DoD's $20.3M High Energy Laser Tactical Vehicle Demonstrator contract awarded to Dynetics, Inc. for R&D

Contract Overview

Contract Amount: $202,698,985 ($202.7M)

Contractor: Dynetics, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-08-14

End Date: 2023-10-13

Contract Duration: 2,251 days

Daily Burn Rate: $90.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TASK ORDER FOR HIGH ENERGY LASER TACTICAL VEHICLE DEMONSTRATOR - THE USASMDC/ARSTRAT IS THE HEL DEVELOPER FOR THE ARMY AND THIS REQUIREMENT WILL SERVE AS AN ENABLER FOR A POTENTIAL TECHNOLOGY TRANSITION TO THE PROGRAM EXECUTIVE OFFICE MISSILES AND SPACE FOR THE INDIRECT FIRE PROTECTION CAPABILITY INCREMENT 2-INTERCEPT PROGRAM OF RECORD. IGF::OT::IGF

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $202.7 million to DYNETICS, INC. for work described as: TASK ORDER FOR HIGH ENERGY LASER TACTICAL VEHICLE DEMONSTRATOR - THE USASMDC/ARSTRAT IS THE HEL DEVELOPER FOR THE ARMY AND THIS REQUIREMENT WILL SERVE AS AN ENABLER FOR A POTENTIAL TECHNOLOGY TRANSITION TO THE PROGRAM EXECUTIVE OFFICE MISSILES AND SPACE FOR THE INDIRECT FIRE PROT… Key points: 1. Contract supports the development of a High Energy Laser (HEL) for the Army's Indirect Fire Protection Capability Increment 2-Intercept. 2. This task order represents a significant investment in directed energy weapon systems for tactical applications. 3. The contract duration of 2251 days (over 6 years) indicates a long-term research and development effort. 4. Awarded under full and open competition, suggesting a robust market for HEL technology. 5. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code highlights the innovative nature of the work. 6. The contractor, Dynetics, Inc., is positioned as a key player in advanced defense technology development. 7. The contract's focus on a 'demonstrator' implies a phase aimed at proving technological feasibility before full-scale production.

Value Assessment

Rating: good

The contract value of $20.3 million for a High Energy Laser Tactical Vehicle Demonstrator appears reasonable given the R&D nature and multi-year duration. Benchmarking against similar advanced weapon system development contracts is challenging due to the specialized and evolving nature of directed energy technology. However, the fixed-fee component suggests a defined profit margin for the contractor, which can be a positive indicator of cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of 6 bids (no: 6) suggests a healthy level of interest and competition within the specialized field of high energy laser systems. This competitive environment is generally favorable for achieving better pricing and innovative solutions.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging the best possible technological solutions.

Public Impact

The U.S. Army benefits from the development of advanced defensive capabilities to counter threats. The contract delivers a demonstrator vehicle for a High Energy Laser system, enabling future technology transitions. The geographic impact is primarily within Alabama, where Dynetics, Inc. is located, but the technology's application is national. Workforce implications include specialized engineering and technical roles in advanced defense manufacturing and R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in long-term R&D projects if not closely managed.
Technological obsolescence is a risk in rapidly advancing fields like directed energy.
Dependence on a single contractor for critical technology development could pose a risk if not managed with oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Contract duration suggests a commitment to developing a critical defense capability.
Focus on a demonstrator phase allows for risk mitigation before full program commitment.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research and Development for advanced weapon systems. The market for directed energy weapons is rapidly evolving, with significant investment from various government agencies and private companies. Comparable spending benchmarks are difficult to establish precisely due to the novelty and strategic importance of this technology, but it represents a segment of the broader defense R&D market which is substantial.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses in the provided data. The focus on a highly specialized R&D project like a High Energy Laser Tactical Vehicle Demonstrator often involves large, prime contractors with advanced capabilities. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's program executive offices and contracting command. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring the contractor to justify expenses within the agreed-upon fee. Transparency is facilitated through contract awards databases, but detailed programmatic oversight details are often internal to the agency.

Related Government Programs

Indirect Fire Protection Capability Increment 2-Intercept Program
Army Directed Energy Weapon Systems
Tactical Vehicle Development Programs
High Energy Laser Research and Development

Risk Flags

Long-term R&D project with inherent technological uncertainties.
Potential for scope creep or requirement changes in evolving technology areas.
Dependence on specialized contractor expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $202.7 million to DYNETICS, INC.. TASK ORDER FOR HIGH ENERGY LASER TACTICAL VEHICLE DEMONSTRATOR - THE USASMDC/ARSTRAT IS THE HEL DEVELOPER FOR THE ARMY AND THIS REQUIREMENT WILL SERVE AS AN ENABLER FOR A POTENTIAL TECHNOLOGY TRANSITION TO THE PROGRAM EXECUTIVE OFFICE MISSILES AND SPACE FOR THE INDIRECT FIRE PROTECTION CAPABILITY INCREMENT 2-INTERCEPT PROGRAM OF RECORD. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is DYNETICS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $202.7 million.

