General Dynamics awarded $53.6M for missile systems R&D, a sole-source contract with a long performance period

Contract Overview

Contract Amount: $53,650,063 ($53.7M)

Contractor: General Dynamics Armament and

Awarding Agency: Department of Defense

Start Date: 2003-02-03

End Date: 2012-01-30

Contract Duration: 3,283 days

Daily Burn Rate: $16.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200305!001691!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0103C0010 !A!N! !N! !20030203!20050731!077219350!077219350!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVENUE !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITTENDEN !VERMONT !+000008999999!N!N!000000000000!AC24!RDTE/MISSILE AND SPACE SYSTEMS-DEMO/VALID !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !1! ! ! ! ! !99990909!B! ! !A! !D!N!R!1!001!N!6A!Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: BURLINGTON, CHITTENDEN County, VERMONT, 05401

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $53.7 million to GENERAL DYNAMICS ARMAMENT AND for work described as: 200305!001691!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0103C0010 !A!N! !N! !20030203!20050731!077219350!077219350!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVENUE !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITT… Key points: 1. Contract awarded for research and development in missile and space systems. 2. Significant duration of over 8 years suggests a complex or long-term project. 3. Sole-source award raises questions about competition and potential cost efficiencies. 4. The contract type (Cost Plus Award Fee) incentivizes performance but requires careful oversight. 5. The contractor has a substantial presence in the defense sector. 6. The value of the contract is significant within the R&D category.

Value Assessment

Rating: fair

The contract value of $53.6 million over more than 8 years averages to approximately $6.7 million per year. Benchmarking this against similar R&D contracts for missile systems is challenging without more specific project details. However, the sole-source nature and the Cost Plus Award Fee structure suggest that pricing may not have been driven by competitive pressures, potentially leading to higher costs than a fully competed contract. The long duration also introduces risk related to cost escalation over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one contractor, General Dynamics Armament and, was solicited. This approach is typically used when there is a unique capability or proprietary technology involved, or in cases of urgent need where competition is not feasible. The lack of competition means that the government did not benefit from the price discovery and potential cost savings that typically arise from multiple bidders vying for a contract.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price for the goods or services. Oversight and negotiation become critical to ensure fair pricing and value for money.

Public Impact

The primary beneficiary is the Department of Defense, specifically entities involved in missile and space systems development. The contract supports research and development activities aimed at advancing missile technology. The geographic impact is primarily within Vermont, where the contractor is located, and potentially at various DoD research facilities. Workforce implications include employment for scientists, engineers, and support staff at General Dynamics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Cost Plus Award Fee structure requires robust oversight to ensure performance and prevent cost overruns.
Long contract duration increases exposure to economic fluctuations and technological obsolescence.
Lack of detailed public information on specific R&D objectives hinders independent value assessment.

Positive Signals

Contract awarded to a known entity (General Dynamics) with established capabilities in defense.
Contract supports critical research and development for national security in missile systems.
The award fee mechanism provides an incentive for contractor performance.
The contract duration suggests a commitment to a potentially important, long-term technological advancement.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on missile and space systems. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific and technical services. Spending in this area is crucial for maintaining technological superiority in defense. Comparable spending benchmarks would typically involve analyzing other DoD R&D contracts for similar weapon systems, though specifics are often classified.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of advanced missile systems R&D and the sole-source award to a large prime contractor like General Dynamics, it is unlikely that small businesses were directly solicited as the prime. However, General Dynamics may engage small businesses as subcontractors, though details on such arrangements are not provided.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contract management and inspection agencies. The Cost Plus Award Fee (CPAF) structure necessitates close monitoring of costs, performance metrics, and achievement of award fee criteria. Transparency is limited due to the sole-source nature and the classified aspects of missile R&D. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Advanced Weapons Research
Department of Defense Research and Development Programs
Aerospace and Defense Contracting

Risk Flags

Sole-source award may limit price competition.
Cost Plus Award Fee contracts require diligent oversight to manage costs and performance.
Long contract duration increases risk of cost escalation and technological obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.7 million to GENERAL DYNAMICS ARMAMENT AND. 200305!001691!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0103C0010 !A!N! !N! !20030203!20050731!077219350!077219350!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVENUE !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITTENDEN !VERMONT !+000008999999!N!N!000000000000!AC24!RDTE/MISSILE AND SPACE SYSTEMS-DEMO/VALID !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !1! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS ARMAMENT AND.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $53.7 million.

