Air Force awards $5.5M for small glide munitions engineering, with Dynecoms Inc. securing the contract

Contract Overview

Contract Amount: $5,521,000 ($5.5M)

Contractor: Dynetics, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-03-31

End Date: 2024-04-12

Contract Duration: 378 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SMALL GLIDE MUNITIONS ENGINEERING SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to DYNETICS, INC. for work described as: SMALL GLIDE MUNITIONS ENGINEERING SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 378 days indicates a focused, medium-term project. 4. The award was a single delivery order, suggesting it's part of a larger, potentially existing, contract vehicle. 5. The North American Industry Classification System (NAICS) code 332993 points to ammunition manufacturing, a specialized defense sector. 6. The contract is for engineering services, implying a focus on design, development, or technical support rather than direct production.

Value Assessment

Rating: fair

The contract value of $5.5 million for engineering services related to small glide munitions appears to be within a reasonable range for specialized defense work. However, without specific benchmarks for similar engineering support contracts for munitions, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as the final cost is not fixed upfront and depends on the contractor's actual costs plus a negotiated fee. This necessitates robust oversight to ensure costs remain reasonable and the fee is justified by the work performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but the designation suggests a robust competitive environment. Full and open competition is generally preferred as it maximizes the pool of potential offerors and is expected to drive down prices through market forces.

Taxpayer Impact: Taxpayers benefit from full and open competition as it increases the likelihood of obtaining the best value and competitive pricing for defense engineering services.

Public Impact

The primary beneficiaries are the Department of the Air Force, which will receive engineering services for small glide munitions. The services delivered will likely involve technical expertise in the design, development, testing, or sustainment of munitions. The geographic impact is concentrated in Alabama, where Dynecoms, Inc. is located, suggesting potential local economic benefits. The contract may have implications for the specialized engineering and manufacturing workforce within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics or outcome-based measures in the provided data makes it difficult to assess effectiveness.
The award is a single delivery order, raising questions about whether this is a standalone effort or part of a larger, potentially less competitive, contract.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contractor, Dynecoms, Inc., is based in Alabama, potentially supporting regional economic development.
The contract addresses a critical defense capability: small glide munitions engineering.

Sector Analysis

The defense sector, particularly the segment focused on munitions manufacturing and engineering, is characterized by high technical barriers to entry and significant government investment. Spending in this area is driven by national security requirements and technological advancements. Contracts like this, for specialized engineering services, are crucial for maintaining and improving the capabilities of advanced weaponry. Comparable spending benchmarks are difficult to ascertain without more granular data on specific munitions types and engineering complexities, but the $5.5 million value suggests a focused, project-specific engagement rather than a broad research and development initiative.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false) and does not explicitly mention subcontracting requirements for small businesses (sb: false). Therefore, the direct impact on the small business ecosystem appears limited unless Dynecoms, Inc. voluntarily engages small businesses as subcontractors. Without specific subcontracting plans or goals, it's presumed that larger, established defense contractors are the primary participants in this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to scrutinize incurred costs and ensure the fixed fee is commensurate with the effort. Transparency is generally maintained through contract reporting mechanisms, but specific details on public accessibility of performance reports or audits are not provided. Inspector General (IG) jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Air Force Ammunition Procurement
Defense Engineering Services
Munitions Development Programs
Small Arms and Ammunition Manufacturing
Cost-Plus Contract Oversight

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Limited public information on specific performance metrics or expected outcomes.
Lack of explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to DYNETICS, INC.. SMALL GLIDE MUNITIONS ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is DYNETICS, 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 $5.5 million.

What is the period of performance?

Start: 2023-03-31. End: 2024-04-12.

What is Dynecoms, Inc.'s track record with the Department of Defense, particularly in munitions engineering?

Dynecoms, Inc. has a history of receiving contracts from the Department of Defense, including work related to engineering and technical services. While specific details on their performance in 'small glide munitions engineering' require deeper analysis of contract databases and performance reviews, their presence as a recipient of defense contracts suggests a level of established capability. Further investigation into past contract awards, delivery orders, and any reported performance issues or commendations would provide a more comprehensive understanding of their track record in this specialized area. The fact that they were awarded this contract under full and open competition implies they met the necessary qualifications and demonstrated competitive merit against other potential bidders.

How does the $5.5 million value compare to similar contracts for munitions engineering services?

Benchmarking the $5.5 million value for 'SMALL GLIDE MUNITIONS ENGINEERING SERVICES' against similar contracts is challenging without access to a comprehensive database of comparable procurements. However, for specialized engineering services within the defense sector, this value suggests a focused, project-specific effort rather than a large-scale development program. Contracts for advanced munitions engineering can range significantly, from a few million dollars for specific technical studies or component development to tens or hundreds of millions for full system development and integration. The Cost Plus Fixed Fee (CPFF) nature of this award means the final cost could fluctuate, making direct comparisons based solely on the initial award value potentially misleading. A more accurate comparison would involve analyzing the scope of work, duration, and complexity of services rendered in similar contracts.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. Unlike fixed-price contracts, the government agrees to pay the contractor's actual allowable costs plus a predetermined fixed fee. This structure incentivizes contractors to incur costs, as their fee remains constant regardless of the total cost. For the government, this means the final contract price is not known upfront and can exceed initial estimates if costs escalate. Effective risk mitigation requires robust government oversight, including detailed cost monitoring, audits of incurred expenses, and clear definition of allowable costs. Without stringent management, CPFF contracts can become more expensive than anticipated, potentially impacting program budgets and value for taxpayer money.

What is the expected program effectiveness or outcome of these engineering services?

The provided data focuses on the contractual award details and does not specify the expected program effectiveness or specific outcomes of the engineering services for small glide munitions. Typically, such engineering services aim to improve the design, performance, reliability, or cost-effectiveness of the munitions. This could involve activities like feasibility studies, prototype development, testing and evaluation, or technical support for existing systems. The ultimate effectiveness will depend on the quality of the engineering work performed by Dynecoms, Inc., the clarity of the requirements defined by the Air Force, and the successful integration of any resulting improvements into the operational capabilities of the Air Force. Performance metrics and evaluation criteria, if defined within the contract's statement of work, would offer more insight into expected outcomes.

How has the Department of Defense's spending on munitions engineering services evolved over the past five years?

Analyzing the evolution of Department of Defense (DoD) spending on munitions engineering services over the past five years requires access to comprehensive historical spending data across various agencies and contract types. Generally, spending in this area is influenced by geopolitical factors, modernization priorities, and the lifecycle of existing weapon systems. Periods of increased global tension or the development of new strategic threats often lead to heightened investment in advanced munitions and associated engineering support. Conversely, budget constraints or shifts in strategic focus might lead to reductions. Without specific aggregated data, it's difficult to provide precise figures, but trends often show sustained or increasing investment in areas critical to maintaining technological superiority and addressing evolving threats.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1002 EXPLORER BLVD, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $5,608,809

Exercised Options: $5,608,809

Current Obligation: $5,521,000

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $82,215

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865621DA015

IDV Type: IDC

Timeline