DoD's $92.8M R&D contract for missile defense systems awarded to Computer Sciences Corporation shows potential value concerns

Contract Overview

Contract Amount: $92,867,871 ($92.9M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2002-04-24

End Date: 2014-08-25

Contract Duration: 4,506 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200208!001676!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002D0010 !A!N! !Y!0005 !20020424!20021031!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000005445000!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!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35801

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $92.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: 200208!001676!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002D0010 !A!N! !Y!0005 !20020424!20021031!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!37000!089!01!HUNTSVILLE !MADIS… Key points: 1. The contract's duration of over 12 years and the final award amount suggest a need for closer scrutiny of cost-effectiveness. 2. While awarded under full and open competition, the limited number of subsequent delivery orders warrants an examination of the competitive landscape. 3. The contract's performance period spans a significant timeframe, raising questions about adaptability to evolving technological needs. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' category indicates a focus on advanced technological development. 5. The contract's geographic focus on Alabama, a hub for defense contracting, aligns with industry trends but requires specific local economic impact analysis.

Value Assessment

Rating: fair

The total award of $92.8 million over a period of more than 12 years for missile and space systems research and development presents a mixed value proposition. While the duration suggests a long-term strategic investment, the relatively low number of delivery orders (7) compared to the contract's potential lifespan might indicate inefficiencies or a less dynamic project execution. Benchmarking against similar R&D contracts in missile defense is challenging due to the specialized nature of the work, but the extended timeline warrants a review of whether the cost aligns with achieved milestones and technological advancements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. However, with only 7 delivery orders issued over its extensive duration, the level of sustained competition after the initial award is unclear. This could suggest that while the initial competition was broad, subsequent tasking may have been more concentrated, potentially impacting price discovery for ongoing work.

Taxpayer Impact: The initial broad competition is positive for taxpayers, as it theoretically drives down prices. However, the limited follow-on tasking needs further investigation to ensure that taxpayers are not overpaying for services if competition waned after the initial award.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically the U.S. Space and Strategic Defense Command, through advancements in missile and space systems. The contract supports the development of advanced technologies crucial for national security, particularly in ballistic missile defense. The geographic impact is concentrated in Alabama, potentially creating or sustaining high-skilled jobs in the aerospace and defense sector within the state. Workforce implications include the employment of specialized engineers, scientists, and technical personnel required for complex R&D projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration raises concerns about potential cost overruns and adaptability to rapidly changing technological landscapes.
Limited number of delivery orders could indicate a less efficient project execution or a narrowing of competition post-award.
The 'Research and Development' nature of the contract implies inherent risks associated with innovation and the possibility of unmet objectives.

Positive Signals

Awarded under full and open competition, suggesting a robust initial vetting of potential contractors.
Focus on critical missile defense systems aligns with national security priorities.
The contract supports advanced technological development, potentially leading to significant strategic advantages.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced technologies for missile and space systems. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific and technical innovation. The defense R&D market is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of missile defense R&D, but this contract represents a notable investment in a critical defense capability.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The prime contractor, Computer Sciences Corporation, is a large entity. This means the direct economic benefits to the small business ecosystem from this specific prime contract are likely minimal, though subcontractors could potentially engage small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army and the U.S. Space and Strategic Defense Command. Accountability measures would be tied to the research and development milestones outlined in the contract. Transparency is generally facilitated through contract award databases and reporting requirements, though the specifics of R&D progress may be subject to security classifications. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Missile Defense Agency Research and Development Programs
Advanced Technology Development Contracts
Space Systems Research Contracts
Ballistic Missile Defense System Development
Department of Defense Research and Development Spending

Risk Flags

Extended contract duration may lead to cost inefficiencies.
Limited number of delivery orders warrants scrutiny of ongoing competition.
Time and Materials contract type requires robust oversight to control costs.
R&D nature carries inherent risks of technical failure or obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. 200208!001676!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002D0010 !A!N! !Y!0005 !20020424!20021031!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000005445000!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 GENERAL DYNAMICS INFORMATION TECHNOLOGY 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 $92.9 million.

What is the period of performance?

Start: 2002-04-24. End: 2014-08-25.

What was the track record of Computer Sciences Corporation (CSC) with similar large-scale R&D contracts with the DoD prior to this award?

Prior to this award in 2002, Computer Sciences Corporation (CSC) had a significant history of performing large-scale IT and systems integration contracts for the Department of Defense and other federal agencies. CSC was known for its capabilities in areas like enterprise resource planning, network infrastructure, and mission support systems. While CSC had experience in complex projects, large, long-duration R&D contracts specifically in advanced missile defense systems might have been a more specialized area. A detailed review of their contract history would reveal the extent of their direct experience in cutting-edge defense R&D, including their performance metrics, cost control, and successful delivery of innovative solutions in comparable programs.

How does the total contract value of $92.8 million compare to other R&D contracts for ballistic missile defense systems awarded around the same period?

The total contract value of $92.8 million for this contract, awarded in 2002 and spanning over 12 years, needs to be contextualized against other Ballistic Missile Defense System (BMDS) R&D efforts. The late 1990s and early 2000s saw a significant surge in BMDS development funding following the Missile Defense Act of 1999. Major programs like the Ground-based Midcourse Defense (GMD) system, sea-based Aegis BMD, and various sensor and interceptor technologies were receiving substantial investment. While $92.8 million is a considerable sum, it might represent a component or a specific research thrust within a larger, multi-billion dollar BMDS portfolio. Benchmarking would require identifying contracts with similar technical scopes and durations awarded by agencies like the Missile Defense Agency (MDA) or the Army during that era.

What were the key performance indicators (KPIs) or milestones associated with this contract, and how were they measured?

Specific Key Performance Indicators (KPIs) and milestones for this contract, 'RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV,' awarded to Computer Sciences Corporation, are not detailed in the provided summary data. Typically, R&D contracts of this nature would include milestones related to technological feasibility studies, prototype development, system integration testing, performance demonstrations, and final reports on research findings. Measurement would likely involve technical reviews, peer assessments, successful execution of test events, and adherence to project timelines. The 'AC23' contract action type suggests a research and development effort, implying that progress would be evaluated against defined technical objectives and deliverables rather than purely cost or schedule adherence, although those are also critical.

Given the contract's duration (2002-2014), what was the potential impact of technological obsolescence or shifts in defense strategy on its execution and outcomes?

A contract spanning from 2002 to 2014, particularly in the rapidly evolving field of missile defense R&D, faced significant risks from technological obsolescence and shifts in defense strategy. The early 2000s saw rapid advancements in computing, sensor technology, and materials science. If the contract's scope was not flexible enough to incorporate these advancements, the developed technologies could become outdated before deployment. Furthermore, geopolitical landscapes and threat assessments change. Shifts in strategic priorities, such as evolving threats or new defense architectures, could necessitate re-scoping or even termination of R&D efforts. The long duration implies a need for robust contract management to adapt to these dynamic factors, potentially through contract modifications or phased approaches to ensure continued relevance and value.

What is the significance of the NAICS code 541710 ('Research and Development in the Physical, Engineering, and Life Sciences') in understanding the nature and risk profile of this contract?

The NAICS code 541710 signifies that this contract is fundamentally focused on innovation and the creation of new knowledge or capabilities within scientific and engineering domains. Contracts under this code are inherently riskier than those for established services or products because R&D outcomes are uncertain. Success is not guaranteed, and projects may encounter unforeseen technical challenges, fail to achieve desired performance levels, or require significant adjustments. This classification suggests that the contract's value is tied to potential future benefits and technological advancements rather than immediate, tangible deliverables. The risk profile includes technical risk (will it work?), schedule risk (can it be developed in time?), and cost risk (can it be done within budget?).

How did the 'Time and Materials' (PT) contract type influence cost control and contractor performance for this R&D effort?

The 'Time and Materials' (PT) contract type, used for this contract, is generally considered less desirable for R&D efforts where scope and effort can be uncertain, as it can incentivize longer durations and potentially higher costs if not managed tightly. In a Time and Materials contract, the government pays the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While flexible for R&D where the exact path forward might be unknown, it offers less incentive for the contractor to control costs efficiently compared to fixed-price contracts. Effective oversight is crucial to monitor labor hours, ensure rates are reasonable, and scrutinize material costs to prevent cost overruns and ensure value for taxpayer money. The long duration of this contract amplifies the importance of this oversight.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation

Address: 3160 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DASG6002D0010

IDV Type: IDC

Timeline