What is the period of performance?

Start: 2017-08-14. End: 2023-10-13.

What is the track record of Dynetics, Inc. in developing advanced defense technologies, particularly in directed energy systems?

Dynetics, Inc. has a well-established track record in developing advanced defense technologies for various U.S. military branches. They have been involved in numerous complex R&D projects, including work on missile defense, hypersonics, and electronic warfare. Their expertise in systems engineering, integration, and advanced materials positions them as a capable contractor for programs like the High Energy Laser Tactical Vehicle Demonstrator. While specific details on their prior directed energy projects may be classified or proprietary, their consistent selection as a prime contractor on significant defense initiatives suggests a strong performance history and technical proficiency in cutting-edge areas.

How does the $20.3 million cost compare to similar High Energy Laser (HEL) demonstrator programs?

Direct cost comparisons for HEL demonstrator programs are challenging due to the nascent and highly specialized nature of this technology, as well as classification levels. However, the $20.3 million figure for a multi-year R&D effort culminating in a tactical vehicle demonstrator appears within a reasonable range for such advanced projects. Similar programs often involve significant investment in research, component development, integration, and testing. The cost is influenced by factors such as the laser's power output, beam control systems, thermal management, and integration onto a mobile platform. The competitive award process suggests that this figure was deemed a fair value by the Department of the Army.

What are the primary risks associated with this High Energy Laser Tactical Vehicle Demonstrator contract?

The primary risks associated with this contract are technological and programmatic. Technologically, achieving the desired performance, reliability, and efficiency for a high-energy laser system integrated onto a tactical vehicle presents significant engineering challenges. This includes managing power requirements, heat dissipation, and maintaining beam quality under operational conditions. Programmatically, long-term R&D contracts carry risks of cost overruns if unforeseen technical hurdles arise or if requirements evolve. There's also the risk of technological obsolescence if advancements in the field outpace the development timeline. Furthermore, ensuring the system's safety and effectiveness for military personnel is a critical risk to manage.

How effective is the 'full and open competition' strategy in ensuring value for money for this type of specialized R&D contract?

The 'full and open competition' strategy is generally effective in ensuring value for money, even for specialized R&D contracts. By allowing all responsible sources to submit bids, the government broadens the potential pool of innovative solutions and encourages competitive pricing. For a technology as advanced and evolving as High Energy Lasers, this approach increases the likelihood of finding contractors with the most cutting-edge capabilities and efficient development approaches. The presence of multiple bidders (6 in this case) indicates that the market is sufficiently developed to support competition, which typically drives down costs and improves the quality of the final product or technology demonstrator.

What are the historical spending patterns for High Energy Laser (HEL) development within the Department of the Army?

Historical spending patterns for High Energy Laser (HEL) development within the Department of the Army show a consistent and increasing trend over the past decade. Driven by the need for advanced counter-UAS (unmanned aerial system) and missile defense capabilities, the Army has allocated significant R&D funds to directed energy programs. This includes investments in various HEL platforms, from man-portable systems to vehicle-mounted and potentially larger systems. The $20.3 million awarded for this specific tactical vehicle demonstrator is part of a larger strategic investment in this technology area, reflecting a commitment to exploring and fielding directed energy solutions across different operational contexts.

What are the potential implications of this contract for future Army modernization efforts?

This contract has significant implications for future Army modernization efforts, particularly in the realm of air and missile defense. The successful development of a High Energy Laser Tactical Vehicle Demonstrator could pave the way for the fielding of directed energy weapons as a key component of the Indirect Fire Protection Capability (IFPC) Increment 2. This technology offers advantages such as the speed-of-light engagement, deep magazine (limited only by power), and potentially lower cost-per-shot compared to traditional kinetic interceptors. Its successful demonstration could accelerate the transition of directed energy capabilities into the Army's operational force structure, influencing future vehicle designs, power generation, and battlefield tactics.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9113M13R0010

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1002 EXPLORER BLVD, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $202,954,067

Exercised Options: $202,954,067

Current Obligation: $202,698,985

Subaward Activity

Number of Subawards: 70

Total Subaward Amount: $14,520,048

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9113M17D0002

IDV Type: IDC

Timeline