATORY (IRREL) OPERATION AND IMPROVEMENTS
Place of Performance
Location: BROOMFIELD, JEFFERSON County, COLORADO, 80021
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $6.7 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: INFRARED RADIATION EFFECTS LABORATORY (IRREL) OPERATION AND IMPROVEMENTS Key points: 1. BAE Systems, a major defense contractor, secured the contract. 2. The contract falls under Research and Development in Physical Sciences. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, common for R&D projects.
Value Assessment
Rating: good
The contract value of $6.66M over approximately 6 years appears reasonable for specialized R&D. Benchmarking against similar DoD R&D contracts for infrared radiation effects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple vendors had the opportunity to bid, fostering a competitive environment. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
Supports advanced research in infrared radiation effects, crucial for defense applications. The contract duration of over 6 years allows for long-term research and development. Potential for technological advancements that could enhance national security capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
- Long contract duration may present risks if technology or requirements shift significantly.
Positive Signals
- Full and open competition promotes fairness and potentially better pricing.
- Award to established contractor BAE Systems suggests technical capability.
Sector Analysis
This contract is in the Research and Development sector, specifically focusing on physical sciences. Spending in this area is critical for maintaining technological superiority, with benchmarks varying widely based on project scope and complexity.
Small Business Impact
The contract was awarded to BAE Systems Space & Mission Systems Inc., a large defense contractor. There is no indication of small business participation in this specific award, which is common for large-scale R&D contracts.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be crucial to manage the Cost Plus Fixed Fee structure, ensuring adherence to scope and preventing unnecessary cost escalation.
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 overrun potential in CPFF contracts.
- Long-term R&D project risks.
- Dependency on specific technological outcomes.
- Potential for scope creep without strict oversight.
Tags
research-and-development-in-the-physical, department-of-defense, co, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.7 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. INFRARED RADIATION EFFECTS LABORATORY (IRREL) OPERATION AND IMPROVEMENTS
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 $6.7 million.
What is the period of performance?
Start: 2020-07-09. End: 2026-10-10.
What specific advancements in infrared radiation effects are expected from this contract?
The contract aims to support operations and improvements within the Infrared Radiation Effects Laboratory (IRREL). Specific advancements are likely classified but would pertain to understanding, mitigating, or utilizing infrared radiation for defense applications, potentially impacting sensor technology, stealth capabilities, or target identification systems.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D?
The main risk with CPFF contracts is that the contractor may have less incentive to control costs since the government covers all allowable costs plus a fixed fee. This can lead to cost overruns if not rigorously monitored. For R&D, the inherent uncertainty of research outcomes also adds risk, as the final cost might exceed initial estimates.
How does this contract contribute to the Air Force's overall technological effectiveness?
This contract directly supports the Air Force's research and development capabilities in a critical area of physics. Advancements in understanding and manipulating infrared radiation can lead to more effective sensors, improved countermeasures, and enhanced situational awareness, thereby increasing the overall technological effectiveness and operational advantage of Air Force platforms.
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: TWO STEP
Solicitation ID: FA945319S0002
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,687,489
Exercised Options: $7,687,489
Current Obligation: $6,658,993
Actual Outlays: $386,697
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-07-09
Current End Date: 2026-10-10
Potential End Date: 2026-10-10 00:00:00
Last Modified: 2025-12-05
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