DoD's $27.4M R&D contract with General Dynamics One Source shows mixed value and limited competition

Contract Overview

Contract Amount: $27,425,280 ($27.4M)

Contractor: General Dynamics ONE Source LLC

Awarding Agency: Department of Defense

Start Date: 2015-05-11

End Date: 2019-09-29

Contract Duration: 1,602 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: IGF::OT::IGF PFPA PSITS REQUIREMENT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: IGF::OT::IGF PFPA PSITS REQUIREMENT Key points: 1. Contract value of $27.4M over 4 years suggests a significant investment in R&D services. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a potentially complex procurement process. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for defense innovation. 4. The contract's duration of 1602 days (approx. 4.4 years) allows for sustained research efforts. 5. The firm fixed-price contract type aims to control costs, but performance risks remain. 6. The absence of small business set-aside flags suggests larger prime contractors were anticipated. 7. The contract's performance period ended in September 2019, making current relevance a consideration.

Value Assessment

Rating: fair

Benchmarking the value of this $27.4M R&D contract is challenging without specific performance metrics or comparable project data. The firm fixed-price structure suggests an attempt to control costs, but the overall value for money depends heavily on the successful delivery of research outcomes. Given the duration and scope, the per-year cost of approximately $6.2M appears within a reasonable range for complex R&D, but a deeper dive into deliverables and achieved milestones would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific technical requirements, security clearances, or prior relationships. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrower field than a truly unrestricted full and open competition, which could impact price discovery.

Taxpayer Impact: Taxpayers may have received less competitive pricing due to the exclusion of certain potential bidders. While the competition was not sole-source, the limitations on eligible participants could have resulted in a higher final price than if all qualified vendors had been allowed to compete.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research initiatives, aiming to advance technological capabilities. The contract supports research and development in physical, engineering, and life sciences, potentially leading to new defense technologies or improved existing ones. The geographic impact is centered around the contractor's operations and the DoD facilities where the research is applied, primarily in Virginia. Workforce implications include employment for scientists, engineers, and support staff involved in the R&D activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources could lead to suboptimal pricing.
Firm fixed-price contracts can incentivize cutting corners if not properly monitored.
The contract ended in 2019, so its current impact and relevance are historical.
Lack of specific performance metrics makes value-for-money assessment difficult.

Positive Signals

Firm fixed-price contract type aims to provide cost certainty.
Research and Development in critical scientific fields supports national security.
The contract duration allowed for sustained research efforts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is crucial for defense innovation, enabling the development of advanced technologies. Spending in this area is often characterized by long project timelines, high upfront investment, and a need for specialized expertise. Comparable spending benchmarks would typically involve analyzing other large-scale R&D contracts within the DoD or other federal agencies focused on similar scientific domains.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This indicates that the procurement was likely structured to attract large, established contractors with the capacity and expertise to handle complex R&D projects. There is no explicit information regarding subcontracting plans for small businesses, but in such large R&D contracts, there is often an expectation or requirement for prime contractors to engage small businesses for specialized support, though this is not guaranteed.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve program managers within the Department of Defense responsible for monitoring progress, adherence to technical specifications, and financial expenditures. Accountability is usually managed through contract milestones, performance reviews, and the firm fixed-price structure which incentivizes delivery. Transparency is often limited in R&D contracts due to the sensitive nature of the research, but contract awards and basic details are publicly available through federal procurement databases.

Related Government Programs

DoD Research, Development, Test, and Evaluation (RDT&E)
National Science Foundation (NSF) Research Grants
Department of Energy (DOE) Applied Science Programs
NASA Research and Technology Development

Risk Flags

Limited competition due to source exclusion.
Potential for suboptimal value due to restricted competition.
R&D outcomes can be inherently uncertain, posing performance risks.
Contract concluded prior to current date, limiting real-time assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to GENERAL DYNAMICS ONE SOURCE LLC. IGF::OT::IGF PFPA PSITS REQUIREMENT

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $27.4 million.

What is the period of performance?

Start: 2015-05-11. End: 2019-09-29.

What was the specific nature of the R&D conducted under this contract?

The contract, awarded to General Dynamics One Source LLC, was for Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology), under NAICS code 541712. While the specific project details are not publicly disclosed due to the nature of R&D and potential national security implications, the broad category suggests work related to advancing scientific understanding and technological capabilities within these fields for defense applications. This could encompass areas like materials science, advanced manufacturing, sensor technology, or other engineering and scientific disciplines critical to military operations and future defense systems.

How does the $27.4M contract value compare to similar R&D efforts within the DoD?

The $27.4 million contract value over approximately 4.4 years (1602 days) translates to an average annual spend of roughly $6.2 million. This figure is substantial but falls within the typical range for large-scale, multi-year R&D initiatives undertaken by the Department of Defense. The DoD invests billions annually in RDT&E, with individual contracts varying widely based on scope, complexity, and technological risk. Without knowing the specific research area and its maturity, direct comparison is difficult, but it represents a significant investment in a particular R&D capability or project.

What are the potential risks associated with a firm fixed-price R&D contract of this magnitude?

Firm fixed-price (FFP) contracts aim to provide cost certainty for the buyer. However, in R&D, where outcomes can be uncertain and technical challenges unpredictable, FFP contracts carry inherent risks. For the contractor, there's a risk of cost overruns if unforeseen technical difficulties arise, potentially impacting profitability or leading to requests for modification. For the government, the risk is that the contractor might prioritize cost-saving measures over optimal research quality or thoroughness to maintain profit margins, potentially compromising the integrity or completeness of the research outcomes. Effective oversight is crucial to mitigate these risks.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the procurement process and taxpayer value?

This procurement method suggests that while the competition was intended to be broad, specific criteria or circumstances led to the exclusion of certain potential bidders. This could be due to unique technical requirements, security clearances, or other factors that narrowed the field of eligible offerors. While not a sole-source award, this exclusion means the competition was less open than a standard 'full and open' competition. Consequently, taxpayers might have received less competitive pricing than if all capable vendors had been allowed to participate, potentially leading to a higher overall cost for the services rendered.

What is the significance of the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) for this contract?

The NAICS code 541712 signifies that the contract's objective was to conduct research and development activities in fundamental scientific and technical areas. This includes disciplines like physics, chemistry, mathematics, computer science, materials science, and various engineering fields, as well as biological sciences excluding biotechnology. For the DoD, R&D in these areas is crucial for maintaining a technological edge, developing new defense capabilities, and understanding emerging threats. Contracts under this code often involve high levels of innovation, intellectual property generation, and long-term strategic importance.

Given the contract ended in 2019, what is its current relevance and how might historical spending inform future decisions?

As the contract concluded in September 2019, its direct operational relevance is historical. However, the data remains valuable for informing future procurement decisions. Analyzing the performance, cost-effectiveness, and competitive landscape of this past contract can provide insights into the DoD's R&D spending patterns, the effectiveness of its procurement strategies in this sector, and the capabilities of contractors like General Dynamics. Understanding historical spending trends helps in budgeting, setting realistic expectations for similar future projects, and refining competition strategies to ensure better value for taxpayer dollars.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003415R0013

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 3211 JERMANTOWN ROAD, FAIRFAX, VA, 22030

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,425,280

Exercised Options: $27,425,280

Current Obligation: $27,425,280

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2008

IDV Type: IDC

Timeline