DoD's $43.6M R&D contract for hybrid electric drive technology awarded to General Atomics
Contract Overview
Contract Amount: $43,639,482 ($43.6M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2009-07-08
End Date: 2017-09-30
Contract Duration: 3,006 days
Daily Burn Rate: $14.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TAS::17 1320::TAS DEVELOPMENT OF A PROOF OF CONCEPT HYBRID ELECTRIC DRIVE (HED). ARRA::YES::ARRA
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $43.6 million to GENERAL ATOMICS for work described as: TAS::17 1320::TAS DEVELOPMENT OF A PROOF OF CONCEPT HYBRID ELECTRIC DRIVE (HED). ARRA::YES::ARRA Key points: 1. Contract awarded for research and development in physical sciences, focusing on hybrid electric drive technology. 2. Significant duration of 3006 days suggests a long-term, complex research effort. 3. Awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a specific but competitive procurement process. 4. The contract's value of $43.6M falls within a typical range for advanced R&D projects of this nature. 5. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a critical sector for technological advancement. 6. The contract's completion date in 2017 suggests the project's outcomes are historical, offering insights into past technological development. 7. The use of a Cost Plus Fixed Fee (CPFF) contract type is common for R&D where scope can evolve.
Value Assessment
Rating: fair
The contract value of $43.6 million for a multi-year R&D effort in hybrid electric drive technology appears within a reasonable range for such specialized research. Benchmarking against similar large-scale defense R&D contracts would provide a more precise value-for-money assessment. The CPFF contract type suggests that costs were anticipated to be variable, with a fixed fee for the contractor's effort, which is standard for R&D where precise cost estimation is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This procurement method implies that while the competition was intended to be open, certain sources were excluded, possibly due to specialized capabilities or prior involvement. The number of bidders is not specified, but this exclusion suggests a potentially narrower competitive field than a truly open competition, which could impact price discovery.
Taxpayer Impact: Taxpayers benefit from specialized R&D, but the exclusion of sources may have limited the potential for achieving the lowest possible price through broader competition.
Public Impact
The primary beneficiary is the Department of Defense, seeking advancements in hybrid electric drive technology for potential military applications. The services delivered are research and development, aiming to create a proof of concept for a hybrid electric drive system. The geographic impact is primarily within California, where the contract was managed by the Defense Contract Management Agency. Workforce implications include specialized engineers, scientists, and technicians involved in advanced R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources could lead to higher costs.
- The long contract duration (3006 days) increases the risk of cost overruns or scope creep.
- CPFF contract type can incentivize higher spending if not closely monitored.
- Lack of specific performance metrics in the provided data makes it difficult to assess project success.
- The ARRA designation might imply a focus on economic stimulus, potentially influencing procurement decisions beyond pure technical merit.
Positive Signals
- Award to General Atomics, a known entity in defense and energy sectors, suggests a level of contractor capability.
- Research and Development in advanced technologies like hybrid electric drives is crucial for future defense capabilities.
- The contract was competed, indicating an effort to secure external expertise rather than relying solely on internal capabilities.
- The ARRA designation may have accelerated funding for critical research during an economic downturn.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for advanced propulsion systems, including hybrid electric drives, is driven by both defense and commercial interests seeking efficiency and performance improvements. Comparable spending benchmarks for large-scale defense R&D projects can range from tens to hundreds of millions of dollars, depending on the technological complexity and strategic importance.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside provisions for this particular award. The focus was likely on specialized capabilities available from larger or specific research entities.
Oversight & Accountability
Oversight for this contract was managed by the Defense Contract Management Agency (DCMA). As a Cost Plus Fixed Fee contract, DCMA would be responsible for monitoring expenditures, ensuring compliance with contract terms, and verifying the contractor's progress towards research objectives. Transparency is generally facilitated through contract reporting requirements, though specific public access to detailed R&D progress reports can be limited due to the sensitive nature of the technology.
