DoD awards $14.6M for Missile Defense Systems R&D to Dynetics, raising value concerns

Contract Overview

Contract Amount: $14,606,874 ($14.6M)

Contractor: Dynetics Technical Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2002-09-25

End Date: 2008-09-30

Contract Duration: 2,197 days

Daily Burn Rate: $6.6K/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: 200212!003122!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002D0014 !A!N! !Y!0055 !20020925!20050423!039921718!039921718!039921718!N!DYNETICS, CAS & DAVIDSON, LLC !990 EXPLORER BLVD !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000314000!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

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to DYNETICS TECHNICAL SOLUTIONS INC for work described as: 200212!003122!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002D0014 !A!N! !Y!0055 !20020925!20050423!039921718!039921718!039921718!N!DYNETICS, CAS & DAVIDSON, LLC !990 EXPLORER BLVD !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000314000!N!N!00000000000… Key points: 1. The contract value of $14.6M appears moderate for R&D in advanced missile defense. 2. Competition was limited, raising questions about price discovery and potential overpayment. 3. The sector is critical for national security, but R&D spending requires careful oversight. 4. Dynetics, a known entity in defense contracting, secured this award.

Value Assessment

Rating: questionable

The contract value of $14.6M for R&D in missile and space systems needs further benchmarking against similar contracts. Without more data on the scope and deliverables, it's difficult to definitively assess if the price 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 a limited competition. This method can sometimes lead to higher prices if the excluded sources were capable and would have offered better value.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for this critical R&D effort.

Public Impact

This contract supports the development of advanced missile defense technologies, crucial for national security. The award to Dynetics contributes to the defense industrial base and technological advancement in a sensitive area. Potential for cost overruns or inefficiencies exists due to the limited competition and R&D nature of the work.

Waste & Efficiency Indicators

Waste Risk Score: 66 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on missile and space systems. Spending in this area is vital for national security but requires rigorous oversight to ensure efficiency and effectiveness.

Small Business Impact

The data does not indicate any specific set-asides for small businesses on this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA). Oversight would typically involve monitoring performance, cost, and schedule to ensure contract compliance and taxpayer value.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to DYNETICS TECHNICAL SOLUTIONS INC. 200212!003122!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002D0014 !A!N! !Y!0055 !20020925!20050423!039921718!039921718!039921718!N!DYNETICS, CAS & DAVIDSON, LLC !990 EXPLORER BLVD !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000314000!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! !

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2002-09-25. End: 2008-09-30.

What specific technological advancements are expected from this $14.6M R&D contract, and how do they align with current and future defense needs?

The contract is for 'RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV' and 'MISSILE AND SPACE SYSTEMS,' specifically supporting the 'BALLISTIC MISSILE DEFENSE SYS.' Expected advancements likely involve enhancing detection, tracking, interception capabilities, or developing novel countermeasures against ballistic missiles. These align with the ongoing need to counter evolving threats in strategic defense.

Given the limited competition, what measures were in place to ensure Dynetics' proposed costs were reasonable and represented good value for the government?

While the competition was limited, the government typically employs cost realism analyses and technical evaluations to assess the reasonableness of proposed costs for R&D contracts. The contracting officer would have reviewed Dynetics' cost proposal, historical performance, and technical approach to ensure it aligned with the scope of work and represented a fair price.

How will the effectiveness of the R&D outcomes be measured, and what is the potential impact on the overall Ballistic Missile Defense System's capabilities?

Effectiveness is typically measured through milestones, prototypes, testing, and demonstrations outlined in the contract's Statement of Work. Successful R&D outcomes could lead to improved system performance, reduced vulnerabilities, or entirely new defensive capabilities, significantly enhancing the U.S. strategic defense posture against ballistic missile threats.

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DASG6002D0014

IDV Type: IDC

Timeline

Start Date: 2002-09-25

Current End Date: 2008-09-30

Potential End Date: 2008-09-30 00:00:00

Last Modified: 2017-07-12

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