DOT's $33.5M GE R&D Contract: Full & Open Competition for Physical Sciences Research
Contract Overview
Contract Amount: $33,497,150 ($33.5M)
Contractor: General Electric Company
Awarding Agency: Department of Transportation
Start Date: 2010-06-07
End Date: 2016-05-01
Contract Duration: 2,155 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST SHARING
Sector: R&D
Official Description: GE CLEEN AGREEMENT TAS::69 8108::TAS
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Transportation obligated $33.5 million to GENERAL ELECTRIC COMPANY for work described as: GE CLEEN AGREEMENT TAS::69 8108::TAS Key points: 1. Significant investment in R&D for physical sciences, potentially driving innovation. 2. Full and open competition suggests a robust market for these services. 3. Contract duration of over 5 years indicates a long-term research objective. 4. No explicit small business set-aside, raising questions about SMB participation.
Value Assessment
Rating: fair
The contract type is cost-sharing, which can be effective for R&D but may lead to less price certainty than fixed-price contracts. Benchmarking is difficult without specific deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, indicating that multiple vendors could bid. This method generally promotes competitive pricing and access to a wider range of capabilities.
Taxpayer Impact: Taxpayer funds are supporting R&D, with the potential for future economic benefits if the research is successful. The cost-sharing nature means the government shares in the risk and reward.
Public Impact
Supports advanced research and development in physical sciences. Potential for technological advancements with broad applications. Long-term commitment to a specific research area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation noted.
- Cost-sharing contracts can have less predictable final costs.
Positive Signals
- Full and open competition utilized.
- Significant investment in R&D.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement and national competitiveness, often characterized by long project timelines and uncertain outcomes.
Small Business Impact
The contract does not indicate any specific provisions for small business participation. This could mean that small businesses were not primary awardees or that no set-aside was applied, potentially limiting their involvement in this significant R&D effort.
Oversight & Accountability
The contract was awarded through full and open competition, suggesting a transparent process. However, further oversight would be needed to ensure efficient use of funds and achievement of R&D objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Potential for cost overruns due to cost-sharing structure.
- Risk of research yielding no significant breakthroughs.
- Limited visibility on small business participation.
- Long contract duration increases exposure to unforeseen issues.
Tags
research-and-development-in-the-physical, department-of-transportation, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $33.5 million to GENERAL ELECTRIC COMPANY. GE CLEEN AGREEMENT TAS::69 8108::TAS
Who is the contractor on this award?
The obligated recipient is GENERAL ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $33.5 million.
What is the period of performance?
Start: 2010-06-07. End: 2016-05-01.
What specific technological advancements or innovations are expected from this $33.5 million R&D investment?
The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. Specific expected advancements are not detailed in the provided data. Typically, such contracts aim to push the boundaries of scientific knowledge, leading to new materials, processes, or fundamental understanding in areas relevant to the FAA's mission, such as aviation safety, efficiency, or environmental impact.
What are the potential risks associated with a cost-sharing R&D contract of this magnitude and duration?
Cost-sharing contracts carry the risk of cost overruns, as the final price is not fixed. The government shares in the financial burden, potentially exceeding initial estimates. For R&D, there's also the inherent risk of research failure, where the desired outcomes are not achieved despite significant investment. The long duration increases exposure to these risks.
How effectively does the full and open competition strategy ensure the best value for taxpayer dollars in this R&D context?
Full and open competition is designed to maximize the pool of potential offerors, fostering a competitive environment that should theoretically lead to better pricing and innovation. For R&D, it allows the government to access specialized expertise. However, the 'best value' in R&D is complex, balancing cost with technical merit and potential for groundbreaking discovery, which may not always be solely driven by the lowest bid.
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: RESEARCH AND DEVELOPMENT › Natural Resources and Environment R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST SHARING (T)
Evaluated Preference: NONE
Contractor Details
Address: 2411 GLENDALE MILFORD RD, CINCINNATI, OH, 45241
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,469,210
Exercised Options: $33,497,150
Current Obligation: $33,497,150
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2010-06-07
Current End Date: 2016-05-01
Potential End Date: 2018-08-30 00:00:00
Last Modified: 2018-10-16
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