DoD's $23.7M contract for advanced microelectronics and software solutions awarded to BAE Systems

Contract Overview

Contract Amount: $23,680,308 ($23.7M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2020-06-02

End Date: 2025-05-31

Contract Duration: 1,824 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SERVICES: PARABELLUM: ANALYZE, DESIGN, DEVELOP, BUILD, INTEGRATE, AND TEST ADVANCED TECHNOLOGY MICROELECTRONIC AND SOFTWARE SOLUTIONS TO ADD CAPABILITY TO THE MICROELECTRONICS-BASED ELECTRONIC ATTACK

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: ENGINEERING SERVICES: PARABELLUM: ANALYZE, DESIGN, DEVELOP, BUILD, INTEGRATE, AND TEST ADVANCED TECHNOLOGY MICROELECTRONIC AND SOFTWARE SOLUTIONS TO ADD CAPABILITY TO THE MICROELECTRONICS-BASED ELECTRONIC ATTACK Key points: 1. Contract focuses on critical electronic attack capabilities, leveraging advanced microelectronics and software. 2. BAE Systems, a major defense contractor, secured this award. 3. The contract falls under the Defense Microelectronics Activity, highlighting specialized technology. 4. Awarded via full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility in R&D but requires careful oversight to manage costs. The total award value of $23.7M over its period of performance needs to be benchmarked against similar advanced technology development contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing for taxpayers, ensuring value for the advanced technology solutions procured.

Public Impact

Enhances U.S. military's electronic attack capabilities, crucial for modern warfare. Supports innovation in microelectronics and software, driving technological advancement. Potential for dual-use applications, benefiting both defense and commercial sectors. Ensures continued development of sophisticated defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can lead to cost overruns if not managed diligently.
Reliance on a single large contractor for critical technology.
Potential for scope creep in advanced technology development.

Positive Signals

Awarded through full and open competition.
Focus on critical defense capabilities.
Long-term contract duration allows for sustained development.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on advanced microelectronics and software for defense applications. Spending in this niche area is driven by the need for technological superiority in electronic warfare.

Small Business Impact

The contract was awarded to BAE Systems, a large prime contractor, and there is no indication of small business subcontracting in the provided data. Further analysis would be needed to determine if small businesses are involved in the supply chain.

Oversight & Accountability

The Department of Defense, through the Defense Microelectronics Activity, is responsible for overseeing this contract. The CPFF structure necessitates robust oversight to ensure costs are controlled and deliverables meet requirements.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Microelectronics Activity Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Advanced technology development carries inherent technical risks.
Long contract duration may lead to scope creep.
Potential for reliance on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. ENGINEERING SERVICES: PARABELLUM: ANALYZE, DESIGN, DEVELOP, BUILD, INTEGRATE, AND TEST ADVANCED TECHNOLOGY MICROELECTRONIC AND SOFTWARE SOLUTIONS TO ADD CAPABILITY TO THE MICROELECTRONICS-BASED ELECTRONIC ATTACK

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Microelectronics Activity).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2020-06-02. End: 2025-05-31.

What is the projected return on investment for the advanced technology microelectronic and software solutions developed under this contract?

The projected return on investment is difficult to quantify directly as it relates to enhanced national security and military effectiveness. However, the development of advanced electronic attack capabilities is critical for maintaining a strategic advantage, potentially deterring adversaries and reducing the likelihood of costly conflicts. The long-term value lies in the technological superiority and operational readiness it provides.

What are the primary risks associated with the development of advanced microelectronic and software solutions, and how are they being mitigated?

Key risks include technological obsolescence, integration challenges with existing systems, and potential cost overruns due to the experimental nature of advanced R&D. Mitigation strategies likely involve rigorous testing, phased development, strong project management, and close collaboration between BAE Systems and the DoD to adapt to evolving requirements and technological breakthroughs.

How effectively will these advanced solutions contribute to the DoD's overall electronic warfare strategy?

These solutions are designed to directly enhance the DoD's electronic attack capabilities, a critical component of modern electronic warfare. By developing advanced microelectronic and software solutions, the DoD aims to counter emerging threats, disrupt enemy communications and radar, and protect its own forces. The success will depend on the effectiveness of the developed technologies in real-world scenarios and their seamless integration into broader EW strategies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ072715R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie DE Developpement DE L'eau S.A.

Address: 65 SPIT BROOK RD, NASHUA, NH, 03060

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,360,616

Exercised Options: $47,360,616

Current Obligation: $23,680,308

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ072716D0002

IDV Type: IDC

Timeline