DoD awards $36.4M contract for advanced simulator technology to BAE Systems

Contract Overview

Contract Amount: $36,430,907 ($36.4M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2022-10-26

End Date: 2027-10-31

Contract Duration: 1,831 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SERVICES TO DESIGN, DEVELOP, TEST, EVALUATE, BUILD, INTEGRATE AND FLIGHT TEST ADVANCED TECHNOLOGY MATRIC BASED SMALL AGILE SIMULATOR (SAS) RF SOURCE.

Place of Performance

Location: MOJAVE, KERN County, CALIFORNIA, 93501

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $36.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: ENGINEERING SERVICES TO DESIGN, DEVELOP, TEST, EVALUATE, BUILD, INTEGRATE AND FLIGHT TEST ADVANCED TECHNOLOGY MATRIC BASED SMALL AGILE SIMULATOR (SAS) RF SOURCE. Key points: 1. Contract focuses on developing and testing an advanced agile simulator for RF source. 2. BAE Systems, a major defense contractor, secured this award. 3. The contract duration extends over five years, indicating a significant project. 4. This award falls under the 'Engineering Services' category. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. The award was made through full and open competition.

Value Assessment

Rating: good

The contract value of $36.4 million for engineering services to develop an advanced simulator appears reasonable given the complexity and duration of the project. Benchmarking against similar advanced technology development contracts in the defense sector suggests this price is within an expected range. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates close oversight to ensure value for money and prevent uncontrolled cost growth.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment. The agency sought proposals from all responsible sources, which should have driven a more competitive pricing structure and encouraged innovation from potential offerors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to better pricing and a wider range of technical solutions, maximizing the return on investment for this advanced technology development.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Defense Microelectronics Activity, which will receive the advanced simulator. The services delivered include design, development, testing, evaluation, integration, and flight testing of the simulator. The geographic impact is likely concentrated in California, where the contract is managed, and potentially at military installations where the simulator will be used. This contract supports a highly specialized segment of the defense technology workforce, requiring expertise in microelectronics, simulation, and RF systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not meticulously managed and monitored.
The advanced nature of the technology may present unforeseen development challenges, potentially impacting timelines and final costs.
Reliance on a single prime contractor, even with competition, can create dependencies and limit alternative solutions if issues arise.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The long contract duration (over five years) allows for sustained development and thorough testing of complex technology.
BAE Systems is a well-established defense contractor with a track record in complex systems integration, suggesting technical capability.

Sector Analysis

This contract falls within the broader defense electronics and simulation sector. The market for advanced simulation technologies is driven by the need for realistic training environments and testing platforms for increasingly sophisticated military hardware. Spending in this area is significant, with numerous contracts awarded annually for various simulation and training systems. This specific contract addresses a niche requirement for an RF source simulator, likely supporting electronic warfare or radar development.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. Given the nature of the advanced technology development and the prime contractor (BAE Systems), it is likely that any subcontracting opportunities for small businesses would be determined by the prime contractor based on project needs and their own supply chain strategies. Further analysis would be needed to ascertain the extent of small business participation.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Defense, likely through the Defense Microelectronics Activity. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is expected through contract reporting mechanisms, though specific public-facing details may be limited due to the sensitive nature of defense technology. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Simulation and Training Programs
Advanced Electronic Warfare Systems
Microelectronics Research and Development
RF Systems Engineering
Agile Development Methodologies in Defense

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Integration Complexity
Schedule Delays

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.4 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. ENGINEERING SERVICES TO DESIGN, DEVELOP, TEST, EVALUATE, BUILD, INTEGRATE AND FLIGHT TEST ADVANCED TECHNOLOGY MATRIC BASED SMALL AGILE SIMULATOR (SAS) RF SOURCE.

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 $36.4 million.

What is the period of performance?

Start: 2022-10-26. End: 2027-10-31.

What is BAE Systems' track record with similar advanced simulation technology contracts for the DoD?

BAE Systems Information and Electronic Systems Integration Inc. has a substantial history of delivering complex systems and technologies to the Department of Defense. While specific details on 'Matric Based Small Agile Simulator (SAS) RF Source' contracts are not publicly itemized, the company has extensive experience in areas such as electronic warfare, radar systems, avionics, and simulation and training solutions. They have been involved in numerous large-scale defense programs requiring sophisticated engineering, integration, and testing capabilities. Their past performance on similar, albeit not identical, projects suggests a strong technical foundation and program management capacity necessary for this type of advanced technology development. Reviewing their broader portfolio indicates a consistent ability to handle complex, high-value defense contracts.

How does the $36.4 million value compare to similar advanced simulator development contracts?

The $36.4 million contract value for the development of an advanced RF source simulator appears to be within the typical range for such specialized defense technology projects. Contracts for complex simulation and training systems, especially those involving cutting-edge technologies like advanced RF simulation, can easily range from tens to hundreds of millions of dollars, depending on scope, duration, and technological sophistication. Factors influencing cost include the level of customization required, the integration of novel components, the rigor of testing protocols (including flight testing), and the overall project timeline. Given the five-year duration and the focus on advanced, potentially classified, RF technology, this figure suggests a well-scoped and competitively bid project for its complexity.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of R&D?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for research and development like this advanced simulator, is the potential for cost overruns. While the 'fixed fee' provides the contractor with a defined profit margin, the 'cost plus' portion means the government reimburses the contractor for allowable costs incurred. If the project encounters unforeseen technical challenges, scope creep, or inefficiencies, the total cost to the government can escalate significantly beyond initial estimates. This necessitates robust government oversight, detailed cost tracking, and stringent change control processes to manage expenditures effectively and ensure the project remains within budget expectations. Contractor performance and accurate cost estimation are critical to mitigating these risks.

What is the expected effectiveness of this advanced simulator in enhancing DoD capabilities?

The advanced simulator is expected to significantly enhance the Department of Defense's capabilities by providing a realistic and versatile platform for testing and developing advanced technologies related to Radio Frequency (RF) sources. This includes applications in electronic warfare, radar systems, and signal intelligence. By enabling comprehensive design, development, testing, evaluation, integration, and flight testing in a controlled environment, the simulator allows for rapid iteration and validation of new technologies without the cost and risk associated with live testing. This accelerates the acquisition lifecycle for critical defense systems, improves the performance and reliability of fielded equipment, and ultimately enhances the warfighter's technological advantage.

How does this contract's spending compare to historical trends in defense simulation and engineering services?

This $36.4 million contract aligns with historical spending patterns for specialized engineering services and simulation development within the Department of Defense. The DoD consistently invests billions annually in R&D, advanced technology development, and simulation/training systems to maintain its technological edge. Contracts for complex engineering services, particularly those involving advanced electronics, software integration, and specialized testing like RF simulation, are a significant component of this spending. While the exact dollar amount is specific to this project, the overall trend shows sustained and substantial investment in these capabilities, driven by evolving threats and the need for sophisticated defense platforms. This award represents a typical investment in a critical, albeit niche, area of defense modernization.

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: $36,430,907

Exercised Options: $36,430,907

Current Obligation: $36,430,907

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