Related Government Programs
- Advanced Propulsion Systems Research
- Defense Technology Development
- Energy Efficiency Initiatives
- American Recovery and Reinvestment Act (ARRA) Projects
Risk Flags
- Long contract duration increases risk of cost overruns and scope creep.
- CPFF contract type may reduce contractor incentive for cost control.
- Limited competition due to source exclusion could impact price.
- Technology developed may face obsolescence due to extended timeline.
Tags
research-and-development, department-of-defense, general-atomics, hybrid-electric-drive, cost-plus-fixed-fee, full-and-open-competition-after-exclusion-of-sources, california, arra, large-contract, long-duration-contract, defense-contract-management-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.6 million to GENERAL ATOMICS. TAS::17 1320::TAS DEVELOPMENT OF A PROOF OF CONCEPT HYBRID ELECTRIC DRIVE (HED). ARRA::YES::ARRA
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 $43.6 million.
What is the period of performance?
Start: 2009-07-08. End: 2017-09-30.
What was the specific technological objective of the 'PROOF OF CONCEPT HYBRID ELECTRIC DRIVE (HED)'?
The specific technological objective was to develop and demonstrate a proof of concept for a Hybrid Electric Drive (HED) system. While the exact specifications are not detailed in the provided data, HED systems typically aim to combine a conventional power source (like an internal combustion engine) with an electric motor and battery system to improve fuel efficiency, reduce emissions, and enhance performance characteristics. For defense applications, this could translate to quieter operation, improved power generation for onboard systems, or enhanced mobility in various terrains.
How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method differ from standard full and open competition?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method is a variation of full and open competition where, after initial solicitation, certain sources are excluded from consideration. This exclusion typically occurs when a specific need arises that can only be met by a limited number of responsible sources, or when it's determined to be in the government's best interest to exclude certain entities. Unlike a sole-source award, it implies that multiple sources were initially considered or solicited, but a subset was then identified for exclusion, potentially due to unique capabilities, prior work, or specific security requirements. This can lead to a more focused, but potentially less competitive, procurement environment compared to unrestricted full and open competition.
What are the typical risks associated with Cost Plus Fixed Fee (CPFF) contracts in R&D settings?
Cost Plus Fixed Fee (CPFF) contracts, while common for R&D where costs are uncertain, carry inherent risks. For the government, the primary risk is that the contractor may have less incentive to control costs, as the fee is fixed regardless of the final cost incurred. This can lead to cost overruns if the initial cost estimates are inaccurate or if the project scope expands. The government bears the risk of all allowable costs. For the contractor, the risk lies in underestimating the costs, which could erode their profit margin if the fixed fee does not adequately cover their efforts. Effective oversight and clear definition of work are crucial to mitigate these risks.
What does the ARRA designation imply for this contract?
The 'ARRA::YES' designation indicates that this contract was funded, at least in part, by the American Recovery and Reinvestment Act of 2009. ARRA was a stimulus package enacted in response to the Great Recession, aimed at boosting the economy through investments in infrastructure, energy, transportation, and R&D, among other areas. For this contract, it suggests that the project was prioritized for funding under the ARRA initiative, potentially to accelerate technological development, create jobs, or stimulate economic activity within the relevant research sector during that period.
How might the long contract duration (3006 days) impact the project's outcome and cost?
A contract duration of 3006 days (over 8 years) for an R&D project presents several potential impacts. On the positive side, it allows for in-depth research, iterative development, and adaptation to evolving technological landscapes. However, it also significantly increases the risk of cost escalation due to inflation, changes in material costs, and potential scope creep. Furthermore, maintaining consistent project focus and technical expertise over such a long period can be challenging. The extended timeline might also mean that the technology developed could be nearing obsolescence by the time the project concludes, requiring careful management and potential mid-project adjustments.
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 › Energy R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
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
Financial Breakdown
Contract Ceiling: $46,901,706
Exercised Options: $46,901,706
Current Obligation: $43,639,482
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-07-08
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2025-04-01
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