DoD's Ballistic Missile Defense Contract: $619M for Advanced Tech Development
Contract Overview
Contract Amount: $55,578,244 ($55.6M)
Contractor: General Dynamics Information Technology Inc.
Awarding Agency: Department of Defense
Start Date: 1996-10-08
End Date: 2010-10-01
Contract Duration: 5,106 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 199710!9700!0146!ZD60 !BALLISTIC MISSILE DEFENSE ORG. !HQ000695C0006 !A!*!P00033 !19970304!19971031!074811357!074811357!619713282!N!3A837!BDM CORPORATION OF SAUDIA ARAB!1501 BDM WAY !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !0001!+000008748611!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !8711!3!*!*!C!B!B!*!A !U!U!2!002!B!* !Z!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $55.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: 199710!9700!0146!ZD60 !BALLISTIC MISSILE DEFENSE ORG. !HQ000695C0006 !A!*!P00033 !19970304!19971031!074811357!074811357!619713282!N!3A837!BDM CORPORATION OF SAUDIA ARAB!1501 BDM WAY !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFA… Key points: 1. Contract awarded for Ballistic Missile Defense Systems, focusing on advanced technology development. 2. Significant value of $619.7 million over a 5106-day period. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is Defense R&D, a critical area for national security. 5. The contract type is Cost Plus Fixed Fee, which can pose cost control challenges.
Value Assessment
Rating: fair
The contract value of $619.7 million is substantial. Benchmarking against similar advanced defense technology development contracts would be necessary to assess if this pricing is competitive, especially given the Cost Plus Fixed Fee structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: While competition was robust, the Cost Plus Fixed Fee structure may lead to higher overall costs for taxpayers if not managed closely.
Public Impact
Enhances national security through advanced missile defense capabilities. Supports technological innovation in a high-stakes defense sector. Creates jobs and economic activity within the defense industry and related supply chains. Potential for long-term strategic advantages in defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize cost overruns.
- Long contract duration (5106 days) increases risk of scope creep and evolving requirements.
- Complexity of Ballistic Missile Defense Systems may lead to unforeseen technical challenges.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Focus on critical national security technology.
- Contractor has a history with the Ballistic Missile Defense Organization.
Sector Analysis
This contract falls within the Defense R&D sector, specifically focusing on advanced technology development for Ballistic Missile Defense Systems. Spending in this area is crucial for national security but often involves high costs and long development cycles.
Small Business Impact
The data does not indicate any specific set-asides or participation goals for small businesses in this contract. Further investigation would be needed to determine the extent of small business involvement.
Oversight & Accountability
Oversight would be critical given the Cost Plus Fixed Fee structure and the complexity of the technology. The Defense Contract Management Agency (DCMA) is listed as the support agency, implying a level of oversight.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee structure
- Long contract duration
- Complexity of technology
- Potential for scope creep
- Need for robust oversight
Tags
department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. 199710!9700!0146!ZD60 !BALLISTIC MISSILE DEFENSE ORG. !HQ000695C0006 !A!*!P00033 !19970304!19971031!074811357!074811357!619713282!N!3A837!BDM CORPORATION OF SAUDIA ARAB!1501 BDM WAY !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !0001!+000008748611!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !8711!3!*!*!C!B!B!*!A !U!U!2!0
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 $55.6 million.
What is the period of performance?
Start: 1996-10-08. End: 2010-10-01.
What is the total cost incurred by the government for this contract, considering the Cost Plus Fixed Fee structure and potential for cost overruns?
The initial award amount is $619,713,282. However, with a Cost Plus Fixed Fee contract, the final cost can exceed the initial estimate. Detailed financial reports and audits would be required to determine the total cost incurred, accounting for actual expenses plus the fixed fee, and to assess any potential cost overruns against the baseline.
How effectively has the contractor managed risks associated with developing complex ballistic missile defense technologies under this contract?
Assessing risk management effectiveness requires reviewing contractor performance reports, milestone achievements, and any documented technical challenges or delays. Given the long duration and complexity, periodic reviews by the contracting officer and technical monitors are essential to ensure risks are being identified and mitigated proactively, preventing significant setbacks or cost increases.
What is the demonstrated return on investment for the taxpayer in terms of enhanced ballistic missile defense capabilities achieved through this contract?
The return on investment is measured by the successful development and deployment of effective ballistic missile defense systems that deter or intercept threats. Evaluating this requires assessing the system's operational readiness, performance in tests, and its contribution to the overall national defense strategy, alongside the total expenditure over the contract's lifecycle.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Csra LLC (UEI: 080011988)
Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1996-10-08
Current End Date: 2010-10-01
Potential End Date: 2010-10-01 00:00:00
Last Modified: 2017-02-09
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