DoD's $78M BAE Systems contract for dismounted crew systems shows long duration and firm fixed pricing

Contract Overview

Contract Amount: $78,176,507 ($78.2M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-22

End Date: 2016-09-22

Contract Duration: 3,653 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PRODUCTION CONTRACT FOR DISMOUNTED CREW SYSTEMS

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $78.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: PRODUCTION CONTRACT FOR DISMOUNTED CREW SYSTEMS Key points: 1. The contract's long duration (10 years) suggests a need for sustained support or development. 2. Firm fixed pricing indicates a clear understanding of scope and cost by both parties. 3. The award to a single large contractor may limit opportunities for smaller, specialized firms. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical but often complex sector. 5. The contract's value, while substantial, needs to be benchmarked against similar R&D efforts. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of this $78 million contract is challenging without specific details on the dismounted crew systems developed. The 10-year duration suggests a significant, long-term investment. Firm fixed pricing is generally positive for cost control, but the lack of comparative data makes a definitive value assessment difficult. It's unclear if this represents a competitive price for the technology acquired.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, the award went to a single entity, BAE Systems Information and Electronic Systems Integration Inc. The number of bidders is not specified, but a full and open competition generally promotes price discovery and potentially better terms for the government.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it theoretically leads to more competitive pricing and a wider range of innovative solutions being considered.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize the dismounted crew systems, enhancing their operational capabilities. The contract delivers research and development services for advanced crew systems, likely impacting soldier performance and survivability. The geographic impact is primarily within the United States, where BAE Systems conducts its R&D and potential production. Workforce implications include skilled R&D professionals, engineers, and technicians employed by BAE Systems and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) could lead to cost overruns if not managed tightly.
Lack of specific details on system performance metrics makes it hard to assess effectiveness.
No explicit mention of small business subcontracting goals could limit opportunities for smaller firms.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process.
Award to a major defense contractor like BAE Systems implies access to significant technical expertise.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research and Development for crew systems. The market for defense electronics and systems integration is dominated by large prime contractors. Spending in this area is driven by the need for technological superiority and soldier modernization. Comparable spending benchmarks would involve looking at other R&D contracts for soldier systems or advanced electronic warfare.

Small Business Impact

The contract does not indicate any specific small business set-aside. While awarded under full and open competition, the absence of explicit small business goals or set-asides means that opportunities for small businesses would likely be through subcontracting. The impact on the small business ecosystem depends on BAE Systems' subcontracting strategy and whether they actively seek out and engage small business partners for specialized components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the firm fixed price structure, which incentivizes the contractor to meet cost and schedule targets. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details may be sensitive.

Related Government Programs

Dismounted Soldier Systems
Advanced Combat Systems R&D
Defense Electronics Research
Crew Systems Development
Tactical Systems Integration

Risk Flags

Long contract duration may indicate potential for scope creep or evolving requirements.
Lack of specific performance metrics makes objective assessment difficult.
Absence of small business set-aside requires scrutiny of subcontracting plans.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. PRODUCTION CONTRACT FOR DISMOUNTED CREW SYSTEMS

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 $78.2 million.

What is the period of performance?

Start: 2006-09-22. End: 2016-09-22.

What specific dismounted crew systems were developed under this contract, and what were their intended capabilities?

The contract, valued at approximately $78 million, was for the 'PRODUCTION CONTRACT FOR DISMOUNTED CREW SYSTEMS' awarded to BAE Systems Information and Electronic Systems Integration Inc. by the Department of Defense. Specific details regarding the exact nature of these 'dismounted crew systems' are not publicly available in the provided data. However, 'dismounted crew systems' generally refer to equipment and technologies designed to enhance the effectiveness, survivability, and situational awareness of soldiers operating on foot. This could encompass a wide range of items, from advanced communication and navigation devices to integrated power systems, protective gear enhancements, or even components of larger soldier modernization programs. The 'production' aspect suggests that the R&D phase may have been completed or was nearing completion, with the contract focusing on manufacturing or further refinement of existing designs.

How does the $78 million contract value compare to similar R&D efforts for soldier systems over a 10-year period?

Comparing the $78 million contract value for dismounted crew systems over 10 years requires context that is not fully provided. The contract's duration (2006-2016) spans a period of significant investment in soldier modernization, particularly following the conflicts in Iraq and Afghanistan. While $78 million over a decade averages to $7.8 million per year, this figure needs to be assessed against the complexity and technological advancement of the systems. R&D contracts for soldier systems can vary dramatically in cost depending on whether they involve incremental upgrades, entirely new technological paradigms, or large-scale production of complex integrated systems. Without knowing the specific systems developed and their technological sophistication, a direct comparison to other R&D efforts is difficult. However, given the long duration and the nature of defense R&D, this value appears to be within a plausible range for a significant program component.

What are the key performance indicators (KPIs) or success metrics associated with this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or success metrics for this contract. However, for a 'PRODUCTION CONTRACT FOR DISMOUNTED CREW SYSTEMS' with a firm fixed price structure, typical success metrics would likely revolve around meeting technical specifications, adhering to production schedules, ensuring system reliability and durability under expected operational conditions, and achieving cost targets. Given the R&D nature, metrics might also include successful demonstration of new capabilities, integration with existing platforms, and positive feedback from user trials or soldier evaluations. The long duration (10 years) suggests that ongoing performance and potential upgrades or modifications might also be factored into success criteria over the contract's life.

What is BAE Systems' track record with similar Department of Defense R&D contracts?

BAE Systems Information and Electronic Systems Integration Inc. is a major defense contractor with a substantial track record of performing research and development and production contracts for the Department of Defense across various domains. While specific details on their performance for 'dismounted crew systems' are not in the provided data, BAE Systems is known for its work in areas such as electronic warfare, command and control systems, communication systems, and soldier modernization programs. Their history includes numerous large-scale, long-duration contracts, indicating a capacity to manage complex R&D efforts and production runs. Performance on such contracts is generally monitored by the DoD, and BAE Systems typically operates within the established frameworks for defense contracting, including quality control and delivery schedules.

Were there any significant cost overruns or contract modifications during the life of this 10-year contract?

The provided data does not contain information regarding cost overruns or significant contract modifications for this specific contract. The contract was a 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE' type, awarded on September 22, 2006, and ending on September 22, 2016, with a total value of $78,176,507.38. Firm fixed-price contracts are designed to provide cost certainty, making significant overruns less common unless scope changes substantially or unforeseen issues arise that necessitate modifications. Without access to the contract's modification history or performance reports, it's impossible to determine if such events occurred. Typically, details on contract modifications, including their financial impact, are available through government contract databases.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: N0002406R6353

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie DE Developpement DE L'eau S.A.

Address: 65 SPIT BROOK RD, NASHUA, NH, 03060

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $274,126,310

Exercised Options: $82,285,263

Current Obligation: $78,176,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline