DoD awards BAE Systems $37.3M for R&D in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $37,318,467 ($37.3M)
Contractor: BAE Systems Information and Electronic Systems Integration Inc.
Awarding Agency: Department of Defense
Start Date: 2004-06-30
End Date: 2011-09-30
Contract Duration: 2,648 days
Daily Burn Rate: $14.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060
Plain-Language Summary
Department of Defense obligated $37.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: Key points: 1. Significant contract value for R&D services. 2. BAE Systems is a major defense contractor, indicating potential market concentration. 3. Long contract duration (2648 days) may present execution risks. 4. Research and Development sector is critical for technological advancement but can have uncertain outcomes.
Value Assessment
Rating: fair
The contract type (Cost Plus Award Fee) allows for flexibility but can lead to higher costs if not managed tightly. Benchmarking is difficult without specific deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. However, the long duration and specific nature of R&D may limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are supporting critical R&D, with the potential for significant technological returns, but also the risk of cost overruns or research failure.
Public Impact
Supports advancement in physical, engineering, and life sciences, potentially leading to new technologies. Contract awarded to a large, established defense contractor. Long-term investment in research and development. Potential for innovation that could benefit national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration
- Cost Plus Award Fee contract type
- Potential for R&D to not yield desired results
Positive Signals
- Full and open competition
- Award to established contractor with relevant expertise
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 innovation but often involves higher risk and less predictable outcomes compared to procurement of established goods or services.
Small Business Impact
The data indicates the award went to BAE Systems, a large prime contractor. There is no direct information on small business participation in this specific award, but large contracts often involve subcontracting opportunities.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, suggesting standard oversight procedures are in place. The long duration necessitates ongoing monitoring to ensure performance and cost control.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (over 7 years)
- Cost Plus Award Fee contract type can lead to higher costs
- R&D outcomes are inherently uncertain
- Potential for limited competition despite full and open solicitation due to specialized nature
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 $37.3 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. See the official description on USAspending.
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 $37.3 million.
What is the period of performance?
Start: 2004-06-30. End: 2011-09-30.
What specific R&D objectives were prioritized, and how is their achievement measured to ensure value for money?
The contract's Cost Plus Award Fee structure implies performance metrics exist. However, without detailed knowledge of the R&D objectives and the specific award fee criteria, it's challenging to definitively assess if value for money is being maximized. Effective oversight would focus on tangible progress against defined research milestones and the alignment of award fees with successful outcomes.
Given the long duration and R&D focus, what are the primary risks to cost containment and schedule adherence?
The primary risks include unforeseen technical challenges inherent in R&D, which can extend timelines and increase costs. The Cost Plus Award Fee structure, while incentivizing performance, can also lead to cost growth if not rigorously managed. Scope creep and evolving research priorities over the 2648-day period also pose significant risks to both budget and schedule adherence.
How does the outcome of this R&D investment align with the Department of Defense's long-term strategic goals?
The alignment depends on the specific R&D focus areas within physical, engineering, and life sciences. If these areas directly address critical defense modernization needs or emerging threats, the investment is strategically sound. Continuous evaluation of research progress against evolving strategic priorities is essential to ensure the R&D remains relevant and contributes effectively to the DoD's long-term objectives.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Compagnie DE Developpement DE L'eau S.A.
Address: 65 SPIT BROOK ROAD, NASHUA, NH, 03061
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2004-06-30
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2024-01-30
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