DoD's $11.8M contract for microelectronic capability solutions awarded to BAE Systems

Contract Overview

Contract Amount: $11,833,767 ($11.8M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2026-09-30

Contract Duration: 369 days

Daily Burn Rate: $32.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO ADD CAPABILITY AND AVAILABILITY TO THE EXISTING DEPLOYED ASSET TAGGING AND TRACKING SYSTEM.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76107

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO ADD CAPABILITY AND AVAILABILITY TO THE EXISTING DEPLOYED ASSET TAGGING AND TRACKING SYSTEM. Key points: 1. Contract aims to enhance existing asset tagging and tracking systems with advanced microelectronic capabilities. 2. BAE Systems, a major defense contractor, secured this award. 3. The contract is a delivery order under a larger program, indicating potential for follow-on work. 4. The duration of 369 days suggests a focused effort on specific capability enhancements. 5. The contract type (Cost Plus Fixed Fee) may lead to cost overruns if not closely managed. 6. The award was made through full and open competition, suggesting a competitive process.

Value Assessment

Rating: fair

The contract value of $11.8 million for engineering services is moderate for a Department of Defense contract. Benchmarking against similar contracts for advanced technology support and microelectronics development is challenging without more specific details on the scope of work. The Cost Plus Fixed Fee (CPFF) contract type introduces some risk regarding final cost, as it allows for the reimbursement of allowable costs plus a fixed fee. However, it can be appropriate for research and development or when costs are difficult to estimate upfront. Further analysis would require comparing the specific deliverables and technical requirements to industry standards and other government procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data does not specify the number of bidders, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and innovation. The Defense Microelectronics Activity likely sought proposals from a wide range of qualified companies to ensure they obtained the best value for the required advanced technology support.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative solutions, thereby optimizing the use of public funds.

Public Impact

The Department of Defense benefits from enhanced capabilities in its asset tagging and tracking systems. This contract supports the development and integration of advanced microelectronic solutions. The primary service delivered is engineering support for technological advancement. The contract is being performed in Texas, indicating a geographic focus for this specific award. The workforce implications are likely related to specialized engineering and technical roles within BAE Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost uncertainty if not managed diligently.
Limited information on the specific technical requirements makes it difficult to fully assess value for money.
The duration of the contract is relatively short (369 days), which might indicate a phased approach or limited scope.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Enhances critical asset tagging and tracking systems, improving operational efficiency for the DoD.
BAE Systems is a well-established defense contractor with a track record in complex technological solutions.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on advanced microelectronics and support for defense systems. The market for such specialized engineering services is driven by government defense spending and the need for technological superiority. Comparable spending benchmarks would typically involve other contracts for R&D, systems integration, and specialized electronic component development within the defense industrial base. The Defense Microelectronics Activity plays a crucial role in ensuring the availability of advanced microelectronic capabilities for national security.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, as BAE Systems is a large prime contractor, they may engage small businesses as subcontractors in accordance with their overall subcontracting plan, but this is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Microelectronics Activity. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are expected to ensure that costs are allowable, allocable, and reasonable. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Microelectronics Activity Contracts
Asset Tagging and Tracking Systems
Advanced Technology Support Programs
BAE Systems Defense Contracts
Engineering Services for DoD

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Scope definition for 'progressive microelectronic capability solutions' may evolve.
Dependence on a single prime contractor (BAE Systems) for critical technology enhancement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO ADD CAPABILITY AND AVAILABILITY TO THE EXISTING DEPLOYED ASSET TAGGING AND TRACKING SYSTEM.

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 $11.8 million.

What is the period of performance?

Start: 2025-09-26. End: 2026-09-30.

What is the specific technical capability being acquired through this contract, and how does it advance the existing asset tagging and tracking system?

The contract aims to acquire 'Progressive Microelectronic Capability Solutions' to enhance the 'Existing Deployed Asset Tagging and Tracking System.' While the exact nature of these solutions is not detailed, it implies the integration of more advanced, potentially smaller, more efficient, or more secure microelectronic components. This could involve upgrading sensors, processors, communication modules, or power management systems within the asset tags and tracking infrastructure. The goal is to add capability and availability, suggesting improvements in tracking accuracy, data transmission, system longevity, or the ability to track a wider range of assets under more challenging conditions.

How does the $11.8 million value compare to similar contracts for microelectronic capability solutions within the Department of Defense?

Benchmarking the $11.8 million value requires a detailed comparison of the scope, duration, and technical complexity against similar procurements. Contracts for advanced microelectronics can vary significantly in price depending on factors like research and development intensity, the maturity of the technology, the required production volume, and the specific performance requirements. For a single delivery order focused on capability enhancement over approximately one year, $11.8 million is a substantial but not extraordinary amount for specialized defense technology. Without access to a broader database of comparable contracts with similar technical specifications, a precise value-for-money assessment is difficult. However, it suggests a significant investment in upgrading critical tracking systems.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this acquisition?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If the contractor's costs exceed initial estimates significantly, the total contract value could increase beyond what was initially budgeted, especially if the fee is a percentage of costs. Effective oversight is crucial to ensure that all incurred costs are reasonable, allocable, and necessary for the contract's performance. This contract type is often used when the scope of work is not precisely defined or involves significant uncertainty, such as in R&D, making it suitable for acquiring 'progressive' capabilities but requiring diligent cost management by the Defense Microelectronics Activity.

What is BAE Systems' track record with the Department of Defense, particularly in microelectronics and asset tracking systems?

BAE Systems is a major global defense, aerospace, and security company with a substantial and long-standing relationship with the Department of Defense. They have a proven track record in developing and integrating complex electronic systems, including those related to command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR). While specific details on their involvement in asset tagging and tracking systems are not provided in this data snippet, their broad expertise in microelectronics, secure communications, and sensor technology suggests they are well-equipped to handle this type of requirement. Their extensive experience with DoD programs indicates a familiarity with the agency's procurement processes, security requirements, and operational needs.

How does this contract align with broader trends or strategic priorities within the Department of Defense regarding asset management and technological modernization?

This contract aligns with the DoD's ongoing strategic priorities to modernize its systems, improve operational efficiency, and enhance situational awareness. Advanced asset tagging and tracking are critical for managing the vast inventory of equipment, ensuring readiness, and preventing loss or misuse. The focus on 'progressive microelectronic capability solutions' reflects the DoD's push towards adopting cutting-edge technologies to maintain a competitive edge. Investing in more advanced tracking systems can improve logistics, maintenance scheduling, and deployment readiness, contributing to overall force effectiveness and potentially reducing lifecycle costs through better asset visibility and management.

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

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: $16,870,231

Exercised Options: $16,870,231

Current Obligation: $11,833,767

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