DoD Awards BAE Systems $20M for Artillery Projectile Microelectronic Tech Demonstrator

Contract Overview

Contract Amount: $19,997,740 ($20.0M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-22

End Date: 2024-07-29

Contract Duration: 1,041 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CET 21-147 - NEW TASK ORDER, SUB-CALIBER ARTILLERY PROJECTILE MICROELECTRONIC TECHNOLOGY DEMONSTRATOR

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: CET 21-147 - NEW TASK ORDER, SUB-CALIBER ARTILLERY PROJECTILE MICROELECTRONIC TECHNOLOGY DEMONSTRATOR Key points: 1. Contract awarded to BAE Systems for a critical defense technology demonstration. 2. The project focuses on microelectronic technology for sub-caliber artillery projectiles. 3. This is a Cost Plus Fixed Fee contract, which can lead to cost overruns. 4. The sector is Defense, specifically focusing on advanced engineering services.

Value Assessment

Rating: fair

The contract value of $19.99M for a 1041-day duration appears reasonable for a technology demonstrator. However, the Cost Plus Fixed Fee (CPFF) structure warrants close monitoring for potential cost escalations compared to fixed-price contracts.

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. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The $19.99M expenditure supports technological advancement in defense, aiming for improved artillery capabilities, which could have long-term strategic value.

Public Impact

Enhances U.S. military's artillery capabilities through advanced microelectronics. Supports innovation in defense manufacturing and technology development. Potential for spin-off technologies benefiting commercial sectors. Job creation in New Hampshire's defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type increases cost risk.
Long duration (1041 days) may lead to scope creep or outdated technology.
No small business participation noted.

Positive Signals

Awarded under full and open competition.
Focus on critical defense technology demonstration.
Potential for significant technological advancement.

Sector Analysis

This contract falls within the Defense sector, specifically engineering services related to advanced ordnance technology. Spending benchmarks for similar technology demonstration contracts can vary widely based on complexity and scope.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific contract award. Further analysis would be needed to determine if small businesses are subcontracting opportunities within this project.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for oversight. The CPFF contract type necessitates rigorous oversight to manage costs and ensure performance objectives are met within budget.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
No stated small business participation.
Technology demonstration inherently carries technical risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. CET 21-147 - NEW TASK ORDER, SUB-CALIBER ARTILLERY PROJECTILE MICROELECTRONIC TECHNOLOGY DEMONSTRATOR

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2021-09-22. End: 2024-07-29.

What is the projected return on investment for this technology demonstrator in terms of improved artillery performance or cost savings?

The return on investment is primarily strategic, focusing on enhancing the effectiveness and precision of artillery systems. Quantifying direct ROI is challenging for early-stage technology demonstrators, but successful development could lead to reduced collateral damage, increased mission success rates, and potentially lower lifecycle costs for future artillery platforms.

What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract structure for this project?

The primary risk with CPFF is that the contractor may not be incentivized to control costs rigorously, as the government bears the cost overruns. This can lead to the final price exceeding initial estimates. Effective oversight, clear performance metrics, and regular cost reviews are crucial to mitigate this risk and ensure value for taxpayer money.

How will the effectiveness of the microelectronic technology demonstrator be measured and validated?

Effectiveness will likely be measured through a series of rigorous testing and validation protocols defined in the contract's Statement of Work. This includes laboratory testing, simulated operational environments, and potentially field trials to assess performance against key technical requirements, reliability, and integration capabilities with existing artillery systems.

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: Ball Corporation

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: $19,997,740

Exercised Options: $19,997,740

Current Obligation: $19,997,740

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