DoD's $33.5M Hypervelocity Projectile Program Awarded to BAE Systems Under Full and Open Competition
Contract Overview
Contract Amount: $33,496,008 ($33.5M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2013-09-09
End Date: 2018-06-30
Contract Duration: 1,755 days
Daily Burn Rate: $19.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 999
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: HYPERVELOCITY PROJECTILE PROGRAM
Place of Performance
Location: MINNEAPOLIS, ANOKA County, MINNESOTA, 55421
Plain-Language Summary
Department of Defense obligated $33.5 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: HYPERVELOCITY PROJECTILE PROGRAM Key points: 1. The Department of Defense awarded $33.5 million for the Hypervelocity Projectile Program. 2. BAE Systems Land & Armaments L.P. secured the contract. 3. The contract was awarded under full and open competition. 4. This falls under Research and Development in Physical, Engineering, and Life Sciences. 5. The contract duration was 1755 days.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount of $33.5 million for a 5-year R&D project requires careful monitoring to ensure value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment among potential contractors.
Public Impact
Advancement in projectile technology for defense applications. Potential for enhanced military capabilities. Investment in advanced research and development within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may increase risk of scope creep or cost escalation.
Positive Signals
- Awarded under full and open competition.
- Focus on critical R&D for national defense.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Defense R&D spending is a significant portion of the federal budget, aimed at maintaining technological superiority.
Small Business Impact
The data does not indicate any specific subcontracting or set-aside for small businesses. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, indicating established oversight mechanisms. However, the Cost Plus Fixed Fee structure necessitates vigilant monitoring to control costs and ensure performance.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for undefined scope in R&D.
- Reliance on a single contractor (BAE Systems).
Tags
research-and-development-in-the-physical, department-of-defense, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.5 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. HYPERVELOCITY PROJECTILE PROGRAM
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND & ARMAMENTS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $33.5 million.
What is the period of performance?
Start: 2013-09-09. End: 2018-06-30.
What is the expected technological advancement from this Hypervelocity Projectile Program?
The program aims to develop advanced projectile technology, likely focusing on increased speed, accuracy, and range for military applications. This could involve breakthroughs in materials science, propulsion, and guidance systems, ultimately enhancing the effectiveness of defense platforms and potentially deterring adversaries through superior capabilities.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D?
The primary risks with a Cost Plus Fixed Fee (CPFF) contract for R&D include potential cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can reduce the incentive for the contractor to control costs diligently. Additionally, defining the scope of R&D can be challenging, leading to potential disputes over what constitutes allowable costs or if the fixed fee adequately compensates for the effort.
How does this R&D spending align with broader defense modernization goals?
This R&D spending on hypervelocity projectiles directly aligns with broader defense modernization goals by investing in next-generation weaponry. Such advancements are crucial for maintaining a technological edge against potential adversaries and adapting to evolving battlefield requirements. Successful development could lead to significant improvements in firepower and strategic capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 999
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 4800 E RIVER RD, MINNEAPOLIS, MN, 55421
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: $67,188,584
Exercised Options: $67,188,544
Current Obligation: $33,496,008
Actual Outlays: $-818
Subaward Activity
Number of Subawards: 43
Total Subaward Amount: $14,434,891
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-09-09
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2020-09-25
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