DoD's $315M contract for electronics and communication equipment advanced technology development awarded to Dornier

Contract Overview

Contract Amount: $10,901,047 ($10.9M)

Contractor: Dornier Gesellschaft MIT Besch

Awarding Agency: Department of Defense

Start Date: 2002-03-28

End Date: 2010-09-16

Contract Duration: 3,094 days

Daily Burn Rate: $3.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200206!002105!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0702CK410 !A!N! !Y! !20020328!20030928!315016881!326774411!498999044!N!DORNIER GESELLSCHAFT MIT BESCH!AN DER B 31 !IMMENSTAAD !GM!* !* !* !GM!* !* !GERMANY !+000000860000!N!N!000000000000!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !3! ! ! ! ! !20030928!B! ! !A! !D!N!J!1!001!N!1G!Z!N!Z!B !GM!N!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001!

Plain-Language Summary

Department of Defense obligated $10.9 million to DORNIER GESELLSCHAFT MIT BESCH for work described as: 200206!002105!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0702CK410 !A!N! !Y! !20020328!20030928!315016881!326774411!498999044!N!DORNIER GESELLSCHAFT MIT BESCH!AN DER B 31 !IMMENSTAAD !GM!* !* !* !GM!* !* … Key points: 1. Contract awarded for advanced technology development in electronics and communication equipment. 2. Significant funding allocated for research, development, testing, and evaluation (RDTE). 3. Contractor is a German entity, indicating international collaboration or sourcing. 4. The contract duration spans over 3000 days, suggesting a long-term project. 5. The award was not competed, raising questions about potential cost efficiencies. 6. The specific nature of the 'advanced technology development' is not detailed, implying potential classification or proprietary information.

Value Assessment

Rating: questionable

The total award amount of $315,016,881 over approximately 8.5 years for advanced technology development in electronics and communication equipment is substantial. Without comparable contracts or detailed performance metrics, it is difficult to definitively assess value for money. The lack of competition suggests that benchmarking against market rates or other similar contracts is not feasible, potentially leading to a less competitive price.

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 or when there are urgent needs that preclude a competitive process. The lack of competition limits the government's ability to explore alternative solutions and potentially secure more favorable pricing.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not benefit from the price reductions typically achieved through competitive bidding.

Public Impact

The primary beneficiary is the Department of Defense, which receives advanced electronics and communication equipment. The contract supports the development of cutting-edge technologies crucial for national security. Geographic impact is primarily within Germany for the contractor's operations, with potential downstream effects on U.S. defense capabilities. Workforce implications include specialized engineering and technical roles within Dornier Gesellschaft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Limited transparency into the specific technologies being developed.
Potential for cost overruns in long-term advanced development projects.

Positive Signals

Focus on advanced technology development is critical for maintaining military superiority.
Award to an international firm could foster technological exchange.
Long contract duration suggests a strategic, long-term investment.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the development of advanced electronics and communication equipment. The market for such specialized technologies is characterized by high R&D costs, long development cycles, and significant barriers to entry. Comparable spending benchmarks are difficult to establish due to the 'advanced technology development' nature, which often involves proprietary research and unique capabilities.

Small Business Impact

There is no indication of small business set-asides or subcontracting plans associated with this contract. As a sole-source award to an international firm, the direct impact on the U.S. small business ecosystem is likely minimal, unless Dornier subcontracts with U.S. small businesses, which is not specified.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures would be defined in the contract terms, focusing on milestones and deliverables for the advanced technology development. Transparency may be limited due to the classified or proprietary nature of the research.

Related Government Programs

Department of Defense Research and Development Contracts
Advanced Electronics and Communication Systems
International Defense Procurement

Risk Flags

Sole-source award
Long contract duration
Lack of detailed public information on technology developed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to DORNIER GESELLSCHAFT MIT BESCH. 200206!002105!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0702CK410 !A!N! !Y! !20020328!20030928!315016881!326774411!498999044!N!DORNIER GESELLSCHAFT MIT BESCH!AN DER B 31 !IMMENSTAAD !GM!* !* !* !GM!* !* !GERMANY !+000000860000!N!N!000000000000!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !3! ! ! ! ! !20030928!B

Who is the contractor on this award?

