General Electric Company awarded $21.9M contract for R&D in physical, engineering, and life sciences by the Department of Defense

Contract Overview

Contract Amount: $21,976,814 ($22.0M)

Contractor: General Electric Company

Awarding Agency: Department of Defense

Start Date: 2003-11-28

End Date: 2009-12-31

Contract Duration: 2,225 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 30

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200409!000102!9700!HR0011!DARPA CONTRACT MANAGEMENT DIR. !HR001104C0002 !A!N! !N! ! !20031128!20051127!137488664!137488664!001367960!N!GENERAL ELECTRIC COMPANY !ONE NEUMANN WAY !CINCINNATI !OH!45215!37490!009!25!LYNN !ESSEX !MASS !+000001081660!N!N!000016622801!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !99990909!B! ! !B! !A!N!U!2!030!E! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45215

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to GENERAL ELECTRIC COMPANY for work described as: 200409!000102!9700!HR0011!DARPA CONTRACT MANAGEMENT DIR. !HR001104C0002 !A!N! !N! ! !20031128!20051127!137488664!137488664!001367960!N!GENERAL ELECTRIC COMPANY !ONE NEUMANN WAY !CINCINNATI !OH!45215!37490!009!25!LYNN !ESSE… Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Significant duration of 2225 days suggests a complex, long-term research project. 3. Cost Plus Fixed Fee contract type indicates potential for cost overruns if not managed closely. 4. The contract was awarded through full and open competition, suggesting a competitive bidding process. 5. The North American Industry Classification System (NAICS) code 541710 points to a focus on scientific research and development services. 6. The contract's value of $21.9M places it in the mid-to-large range for R&D contracts. 7. The contractor, General Electric Company, is a large, established entity with significant experience in various sectors.

Value Assessment

Rating: fair

The contract value of $21.9 million for a period of approximately 6 years (2225 days) for R&D services appears to be within a reasonable range for complex scientific endeavors. However, without specific benchmarks for similar DARPA-funded applied research projects, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation if not meticulously managed. The awarded amount is a total obligation, and actual spending may vary.

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 a bid. The presence of 30 bids suggests a robust competitive environment for this particular R&D opportunity. A high number of bidders generally implies that the government received a wide range of proposals and pricing, potentially leading to a more favorable outcome for taxpayers. This level of competition is a positive indicator for price discovery and ensuring the government secures the best value.

Taxpayer Impact: The extensive competition for this contract suggests that taxpayers benefited from a rigorous selection process, likely resulting in a more competitive price than if it had been sole-sourced. This broad participation helps ensure that public funds are used efficiently.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially other government agencies that will utilize the research outcomes for national security or technological advancement. The services delivered are focused on advanced research and development in physical, engineering, and life sciences, aiming to push technological frontiers. The geographic impact is primarily national, with potential for broader global implications depending on the nature of the R&D. Workforce implications include employment for scientists, engineers, and support staff at General Electric Company and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
The long duration of the contract (2225 days) increases the risk of scope creep or changing technological landscapes impacting project relevance.
Specific details on the R&D focus are limited, making it difficult to assess the direct impact and potential for successful application.
The 'RDTE/OTHER DEFENSE-APPLIED RESEARCH' category is broad, and the specific nature of the research could carry inherent risks.
Reliance on a single large contractor, General Electric Company, could limit flexibility if unforeseen issues arise.

Positive Signals

Awarded through full and open competition with 30 bids, indicating a strong competitive process.
General Electric Company is a well-established entity with a proven track record in complex R&D and defense contracting.
The contract is for applied research, suggesting a focus on developing practical solutions or technologies.
The Department of Defense's involvement implies strategic importance and potential for significant technological advancement.
The contract duration, while long, allows for in-depth research and development without premature termination.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710, which covers R&D in Physical, Engineering, and Life Sciences. This sector is characterized by innovation, long development cycles, and significant investment. The Department of Defense is a major investor in R&D, seeking advancements in areas critical to national security. Comparable spending benchmarks for large-scale, multi-year applied research contracts by agencies like DARPA can range from tens to hundreds of millions of dollars, depending on the complexity and strategic importance of the research.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, as indicated by 'ss' being false. The primary contractor is General Electric Company, a large corporation. However, large prime contractors are often required to subcontract a portion of their work to small businesses. The extent to which General Electric Company will engage small businesses for this specific R&D effort is not detailed in the provided data, but it represents a potential opportunity for the small business ecosystem if subcontracting goals are met.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by 'sa'. DCMA is responsible for ensuring contractors meet performance, quality, and delivery requirements. The 'ov' field is not explicitly detailed, but standard DoD oversight mechanisms include contract surveillance, performance reviews, and financial audits. Transparency is generally maintained through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DARPA Research and Development Programs
Department of Defense Applied Research Initiatives
Advanced Technology Development Contracts
Scientific Research Services
Engineering and Physical Sciences Research

