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

Positive Signals

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

Risk Flags

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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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

More Contracts from Dynetics, Inc.

View all Dynetics, Inc. federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending