General Atomics awarded $117.6M for R&D in physical, engineering, and life sciences by DoD
Contract Overview
Contract Amount: $117,648,096 ($117.6M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2018-08-20
End Date: 2022-06-30
Contract Duration: 1,410 days
Daily Burn Rate: $83.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: RESEARCH&DEVELOPMENT LABOR
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $117.6 million to GENERAL ATOMICS for work described as: RESEARCH&DEVELOPMENT LABOR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee (CPAF), which incentivizes contractor performance. 3. Performance period spans over 1400 days, indicating a long-term research and development effort. 4. The contract is a definitive contract, typically used for complex or long-duration requirements. 5. The North American Industry Classification System (NAICS) code 541715 points to R&D in physical, engineering, and life sciences. 6. The contract was awarded by the Department of Defense, specifically the Missile Defense Agency. 7. The contract has a significant value, reflecting substantial investment in advanced research.
Value Assessment
Rating: fair
Benchmarking the value of this specific R&D contract is challenging without detailed cost breakdowns and comparable project data. The Cost Plus Award Fee (CPAF) structure allows for flexibility but requires careful oversight to ensure costs remain reasonable and that award fees are tied to demonstrable performance improvements. The contract's duration suggests a significant investment, and its value should be assessed against the expected technological advancements and strategic objectives it aims to achieve. Without more granular data on the specific research objectives and deliverables, a definitive value-for-money assessment is difficult.
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 5 bids suggests a healthy level of interest and competition for this R&D requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award by offering competitive proposals.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value and encourages innovation among potential bidders, ultimately driving down costs or improving research outcomes.
Public Impact
The primary beneficiaries are the Department of Defense and potentially national security, through advancements in missile defense technology. The services delivered involve research and development in physical, engineering, and life sciences, focusing on advanced scientific discovery and application. The geographic impact is primarily within California, where General Atomics is located, but the technological advancements could have national or global implications. Workforce implications include employment for scientists, engineers, and support staff involved in cutting-edge research and development activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts if not rigorously managed.
- The long duration of the contract could lead to scope creep or evolving research needs that require careful management.
- Assessing the true 'award' value requires detailed understanding of the performance metrics and achieved outcomes.
Positive Signals
- Award fee structure incentivizes contractor performance and achievement of specific objectives.
- Full and open competition suggests a robust selection process and potential for innovation.
- The contract is with a known entity, General Atomics, which likely has relevant expertise in defense R&D.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, driven by national security imperatives and technological advancements. Companies like General Atomics are key players in this sector, often competing for significant government contracts to develop next-generation technologies. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by the Department of Defense or other federal agencies for similar scientific endeavors.
Small Business Impact
The 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 stemming from a specific set-aside. However, as a large prime contract, General Atomics may engage small businesses as subcontractors for specialized services or components, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Missile Defense Agency (MDA) within the Department of Defense. Accountability measures are embedded in the Cost Plus Award Fee (CPAF) structure, where performance against defined objectives determines additional fee payments. Transparency would be facilitated through contract reporting requirements and potentially through public contract databases, though specific R&D details may be sensitive. Inspector General jurisdiction would apply for any investigations into fraud, waste, or abuse.
Related Government Programs
- Missile Defense Systems R&D
- Advanced Technology Development
- Department of Defense Research Contracts
- Aerospace and Defense R&D
- Scientific Research Services
Risk Flags
- Cost Overrun Risk
- Technological Obsolescence
- Performance Measurement Difficulty
- Long-Term Funding Stability
Tags
research-and-development, department-of-defense, missile-defense-agency, definitive-contract, cost-plus-award-fee, full-and-open-competition, california, large-contract, physical-sciences, engineering, life-sciences
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $117.6 million to GENERAL ATOMICS. RESEARCH&DEVELOPMENT LABOR
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 $117.6 million.
What is the period of performance?
Start: 2018-08-20. End: 2022-06-30.
What specific research areas are covered under NAICS code 541715 for this contract?
NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' encompasses a broad range of scientific inquiry. For this specific contract with General Atomics by the Missile Defense Agency, it likely pertains to advanced research directly supporting missile defense systems. This could include areas such as advanced materials, propulsion systems, sensor technology, guidance and control systems, electronic warfare, and potentially aspects of directed energy or countermeasure development. The 'physical, engineering, and life sciences' designation suggests a focus on the scientific principles and engineering applications that underpin complex defense technologies, rather than purely theoretical or biological research.
How does the Cost Plus Award Fee (CPAF) structure typically function in R&D contracts?
The Cost Plus Award Fee (CPAF) contract structure is designed to provide flexibility in R&D environments where precise cost and performance outcomes are difficult to define upfront. Under CPAF, the contractor is reimbursed for all allowable costs incurred in performing the contract. In addition to cost reimbursement, the contractor has the opportunity to earn an award fee based on the government's subjective determination of the contractor's performance against pre-defined criteria and objectives. These criteria are typically outlined in an 'Award Fee Plan' and can include factors like technical achievement, schedule adherence, and cost control. The government's Contracting Officer determines the amount of award fee earned, which can range from zero to a maximum amount. This structure incentivizes contractors to exceed minimum performance requirements.
What are the potential risks associated with a long-duration R&D contract like this one?
Long-duration R&D contracts, such as this one spanning over 1400 days, carry several inherent risks. One primary risk is 'scope creep,' where the project's objectives or requirements may expand beyond the original intent, potentially leading to cost overruns and schedule delays. Another risk is technological obsolescence; the research pursued might become outdated before completion due to rapid advancements in the field. Furthermore, the long timeline can make it challenging to maintain consistent contractor focus and government oversight. Changes in government priorities or funding availability over such an extended period also pose a risk. Finally, the complexity of R&D means that achieving the desired breakthroughs is not guaranteed, leading to a risk of not realizing the full expected return on investment.
How does the Missile Defense Agency (MDA) typically evaluate R&D proposals?
The Missile Defense Agency (MDA), like other defense research entities, typically evaluates R&D proposals through a rigorous process that considers multiple factors. Key evaluation criteria often include the offeror's technical approach and understanding of the research problem, the proposed research plan's feasibility and innovation, the contractor's past performance and relevant experience, the qualifications of the key personnel, and the realism and adequacy of the proposed cost and schedule. For contracts like this one, awarded under full and open competition, the evaluation aims to identify the offeror that presents the best overall value to the government, balancing technical merit, risk, and cost. Specific emphasis is placed on the potential for the proposed research to contribute to the MDA's mission objectives.
What is the significance of General Atomics being the contractor for this R&D effort?
General Atomics is a well-established defense contractor with a significant track record in developing advanced technologies, particularly in areas relevant to defense and energy. Their involvement in this R&D contract suggests a high level of technical capability and experience in complex engineering and scientific endeavors. The company is known for its work in areas such as unmanned aerial systems, nuclear technologies, and advanced defense systems. For the Missile Defense Agency, awarding a contract to a company like General Atomics likely signifies confidence in their ability to execute challenging R&D projects and contribute to critical national security objectives. Their established infrastructure and expertise can accelerate research progress and mitigate some of the inherent risks in advanced development.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: HQ027717R0005
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
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: $133,171,742
Exercised Options: $117,648,096
Current Obligation: $117,648,096
Actual Outlays: $13,278,386
Subaward Activity
Number of Subawards: 80
Total Subaward Amount: $112,483,913
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-08-20
Current End Date: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2022-11-07
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