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration may lead to technological obsolescence or scope creep.
Specific R&D project details are not publicly disclosed, limiting assessment of direct impact and success metrics.
Potential for contractor performance issues over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to GENERAL ELECTRIC COMPANY. 200409!000102!9700!HR0011!DARPA CONTRACT MANAGEMENT DIR. !HR001104C0002 !A!N! !N! ! !20031128!20051127!137488664!137488664!001367960!N!GENERAL ELECTRIC COMPANY !ONE NEUMANN WAY !CINCINNATI !OH!45215!37490!009!25!LYNN !ESSEX !MASS !+000001081660!N!N!000016622801!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is GENERAL ELECTRIC COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2003-11-28. End: 2009-12-31.

What is the specific nature of the 'Research and Development in Physical, Engineering, and Life Sciences' being undertaken under this contract?

The provided data identifies the contract's purpose as 'RDTE/OTHER DEFENSE-APPLIED RESEARCH' under NAICS code 541710. While this broadly categorizes the work into physical, engineering, and life sciences R&D, the specific project details are not available in this summary. DARPA (Defense Advanced Research Projects Agency), the likely awarding entity given the 'HR0011' identifier, typically funds high-risk, high-reward research aimed at creating breakthrough technologies for national security. Without access to the contract statement of work or project descriptions, the precise scientific or engineering challenges being addressed remain unknown. This lack of specificity is common for early-stage or sensitive research contracts.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact the potential for cost overruns and value for money?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor (General Electric Company) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is common for R&D where the scope and final costs are difficult to estimate precisely upfront. While the 'fixed fee' provides some predictability for the contractor's profit, the 'cost plus' element means the government bears the risk of cost overruns if actual expenses exceed initial estimates. Effective oversight by the Defense Contract Management Agency (DCMA) is crucial to control costs, ensure efficiency, and prevent unnecessary expenditures. For taxpayers, the value for money depends heavily on the successful delivery of the R&D objectives within a reasonable cost range, which requires diligent monitoring of the contractor's spending and progress.

What is the track record of General Electric Company in performing similar R&D contracts for the Department of Defense?

General Electric Company (GE) is a large, diversified industrial conglomerate with extensive experience in defense contracting, aerospace, energy, and healthcare. They have a long history of performing complex research, development, testing, and evaluation (RDT&E) for the Department of Defense and other government agencies. While specific details on their performance for this particular contract (HR001104C0002) are not provided, GE's overall track record suggests a capacity to handle large-scale R&D projects. Their performance on similar contracts would typically be assessed through past performance evaluations during the bidding process and ongoing contract administration by agencies like DCMA. Given their size and scope, they are generally considered a capable contractor for advanced technological development.

How does the $21.9 million award compare to historical spending patterns for similar R&D categories by the Department of Defense?

The $21.9 million award for R&D in physical, engineering, and life sciences by the Department of Defense falls within a common range for applied research projects, particularly those funded by agencies like DARPA. DoD's annual R&D spending is in the tens of billions of dollars, encompassing a wide spectrum of research from basic science to advanced system development. Contracts of this magnitude are typical for projects requiring significant resources, specialized expertise, and extended timelines. While specific benchmarks vary greatly depending on the technological domain and project scope, $21.9 million represents a substantial investment aimed at achieving specific technological advancements deemed critical for national security. It is not an unusually large or small amount in the context of the DoD's overall R&D portfolio.

What are the potential risks associated with the long contract duration of 2225 days (over 6 years)?

A contract duration of 2225 days, or over six years, presents several potential risks for an R&D project. Firstly, the technological landscape can evolve rapidly; research initiated early in the contract might become obsolete or less relevant by its completion. Secondly, there's an increased risk of 'scope creep,' where the project's objectives or requirements expand beyond the original intent, potentially leading to cost overruns and delays. Thirdly, maintaining consistent focus and motivation from the contractor's team over such an extended period can be challenging. Finally, long-term contracts increase the government's exposure to potential changes in strategic priorities, funding availability, or contractor performance issues. Mitigation strategies include rigorous project management, regular reviews, and clear change control processes.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 30

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: ONE NEUMANN WAY, CINCINNATI, OH, 90

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline