DoD's $257M R&D Contract with GDIT: Analysis of Value, Competition, and Taxpayer Impact
Contract Overview
Contract Amount: $256,677,000 ($256.7M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-04-30
End Date: 2015-09-26
Contract Duration: 1,975 days
Daily Burn Rate: $130.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: RDTE
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $256.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: RDTE Key points: 1. Significant R&D investment in physical, engineering, and life sciences. 2. Full and open competition was utilized, suggesting potential for competitive pricing. 3. Contract duration of nearly 2000 days indicates a long-term project. 4. Focus on R&D suggests potential for innovation and future technological advancements.
Value Assessment
Rating: good
The contract value of $257M over approximately 5 years suggests a substantial investment. Benchmarking against similar large-scale R&D contracts would be necessary for a precise value assessment, but the firm fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as multiple bidders likely competed. This method generally leads to more competitive pricing compared to limited or sole-source procurements.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received fair value. However, the ultimate taxpayer impact depends on the successful outcomes and innovations derived from the R&D.
Public Impact
Advancement in physical, engineering, and life sciences research. Potential for new technologies and scientific breakthroughs. Economic impact through contract awards and potential job creation in Alabama. Long-term commitment to research and development by the Department of the Army.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns in long-term R&D projects.
- Dependency on contractor's innovation and execution.
Positive Signals
- Utilized full and open competition.
- Firm fixed-price contract type.
- Significant investment in critical R&D areas.
- Awarded to a known entity in the defense sector.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for technological advancement and national security, with significant government investment annually.
Small Business Impact
The data indicates the prime contractor is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC., a large business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight mechanisms are in place. However, the effectiveness of oversight for R&D projects can be challenging due to their inherent uncertainty and long timelines.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk of scope creep or changing requirements.
- R&D projects inherently carry a risk of not achieving desired outcomes.
- Potential for contractor performance issues impacting project timelines.
- Lack of transparency on specific R&D deliverables and success metrics.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $256.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. RDTE
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 $256.7 million.
What is the period of performance?
Start: 2010-04-30. End: 2015-09-26.
What specific R&D objectives were pursued under this contract, and how do they align with current defense priorities?
The provided data categorizes the contract under 'Research and Development in the Physical, Engineering, and Life Sciences.' To assess alignment, a detailed review of the Statement of Work (SOW) would be required. This would reveal if the R&D efforts directly support emerging defense needs, such as advanced materials, AI integration, or biotechnological advancements, ensuring taxpayer funds are directed towards strategic national security goals.
What were the key performance indicators (KPIs) for this contract, and how was contractor performance measured against them?
The provided data does not specify the Key Performance Indicators (KPIs) or the methodology for measuring contractor performance. For R&D contracts, KPIs often relate to milestones achieved, prototypes developed, or scientific discoveries made. Effective oversight would involve regular reviews of progress against these defined metrics to ensure the contractor is meeting objectives and delivering value for the investment.
How did the final cost compare to the initial estimates, and were there any significant cost variances or justifications?
As a firm fixed-price contract, the goal is to maintain a stable price. However, R&D projects can encounter unforeseen challenges. Without access to contract modifications or post-award financial reports, it's impossible to determine if the final cost deviated from initial projections or if there were justifications for any variances. A review of such documentation would be necessary for a complete financial assessment.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 310 THE BRIDGE ST, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $256,677,000
Exercised Options: $256,677,000
Current Obligation: $256,677,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q05A0028
IDV Type: IDC
Timeline
Start Date: 2010-04-30
Current End Date: 2015-09-26
Potential End Date: 2015-09-26 12:09:00
Last Modified: 2024-07-23
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