Missile Defense Agency contract for R&D services awarded to Computer Sciences Corporation for over $26.6 million

Contract Overview

Contract Amount: $26,699,490 ($26.7M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2004-08-02

End Date: 2007-09-30

Contract Duration: 1,154 days

Daily Burn Rate: $23.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200412!000554!9700!HQ0006!MISSILE DEFENSE AGENCY !HQ000604C0009 !A!N! !N! ! !20040802!20050331!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000003300000!N!N!000023467247!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !CAA !MDA SUPPORT !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!U!1!001!N!1A!Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: 200412!000554!9700!HQ0006!MISSILE DEFENSE AGENCY !HQ000604C0009 !A!N! !N! ! !20040802!20050331!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!03000!013!51!ARLINGTON !ARLI… Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Significant funding allocated for advanced technology development within the defense sector. 3. Contract duration of over three years suggests a substantial project scope. 4. Awarded as a definitive contract, indicating a long-term commitment. 5. The 'not competed' status raises questions about potential cost efficiencies and market engagement. 6. Contractor has a track record in providing IT and defense-related services.

Value Assessment

Rating: fair

The contract value of approximately $26.7 million for a duration of over three years for R&D services appears within a reasonable range for complex defense projects. However, without specific benchmarks for similar Missile Defense Agency (MDA) R&D efforts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The 'not competed' nature of the award means direct price comparisons to other offers are unavailable, potentially limiting the ability to ascertain if the government secured the most competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one contractor possesses the unique capabilities or proprietary knowledge required for the specific project, or in cases of urgent need. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation through multiple proposals.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. It also limits opportunities for other capable businesses to secure government contracts.

Public Impact

The primary beneficiary is the Missile Defense Agency, which receives critical R&D support for its advanced technology programs. Services delivered likely contribute to the development and enhancement of missile defense systems. The geographic impact is concentrated around the contractor's facilities and the agency's operational areas, primarily in Virginia. Workforce implications include employment for specialized researchers, engineers, and technical staff at Computer Sciences Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than if the contract had been competed.
Sole-source awards can reduce transparency and accountability in the procurement process.
Potential for contractor lock-in, making it difficult to switch providers in the future.
Limited opportunities for small businesses to participate in this specific contract.

Positive Signals

Award to a large, established contractor like Computer Sciences Corporation suggests a degree of reliability and experience.
The contract supports critical national defense initiatives, indicating a high level of strategic importance.
The funding allocation demonstrates a commitment to advancing missile defense technology.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced defense technologies. The market for such specialized R&D is often characterized by a limited number of highly capable firms. Comparable spending benchmarks for MDA R&D contracts can vary widely depending on the specific technology and project scope, but multi-million dollar awards for complex R&D are common within the defense industry.

Small Business Impact

This contract was not competed and there is no indication of a small business set-aside. As a sole-source award to a large prime contractor, it is unlikely to have direct subcontracting opportunities specifically designated for small businesses unless initiated by the prime. This limits the direct impact on the small business ecosystem for this particular procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Missile Defense Agency's contracting and program management offices. Accountability measures are inherent in the contract's terms and conditions, including performance requirements and payment schedules. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Missile Defense Agency Research and Development Programs
Advanced Technology Development Contracts
Department of Defense R&D Spending
Computer Sciences Corporation Defense Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency in procurement process.
Potential for cost overruns without competitive oversight.
Contract duration may indicate long-term reliance on a single vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. 200412!000554!9700!HQ0006!MISSILE DEFENSE AGENCY !HQ000604C0009 !A!N! !N! ! !20040802!20050331!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000003300000!N!N!000023467247!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !CAA !MDA SUPPORT !541710!E! !3! ! ! ! ! !999

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

Start: 2004-08-02. End: 2007-09-30.

What specific R&D activities were funded under this contract?

The provided data indicates the contract was for 'MDA SUPPORT' and falls under the NAICS code 541710 (Research and Development in Physical, Engineering, and Life Sciences). While the specific R&D activities are not detailed in the summary data, it is reasonable to infer that the work supported the Missile Defense Agency's mission, likely involving research into advanced materials, sensor technologies, interceptor systems, or command and control systems related to missile defense. The 'RDTE/OTHER DEFENSE-ADV TECH DEV' classification further suggests a focus on cutting-edge technological advancements crucial for national security.

How does the contract value compare to other MDA R&D contracts of similar scope?

Direct comparison of this $26.7 million contract to 'similar' MDA R&D contracts is challenging without more specific details on the project's technical scope and duration. MDA R&D projects can range from foundational research to advanced prototype development, each with vastly different cost profiles. However, for a definitive contract spanning over three years and involving advanced technology development, a value in the tens of millions is not unusual within the defense sector. The sole-source nature, however, prevents a direct comparison against competitive bids, making it difficult to ascertain if this represents optimal value.

What are the potential risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. This can lead to taxpayers paying more than necessary. Other risks include a lack of innovation that might arise from multiple bidders proposing different solutions, and a potential for contractor complacency or 'lock-in' where the agency becomes overly reliant on a single provider. Furthermore, it limits opportunities for other qualified companies to demonstrate their capabilities and secure government work, potentially hindering market dynamism.

What is Computer Sciences Corporation's track record with the Missile Defense Agency or similar defense contracts?

Computer Sciences Corporation (CSC), prior to its merger with the Enterprise Solutions business of HP, had a significant history of contracting with the U.S. government, including the Department of Defense and agencies like the Missile Defense Agency. Their expertise typically lies in IT services, systems integration, engineering support, and R&D. While this specific contract was sole-source, CSC's broader track record suggests they possess the technical capabilities and experience to handle complex defense-related R&D projects. Past performance reviews and contract histories would provide more granular detail on their specific performance with MDA.

What was the historical spending trend for this type of service by the Missile Defense Agency prior to this contract?

Analyzing historical spending trends for 'MDA SUPPORT' or similar R&D services by the Missile Defense Agency prior to this 2004 award would require access to historical federal procurement databases. Generally, MDA's budget and contract awards have fluctuated based on national security priorities and technological advancements in missile defense. Spending on R&D, particularly for advanced technologies, has historically been a significant component of the agency's budget. Without specific historical data, it's difficult to pinpoint trends, but the overall trend for defense R&D has often been substantial, driven by evolving threats.

Were there any specific justifications provided for the sole-source award, such as urgency or unique capabilities?

The provided data does not include the specific justification for the sole-source award. However, common reasons for sole-source procurements in the defense sector include the existence of unique technical capabilities held by only one contractor, the need for compatibility with existing systems where only one vendor can provide the necessary components or services, or urgent and compelling circumstances that preclude a competitive solicitation. For R&D contracts, it might also be due to proprietary data or technology developed by a specific entity.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

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