DoD's $1.4B R&D Contract with General Dynamics: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $1,396,492,097 ($1.4B)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2002-08-09
End Date: 2016-02-05
Contract Duration: 4,928 days
Daily Burn Rate: $283.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780
Plain-Language Summary
Department of Defense obligated $1.40 billion to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: Key points: 1. Significant investment in R&D, focusing on physical, engineering, and life sciences. 2. General Dynamics Mission Systems, Inc. secured the contract, highlighting potential market concentration. 3. The contract's duration and cost-plus structure warrant scrutiny for cost control and efficiency. 4. Full and open competition after exclusion of sources suggests a complex procurement history.
Value Assessment
Rating: fair
The contract's cost-plus fixed fee structure with a significant award amount ($1.4B) necessitates careful monitoring to ensure value for money. Benchmarking against similar R&D contracts is crucial given the long duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a non-standard procurement path, potentially limiting initial competition. This method may impact price discovery and overall cost-effectiveness.
Taxpayer Impact: Taxpayer funds are committed to a long-term R&D effort. Scrutiny of cost overruns and effective utilization of funds is paramount to ensure responsible spending.
Public Impact
Long-term R&D investment could lead to technological advancements benefiting national security. The substantial contract value raises questions about resource allocation and potential for cost overruns. Analysis of the 'exclusion of sources' is key to understanding the competitive landscape and fairness of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus fixed fee structure can incentivize cost escalation.
- Long contract duration (4928 days) increases risk of scope creep and cost overruns.
- Limited competition method ('after exclusion of sources') may reduce price pressure.
- Lack of small business participation noted.
Positive Signals
- Focus on critical R&D in physical, engineering, and life sciences.
- Award to a known entity (General Dynamics) suggests established capabilities.
- Contract aims for specific research and development outcomes.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending benchmarks in this area are highly variable due to the nature of innovation and project scope.
Small Business Impact
The data indicates no specific set-aside for small businesses (sb: false). This suggests that the primary contractor, General Dynamics, likely performed the majority of the work, potentially limiting opportunities for smaller innovative firms.
Oversight & Accountability
The contract's long duration and cost-plus nature require robust oversight from the Defense Contract Management Agency (DCMA) to ensure adherence to scope, cost controls, and timely delivery of research objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to cost-plus structure.
- Risk of reduced price competition from 'exclusion of sources'.
- Long contract duration increases susceptibility to scope creep.
- Lack of small business participation noted.
- Limited transparency on specific R&D deliverables and outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.40 billion to GENERAL DYNAMICS MISSION SYSTEMS, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, 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 $1.40 billion.
What is the period of performance?
Start: 2002-08-09. End: 2016-02-05.
What specific technological advancements are expected from this $1.4B R&D investment, and how will their impact be measured?
The contract details are limited, but R&D in physical, engineering, and life sciences typically aims for breakthroughs in areas like advanced materials, AI, cybersecurity, or biomedical applications. Measuring impact involves assessing the successful development and integration of new technologies, their contribution to mission effectiveness, and potential for commercialization or further development.
Given the 'exclusion of sources' in the competition, what risks exist regarding fair pricing and potential vendor lock-in?
Excluding sources can limit the pool of potential bidders, potentially reducing competitive pressure on pricing. This raises concerns about whether the government secured the best possible price. There's also a risk of vendor lock-in if the chosen contractor develops unique expertise or intellectual property tied to the project, making future transitions difficult or costly.
How effectively has the cost-plus fixed fee structure managed costs over the contract's nearly 14-year duration?
Cost-plus fixed fee contracts can be challenging to manage, especially over extended periods. While the fixed fee provides some incentive for the contractor, the cost-reimbursement aspect means the government bears the risk of cost overruns. Without detailed cost performance reports, it's difficult to assess effectiveness, but the significant award amount suggests substantial expenditure requiring diligent 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 AFTER EXCLUSION OF SOURCES
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: General Dynamics Corp
Address: 400 JOHN QUINCY ADAMS RD, TAUNTON, MA, 02780
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,396,492,097
Exercised Options: $1,396,492,097
Current Obligation: $1,396,492,097
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2002-08-09
Current End Date: 2016-02-05
Potential End Date: 2016-02-05 00:00:00
Last Modified: 2023-01-27
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