DoD's $105M R&D contract for MLCS awarded to General Dynamics Information Technology, Inc

Contract Overview

Contract Amount: $104,836,076 ($104.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-02-28

End Date: 2026-01-30

Contract Duration: 3,258 days

Daily Burn Rate: $32.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: IGF::OT::IGF MEDIUM LARGESAT COMMON SOLUTION (MLCS)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $104.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF MEDIUM LARGESAT COMMON SOLUTION (MLCS) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which aligns costs with performance. 3. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a key area for innovation. 4. The contract duration is substantial, spanning over 3,200 days, indicating a long-term project. 5. The contract is a Delivery Order under a larger IDIQ, suggesting it's part of a broader framework agreement. 6. The contractor, General Dynamics Information Technology, Inc., is a significant player in the federal IT and defense sectors.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total ceiling of the parent IDIQ contract and the specific services rendered. However, the contract type (CPIF) aims to control costs by incentivizing the contractor to meet performance targets. The duration of over 8 years suggests a significant investment, and the value of over $100 million indicates a substantial project. Further analysis would require comparing the cost structure and performance metrics against similar R&D efforts within the DoD.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust competitive environment at the IDIQ level, which likely influenced the pricing for this delivery order. The number of bidders for the parent IDIQ contract would provide further insight into the level of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive research and development services. The contract supports advancements in physical, engineering, and life sciences research, potentially leading to new technologies and capabilities. The geographic impact is primarily within Virginia, where the contractor is located, but the technological advancements could have broader national implications. The contract likely involves a skilled workforce of researchers, engineers, and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPIF contract type can lead to cost overruns if performance targets are not well-defined or if the government's oversight is insufficient.
The long duration of the contract increases the risk of scope creep or technological obsolescence.
Without details on the specific R&D objectives, it's difficult to assess the true value and potential impact of the research.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that could yield better value.
The CPIF structure incentivizes the contractor to achieve specific performance goals, potentially leading to more efficient outcomes.
General Dynamics Information Technology is an established contractor with a significant presence in the federal sector.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, enabling the development of advanced technologies and capabilities. The market for R&D services within the federal government is substantial, with significant investments made annually across various agencies. Comparable spending benchmarks would typically involve analyzing other R&D contracts within the DoD and across similar scientific domains.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, General Dynamics Information Technology, may engage small businesses as subcontractors depending on the project's needs and their own subcontracting policies.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. The Cost Plus Incentive Fee (CPIF) structure necessitates robust financial and performance oversight to ensure the contractor is meeting objectives and managing costs effectively. Transparency would be enhanced through regular reporting requirements and potential audits by the Inspector General, though specific IG jurisdiction would depend on the nature of any investigations.

Related Government Programs

Department of Defense Research and Development
Information Technology Services
Advanced Technology Development
Engineering Services
Scientific Research

Risk Flags

Long contract duration increases risk of obsolescence.
CPIF contracts require diligent oversight to manage costs.
Specific R&D objectives and outcomes are not detailed in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $104.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF MEDIUM LARGESAT COMMON SOLUTION (MLCS)

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $104.8 million.

What is the period of performance?

Start: 2017-02-28. End: 2026-01-30.

What is the specific nature of the 'MLCS' (MEDIUM LARGESAT COMMON SOLUTION) being researched under this contract?

The provided data does not specify the exact nature of the 'MEDIUM LARGESAT COMMON SOLUTION' (MLCS). However, given the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences except Biotechnology) and the awarding agency (Department of the Air Force), it is highly probable that MLCS pertains to a technological solution related to satellite systems, potentially for communication, intelligence, surveillance, or reconnaissance. The 'medium' and 'large' descriptors might refer to the size or capability class of the satellite or the associated ground systems. Further details would require access to the contract's SOW (Statement of Work) or related documentation.

How does the Cost Plus Incentive Fee (CPIF) structure work for this contract, and what are the key performance metrics?

A Cost Plus Incentive Fee (CPIF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs and also receives a fee that is adjusted based on whether the final cost is above or below a pre-determined target cost. The incentive is typically tied to achieving specific performance objectives, such as meeting technical milestones, delivery schedules, or quality standards. For this contract, the specific performance metrics and the formula for adjusting the fee would be detailed in the contract's Statement of Work (SOW) and the contract clauses. Without access to these documents, the precise incentive structure and metrics remain unknown, but they are crucial for effective government oversight and ensuring value for money.

What is the historical spending pattern for MLCS or similar R&D projects within the Department of the Air Force?

Analyzing historical spending patterns for MLCS or similar R&D projects within the Department of the Air Force requires access to historical contract databases and budget information. The current contract, valued at over $104 million, represents a significant investment. To understand historical trends, one would look at previous contracts awarded for satellite technology R&D, communication systems, or related scientific research by the Air Force. This would involve examining the number of similar contracts, their values, durations, and the contractors involved. A trend of increasing or decreasing investment in this area could indicate shifts in strategic priorities or technological advancements.

What is General Dynamics Information Technology, Inc.'s track record with similar R&D contracts for the Department of the Air Force?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with extensive experience in IT, defense, and R&D. Their track record with the Department of the Air Force (DAF) likely includes numerous contracts across various domains. To assess their performance on similar R&D contracts, one would review their past performance evaluations, any contract awards or modifications, and potentially any past performance issues or disputes. GDIT's established presence suggests they possess the technical expertise and infrastructure to handle complex R&D projects, but a detailed review of their specific history with the DAF for R&D would be necessary for a comprehensive assessment.

What are the potential risks associated with a long-duration R&D contract like this, and how are they mitigated?

Long-duration R&D contracts, such as this one spanning over 3,200 days (approximately 8.9 years), carry inherent risks. These include technological obsolescence, where the developed technology becomes outdated before project completion; scope creep, where project requirements expand beyond the original intent; and potential cost overruns due to unforeseen challenges or changing market conditions. Mitigation strategies typically involve robust contract management, including regular reviews of progress and technical milestones, clear change control processes, and performance-based incentives. The CPIF structure itself is a risk mitigation tool, aiming to align contractor and government interests. Furthermore, periodic re-evaluation of the project's strategic relevance can help ensure continued alignment with evolving defense needs.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $109,944,450

Exercised Options: $107,893,968

Current Obligation: $104,836,076

Actual Outlays: $2,105,364

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU414

IDV Type: IDC

Timeline