DoD's $83.4M contract with General Atomics for R&D services shows a lengthy performance period
Contract Overview
Contract Amount: $83,433,405 ($83.4M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2003-02-05
End Date: 2012-02-29
Contract Duration: 3,311 days
Daily Burn Rate: $25.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200308!000124!9700!ZD72 !DARPA CONTRACT MANAGEMENT DIR. !MDA97203C0024 !A!N! !N! !20030205!20040204!067638957!067638957!859181984!N!GENERAL ATOMICS !3550 GENERAL ATOMICS COURT!SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000001958908!N!N!000009652422!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !B! !D!N!U!1!001!N!1G!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064
Plain-Language Summary
Department of Defense obligated $83.4 million to GENERAL ATOMICS for work described as: 200308!000124!9700!ZD72 !DARPA CONTRACT MANAGEMENT DIR. !MDA97203C0024 !A!N! !N! !20030205!20040204!067638957!067638957!859181984!N!GENERAL ATOMICS !3550 GENERAL ATOMICS COURT!SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000001958908!N!N!000009652422!AD92!RD… Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. The contract's duration of over 9 years suggests a long-term research objective. 3. Awarded as a definitive contract, indicating a commitment to a specific scope of work. 4. The cost-plus-fixed-fee pricing structure allows for flexibility in research but requires careful oversight. 5. The contract was not competitively bid, raising questions about potential cost efficiencies. 6. The contractor, General Atomics, is a significant player in defense and aerospace.
Value Assessment
Rating: fair
The total award amount of $83.4 million for a nearly 10-year research and development effort is difficult to benchmark without more specific details on deliverables. The cost-plus-fixed-fee (CPFF) contract type can lead to cost overruns if not managed tightly. Given the lack of competition, it's challenging to assess if the pricing represents optimal value for money. However, the extended performance period might indicate a complex or phased research project where initial cost estimates are inherently uncertain.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation through diverse proposals.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. It also limits opportunities for other businesses to secure government contracts.
Public Impact
This contract primarily benefits the Department of Defense by funding advanced research and development activities. The services delivered are likely related to the development of new technologies or scientific advancements in physical, engineering, and life sciences. The geographic impact is centered around the contractor's location in San Diego, California, and potentially extends to research facilities and personnel involved. Workforce implications include employment for scientists, engineers, and support staff at General Atomics and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in suboptimal pricing.
- The extended duration of the contract increases the risk of scope creep or changing research priorities.
- Cost-plus-fixed-fee contracts require robust oversight to prevent cost overruns.
Positive Signals
- General Atomics is a well-established defense contractor with a track record in advanced technologies.
- The contract supports critical research and development for national security.
- The definitive contract structure provides a clear framework for the work to be performed.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, aiming to develop next-generation technologies. The market for such specialized R&D services is often dominated by a few key players with specific expertise, like General Atomics. Comparable spending in this area can vary widely depending on the specific technological focus, but significant government investment is typical for defense-related R&D.
Small Business Impact
There is no indication of a small business set-aside for this contract. As a sole-source award to a large prime contractor, the potential for small business subcontracting opportunities would depend on General Atomics' subcontracting plan and the nature of the R&D work. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is not discernible from this data alone.
Oversight & Accountability
Oversight for this contract would primarily be managed by the Department of Defense, likely through the Defense Contract Management Agency (DCMA), given its role in contract administration. The CPFF structure necessitates close monitoring of costs and progress to ensure adherence to the fixed fee and prevent unnecessary expenditures. Transparency is limited due to the sole-source nature and the classified or proprietary aspects often associated with defense R&D. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Advanced Research Projects Agency (DARPA) Contracts
- Department of Defense Research and Development Programs
- Advanced Technology Development Contracts
- Aerospace and Defense Sector Contracts
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Long contract duration
Tags
department-of-defense, research-and-development, definitive-contract, sole-source, cost-plus-fixed-fee, california, general-atomics, large-contract, long-duration, physical-engineering-life-sciences
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.4 million to GENERAL ATOMICS. 200308!000124!9700!ZD72 !DARPA CONTRACT MANAGEMENT DIR. !MDA97203C0024 !A!N! !N! !20030205!20040204!067638957!067638957!859181984!N!GENERAL ATOMICS !3550 GENERAL ATOMICS COURT!SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000001958908!N!N!000009652422!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !B! !D!N!U!1!001!N!1G!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Who is the contractor on this award?
The obligated recipient is GENERAL ATOMICS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $83.4 million.
What is the period of performance?
Start: 2003-02-05. End: 2012-02-29.
What specific research and development activities were encompassed by this contract?
The contract data indicates the North American Industry Classification System (NAICS) code 541710, which covers 'Research and Development in the Physical, Engineering, and Life Sciences.' However, the specific nature of the R&D is not detailed in the provided data. Given the contractor, General Atomics, and the awarding agency, the Department of Defense, it is highly probable that the research pertained to advanced defense technologies, such as aerospace systems, unmanned aerial vehicles (UAVs), directed energy weapons, or related scientific and engineering fields critical to national security. The lengthy performance period (2003-2012) suggests a project with significant scope or a phased approach to development.
How does the $83.4 million award compare to similar R&D contracts awarded by the DoD during that period?
Benchmarking this $83.4 million award requires context regarding the specific R&D focus and duration. During the early 2000s, the Department of Defense funded numerous large-scale R&D efforts. Contracts for advanced aerospace systems, materials science, or complex engineering projects could easily reach tens or hundreds of millions of dollars, especially over multi-year periods. For instance, contracts for developing new aircraft platforms or advanced weapon systems often exceeded this amount. Without knowing the precise technological domain, it's difficult to definitively state if $83.4 million was high or low, but it falls within the range of significant R&D investments for major defense contractors during that era.
What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for R&D?
The primary risks associated with this contract structure are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher costs than if the contract had been competed. The government may not achieve the best possible price. Secondly, the Cost-Plus-Fixed-Fee (CPFF) structure, while providing flexibility for R&D where costs can be uncertain, carries the risk of cost overruns. If the contractor's costs exceed initial estimates, the government still pays the agreed-upon fixed fee, but the total expenditure could be higher than anticipated. Effective oversight is crucial to mitigate these risks by closely monitoring expenditures and ensuring efficient performance.
What is General Atomics' track record with the federal government, particularly in R&D?
General Atomics is a well-established and significant defense contractor with a long history of working with the U.S. federal government, particularly the Department of Defense. They are renowned for their work in areas such as unmanned aerial systems (e.g., Predator and Reaper drones), advanced materials, and nuclear technologies. Their track record includes numerous large-scale R&D and production contracts. While specific performance metrics for this particular contract are not detailed here, General Atomics generally possesses the technical expertise and infrastructure required for complex defense R&D projects, making them a frequent recipient of such awards.
How did the extended performance period (2003-2012) impact the contract's value and risk?
The extended performance period of nearly ten years (from initial award in Feb 2003 to the stated end date of Feb 2012, though the data shows a duration of 3311 days which is over 9 years) significantly impacts both the value and risk profile. For value, it suggests a project requiring sustained effort and potentially complex, long-term development, which might justify a larger overall award. However, it also increases the risk of technological obsolescence, shifting strategic priorities within the DoD, or scope creep. Managing such a long-term effort requires robust program management to ensure the research remains relevant and cost-effective throughout its lifecycle. The CPFF structure, combined with a long duration, necessitates continuous oversight to prevent inefficiencies from accumulating over time.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-02-05
Current End Date: 2012-02-29
Potential End Date: 2012-02-29 00:00:00
Last Modified: 2016-06-27
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