DoD awards $12M R&D contract to General Atomics for advanced technology development
Contract Overview
Contract Amount: $12,074,524 ($12.1M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2002-04-02
End Date: 2007-08-31
Contract Duration: 1,977 days
Daily Burn Rate: $6.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $12.1 million to GENERAL ATOMICS for work described as: Key points: 1. Contract awarded to a large, established defense contractor. 2. Focus on R&D suggests potential for technological advancement. 3. Cost-plus fixed fee structure may incentivize cost overruns. 4. Limited information on specific deliverables and performance metrics. 5. Sector is critical for national security and technological superiority.
Value Assessment
Rating: fair
The contract's cost-plus fixed fee structure, while allowing for flexibility in R&D, can lead to higher costs compared to fixed-price contracts. Benchmarking is difficult without specific deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the cost-plus fixed fee pricing mechanism may not have fully optimized price discovery.
Taxpayer Impact: Taxpayer funds are supporting advanced research and development, which could yield long-term benefits but carries inherent risks of project failure or cost escalation.
Public Impact
Investment in cutting-edge research could lead to future technological breakthroughs. Potential for job creation within the defense and R&D sectors. Contract performance directly impacts national security capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 61 / 10
Warning Flags
- Cost-plus fixed fee structure
- Long contract duration
- Lack of specific performance metrics
Positive Signals
- Awarded under full and open competition
- Supports critical R&D for national security
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining a technological edge but often involves higher risk and less predictable outcomes.
Small Business Impact
The contract was awarded to General Atomics, a large prime contractor. There is no indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses.
Oversight & Accountability
Oversight is provided by the Defense Contract Management Agency. The cost-plus fixed fee structure necessitates robust oversight to manage costs and ensure contractor performance.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost-plus fixed fee pricing
- Long contract duration (1977 days)
- Lack of specific performance metrics
- Potential for cost escalation
- Limited visibility into R&D outcomes
Tags
research-and-development-in-the-physical, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to GENERAL ATOMICS. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is GENERAL ATOMICS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $12.1 million.
What is the period of performance?
Start: 2002-04-02. End: 2007-08-31.
What specific technological advancements are expected from this R&D contract, and how will their success be measured?
The provided data lacks specifics on the expected technological advancements or the metrics for success. Further analysis would require reviewing the contract's statement of work and performance requirements to understand the intended outcomes and how progress will be evaluated. This is crucial for assessing the value derived from the investment.
What are the primary risks associated with the cost-plus fixed fee structure in this long-duration R&D contract?
The primary risks include potential cost overruns, as the contractor is incentivized to incur costs to achieve a fixed fee. For a long-duration R&D project, the uncertainty inherent in research makes it difficult to accurately estimate costs upfront, increasing the likelihood of exceeding initial budgets. Robust oversight is critical.
How does this contract contribute to the Department of Defense's overall R&D effectiveness and strategic goals?
This contract likely supports specific strategic goals within the Department of Defense related to technological superiority in areas relevant to General Atomics' expertise. Its effectiveness hinges on the successful development of the intended technologies and their subsequent integration into defense systems, ultimately enhancing national security capabilities.
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
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 678 DISCOVERY DR, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2002-04-02
Current End Date: 2007-08-31
Potential End Date: 2007-08-31 00:00:00
Last Modified: 2017-11-01
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