DoD Awards $30.3M for Missile and Space Systems R&D to Miltec Corp
Contract Overview
Contract Amount: $30,312,963 ($30.3M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2004-08-31
End Date: 2014-09-17
Contract Duration: 3,669 days
Daily Burn Rate: $8.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200412!002516!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M04C0128 !A!N! !N! ! !20040831!20050831!009757360!009757360!009757360!N!MILTEC CORPORATION !678 DISCOVERY DRIVE !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000006072994!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!R!1!001!N!1G!Z!Y!Z! ! !N!B!N!N! ! !A! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $30.3 million to GENERAL ATOMICS for work described as: 200412!002516!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M04C0128 !A!N! !N! ! !20040831!20050831!009757360!009757360!009757360!N!MILTEC CORPORATION !678 DISCOVERY DRIVE !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADI… Key points: 1. Contract awarded for advanced technology development in missile and space systems. 2. Significant duration of over 10 years suggests a long-term, complex project. 3. Sole-source award raises questions about competition and potential cost efficiencies. 4. High dollar value for R&D indicates a critical area of defense focus.
Value Assessment
Rating: questionable
The contract value of $30.3M over 10 years is difficult to benchmark without specific per-unit cost data. The Cost Plus Award Fee structure can incentivize performance but may also lead to higher costs if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and may result in a higher price than if multiple vendors had competed.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the lack of competitive bidding.
Public Impact
Taxpayers may be overpaying due to the absence of competition. Long contract duration could indicate a critical but potentially inefficiently priced program. Lack of transparency in the sole-source award process hinders public scrutiny. Investment in advanced defense technology is crucial but requires careful cost management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Cost Plus Award Fee structure
Positive Signals
- Focus on critical R&D
- Potential for technological advancement
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced technology for missile and space systems. Spending in this area is critical for national security but requires rigorous oversight to ensure cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely precluded small business participation.
Oversight & Accountability
The sole-source award and Cost Plus Award Fee structure warrant close oversight to ensure the contractor is delivering value and managing costs effectively. Accountability for performance and spending is crucial.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Long contract duration (over 10 years) increases risk of cost escalation.
- Cost Plus Award Fee structure can incentivize higher spending.
- Lack of transparency in sole-source justification.
- Potential for inefficient use of taxpayer funds without competitive pressure.
Tags
research-and-development-in-the-physical, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.3 million to GENERAL ATOMICS. 200412!002516!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M04C0128 !A!N! !N! ! !20040831!20050831!009757360!009757360!009757360!N!MILTEC CORPORATION !678 DISCOVERY DRIVE !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000006072994!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !3! ! ! ! ! !999
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 $30.3 million.
What is the period of performance?
Start: 2004-08-31. End: 2014-09-17.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without specific documentation, it's difficult to ascertain the precise reasoning. However, the absence of competition means potential cost savings from a bidding process were forgone, raising concerns about taxpayer value.
How does the Cost Plus Award Fee structure ensure cost control and performance for this long-term R&D project?
The Cost Plus Award Fee (CPAF) structure allows the contractor to recover allowable costs plus an award fee based on performance against predetermined criteria. While CPAF can incentivize meeting specific goals, it also carries a risk of cost overruns if the award criteria are not stringent or if oversight is insufficient. The long duration amplifies this risk.
What are the expected technological advancements from this $30.3M investment, and how will their effectiveness be measured?
The contract specifies 'Research and Development in Physical, Engineering, and Life Sciences' with a focus on 'Missile and Space Systems-Advanced Tech Dev.' Specific technological advancements are not detailed in the provided data. Effectiveness measurement would typically be tied to milestones and deliverables outlined in the contract's Statement of Work, subject to government acceptance.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 678 DISCOVERY DR, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2004-08-31
Current End Date: 2014-09-17
Potential End Date: 2014-09-19 00:00:00
Last Modified: 2017-11-16
More Contracts from General Atomics
- CVN 79 Emals Long Lead Time Material — $1.7B (Department of Defense)
- 200310!000495!1700!A8050 !naval AIR Warfare Center, Aircra!n6833503c0205 !A!N! !N! !20030728!20041028!067638957!067638957!859181984!n!general Atomics !3550 General Atomics Court!san Diego !ca!92121!66000!073!06!san Diego !SAN Diego !california!+000004883000!n!n!000107026822!1710!aircraft Landing Equipment !c9e!all Other Supplies and Equipme!2000!not Discernable or Classified !336413!E! !3! ! ! ! ! !99990909!B! ! !A! !a!y!u!2!002!b! !A!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $928.2M (Department of Defense)
- CVN 78 Production Emals — $710.8M (Department of Defense)
- 200411!001061!1700!A8050 !naval AIR Warfare Center, Aircra!n6833504c0167 !A!N! !N! ! !20040402!20090403!067638957!067638957!859181984!n!general Atomics !3550 General Atomics Court!san Diego !ca!92121!37800!029!34!lakehurst AIR Engine!ocean !NEW Jersey!+000016000000!n!n!000145621824!1710!aircraft Landing Equipment !a1c!other Aircraft Equipment !223 !cvn(x) !541710!A!A!3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1g!a!n!z! ! !N!C!N! ! ! !z!b!a!a!000!a!b!n! ! ! !Y! ! !0001! ! — $590.2M (Department of Defense)
- CVN 81 Emals Pre-Production Planning — $511.0M (Department of Defense)
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)