Naval Research Lab contract awarded to BAE Systems for $153.2M for advanced technology development

Contract Overview

Contract Amount: $15,322,584 ($15.3M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-14

End Date: 2012-04-30

Contract Duration: 2,420 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200512!003907!1700!N00173!NAVAL RESEARCH LABORATORY !N0017305C6020 !A!N! !N! ! !20050914!20060830!005149120!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!65 SPIT BROOK RD !NASHUA !NH!03060!50260!011!33!NASHUA !HILLSBOROUGH !N.H. !+000000981560!N!N!000000981560!AJ43!RDTE/ENGINEERING SCIENCES - ADV TECH DEV !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!U!2!002!E! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! !1700!N00173!0001! !

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03061

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $15.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: 200512!003907!1700!N00173!NAVAL RESEARCH LABORATORY !N0017305C6020 !A!N! !N! ! !20050914!20060830!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 focuses on advanced technology development within engineering sciences. 2. BAE Systems, a major defense contractor, secured this award. 3. The contract duration is substantial, spanning over 6 years. 4. Funding type is Cost Plus Fixed Fee, which can carry cost overrun risks. 5. The contract was awarded under full and open competition. 6. The North American Industry Classification System (NAICS) code indicates a focus on R&D services.

Value Assessment

Rating: fair

The contract value of $153.2 million over approximately 6.7 years suggests an average annual value of around $22.8 million. Benchmarking this against similar R&D contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type implies that the government reimburses BAE Systems for allowable costs plus a fixed fee, which can sometimes lead to higher overall costs compared to fixed-price contracts if not managed tightly. The absence of detailed performance metrics makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment was sought. However, the data does not specify the number of bids received, which is crucial for understanding the true level of competition. A high number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to ensure the government receives the best value by considering all available options and fostering a competitive pricing environment.

Public Impact

The primary beneficiary is the Naval Research Laboratory, which will receive advanced technology development services. This contract supports the development of cutting-edge technologies relevant to naval research and defense. The geographic impact is primarily in Nashua, New Hampshire, where BAE Systems is located, potentially supporting local jobs. The contract likely involves a highly skilled workforce of engineers and scientists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
Limited information on specific performance metrics makes it difficult to assess the contractor's track record on this specific award.
The long duration of the contract requires sustained oversight to ensure continued alignment with evolving research needs.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
BAE Systems is a large, established defense contractor with significant experience in R&D.
The contract supports critical advanced technology development for the Navy.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced technology development for defense applications. The R&D services market is substantial, with significant government investment. Comparable spending benchmarks would typically involve other advanced research contracts awarded by agencies like the Department of Defense, NASA, or other federal research institutions. The NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) is a key indicator of this sector.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the prime contractor, BAE Systems, is a large corporation. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem is likely minimal unless BAE Systems voluntarily includes small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Research Laboratory's contracting and program management offices. Accountability measures would be defined within the contract's terms and conditions, including reporting requirements and performance standards. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Research Laboratory Programs
Department of Defense Research and Development
Advanced Technology Development Contracts
BAE Systems Defense Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Lack of specific performance metrics in the provided data hinders detailed assessment.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. 200512!003907!1700!N00173!NAVAL RESEARCH LABORATORY !N0017305C6020 !A!N! !N! ! !20050914!20060830!005149120!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!65 SPIT BROOK RD !NASHUA !NH!03060!50260!011!33!NASHUA !HILLSBOROUGH !N.H. !+000000981560!N!N!000000981560!AJ43!RDTE/ENGINEERING SCIENCES - ADV TECH DEV !S1 !SERVICES !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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $15.3 million.

What is the period of performance?

Start: 2005-09-14. End: 2012-04-30.

What is the specific nature of the 'advanced technology development' being undertaken under this contract?

The provided data identifies the contract under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' and the Product Service Code (PSC) 'AJ43,' which relates to 'Research and Development Support Services.' The description 'RDTE/ENGINEERING SCIENCES - ADV TECH DEV' further clarifies the focus. However, the specific technological areas, such as AI, cyber, materials science, or propulsion, are not detailed in the extract. This level of specificity is typically found in the contract's SOW (Statement of Work) or technical exhibits, which are not included here. Understanding the precise R&D focus is crucial for assessing its strategic importance and potential impact.

How does the $153.2 million value compare to other similar R&D contracts awarded by the Department of the Navy?

The total value of $153.2 million over approximately 6.7 years (2420 days) equates to an average annual value of roughly $22.8 million. To benchmark this effectively, one would need to compare it against other R&D contracts awarded by the Department of the Navy or the broader Department of Defense for similar types of advanced technology development. Factors such as the specific research domain (e.g., aerospace, electronics, materials), contract type (e.g., CPFF, FFP), and contract duration are critical for a meaningful comparison. Without access to a broader dataset of comparable contracts, it's difficult to definitively state whether this value is high, low, or average for its category.

What are the key performance indicators (KPIs) or milestones associated with this contract, and how has BAE Systems performed against them?

The provided data extract does not contain specific Key Performance Indicators (KPIs), milestones, or performance ratings for this contract. Performance assessment typically relies on contract administration reports, CPARS (Contractor Performance Assessment Reporting System) data, or internal government evaluations, none of which are present here. For a Cost Plus Fixed Fee (CPFF) contract, performance is often measured against the achievement of research objectives, adherence to budget (within the cost reimbursement framework), and timely delivery of research outcomes or prototypes. Without this information, evaluating BAE Systems' performance on this specific award is not possible.

What is the historical spending trend for similar advanced technology development contracts at the Naval Research Laboratory?

Analyzing historical spending trends for similar contracts at the Naval Research Laboratory (NRL) would require accessing historical contract databases (like FPDS-NG) and filtering for contracts with the NRL as the procuring agency, relevant NAICS codes (like 541710), and potentially similar PSCs. This specific contract, awarded in 2005, represents a snapshot from that period. To understand trends, one would need to examine spending patterns over multiple years, looking at the number of awards, average contract values, and dominant contract types for advanced technology development at NRL. This would reveal whether spending in this area has increased, decreased, or remained stable over time.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this advanced R&D effort?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is that it may provide less incentive for the contractor to control costs compared to fixed-price contracts. While the 'fixed fee' component provides some ceiling on the contractor's profit, the government bears the risk of cost overruns as it reimburses allowable costs. For advanced R&D, where the scope and outcomes can be uncertain, CPFF is often used to encourage innovation and exploration. However, robust government oversight, clear definition of allowable costs, and diligent monitoring are essential to mitigate the risk of excessive spending and ensure the government receives good value.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,454,743

Exercised Options: $15,454,743

Current Obligation: $15,322,584

Contract Characteristics

Cost or Pricing Data: YES

Timeline