DoD Awards BAE Systems $61.9M for Concept Demonstrator Design R&D
Contract Overview
Contract Amount: $61,968,304 ($62.0M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2010-07-13
End Date: 2013-04-12
Contract Duration: 1,004 days
Daily Burn Rate: $61.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CONCEPT DEMONSTRATOR DESIGN
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03061
Plain-Language Summary
Department of Defense obligated $62.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: CONCEPT DEMONSTRATOR DESIGN Key points: 1. Contract awarded to BAE Systems for R&D in physical, engineering, and life sciences. 2. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 3. Full and open competition was used, suggesting a competitive bidding process. 4. The project duration is over 1000 days, implying a complex and long-term effort.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to higher costs if not managed carefully. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure means the final price is not fixed upfront.
Taxpayer Impact: Taxpayer funds are being used for research and development, with the ultimate value dependent on the success of the concept demonstrator.
Public Impact
Investment in advanced technology development for national defense. Potential for future technological advancements stemming from this R&D. Contract awarded to a large, established defense contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long project duration
Positive Signals
- Full and open competition
- R&D focused on advanced concepts
Sector Analysis
This contract falls under Research and Development in the physical, engineering, and life sciences, excluding biotechnology. Spending in this sector is crucial for maintaining technological superiority but can be subject to cost fluctuations.
Small Business Impact
The contract was awarded to BAE Systems, a large defense contractor, and there is no indication of small business involvement in this specific award.
Oversight & Accountability
The Defense Contract Management Agency is responsible for oversight. The Cost Plus Fixed Fee structure necessitates close monitoring to ensure cost control and adherence to project scope.
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 may lead to higher costs.
- Long project duration increases exposure to changing requirements or technology.
- Lack of specific performance metrics for success.
- Limited visibility into specific R&D outcomes at this stage.
Tags
research-and-development-in-the-physical, department-of-defense, nh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.0 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. CONCEPT DEMONSTRATOR DESIGN
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 $62.0 million.
What is the period of performance?
Start: 2010-07-13. End: 2013-04-12.
What is the expected return on investment for this R&D contract?
The return on investment for R&D contracts is inherently uncertain and realized over the long term, if at all. Success depends on the demonstrator's effectiveness and potential for future application. Without specific performance metrics or follow-on potential, quantifying ROI is speculative at this stage.
What are the primary risks associated with the Cost Plus Fixed Fee contract type in this context?
The primary risks with CPFF contracts are potential cost overruns and reduced contractor incentive for efficiency. The government bears the risk of cost increases, while the contractor has less pressure to minimize expenses beyond achieving the fixed fee. Robust oversight is critical to mitigate these risks.
How will the effectiveness of the concept demonstrator be measured?
Effectiveness will likely be measured against predefined technical objectives and performance benchmarks outlined in the contract statement of work. This could include criteria related to functionality, performance capabilities, integration potential, and successful demonstration of core concepts under simulated or real-world conditions.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: N0001909R0238
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Compagnie DE Developpement DE L'eau S.A.
Address: 95 CANAL ST, NASHUA, NH, 03064
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: $62,344,855
Exercised Options: $62,344,855
Current Obligation: $61,968,304
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-07-13
Current End Date: 2013-04-12
Potential End Date: 2013-04-12 00:00:00
Last Modified: 2024-02-26
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