DoD's $50M Radio Frequency Modernization Contract Awarded to Dynetics, Inc. with No Competition
Contract Overview
Contract Amount: $49,953,336 ($50.0M)
Contractor: Dynetics, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-01-31
End Date: 2026-04-30
Contract Duration: 2,281 days
Daily Burn Rate: $21.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: GUIDED WEAPONS EVALUATION FACILITY RADIO FREQUENCY MODERNIZATION
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $50.0 million to DYNETICS, INC. for work described as: GUIDED WEAPONS EVALUATION FACILITY RADIO FREQUENCY MODERNIZATION Key points: 1. The contract focuses on R&D for guided weapons evaluation facilities. 2. Dynetics, Inc. is the sole awardee, raising questions about competition. 3. The project spans over 6 years, indicating a significant long-term investment. 4. The sector is Research and Development, specifically physical and engineering sciences.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning there was no open bidding process. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher overall cost to taxpayers compared to a competitively awarded contract.
Public Impact
Modernization of critical defense infrastructure could enhance national security capabilities. The sole-source nature of the award may limit opportunities for other innovative companies. Long-term investment in R&D signals a commitment to technological advancement in defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Focus on critical R&D
- Potential for technological advancement
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for maintaining a technological edge in defense.
Small Business Impact
The data provided does not indicate any specific provisions or considerations for small businesses in this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost-effectiveness and adherence to project goals. Transparency in the justification for no-competition is essential.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in award justification
- Long-term commitment without clear performance benchmarks
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.0 million to DYNETICS, INC.. GUIDED WEAPONS EVALUATION FACILITY RADIO FREQUENCY MODERNIZATION
Who is the contractor on this award?
The obligated recipient is DYNETICS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $50.0 million.
What is the period of performance?
Start: 2020-01-31. End: 2026-04-30.
What is the specific justification for awarding this contract on a sole-source basis, and how does it ensure value for taxpayer money?
The justification for a sole-source award typically involves unique capabilities, critical national security needs, or a lack of viable alternatives. Without this specific justification, it's challenging to assess the value proposition. Agencies must demonstrate that competition was not feasible or would be detrimental to national security interests to ensure taxpayer funds are used effectively.
What are the potential risks associated with a Cost Plus Fixed Fee contract for a long-term R&D project, especially without competition?
Cost Plus Fixed Fee contracts carry inherent risks of cost overruns, as the contractor is reimbursed for actual costs plus a fixed fee. Without competition, there's less incentive for the contractor to control costs rigorously. For long-term R&D, evolving requirements and unforeseen technical challenges can further escalate costs, making robust oversight critical to mitigate these risks.
How will the effectiveness of the radio frequency modernization be measured, and what are the key performance indicators for this project?
The effectiveness of the radio frequency modernization will likely be measured against specific technical performance requirements outlined in the contract. Key performance indicators could include signal clarity, data transmission rates, system reliability, and compatibility with existing and future defense systems. Regular testing and evaluation throughout the project lifecycle will be crucial to ensure these objectives are met.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1002 EXPLORER BLVD, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,443,325
Exercised Options: $53,443,325
Current Obligation: $49,953,336
Actual Outlays: $1,730,819
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA248720D0071
IDV Type: IDC
Timeline
Start Date: 2020-01-31
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-12
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