DoD's $22M BAA Oversight Program Contract Awarded to BAE Systems Faces Scrutiny

Contract Overview

Contract Amount: $22,027,341 ($22.0M)

Contractor: BAE Systems Information & Electronic Systems Integration Inc

Awarding Agency: Department of Defense

Start Date: 2023-01-03

End Date: 2026-09-13

Contract Duration: 1,349 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BAA OVERRSIGHT PROGRAM

Place of Performance

Location: MERRIMACK, HILLSBOROUGH County, NEW HAMPSHIRE, 03054

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC for work described as: BAA OVERRSIGHT PROGRAM Key points: 1. The contract value is $22.03 million, awarded to BAE Systems. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 4. The duration is over three years, indicating a significant, long-term project.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific nature of R&D can make direct price comparisons challenging.

Taxpayer Impact: Taxpayer funds are being used for research and development, with the ultimate benefit depending on the program's success and applicability.

Public Impact

The program aims to enhance oversight capabilities within the Department of Defense. Successful implementation could lead to improved efficiency and effectiveness in defense operations. The R&D focus suggests potential for technological advancements with broader applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Long contract duration increases exposure to changing requirements and economic conditions.
Lack of specific performance metrics makes assessing value for money challenging.

Positive Signals

Awarded through full and open competition.
Focus on R&D may yield significant technological advancements.
Contract supports critical defense oversight functions.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority but requires careful oversight to ensure value.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The prime contractor, BAE Systems, is a large defense corporation.

Oversight & Accountability

The contract includes an 'Oversight Program' component, suggesting an internal focus on monitoring and accountability. However, external oversight effectiveness will depend on the program's execution and reporting.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
Potential for scope creep in R&D.
Lack of specific performance metrics in award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to BAE SYSTEMS INFORMATION & ELECTRONIC SYSTEMS INTEGRATION INC. BAA OVERRSIGHT PROGRAM

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS INFORMATION & 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 $22.0 million.

What is the period of performance?

Start: 2023-01-03. End: 2026-09-13.

What specific metrics will be used to measure the success and value of this R&D oversight program?

The provided data lacks specific performance metrics for the BAA Oversight Program. Effective measurement would require defining clear objectives, key performance indicators (KPIs), and milestones related to improved oversight efficiency, cost savings identified, or risk mitigation achieved through the program's implementation.

How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns in this R&D contract?

Managing a Cost Plus Fixed Fee contract for R&D involves rigorous cost tracking, regular audits, and clear communication between the government and BAE Systems. The fixed fee provides an incentive for the contractor to control costs, but the government must actively monitor expenditures against the estimated cost base to prevent excessive spending.

What is the anticipated impact of this program on the Department of the Navy's operational effectiveness?

The anticipated impact is an improvement in the effectiveness of the Department of the Navy's oversight processes. This could translate to better resource allocation, identification of inefficiencies, enhanced compliance, and ultimately, more effective mission execution by reducing risks associated with program management and spending.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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: HR001122S0014

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 144 DANIEL WEBSTER HWY, MERRIMACK, NH, 03054

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,161,428

Exercised Options: $27,161,428

Current Obligation: $22,027,341

Actual Outlays: $542,286

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,465,266

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline