DoD's $153M AN/BSY-1 Sonar System contract awarded to Digital System Resources, Inc. for R&D
Contract Overview
Contract Amount: $78,184,848 ($78.2M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2001-06-13
End Date: 2005-12-09
Contract Duration: 1,640 days
Daily Burn Rate: $47.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200110!016112!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002401C6239 !A!N!*!N!P00001 !20010613!20030216!153245857!153245857!153245857!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000002566000!N!N!000000000000!AC64!RDTE/ELECTRONICS & COMMUNICATION EQ-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION !2GST!AN/BSY-1 (V) SONAR !334511!*!*!1! ! ! !*!*!*!B!*!*!A! !D !N!R!1!001!N!1A!A!Y!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001!
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $78.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 200110!016112!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002401C6239 !A!N!*!N!P00001 !20010613!20030216!153245857!153245857!153245857!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRF… Key points: 1. Contract focused on research, development, testing, and evaluation (RDT&E) for advanced sonar technology. 2. Significant investment in electronics and communication equipment, specifically for the AN/BSY-1 Sonar system. 3. Contract duration of over 5 years indicates a long-term commitment to system development. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The contract type, Cost Plus Award Fee (CPAF), incentivizes contractor performance while managing costs. 6. Prime contractor is Digital System Resources, Inc., with General Dynamics Mission Systems, Inc. as a subcontractor.
Value Assessment
Rating: fair
The total award amount of $153,245,857 for the AN/BSY-1 Sonar system R&D appears substantial. Benchmarking this against similar complex defense R&D contracts is challenging without more specific technical details. However, the Cost Plus Award Fee (CPAF) structure suggests an effort to control costs while allowing for performance-based incentives. The contract's duration and scope imply a significant technological undertaking, making direct value-for-money assessments difficult without performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating that while competition was sought, certain sources may have been excluded based on specific criteria. The presence of multiple bidders is implied by 'full and open competition,' which generally leads to better price discovery and potentially lower costs for the government. The specific exclusion of sources warrants further investigation to understand its impact on the competitive landscape.
Taxpayer Impact: A competitive bidding process, even with exclusions, is generally beneficial for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, potentially leading to cost savings and innovation.
Public Impact
The primary beneficiaries are the U.S. Navy, which will receive advanced sonar capabilities for its platforms. The contract delivers research, development, demonstration, and validation services for critical defense electronics. The geographic impact is centered around the contractor's location in Fairfax, Virginia, and potentially naval facilities where the system will be deployed. Workforce implications include specialized engineering and technical roles within Digital System Resources, Inc. and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts if not managed rigorously.
- The 'Exclusion of Sources' clause in the competition type requires scrutiny to ensure fairness and optimal value.
- Complexity of the AN/BSY-1 Sonar system may lead to unforeseen technical challenges and delays.
- Reliance on a single prime contractor for such a critical R&D effort could pose a risk if performance falters.
Positive Signals
- Award under full and open competition suggests a robust selection process.
- The Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
- The contract's long duration allows for thorough development and testing of advanced technology.
- Involvement of a major defense contractor like General Dynamics Mission Systems, Inc. as a subcontractor indicates a strong technical team.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on R&D for electronics and communication equipment. The market for advanced sonar systems is highly specialized, dominated by a few key defense contractors. Spending in this area is driven by national security requirements and technological advancements in naval warfare. Comparable spending benchmarks would typically involve other major defense R&D programs for sensor systems or electronic warfare capabilities.
Small Business Impact
This contract does not appear to have a specific small business set-aside. The prime contractor, Digital System Resources, Inc., is a small business, which is a positive signal for the small business ecosystem. However, the subcontracting plan and its impact on other small businesses are not detailed in the provided data. Further analysis would be needed to determine the extent of small business participation as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the Naval Sea Systems Command (NAVSEA) and the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the Cost Plus Award Fee structure, which includes performance metrics and award fees. Transparency is generally maintained through contract reporting mechanisms, though specific details of R&D progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- AN/SQQ-89 Surface Ship Torpedo Defense System
- Submarine Combat Systems
- Advanced Acoustic Processing
- Naval Sonar Technology Development
- Defense Electronics R&D
Risk Flags
- Potential for cost overruns in CPAF contracts.
- Complexity of advanced sonar R&D.
- Impact of 'Exclusion of Sources' on competition.
- Long development timelines for defense systems.
Tags
defense, department-of-defense, naval-sea-systems-command, rdte, electronics-and-communication-equipment, sonar, definitive-contract, cost-plus-award-fee, full-and-open-competition, virginia, small-business-prime, complex-project
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $78.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 200110!016112!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002401C6239 !A!N!*!N!P00001 !20010613!20030216!153245857!153245857!153245857!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000002566000!N!N!000000000000!AC64!RDTE/ELECTRONICS & COMMUNICATION EQ-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION !2GST!AN/BSY-1 (V) SONAR !334511!*!*!1! ! ! !*!*!*!B!*!*!A!
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 $78.2 million.
What is the period of performance?
Start: 2001-06-13. End: 2005-12-09.
What is the specific technical capability of the AN/BSY-1 Sonar system and how does it advance current naval sonar technology?
The AN/BSY-1 Sonar system is a complex suite of acoustic sensors and processing equipment designed for submarines. Its primary function is to detect, classify, and track underwater threats, such as enemy submarines and torpedoes. This particular contract focuses on the research, development, demonstration, and validation of the system, implying advancements beyond existing capabilities. While specific technical details are often classified, it is understood to involve enhanced acoustic detection ranges, improved target classification algorithms, and potentially integration with other combat systems for a more comprehensive situational awareness. The 'Digital System Resources, Inc.' and 'General Dynamics Mission Systems, Inc.' involvement suggests a focus on modern digital signal processing and potentially artificial intelligence applications to interpret complex acoustic data more effectively and rapidly than older analog systems.
How does the 'Full and Open Competition after Exclusion of Sources' clause impact the overall cost and innovation for this contract?
The 'Full and Open Competition after Exclusion of Sources' clause presents a nuanced approach to competition. 'Full and Open Competition' is the preferred method, aiming to solicit offers from all responsible sources. However, the 'Exclusion of Sources' indicates that specific potential bidders were intentionally not considered. The reasons for exclusion could range from proprietary technology requirements, specific security clearances, or unique capabilities possessed by the included bidders. While this might limit the breadth of competition compared to a purely 'Full and Open' scenario, it can also ensure that the selected bidders possess the highly specialized expertise or technology necessary for complex R&D like the AN/BSY-1 Sonar. The impact on cost and innovation depends heavily on the justification for the exclusions; if valid, it can lead to focused innovation among highly qualified entities. If the exclusions were arbitrary, it could stifle competition and potentially increase costs.
What are the key performance indicators (KPIs) used to assess the success of this Cost Plus Award Fee (CPAF) contract?
For a Cost Plus Award Fee (CPAF) contract like this one for the AN/BSY-1 Sonar system R&D, key performance indicators (KPIs) are crucial for determining award fees. While specific KPIs are not detailed in the provided data, they typically revolve around technical performance, schedule adherence, and cost management. For R&D, technical KPIs might include achieving specific detection ranges, signal-to-noise ratios, processing speeds, or successful demonstration of new algorithms. Schedule KPIs would focus on meeting key development milestones and delivery dates for prototypes or test results. Cost KPIs would involve managing expenditures within projected budgets and demonstrating efficient resource utilization. The 'Award Fee' component means the contractor earns a fee based on the government's subjective evaluation of their performance against these pre-defined criteria, incentivizing them to exceed minimum requirements.
What is the historical spending trend for the AN/BSY-1 Sonar system or similar naval acoustic R&D programs?
Historical spending on the AN/BSY-1 Sonar system or similar naval acoustic R&D programs can be substantial and span multiple years, reflecting the complexity and long development cycles of advanced defense technologies. While the specific contract awarded to Digital System Resources, Inc. totals $153,245,857 over its duration, similar programs often involve significant investments across different phases, from initial concept development through full-scale production and integration. For instance, major sonar system upgrades or new platform integrations for the Navy can run into hundreds of millions or even billions of dollars over their lifecycle. Spending trends are influenced by evolving threats, technological advancements (like AI and digital signal processing), and overall defense budget allocations. Tracking spending on related programs like the AN/SQQ-89 or other submarine combat system components would provide a broader context for the investment in the AN/BSY-1.
What is the track record of Digital System Resources, Inc. in managing large-scale defense R&D contracts?
Digital System Resources, Inc. (DSR) has a track record that includes significant work within the defense sector, particularly in areas related to command, control, communications, computers, and intelligence (C4I) systems, as well as electronic warfare and sensor development. As a small business, DSR has often participated in complex projects, sometimes as a prime contractor on specific components or research efforts, and often as a key subcontractor to larger defense primes. Their involvement in the AN/BSY-1 Sonar system R&D contract, valued at over $153 million, indicates a demonstrated capability to manage substantial R&D efforts. While specific details on past project performance, cost overruns, or schedule adherence for DSR's largest contracts would require deeper investigation into contract databases and performance reports, their selection for this significant NAVSEA contract suggests a positive assessment of their technical expertise and program management capabilities by the Department of Defense.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 12450 FAIR LAKES CIR STE 800, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2001-06-13
Current End Date: 2005-12-09
Potential End Date: 2005-12-09 00:00:00
Last Modified: 2023-08-16
More Contracts from General Dynamics Mission Systems, Inc.
- 200410!005969!2100!w15p7t!usa Communications-Electronics !w15p7t04ce405 !A!N! !N! ! !20040716!20111230!046863929!046863929!001381284!n!general Dynamics Decision Syst!8201 E Mcdowell Road !scottsdale !az!85257!65000!013!04!scottsdale !maricopa !arizona !+000010000000!n!n!000000000000!ac63!rdte/Electronics&communication Eq-Adv Tech DEV !A7 !electronics and Communication Equip !360 !jtrs Cluster I !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!b! !A!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $1.5B (Department of Defense)
- Federal Contract — $1.4B (Department of Defense)
- THE Space Network (SN) Consists of a Space Segment Comprised of the Tracking and Data Relay Satellites (tdrss), and a Ground Segment (sngs). the SN Provides the Capability for Global Space-To-Ground Telecommunications and Tracking Coverage for LOW Earth Orbit (LEO) and Near-Earth Spaceflight Missions, Including Both Robotic and Human Space Flight. the Sngs Includes Facilities and Systems Located AT the White Sands Complex (WSC) AT LAS Cruces, NM the Guam Remote Ground Terminal (grgt) AT Guam and Space Network Expansion (SNE) East AT Blossom Point, MD. the Purpose of the Sgss Project IS to Implement a Modern Ground Segment That Will Enable the SN to Continue to Deliver High Quality Services to the SN Community, Meet Stakeholder Requirements, and Significantly Reduce Required Operations and Maintenance Resources — $1.2B (National Aeronautics and Space Administration)
- Federal Contract — $1.2B (Department of Defense)
- SDA Tranche 1 Operations and Integration — $861.6M (Department of Defense)
View all General Dynamics Mission Systems, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)