DoD's $159M Engineering Support Contract Awarded to General Dynamics for Missile Defense

Contract Overview

Contract Amount: $158,807,276 ($158.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-07-08

End Date: 2015-08-22

Contract Duration: 1,506 days

Daily Burn Rate: $105.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENGINEERING SUPPORT CAPABILITY GROUP-DE-01 SYSTEMS ENGINEERING

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $158.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENGINEERING SUPPORT CAPABILITY GROUP-DE-01 SYSTEMS ENGINEERING Key points: 1. Contract provides critical engineering support for missile defense systems. 2. General Dynamics Information Technology, Inc. secured the award. 3. The contract duration spans over 4 years. 4. Awarded via full and open competition, suggesting a competitive process. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 6. The North American Industry Classification System (NAICS) code is 541712, indicating R&D in physical and engineering sciences. 7. The contract was awarded as a Delivery Order, implying it's part of a larger contract vehicle.

Value Assessment

Rating: good

The contract value of approximately $159 million over four years for specialized engineering support appears reasonable within the defense sector. Benchmarking against similar R&D and engineering services contracts for complex defense systems suggests this pricing is within expected ranges. The Cost Plus Fixed Fee (CPFF) structure, while carrying some risk of cost overruns, also provides incentives for the contractor to manage expenses effectively to achieve the fixed fee. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of multiple bidders (implied by 'full and open') generally leads to better price discovery and potentially lower costs for the government. The specific number of bidders is not provided, but the competitive nature of the award is a positive indicator for taxpayer value.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The primary beneficiaries are the Department of Defense and the Missile Defense Agency, receiving advanced engineering support. Services delivered include systems engineering and technical assistance for missile defense programs. The contract is geographically focused on Alabama (AL), where the contractor is located. The contract supports highly skilled engineering and technical jobs within the defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher costs if not managed diligently.
The duration of the contract (over 4 years) requires ongoing monitoring to ensure continued value.
Reliance on a single contractor for critical engineering support could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
General Dynamics is a well-established defense contractor with a track record in complex systems.
The contract supports a critical national security mission (missile defense).

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The defense R&D market is characterized by long development cycles, high technical complexity, and significant government investment. Comparable spending benchmarks in this area are often in the hundreds of millions or billions of dollars for major defense systems, making this $159 million contract a significant but not exceptionally large award within the broader defense engineering and R&D landscape.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large prime contract awarded to a major defense contractor, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Missile Defense Agency (MDA) contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates close financial oversight to ensure costs are reasonable and allocable to the contract. Performance reviews and milestone tracking are standard accountability measures. While specific Inspector General (IG) jurisdiction isn't detailed, the DoD IG generally has oversight over defense spending to detect fraud, waste, and abuse.

Related Government Programs

Missile Defense Systems
Advanced Research and Development Contracts
Systems Engineering Support Services
Department of Defense IT and Engineering Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Long contract duration necessitates continuous performance monitoring.
Reliance on a single prime contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $158.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENGINEERING SUPPORT CAPABILITY GROUP-DE-01 SYSTEMS ENGINEERING

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $158.8 million.

What is the period of performance?

Start: 2011-07-08. End: 2015-08-22.

What is the track record of General Dynamics Information Technology, Inc. in performing similar engineering support contracts for the Department of Defense?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record in providing IT and engineering support services to the Department of Defense and other federal agencies. They are a major defense contractor known for handling complex systems integration, cybersecurity, and technical support across various defense platforms. GDIT has been involved in numerous large-scale contracts supporting C4ISR systems, intelligence analysis, and platform modernization. Their experience typically includes managing large teams, adhering to strict security protocols, and delivering technical solutions under demanding conditions. While specific performance data for this particular contract isn't detailed here, GDIT's overall profile suggests they possess the necessary capabilities and experience to execute complex engineering support tasks for critical programs like missile defense.

How does the awarded value of $159 million compare to other engineering support contracts for missile defense programs?

The $159 million value for this four-year engineering support contract is significant but falls within a common range for specialized technical services supporting major defense programs. Missile defense systems are inherently complex and require extensive research, development, and ongoing engineering support. Contracts for similar services, such as systems engineering, integration, testing, and sustainment for advanced weapon systems, can range from tens of millions to hundreds of millions of dollars over their lifecycle. For instance, contracts supporting the development and sustainment of radar systems, interceptors, or command and control elements often represent substantial investments. This award appears to be a mid-to-large size contract for a specific engineering support function within the broader missile defense enterprise, reflecting the high cost associated with specialized defense R&D and technical services.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than anticipated if the contractor's costs exceed initial estimates, although the contractor's profit (the fixed fee) is capped. While the CPFF structure incentivizes the contractor to control costs to maximize their fee, it can also lead to less aggressive cost management compared to fixed-price contracts, as the government bears the brunt of cost overruns. For complex R&D and engineering services, estimating costs accurately upfront is challenging, increasing the likelihood of cost growth. Effective government oversight is crucial to scrutinize incurred costs, ensure they are reasonable and allocable, and prevent unnecessary expenditures. Without robust oversight, the government risks paying inflated prices for the services rendered.

What is the potential impact of this contract on the missile defense program's effectiveness?

This contract is crucial for the effectiveness of missile defense programs as it provides essential engineering support. Such support likely encompasses systems engineering, technical analysis, integration, and potentially research into future capabilities. By ensuring that the complex systems underpinning missile defense are well-designed, integrated, and maintained, this contract directly contributes to the program's ability to detect, track, and intercept threats. The expertise provided by General Dynamics Information Technology, Inc. is expected to enhance system performance, reliability, and adaptability to evolving threats. Ultimately, the quality of engineering support directly influences the warfighter's confidence in the missile defense system's operational readiness and success.

How has spending on engineering support for missile defense evolved over the past decade?

Spending on engineering support for missile defense has generally seen significant and sustained investment over the past decade, reflecting the ongoing geopolitical landscape and the perceived threat from ballistic missiles. The Missile Defense Agency (MDA) consistently receives substantial budget allocations, a portion of which is dedicated to research, development, and engineering services. While specific figures fluctuate annually based on program priorities, technological advancements, and strategic assessments, the overall trend indicates a commitment to maintaining and advancing U.S. missile defense capabilities. This includes funding for system design, integration, testing, sustainment, and the development of next-generation technologies. Contracts like the one awarded to General Dynamics are indicative of this sustained focus and investment in specialized engineering expertise.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ014709R0002

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 310 THE BRIDGE ST, 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: $170,102,103

Exercised Options: $170,102,103

Current Obligation: $158,807,276

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014710D0008

IDV Type: IDC

Timeline