DARPA awards BAE Systems $14.5M for advanced electronics R&D, focusing on communication equipment

Contract Overview

Contract Amount: $14,541,805 ($14.5M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2004-12-10

End Date: 2009-03-31

Contract Duration: 1,572 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200510!500433!9700!HR0011!DARPA CONTRACT MANAGEMENT DIR. !HR001105C0027 !A!N! !N! ! !20041210!20060612!005149120!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!65 SPIT BROOK RD !NASHUA !NH!03060!50260!011!33!NASHUA !HILLSBOROUGH !N.H. !+000002830000!N!N!000017675153!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !B! !A!N!U!2!002!E! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: 200510!500433!9700!HR0011!DARPA CONTRACT MANAGEMENT DIR. !HR001105C0027 !A!N! !N! ! !20041210!20060612!005149120!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!65 SPIT BROOK RD !NASHUA !NH!03060!50260!011!33!NASHUA !HILL… Key points: 1. Contract value represents a significant investment in cutting-edge defense technology. 2. BAE Systems, a major defense contractor, brings substantial experience to this project. 3. The contract's duration suggests a long-term commitment to research and development. 4. Focus on electronics and communication equipment aligns with evolving military needs. 5. The specific R&D nature implies potential for future technological advancements. 6. The contract's classification indicates a need for specialized, advanced technological solutions.

Value Assessment

Rating: good

The contract value of $14.5 million for BAE Systems appears reasonable for a research and development effort in advanced electronics. While direct comparisons are difficult without knowing the specific deliverables and technological complexity, DARPA typically funds high-risk, high-reward projects. The cost-plus-fixed-fee structure suggests that costs are monitored, but the fixed fee provides incentive for efficiency. Benchmarking against similar advanced R&D contracts within the defense sector would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded, potentially due to unique capabilities or prior involvement. The number of bids is not explicitly stated, but the 'limited' competition suggests fewer than a truly full and open process. This could impact price discovery, potentially leading to higher costs than if all potential sources were considered.

Taxpayer Impact: The exclusion of certain sources may limit the competitive pressure on pricing, potentially resulting in a less favorable outcome for taxpayers compared to a fully open competition.

Public Impact

The primary beneficiaries are the Department of Defense and potentially other government agencies requiring advanced electronic and communication systems. The contract will deliver advancements in electronics and communication equipment through research and development. The geographic impact is primarily centered in Nashua, New Hampshire, where BAE Systems is located, with potential for broader national security implications. Workforce implications include skilled R&D positions for engineers and scientists at BAE Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in R&D projects.
Limited competition could lead to suboptimal pricing.
Technology developed may become obsolete quickly in the fast-paced electronics sector.

Positive Signals

BAE Systems is a reputable contractor with a strong track record in defense.
DARPA's involvement suggests a focus on innovative and potentially groundbreaking technology.
The contract duration allows for thorough research and development.

Sector Analysis

This contract falls within the Information Technology and Defense sectors, specifically focusing on Research and Development for Electronics and Communication Equipment. The market for advanced defense electronics is highly specialized, driven by government procurement and characterized by long development cycles and significant R&D investment. Comparable spending benchmarks would involve other DARPA-funded R&D contracts or similar advanced technology development efforts within the Department of Defense, often in the billions annually for the broader R&D category.

Small Business Impact

There is no indication of a small business set-aside for this contract. Given the nature of advanced R&D in electronics and communication equipment, it is likely that large, established defense contractors like BAE Systems are best positioned to meet the technical requirements. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The primary impact is on the large prime contractor.

Oversight & Accountability

DARPA operates under significant oversight from the Department of Defense and Congress. Contracts are subject to regular reviews, audits, and reporting requirements. Inspector General investigations can be initiated for any suspected fraud, waste, or abuse. Transparency is generally maintained through contract award announcements and program updates, though specific technical details of R&D may be classified.