What is the period of performance?

Start: 2003-02-03. End: 2012-01-30.

What specific missile and space systems technologies was this contract intended to develop or advance?

The provided data indicates the contract (DAAH0103C0010) was awarded to General Dynamics Armament and for Research, Development, Test, and Evaluation (RDTE) related to 'MISSILE AND SPACE SYSTEMS-DEMO/VALID'. The NAICS code 541710 further specifies 'Research and Development in Physical, Engineering, and Life Sciences'. While the exact technological objectives are not detailed in the extract, the contract likely supported the advancement of components, subsystems, or experimental prototypes for missile systems, potentially including areas like guidance, propulsion, warheads, or integrated space-based applications. The 'DEMO/VALID' designation suggests a focus on demonstrating and validating new technologies or system concepts before potential full-scale development or procurement.

How does the $53.6 million contract value compare to other R&D spending in missile systems by the DoD?

The $53.6 million contract value represents a significant investment in missile systems R&D. However, comparing it directly to overall DoD R&D spending requires context. The DoD's annual R&D budget typically runs into the tens of billions of dollars. This specific contract, while substantial for a single award, is a component within a much larger ecosystem of research initiatives. To provide a precise comparison, one would need to analyze historical spending on similar missile R&D projects, considering factors like project scope, technological maturity, and contract type. Given the sole-source nature and long duration, this contract might represent a focused effort on a specific technological pathway rather than broad-based research.

What are the key performance indicators (KPIs) and award fee criteria associated with this Cost Plus Award Fee contract?

The specific Key Performance Indicators (KPIs) and award fee criteria for this Cost Plus Award Fee (CPAF) contract are not detailed in the provided data. CPAF contracts typically tie a portion of the contractor's profit (the 'award fee') to the achievement of specific performance objectives, which are outlined in the contract's Statement of Work (SOW) and Performance Requirements Document. These objectives often relate to technical performance, schedule adherence, cost control, and management effectiveness. For a missile systems R&D contract, KPIs might include achieving certain technical milestones, demonstrating system reliability, meeting performance specifications in testing, or delivering prototypes within a defined timeframe. The government's evaluation of these KPIs would determine the amount of the award fee earned by General Dynamics.

What is the track record of General Dynamics Armament and in delivering on similar missile systems R&D contracts?

General Dynamics Armament and is a significant entity within the defense industry, known for its work on various armament and missile systems. While specific details of past performance on contracts identical to this one are not in the provided data, the company has a long history of developing and producing complex defense systems for the U.S. military and allies. Their track record generally includes involvement in major defense programs. Assessing their performance on similar R&D contracts would typically involve reviewing past performance evaluations, contract award histories, and any reported issues or successes in government databases and industry analyses. The fact that they were awarded this sole-source contract suggests a perceived capability and potentially a positive past performance record relevant to the government's needs.

Given the sole-source nature, what measures were in place to ensure fair pricing and prevent cost overruns?

For sole-source contracts, especially those with a Cost Plus Award Fee (CPAF) structure, ensuring fair pricing and preventing cost overruns relies heavily on robust government oversight and negotiation. Measures typically include detailed cost analysis by the contracting officer and technical teams, negotiation of a target cost, and establishment of clear award fee criteria tied to performance. The government would scrutinize the contractor's proposed costs, potentially requesting detailed breakdowns and justifications. The CPAF structure itself provides some incentive for the contractor to manage costs effectively to achieve higher award fees. However, the ultimate protection against inflated pricing in sole-source situations often depends on the government's negotiation skills and the thoroughness of its cost auditing processes.

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: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 128 LAKESIDE AVENUE, BURLINGTON, VT, 05401

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline