DoD's $29.7M Contract for 'GREMLINS' Research Raises Questions on Value and Competition
Contract Overview
Contract Amount: $29,765,400 ($29.8M)
Contractor: Dynetics, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-03-24
End Date: 2018-08-25
Contract Duration: 884 days
Daily Burn Rate: $33.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF GREMLINS, NEW START
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $29.8 million to DYNETICS, INC. for work described as: IGF::OT::IGF GREMLINS, NEW START Key points: 1. The contract awarded to Dynetics, Inc. for $29.7 million focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The cost-plus-fixed-fee contract type can sometimes lead to cost overruns if not managed carefully. 4. The specific nature of 'GREMLINS' research is not detailed, impacting public understanding of its value.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility in R&D, can be less price-predictive than fixed-price contracts. Without detailed cost breakdowns or performance metrics, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the effectiveness of this competition in securing the best value is not explicitly detailed.
Taxpayer Impact: The impact on taxpayers is uncertain without a clear understanding of the project's necessity and the efficiency of the awarded price.
Public Impact
Taxpayers may be funding advanced research with unclear public benefit. The 'GREMLINS' project name suggests a potentially sensitive or classified area of research. The contract duration and value warrant scrutiny to ensure efficient use of public funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on project deliverables and public benefit.
- Potential for cost overruns with CPFF contract type.
- Limited insight into the specific R&D outcomes.
Positive Signals
- Awarded under full and open competition.
- Contract awarded to a single entity, Dynetics, Inc.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS code 541712. Spending in this sector is crucial for innovation but requires careful oversight to ensure taxpayer funds are used effectively for national priorities.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring adherence to contract terms and performance standards.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed project description.
- Cost Plus Fixed Fee contract type.
- Potential for undefined scope creep.
- Unclear public benefit or return on investment.
- Limited information on performance metrics.
Tags
research-and-development-in-the-physical, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.8 million to DYNETICS, INC.. IGF::OT::IGF GREMLINS, NEW START
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 $29.8 million.
What is the period of performance?
Start: 2016-03-24. End: 2018-08-25.
What is the specific objective and expected outcome of the 'GREMLINS' research project, and how does it align with Department of Defense priorities?
The specific objectives and expected outcomes of the 'GREMLINS' research are not detailed in the provided data. Understanding the project's alignment with DoD priorities is crucial for justifying the $29.7 million investment and assessing its strategic value to national security or technological advancement.
How was the 'best value' determined during the full and open competition, considering the Cost Plus Fixed Fee contract type?
While awarded under full and open competition, the CPFF structure necessitates a thorough evaluation of technical approach, past performance, and management capabilities alongside price. The 'best value' determination would involve weighing these factors to ensure the chosen proposal offered the most advantageous solution for the government, despite the inherent cost uncertainties of CPFF.
What are the potential risks associated with the Cost Plus Fixed Fee contract for this R&D project, and what mitigation strategies are in place?
The primary risk with CPFF is the potential for cost growth if the scope of work expands or unforeseen challenges arise, potentially exceeding the initial budget. Mitigation strategies typically include robust government oversight, clear definition of contract milestones, regular performance reviews, and potentially incentive clauses to control costs and ensure efficient project execution.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: FA865016R7618
Offers Received: 12
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, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,784,127
Exercised Options: $29,765,400
Current Obligation: $29,765,400
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-03-24
Current End Date: 2018-08-25
Potential End Date: 2018-08-25 00:00:00
Last Modified: 2018-11-16
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