DoD's $21M BAE Systems Contract for Concept Development Raises Questions on Value and Competition
Contract Overview
Contract Amount: $21,086,515 ($21.1M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2010-11-30
Contract Duration: 791 days
Daily Burn Rate: $26.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CONCEPT DEVELOPMENT AND SYSTEMS ENGINEERING
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17408
Plain-Language Summary
Department of Defense obligated $21.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: CONCEPT DEVELOPMENT AND SYSTEMS ENGINEERING Key points: 1. The $21.1 million contract awarded to BAE Systems for concept development and systems engineering appears high for the scope. 2. Full and open competition was cited, but the specific impact on price discovery needs further examination. 3. The contract's duration of 791 days suggests a potentially lengthy and costly development process. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' sector often involves significant cost uncertainty.
Value Assessment
Rating: questionable
The $21.1 million award for concept development and systems engineering seems substantial. Without detailed breakdowns of deliverables and comparable contract data within the R&D sector, it's difficult to definitively assess value for money against industry benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While the contract was awarded under full and open competition, the specific details of the bidding process and how it influenced the final price are not provided. This limits the ability to assess the effectiveness of price discovery.
Taxpayer Impact: The significant expenditure on R&D necessitates careful oversight to ensure taxpayer funds are used efficiently and effectively towards achieving program goals.
Public Impact
Taxpayers may be funding extensive research and development with uncertain future applications. The long contract duration could indicate potential for cost overruns or scope creep. The specific technological advancements or capabilities resulting from this contract are not immediately clear to the public.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear public benefit articulation
- Potential for R&D costs to exceed initial estimates
- Limited transparency on specific project milestones and outcomes
Positive Signals
- Awarded under full and open competition
- Contract aims to advance critical defense capabilities
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical and engineering sciences. Spending in this area is inherently variable, with benchmarks difficult to establish due to the unique nature of innovation and discovery.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this contract. Further investigation would be needed to determine if subcontracting opportunities were made available.
Oversight & Accountability
Standard Department of Defense oversight mechanisms would apply. However, the specifics of monitoring progress, managing risks, and ensuring accountability for this particular contract are not detailed in the provided data.
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
- High cost for early-stage development
- Potential for scope creep over long duration
- Lack of specific performance metrics in provided data
- Uncertainty of return on investment for R&D
Tags
research-and-development-in-the-physical, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.1 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. CONCEPT DEVELOPMENT AND SYSTEMS ENGINEERING
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND & ARMAMENTS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $21.1 million.
What is the period of performance?
Start: 2008-09-30. End: 2010-11-30.
What specific technological advancements or capabilities are expected from this $21.1 million investment in concept development and systems engineering?
The contract focuses on 'CONCEPT DEVELOPMENT AND SYSTEMS ENGINEERING' within the physical, engineering, and life sciences. While the exact outputs are not specified, typical outcomes include feasibility studies, preliminary designs, system architecture development, and identification of key technological challenges and solutions for future defense systems.
How does the $21.1 million cost compare to industry standards for similar R&D concept development contracts, considering the 791-day duration?
Benchmarking R&D costs is challenging due to the inherent variability and novelty of research. However, a $21.1 million investment over nearly two years for concept development suggests a significant scope. A detailed cost-benefit analysis comparing projected outcomes against industry norms for similar complexity and duration would be necessary for a thorough assessment.
What are the key performance indicators (KPIs) and milestones used to measure the effectiveness and value realization of this contract?
The provided data does not specify the KPIs or milestones for this contract. Effective oversight would typically involve clearly defined deliverables, technical reviews at various stages, and performance metrics tied to the successful completion of concept development and system engineering phases, ensuring alignment with DoD objectives.
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 › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 8
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 1100 BAIRS RD, YORK, PA, 17408
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,086,515
Exercised Options: $21,086,515
Current Obligation: $21,086,515
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-09-30
Current End Date: 2010-11-30
Potential End Date: 2010-11-30 00:00:00
Last Modified: 2020-06-24
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