DoD awards $13.4M for GEOINT Systems Engineering, raising questions on R&D value and competition
Contract Overview
Contract Amount: $13,429,605 ($13.4M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-11
End Date: 2025-05-10
Contract Duration: 607 days
Daily Burn Rate: $22.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: GEOSPATIAL INTELLIGENCE (GEOINT) SYSTEMS ENGINEERING AND INTEGRATION SUPPORT (GRIDS III MATOC (W5J9CQ18D0002) TASK ORDER)
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $13.4 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: GEOSPATIAL INTELLIGENCE (GEOINT) SYSTEMS ENGINEERING AND INTEGRATION SUPPORT (GRIDS III MATOC (W5J9CQ18D0002) TASK ORDER) Key points: 1. The contract focuses on Research and Development in physical and engineering sciences, a critical but often complex area for value assessment. 2. General Dynamics One Source LLC secured the award, highlighting potential concentration in specific defense contractors. 3. The 'Cost Plus Fixed Fee' structure introduces risk of cost overruns if not managed tightly. 4. The R&D sector (NAICS 541715) is vital for national security but can have long lead times for tangible outcomes.
Value Assessment
Rating: questionable
The $13.4M award for R&D services lacks clear performance metrics or comparable contracts for benchmarking. The Cost Plus Fixed Fee structure necessitates robust oversight to ensure costs align with research progress and deliverable value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific task order nature might limit the number of actual bidders compared to a broader solicitation.
Taxpayer Impact: The value of taxpayer funds is tied to the successful research outcomes and technological advancements derived from this contract.
Public Impact
Supports critical intelligence gathering capabilities through advanced GEOINT systems. Invests in cutting-edge research and development for national security applications. Potential for technological breakthroughs that could enhance defense and surveillance. Contract duration of approximately 20 months suggests focused project goals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize higher spending.
- R&D outcomes are inherently uncertain and may not yield expected results.
- Lack of specific performance metrics makes value assessment difficult.
- Small business participation is not indicated.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security functions.
- Contract is for a defined period, allowing for focused effort.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but often involves higher risk and longer payoff periods compared to established service contracts.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight from the Department of the Army to manage costs effectively and ensure alignment with research objectives. Regular reviews of progress and expenditures are essential for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- R&D value is inherently uncertain.
- Lack of specific performance metrics.
- No indication of small business subcontracting.
- Long duration for R&D projects can delay tangible benefits.
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.4 million to GENERAL DYNAMICS ONE SOURCE LLC. GEOSPATIAL INTELLIGENCE (GEOINT) SYSTEMS ENGINEERING AND INTEGRATION SUPPORT (GRIDS III MATOC (W5J9CQ18D0002) TASK ORDER)
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.4 million.
What is the period of performance?
Start: 2023-09-11. End: 2025-05-10.
How will the effectiveness of the R&D be measured given the inherent uncertainties in research outcomes?
Effectiveness will likely be measured through a combination of milestone achievements, technical reviews, prototype demonstrations, and the eventual applicability of the developed technologies to operational GEOINT requirements. The CPFF structure necessitates clear interim deliverables and progress reports to justify continued funding and assess the trajectory towards successful research outcomes.
What specific risks are associated with the Cost Plus Fixed Fee structure in this R&D context?
The primary risk with CPFF in R&D is the potential for cost overruns if the contractor does not efficiently manage resources or if unforeseen technical challenges significantly increase expenses. There's also a risk that the fixed fee might not adequately incentivize innovation if it's perceived as too low, or conversely, if the scope is poorly defined, the fee could become disproportionate to the effort.
Beyond the initial competition, how is ongoing value for taxpayer money ensured throughout the contract's lifecycle?
Ongoing value is ensured through rigorous program management, including regular technical and financial reviews, performance monitoring against defined milestones, and potential for contract modifications based on research progress and evolving requirements. The Department of the Army must maintain strong oversight to ensure the contractor remains focused on achieving the R&D objectives efficiently and cost-effectively.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W5J9CQ16R0008
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 3211 JERMANTOWN ROAD, FAIRFAX, VA, 22030
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,906,037
Exercised Options: $13,906,037
Current Obligation: $13,429,605
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $2,580,182
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W5J9CQ18D0002
IDV Type: IDC
Timeline
Start Date: 2023-09-11
Current End Date: 2025-05-10
Potential End Date: 2025-05-10 00:00:00
Last Modified: 2025-12-12
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