DoD's $12.2M Missile Defense Contract with Dynetics Raises Questions on Value and Competition
Contract Overview
Contract Amount: $12,205,839 ($12.2M)
Contractor: Dynetics Technical Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2002-04-22
End Date: 2014-02-24
Contract Duration: 4,326 days
Daily Burn Rate: $2.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: 200208!001011!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002D0014 !A!N! !N!0003 !20020422!20050423!039921718!039921718!039921718!N!DYNETICS, CAS & DAVIDSON, LLC !990 EXPLORER BLVD !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000831000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!Y!2!007!K! !Z!N!Z! ! !N!B!N!N! ! !Z! !B!A!000!A!B!N! ! ! ! ! ! !0001!
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806, UNITED STATES OF AMERICA
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $12.2 million to DYNETICS TECHNICAL SOLUTIONS INC for work described as: 200208!001011!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002D0014 !A!N! !N!0003 !20020422!20050423!039921718!039921718!039921718!N!DYNETICS, CAS & DAVIDSON, LLC !990 EXPLORER BLVD !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADIS… Key points: 1. The contract awarded to Dynetics Technical Solutions Inc. for missile and space systems development appears to have a high per-unit cost. 2. Competition was limited, with a 'full and open competition after exclusion of sources' method raising concerns about price discovery. 3. The duration of the contract (over 12 years) and its significant value warrant scrutiny regarding ongoing necessity and effectiveness. 4. The sector is Research and Development, specifically missile and space systems, a critical but often costly area for defense.
Value Assessment
Rating: questionable
The contract's total value of $12.2 million over a 12-year period suggests a high per-unit cost, especially for R&D services. Benchmarking against similar advanced technology development contracts is crucial to determine if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources,' indicating that potential bidders were limited. This method can restrict competition and potentially lead to less favorable pricing for the government.
Taxpayer Impact: The limited competition and extended duration may result in taxpayers paying more than necessary for the developed technologies.
Public Impact
Taxpayers may be overpaying for advanced missile defense technology due to restricted competition. The long contract duration raises questions about the sustained need and adaptability of the developed systems. Lack of robust competition could stifle innovation by not encouraging broader industry participation. The significant investment in this specific R&D area could divert funds from other critical defense needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Extended contract duration
- Potential for overpricing
- Lack of clear performance metrics (implied by R&D)
Positive Signals
- Awarded to a specific company for specialized R&D
- Addresses critical defense needs in missile and space systems
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced missile and space systems. Spending in this area is critical for national security but often involves high costs and long development cycles, making oversight essential.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further investigation is needed to assess small business participation.
Oversight & Accountability
The contract's long duration and the 'exclusion of sources' competition method suggest a need for enhanced oversight to ensure cost-effectiveness and accountability throughout the project lifecycle.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition method
- Long contract duration
- High total contract value for R&D
- Potential for cost inefficiencies
- Lack of transparency on specific deliverables and outcomes
Tags
research-and-development-in-the-physical, department-of-defense, al, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.2 million to DYNETICS TECHNICAL SOLUTIONS INC. 200208!001011!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002D0014 !A!N! !N!0003 !20020422!20050423!039921718!039921718!039921718!N!DYNETICS, CAS & DAVIDSON, LLC !990 EXPLORER BLVD !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000831000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !5!B!M! !A! !99990909!B
Who is the contractor on this award?
The obligated recipient is DYNETICS TECHNICAL SOLUTIONS 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 $12.2 million.
What is the period of performance?
Start: 2002-04-22. End: 2014-02-24.
What specific technological advancements were achieved through this $12.2 million contract, and how do they compare to industry benchmarks for similar R&D efforts?
The provided data does not detail the specific technological advancements. To assess value, a review of project milestones, deliverables, and independent technical assessments would be required. Comparing the cost per research hour or per successful prototype against industry standards for advanced missile and space systems R&D would offer a benchmark for effectiveness and cost efficiency.
Given the limited competition, what measures were in place to ensure fair pricing and prevent potential cost overruns throughout the contract's 12-year duration?
The contract utilized 'full and open competition after exclusion of sources,' which inherently limits price discovery. Robust government oversight, including regular cost audits, performance reviews, and potentially independent cost estimates, would be crucial to mitigate pricing risks. The lack of detailed cost breakdowns in the provided data makes it difficult to assess the effectiveness of these measures.
How has the technology developed under this contract contributed to the Department of Defense's overall missile defense capabilities, and is the investment still relevant given the evolving threat lan
The provided data lacks information on the specific contributions of the developed technology to missile defense capabilities. An assessment would require reviewing program performance reports, operational deployment data, and threat assessments. The contract's extended duration (ending in 2014) necessitates an analysis of whether the acquired capabilities remain relevant and effective against current and future threats.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dynetics, Inc. (UEI: 075458455)
Address: 1002 EXPLORER BLVD, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $88,825
Exercised Options: $88,825
Current Obligation: $12,205,839
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DASG6002D0014
IDV Type: IDC
Timeline
Start Date: 2002-04-22
Current End Date: 2014-02-24
Potential End Date: 2014-02-24 00:00:00
Last Modified: 2015-08-18
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