The obligated recipient is DORNIER GESELLSCHAFT MIT BESCH.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2002-03-28. End: 2010-09-16.

What specific advanced technologies were developed under this contract, and what is their current operational status within the DoD?

The provided data indicates the contract was for 'RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV' with the North American Industry Classification System (NAICS) code 334511, pertaining to 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' However, the specific advanced technologies developed are not detailed in the extract. This level of specificity is often classified or considered proprietary information by defense contractors. To ascertain the operational status, one would need to consult DoD program offices, unclassified program executive summaries, or public reports on technology insertion and modernization efforts that may have utilized the outcomes of this contract. Without further information, it's impossible to detail the specific technologies or their current deployment.

How does the awarded amount of $315 million compare to similar advanced technology development contracts in the electronics and communication sector?

Benchmarking this $315 million contract against similar advanced technology development contracts is challenging due to the specialized nature of 'advanced technology development' and the lack of competition. Typically, RDTE contracts can vary widely in cost depending on the technological maturity, scope, and duration. Contracts for fundamental research might be smaller, while those for developing complex systems or prototypes could be significantly larger. The fact that this was a sole-source award to Dornier Gesellschaft mbH, a German company, further complicates direct comparisons with U.S.-based, competed contracts. To provide a meaningful comparison, one would need access to a database of similar sole-source RDTE contracts or detailed cost breakdowns for comparable advanced development projects within the DoD's electronics and communication portfolio.

What were the justifications for awarding this contract on a sole-source basis instead of through full and open competition?

The provided data explicitly states the contract type as 'NOT COMPETED,' indicating a sole-source award. The specific justification for this sole-source determination is not included in the data extract. Common justifications for sole-source awards in defense contracting include: the unique capability or specialized knowledge possessed by only one source; urgent and compelling needs where competition is not feasible; or when the government determines that only one source can meet the requirements. For advanced technology development, it's possible that Dornier possessed unique intellectual property, patented technology, or prior development expertise deemed essential for the project, making competition impractical or detrimental to the program's objectives. A formal Justification for Other Than Full and Open Competition (JOFOC) would typically be required and documented internally by the contracting agency.

What is the track record of Dornier Gesellschaft mbH in delivering advanced technology development contracts for the U.S. Department of Defense?

The provided data identifies 'DORNIER GESELLSCHAFT MIT BESCH' as the contractor. While this specific contract award is for a substantial amount ($315M) and spans a significant period (2002-2010), the extract does not detail Dornier's broader track record with the U.S. DoD. To assess their history, one would need to examine historical contract databases (like FPDS or USASpending) for other awards to this entity, analyze past performance reviews, and investigate any prior involvement in similar advanced technology development programs. Without this broader context, it's difficult to definitively characterize their overall track record specifically for U.S. DoD advanced technology development projects beyond this single, significant award.

What are the potential risks associated with a long-duration (over 3000 days) sole-source contract for advanced technology development?

Long-duration, sole-source contracts for advanced technology development carry several inherent risks. Firstly, the lack of competition throughout the contract's life can lead to reduced incentive for cost control and innovation, potentially resulting in higher overall expenditures than a competed contract. Secondly, the extended timeline increases the risk of technological obsolescence; the technologies being developed might be outdated by the time they are fielded, or market needs could shift. Thirdly, without regular competitive pressure, there's a risk of contractor complacency or a decline in performance quality. Finally, the government's flexibility to adapt to changing requirements or incorporate new technological advancements from other sources is limited, potentially locking it into a specific, possibly suboptimal, technological path.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: AN DER B 31, IMMENSTAAD

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline