DoD's $81M R&D Contract with General Dynamics: A Decade of Research and Development
Contract Overview
Contract Amount: $81,236,742 ($81.2M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-07-19
End Date: 2016-09-06
Contract Duration: 3,702 days
Daily Burn Rate: $21.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: AVE
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $81.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: AVE Key points: 1. Significant investment in R&D, indicating a focus on technological advancement. 2. Sole awardee, General Dynamics Mission Systems, Inc., suggests specialized capabilities. 3. Long contract duration (3702 days) implies complex, ongoing project requirements. 4. No small business participation noted, potentially limiting broader economic impact.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly. Without specific benchmarks for similar R&D efforts, assessing value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open, the single award to General Dynamics suggests they were the only viable bidder or possessed unique qualifications. This limits price discovery through competitive bidding.
Taxpayer Impact: Taxpayer funds were directed towards a single entity for a decade, raising questions about whether competitive pressures ensured the best possible price for the research conducted.
Public Impact
Long-term commitment to a single contractor for advanced research. Potential for technological breakthroughs funded by taxpayers. Lack of transparency on specific deliverables and outcomes over the contract's lifespan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee structure
- Lack of small business participation
- Long contract duration
- Limited competitive pressure on pricing
Positive Signals
- Awarded under full and open competition
- Significant investment in R&D
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for national security and technological innovation, but often involves high uncertainty and long development cycles.
Small Business Impact
The contract explicitly states no small business participation. This indicates that the scope of work or required expertise was likely beyond the capacity of most small businesses, or they were not actively sought.
Oversight & Accountability
The long duration and cost-plus-fixed-fee nature of this contract warrant close oversight to ensure funds are used efficiently and effectively towards defined research objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to cost-plus-fixed-fee structure.
- Lack of demonstrated small business involvement.
- Limited transparency on specific R&D outcomes.
- Long contract duration may obscure initial objectives.
- Single award limits competitive benchmarking.
Tags
research-and-development-in-the-physical, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $81.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. AVE
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $81.2 million.
What is the period of performance?
Start: 2006-07-19. End: 2016-09-06.
What specific technological advancements or research outcomes were achieved through this $81 million investment over nearly ten years?
The provided data lacks specific details on the research outcomes. A comprehensive review would require access to project reports, milestone achievements, and final deliverables to assess the tangible benefits and return on investment for the taxpayer. Without this, the value remains qualitative.
Given the full and open competition, why did only one contractor, General Dynamics, ultimately receive this significant R&D award?
While advertised as full and open, the single award suggests General Dynamics possessed unique qualifications, proprietary technology, or was the only entity capable of meeting the stringent requirements. This could indicate a lack of market competition for this specific niche or a highly specialized requirement.
How effectively was taxpayer money utilized under this cost-plus-fixed-fee contract to achieve the intended research and development goals?
The cost-plus-fixed-fee structure inherently carries risk of cost escalation. Effective utilization depends heavily on robust oversight, clear performance metrics, and stringent management by the contracting agency to ensure the fixed fee remained appropriate and costs were controlled.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,962,908
Exercised Options: $79,286,042
Current Obligation: $81,236,742
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-07-19
Current End Date: 2016-09-06
Potential End Date: 2016-09-06 00:00:00
Last Modified: 2022-06-29
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