DoD's $30.2M EMD Prototypes Contract with BAE Systems: A Deep Dive into Defense Spending

Contract Overview

Contract Amount: $30,199,952 ($30.2M)

Contractor: BAE Systems Information and Electronic Systems Integration Inc.

Awarding Agency: Department of Defense

Start Date: 2013-03-18

End Date: 2019-09-30

Contract Duration: 2,387 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: EMD PROTOTYPES MANAGEMENT, ENGINEERING,

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03060

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $30.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC. for work described as: EMD PROTOTYPES MANAGEMENT, ENGINEERING, Key points: 1. The contract, valued at $30.2 million, focuses on EMD prototypes for search, detection, and navigation systems. 2. BAE Systems, a major defense contractor, secured this award through full and open competition. 3. The contract duration was 2387 days, ending in September 2019. 4. This spending falls within the broader Defense sector, specifically instrument manufacturing.

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 prototype development contracts is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms and how they were evaluated against other proposals are not detailed.

Taxpayer Impact: Taxpayer funds were used for prototype development, with the ultimate value dependent on the success and future application of the developed technologies.

Public Impact

Supports advanced defense capabilities in navigation and detection systems. Invests in technological innovation within the defense industrial base. Potential for follow-on production contracts if prototypes are successful. Ensures U.S. technological advantage in critical defense areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Long contract duration may indicate complexity or potential for delays.
Limited public detail on specific performance metrics and outcomes.

Positive Signals

Awarded through full and open competition.
Supports critical defense technology development.
Contract awarded to a reputable defense contractor.

Sector Analysis

This contract falls under the Defense sector, specifically within the manufacturing of advanced navigation and guidance systems. Spending benchmarks for EMD prototype contracts can vary widely based on technological complexity and program scope.

Small Business Impact

There is no indication that small businesses were involved as subcontractors on this specific contract. The award went to a large prime contractor, BAE Systems.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, would have overseen this contract. Accountability would be tied to meeting contract milestones and performance requirements.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Long contract duration may indicate schedule risks.
Lack of detailed public information on performance outcomes.
Dependency on a single large contractor for critical technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.2 million to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION INC.. EMD PROTOTYPES MANAGEMENT, ENGINEERING,

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 $30.2 million.

What is the period of performance?

Start: 2013-03-18. End: 2019-09-30.

What was the specific technological advancement achieved through these EMD prototypes, and how does it compare to industry standards?

The provided data does not detail the specific technological advancements. EMD prototypes are typically for demonstrating feasibility and maturing technology. A thorough review would require access to technical reports and performance evaluations to assess if the outcomes met or exceeded industry standards for search, detection, navigation, guidance, and related systems.

What were the key factors that led to BAE Systems being selected over other potential bidders in the full and open competition?

While the contract was awarded under full and open competition, the specific evaluation criteria and scoring are not publicly available. Typically, selection is based on a combination of technical approach, past performance, management capability, and price. BAE Systems likely demonstrated superior capabilities in these areas relative to competing proposals.

How effectively were taxpayer funds utilized given the Cost Plus Fixed Fee contract structure and the 2387-day duration?

The Cost Plus Fixed Fee structure carries inherent risks of cost escalation if not rigorously managed. The long duration suggests a complex development process. Without detailed performance reports and cost audits, it's difficult to definitively assess the effectiveness of taxpayer fund utilization. A post-award review would be necessary.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB12R0045

Offers Received: 4

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 RD, NASHUA, NH, 03060

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

Financial Breakdown

Contract Ceiling: $38,045,046

Exercised Options: $30,301,740

Current Obligation: $30,199,952

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $6,653,025

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline