DoD's $11.6M contract for missile defense systems awarded to Dynetics, CAS & Davidson, LLC

Contract Overview

Contract Amount: $11,593,829 ($11.6M)

Contractor: Dynetics Technical Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2002-05-01

End Date: 2014-05-30

Contract Duration: 4,412 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200208!001095!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002D0014 !A!N! !N!0008 !20020501!20050423!039921718!039921718!039921718!N!DYNETICS, CAS & DAVIDSON, LLC !990 EXPLORER BLVD !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000778000!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 $11.6 million to DYNETICS TECHNICAL SOLUTIONS INC for work described as: 200208!001095!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002D0014 !A!N! !N!0008 !20020501!20050423!039921718!039921718!039921718!N!DYNETICS, CAS & DAVIDSON, LLC !990 EXPLORER BLVD !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADIS… Key points: 1. Contract value of $11.6M for missile and space systems R&D. 2. Awarded under full and open competition after exclusion of sources. 3. Performance period spans over 4 years, indicating a medium-term project. 4. Contract type is Time and Materials, which can pose cost control challenges. 5. The North American Industry Classification System (NAICS) code 541710 points to R&D in physical, engineering, and life sciences. 6. The contract was awarded to Dynetics Technical Solutions Inc., a significant player in defense contracting.

Value Assessment

Rating: fair

The contract value of $11.6 million for R&D in missile and space systems appears reasonable given the specialized nature of the work. However, without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Time and Materials contract type, while flexible, can sometimes lead to higher costs if not closely managed, compared to fixed-price contracts. Benchmarking against similar R&D contracts in ballistic missile defense would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while the competition was open, certain sources may have been excluded prior to the final award. The number of bidders is not explicitly stated, but the 'full and open' nature implies a competitive process. This approach aims to ensure a broad range of potential contractors are considered, which can lead to better price discovery and innovation.

Taxpayer Impact: This competitive approach is generally favorable for taxpayers as it increases the likelihood of obtaining services at a fair market price and encourages a wider pool of contractors to bid, potentially driving down costs.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the U.S. space and strategic defense command, receiving advanced technological development. Services delivered include research and development in missile and space systems, specifically focusing on advanced technology development for ballistic missile defense. The geographic impact is primarily within the United States, with the contractor located in Huntsville, Alabama. Workforce implications include employment for scientists, engineers, and technical staff involved in advanced R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced technologies for missile and space systems. The market for such specialized R&D is dominated by a few large defense contractors and specialized R&D firms. Spending in this area is driven by national security priorities and technological advancements. Comparable spending benchmarks would involve analyzing other DoD contracts for similar R&D efforts in areas like missile defense, space technology, and advanced materials.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false'. The prime contractor is Dynetics Technical Solutions Inc., which is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, though the prime contractor may engage small businesses in its broader operations.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. The contract's duration and nature suggest regular reporting requirements and performance reviews. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally maintained through contract databases like FPDS, though detailed R&D progress reports are often sensitive and not publicly disclosed.

Related Government Programs

Risk Flags

Tags

defense, department-of-defense, army, missile-defense, research-and-development, space-systems, advanced-technology, time-and-materials, full-and-open-competition, alabama, huntsville, dynetics-technical-solutions-inc

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to DYNETICS TECHNICAL SOLUTIONS INC. 200208!001095!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002D0014 !A!N! !N!0008 !20020501!20050423!039921718!039921718!039921718!N!DYNETICS, CAS & DAVIDSON, LLC !990 EXPLORER BLVD !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000778000!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 $11.6 million.

What is the period of performance?

Start: 2002-05-01. End: 2014-05-30.

What is the track record of Dynetics Technical Solutions Inc. in similar defense R&D contracts?

Dynetics Technical Solutions Inc. has a significant track record in defense contracting, particularly in areas related to advanced technologies, aerospace, and missile defense. They have been involved in numerous research and development projects for various branches of the U.S. military, including the Army, Navy, and Air Force, as well as agencies like DARPA and the Missile Defense Agency. Their work often involves complex engineering challenges, system integration, and the development of cutting-edge technologies. Analyzing their past performance on similar Time and Materials contracts, especially those with 'full and open competition after exclusion of sources,' would be crucial to understanding their reliability and cost management capabilities in this specific domain. Publicly available contract databases and agency performance reports can offer insights into their project success rates, adherence to schedules, and budget management.

How does the $11.6 million contract value compare to other R&D contracts for ballistic missile defense systems?

The $11.6 million contract value for R&D in ballistic missile defense systems is on the lower to mid-range for such specialized projects. Large-scale ballistic missile defense system development contracts can easily run into hundreds of millions or even billions of dollars. However, this contract appears to be focused on specific advanced technology development or a particular component of a larger system, rather than the full system integration. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes (e.g., 541710) and specific research areas (e.g., missile defense, space systems) awarded by the Department of Defense or the Missile Defense Agency over a comparable timeframe. Factors like contract duration, scope of work, and the specific technological challenges addressed would heavily influence the value.

What are the primary risks associated with a Time and Materials (T&M) contract for advanced R&D?

The primary risk associated with a Time and Materials (T&M) contract for advanced R&D is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred, plus a fixed fee or profit. If the R&D effort proves more complex or time-consuming than initially estimated, or if project scope creeps, the total cost can escalate significantly beyond initial projections. This lack of a cost ceiling can make budgeting unpredictable for the government. Effective oversight, detailed tracking of labor hours and material usage, and strong project management are crucial to mitigate these risks. The 'full and open competition after exclusion of sources' aspect also introduces a risk if the exclusion process was not robust or transparent, potentially limiting the best value outcome.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' approach aims to balance broad competition with specific requirements. 'Full and open' suggests an intention to solicit from all responsible sources. However, the 'after exclusion of sources' clause indicates that certain potential bidders were disqualified or not considered prior to the main solicitation. The effectiveness for taxpayers hinges on the justification and transparency of these exclusions. If exclusions are based on legitimate, well-defined criteria (e.g., specific technical capabilities, security clearances), it can help ensure that only qualified contractors participate, potentially leading to a more focused and efficient competition. If exclusions are arbitrary or lack clear justification, it could limit competition, reduce price discovery, and potentially lead to higher costs for taxpayers. A thorough review of the exclusion rationale is necessary for a definitive assessment.

What are the historical spending patterns for R&D in missile and space systems by the Department of Defense?

The Department of Defense (DoD) consistently allocates substantial funding towards Research and Development (R&D) in missile and space systems, reflecting its strategic importance for national security. Historical spending patterns show a significant and often increasing trend in this area, driven by evolving threats, technological advancements, and the need for next-generation defense capabilities. Major programs like the Ground-based Midcourse Defense (GMD), THAAD, and various space-based defense initiatives receive considerable investment. Funding fluctuates based on program lifecycles, geopolitical factors, and congressional appropriations. Analyzing historical data from sources like the DoD's budget requests and annual reports reveals consistent investment in areas such as missile defense, hypersonic weapons, space situational awareness, and advanced propulsion systems. This particular $11.6M contract represents a small fraction of the overall DoD R&D budget in this sector.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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: $557,879

Exercised Options: $557,879

Current Obligation: $11,593,829

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DASG6002D0014

IDV Type: IDC

Timeline

Start Date: 2002-05-01

Current End Date: 2014-05-30

Potential End Date: 2014-05-30 00:00:00

Last Modified: 2015-08-18

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