Related Government Programs

DARPA Research and Development Programs
Department of Defense Electronics Procurement
Advanced Communication Systems Development
BAE Systems Defense Contracts

Risk Flags

Limited competition may impact price.
R&D projects carry inherent risks of failure or obsolescence.
Cost-plus contracts can lead to cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. 200510!500433!9700!HR0011!DARPA CONTRACT MANAGEMENT DIR. !HR001105C0027 !A!N! !N! ! !20041210!20060612!005149120!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!65 SPIT BROOK RD !NASHUA !NH!03060!50260!011!33!NASHUA !HILLSBOROUGH !N.H. !+000002830000!N!N!000017675153!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! ! ! ! !202

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 Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2004-12-10. End: 2009-03-31.

What is BAE Systems' track record with DARPA and similar advanced R&D contracts?

BAE Systems Information and Electronic Systems Integration Inc. has a history of engaging in complex defense contracts, including those involving advanced research and development. While this specific contract is for $14.5 million, the company's broader portfolio includes numerous large-scale projects for the Department of Defense and other government agencies. Their experience spans various technological domains, suggesting a capability to handle the demands of DARPA's innovative research initiatives. Specific details on past DARPA performance metrics, such as on-time delivery or budget adherence for similar R&D efforts, would require deeper analysis of historical contract data and performance reports.

How does the $14.5 million contract value compare to other DARPA electronics R&D awards?

The $14.5 million award to BAE Systems for electronics and communication equipment R&D is a moderate-sized contract for DARPA. DARPA's projects can range from a few million dollars for early-stage research to hundreds of millions for more extensive development programs. This contract's value suggests a focused effort on a specific technological advancement rather than a broad, multi-year program. To provide a precise benchmark, one would need to analyze the average and median award values for similar 'RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV' categories over a defined period, considering the contract type and duration.

What are the primary risks associated with this type of advanced electronics R&D contract?

The primary risks associated with advanced electronics R&D contracts, like this one awarded to BAE Systems, include technological obsolescence, where the developed technology becomes outdated before or shortly after deployment. There's also the inherent risk of research failure, where the project may not achieve its intended technical objectives despite significant investment. Cost overruns are another common risk, particularly with cost-plus contract types, as R&D inherently involves unknowns. Finally, integration risks exist, where the new technology may not seamlessly interface with existing systems.

What is the expected program effectiveness and impact of this contract?

The expected effectiveness of this contract hinges on DARPA's strategic goals for advancing electronics and communication capabilities. If successful, the program could yield next-generation communication systems or electronic warfare components that enhance military operational effectiveness, improve data transmission security, or provide a technological advantage over adversaries. The impact could be significant for national security, potentially leading to more resilient and capable defense platforms. However, the true measure of effectiveness will be determined by the successful transition of developed technologies into operational use.

What are the historical spending patterns for similar electronics R&D contracts by DARPA?

Historical spending patterns for similar electronics R&D contracts by DARPA indicate a consistent and substantial investment in cutting-edge technologies. DARPA's budget allocation often prioritizes areas like advanced electronics, artificial intelligence, and cyber capabilities. Over the years, DARPA has funded numerous projects in these domains, with individual contract values varying widely based on project scope and phase. Analyzing historical data reveals a trend of significant funding directed towards developing disruptive technologies that maintain U.S. military technological superiority, with a focus on innovation and future capabilities.

What is the significance of the 'Cost Plus Fixed Fee' contract type for this R&D effort?

The 'Cost Plus Fixed Fee' (CPFF) contract type is common for research and development efforts where the final costs are uncertain. Under CPFF, the contractor (BAE Systems) is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure provides an incentive for the contractor to control costs, as the fee remains constant regardless of the actual costs. However, it also shifts some of the cost risk to the government, as the total expenditure can exceed initial estimates if costs rise significantly. For DARPA, this type of contract balances the need for flexibility in R&D with a degree of cost predictability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 65 SPIT BROOK RD, NASHUA, NH, 02

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline