DoD awards BAE Systems $127.6M for R&D services under full and open competition

Contract Overview

Contract Amount: $12,762,475 ($12.8M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2004-06-01

End Date: 2009-03-31

Contract Duration: 1,764 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200409!001160!2100!W911QX!USA MATERIEL COMMAND ACQUISITION!W911QX04C0097 !A!N! !N! ! !20040601!20051026!005149120!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!65 SPIT BROOK ROAD !NASHUA !NH!03061!50260!011!33!NASHUA !HILLSBOROUGH !N.H. !+000002500000!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!999!E! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y!9700!SE RM !0001! !

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: 200409!001160!2100!W911QX!USA MATERIEL COMMAND ACQUISITION!W911QX04C0097 !A!N! !N! ! !20040601!20051026!005149120!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!65 SPIT BROOK ROAD !NASHUA !NH!03061!50260!011!33!NASHUA !HILL… Key points: 1. Contract awarded to BAE Systems for R&D services. 2. Value of the contract is $127.6 million. 3. Competition type was full and open. 4. Sector is Defense R&D.

Value Assessment

Rating: fair

The contract value of $127.6 million for R&D services appears reasonable given the duration and the nature of applied research. However, without specific deliverables or performance metrics, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for research and development.

Public Impact

Supports advanced defense research and development capabilities. Potential for technological advancements benefiting national security. Contract duration of over 4 years indicates a significant R&D effort.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics for R&D.
Cost-plus contract type can lead to cost overruns if not managed tightly.

Positive Signals

Full and open competition.
Award to established defense contractor.

Sector Analysis

This contract falls within the Defense Applied Research sector, which is critical for maintaining technological superiority. Spending benchmarks in this area vary widely based on the specific research focus.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were adequately pursued.

Oversight & Accountability

Oversight is likely managed by the Department of Defense's acquisition and contracting agencies, ensuring compliance with contract terms and performance expectations.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost overrun potential with CPFF.
Lack of detailed performance metrics.
Long contract duration requires sustained oversight.
Potential for scope creep in R&D.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. 200409!001160!2100!W911QX!USA MATERIEL COMMAND ACQUISITION!W911QX04C0097 !A!N! !N! ! !20040601!20051026!005149120!876861790!217304393!N!BAE SYSTEMS INFORMATION AND EL!65 SPIT BROOK ROAD !NASHUA !NH!03061!50260!011!33!NASHUA !HILLSBOROUGH !N.H. !+000002500000!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !999

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 $12.8 million.

What is the period of performance?

Start: 2004-06-01. End: 2009-03-31.

What specific R&D objectives does this contract aim to achieve, and how will success be measured?

The data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) and is a 'Cost Plus Fixed Fee' type. Specific objectives and success metrics are not detailed in this record. Typically, such contracts would outline technical milestones, deliverables, and performance standards that BAE Systems must meet to receive payment and achieve contract completion.

What are the potential risks associated with a Cost Plus Fixed Fee contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts carry risks for both the government and the contractor. For the government, there's a risk of cost overruns if the contractor's estimated costs are inaccurate or if unforeseen technical challenges arise, increasing the total price. For the contractor, the fixed fee might not adequately compensate for significant unexpected effort or risk, potentially impacting profitability.

How does this contract contribute to the Department of Defense's overall R&D strategy and technological advancement?

This contract likely supports specific strategic research initiatives within the Department of Defense, aiming to develop new technologies or enhance existing ones for national security. The $127.6 million investment suggests a significant project, potentially contributing to advancements in areas like materials science, engineering, or life sciences relevant to defense applications.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

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: NO

Timeline