DoD's $64.7M Nanotechnology R&D Contract Awarded to General Atomics Under Full and Open Competition
Contract Overview
Contract Amount: $64,701,275 ($64.7M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2017-11-06
End Date: 2020-09-30
Contract Duration: 1,059 days
Daily Burn Rate: $61.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::CT::IGF BASELINE ENGINEERING
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $64.7 million to GENERAL ATOMICS for work described as: IGF::CT::IGF BASELINE ENGINEERING Key points: 1. Contract awarded for research and development in nanotechnology, a critical emerging technology sector. 2. General Atomics, a significant defense contractor, secured this award. 3. The contract was competed fully and openly, suggesting a competitive bidding process. 4. The award type is a Cost Plus Fixed Fee, which can present cost control challenges. 5. The contract duration was 1059 days, indicating a substantial R&D effort. 6. The contract was awarded by the Missile Defense Agency, highlighting its strategic importance. 7. The contract was awarded in California, a hub for defense and technology industries.
Value Assessment
Rating: fair
The contract's value of $64.7 million for a 1059-day nanotechnology R&D effort requires careful benchmarking. Without specific deliverables or milestones, assessing value-for-money is challenging. The Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Comparing this to similar R&D contracts in nanotechnology would be necessary to determine if the pricing is competitive and if the fixed fee is appropriate for the level of risk and effort involved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this specialized R&D requirement. While multiple bidders are positive, the specific number (3) doesn't necessarily guarantee the most competitive pricing or innovative solutions without further analysis of the proposals received and the specific nature of the nanotechnology R&D.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. However, the ultimate benefit depends on the effectiveness of the competition and the government's ability to select the best value proposal.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Missile Defense Agency, which gains access to advanced nanotechnology research. The services delivered are research and development in nanotechnology, aiming to advance defense capabilities. The geographic impact is concentrated in California, where the contract was performed. The contract supports a highly specialized workforce in the field of nanotechnology research and development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to incur costs to increase the fixed fee, if not properly structured.
- Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the contractor's performance and value.
- The duration of the contract (1059 days) requires sustained oversight to ensure progress and prevent scope creep.
Positive Signals
- Awarded under full and open competition, indicating a potentially robust selection process.
- General Atomics is a well-established defense contractor with a track record in complex projects.
- The contract focuses on nanotechnology R&D, a critical area for future defense capabilities.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on nanotechnology (NAICS code 541713). This is a highly specialized and innovative field with significant implications for defense applications, including materials science, sensors, and advanced manufacturing. The market for defense-related R&D is competitive, with significant government investment. Benchmarking this contract would involve comparing its value and duration to other government-funded nanotechnology R&D projects, as well as the typical cost structures for CPFF contracts in this domain.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, General Atomics, is a large defense firm, and any subcontracting would likely be determined by their own procurement strategies rather than specific set-aside requirements for this particular award.
Oversight & Accountability
Oversight for this contract would typically be managed by the Missile Defense Agency's contracting officers and program managers. Given the R&D nature and CPFF structure, robust oversight focusing on progress, cost control, and adherence to research objectives is crucial. Transparency would be facilitated through regular reporting requirements stipulated in the contract. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Missile Defense Systems R&D
- Advanced Materials Research
- Nanotechnology Applications in Defense
- Department of Defense Research Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires careful oversight to manage costs.
- Nanotechnology R&D is inherently high-risk, with uncertain outcomes.
- Limited competition (3 bidders) may impact price discovery.
Tags
department-of-defense, missile-defense-agency, general-atomics, nanotechnology, research-and-development, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, california, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $64.7 million to GENERAL ATOMICS. IGF::CT::IGF BASELINE ENGINEERING
Who is the contractor on this award?
The obligated recipient is GENERAL ATOMICS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $64.7 million.
What is the period of performance?
Start: 2017-11-06. End: 2020-09-30.
What is General Atomics' track record with Cost Plus Fixed Fee (CPFF) contracts, particularly in R&D for the Department of Defense?
General Atomics has a significant history of working with the Department of Defense across various contract types, including CPFF. Their experience spans complex engineering, manufacturing, and R&D projects. For CPFF contracts, their track record would need to be assessed based on historical performance data, including instances of cost overruns or underruns, adherence to schedule, and the successful delivery of research outcomes. A detailed review of past performance evaluations and contract close-out data would provide a clearer picture of their efficiency and reliability in managing such agreements, especially in specialized R&D areas like nanotechnology.
How does the $64.7 million value for 1059 days of nanotechnology R&D compare to similar contracts awarded by the Missile Defense Agency or other DoD components?
Benchmarking this contract's value requires comparing it to similar nanotechnology R&D efforts within the DoD. The average annual cost for this contract is approximately $6.1 million ($64.7M / 2.87 years). This figure needs to be contextualized against the scope, complexity, and specific research objectives. Contracts for cutting-edge R&D can vary widely in cost based on the novelty of the research, the required expertise, and the expected outcomes. A comprehensive analysis would involve identifying comparable contracts, examining their duration, funding levels, and the specific technological advancements they aimed to achieve to determine if the $64.7 million represents a fair market price for the anticipated R&D.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for nanotechnology R&D, and how are they mitigated in this case?
The primary risks with a CPFF contract for R&D, especially in a field as nascent as nanotechnology, include potential cost overruns if the contractor's actual costs exceed estimates, and a reduced incentive for cost efficiency since the fee is fixed regardless of the final cost. For the government, there's also the risk that the fixed fee might be disproportionately high relative to the effort or risk undertaken by the contractor. Mitigation strategies typically involve stringent oversight, detailed cost tracking, clearly defined research milestones, and robust negotiation of the fixed fee based on thorough cost analysis and risk assessment. The Missile Defense Agency would need to ensure strong program management and technical oversight to manage these risks effectively.
What specific advancements or capabilities is this nanotechnology R&D contract expected to deliver for the Missile Defense Agency?
The provided data does not specify the exact advancements or capabilities expected from this nanotechnology R&D contract. Nanotechnology has broad applications in defense, including the development of novel materials with enhanced strength and reduced weight, advanced sensors for improved detection, more efficient energy storage, and potentially new methods for stealth or countermeasures. For the Missile Defense Agency, this research could be aimed at improving the performance, survivability, or cost-effectiveness of missile defense systems through the application of nanoscale materials or devices. Further details would likely be found in the contract's Statement of Work (SOW) or technical exhibits.
How has the Missile Defense Agency's spending on nanotechnology R&D evolved over the past five years, and does this contract represent a significant shift?
Information on the Missile Defense Agency's historical spending specifically on nanotechnology R&D is not provided in the given data. To assess this, one would need to analyze historical budget documents and contract databases for the MDA. This $64.7 million contract represents a substantial investment in a single R&D effort. Whether it signifies a 'significant shift' would depend on the MDA's overall R&D portfolio and its prior investment levels in nanotechnology. A trend analysis of MDA's R&D expenditures in emerging technologies would be necessary to provide context.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Nanotechnology
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ014715S0001
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 92121
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: $64,701,275
Exercised Options: $64,701,275
Current Obligation: $64,701,275
Actual Outlays: $932,483
Subaward Activity
Number of Subawards: 56
Total Subaward Amount: $24,298,511
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-11-06
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2020-08-05
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