Naval Research contract for advanced technology development awarded to Bluefin Robotics for over $10.4 million

Contract Overview

Contract Amount: $10,489,018 ($10.5M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-06-11

End Date: 2007-12-31

Contract Duration: 2,029 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200209!001457!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001402C0204 !A!N! !N! !20020611!20060610!073229523!073229523!073229523!N!BLUEFIN ROBOTICS CORPORATION !301 MASSACHUSETTS AVENUE !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !+000001807970!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!002!E! !Z!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: QUINCY, NORFOLK County, MASSACHUSETTS, 02169

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 200209!001457!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001402C0204 !A!N! !N! !20020611!20060610!073229523!073229523!073229523!N!BLUEFIN ROBOTICS CORPORATION !301 MASSACHUSETTS AVENUE !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDL… Key points: 1. Contract focuses on research and development in advanced defense technologies. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 4. Performance period spans over five years, indicating a long-term investment in technology. 5. The primary service area is R&D in Physical, Engineering, and Life Sciences. 6. The contractor, Bluefin Robotics, is positioned within the specialized defense technology sector.

Value Assessment

Rating: fair

The contract value of over $10.4 million for advanced defense technology R&D appears within a reasonable range for specialized projects. However, without specific benchmarks for similar R&D efforts in autonomous underwater vehicles or related fields, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Comparing this to other R&D contracts of similar scope and complexity would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates an initial intent for broad competition, the 'exclusion of sources' clause suggests specific criteria or prior relationships might have narrowed the field. The presence of two bids (no=2) indicates some level of competition, but it's not extensive. This limited competition could potentially impact price discovery, as fewer bidders may lead to less aggressive pricing.

Taxpayer Impact: The limited number of bidders suggests that taxpayers may not have benefited from the most competitive pricing achievable through a wider solicitation. However, the 'full and open' aspect implies that qualified sources were sought, aiming for a balance between competition and acquiring specialized capabilities.

Public Impact

The Office of Naval Research benefits from advancements in defense technology, potentially enhancing naval capabilities. Bluefin Robotics Corporation, a specialized technology firm, receives significant funding for its R&D efforts. The contract supports the development of advanced technologies, likely contributing to national security. The geographic impact is centered in Massachusetts, supporting the local tech ecosystem and workforce. The contract fosters innovation in the defense sector, potentially leading to new applications and capabilities.

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.
Limited competition (2 bidders) may have resulted in a higher price than a more competitive scenario.
The 'exclusion of sources' clause warrants further investigation into the rationale for limiting the competitive pool.

Positive Signals

Awarded through 'Full and Open Competition', indicating an effort to solicit from qualified sources.
The contract supports critical R&D in advanced defense technologies for the Navy.
Long performance period (over 5 years) suggests a sustained commitment to technological advancement.

Sector Analysis

This contract falls within the Defense Research and Development sector, a critical area for national security. The market for advanced defense technologies, particularly in areas like robotics and autonomous systems, is highly specialized and competitive among a select group of firms. Spending in this sector is driven by evolving threats and the need for technological superiority. Comparable spending benchmarks would typically involve other R&D contracts awarded by agencies like DARPA or ONR for similar advanced technology development projects.

Small Business Impact

There is no indication of a small business set-aside for this contract, and the contractor, Bluefin Robotics Corporation, is likely not a small business given the contract value. Subcontracting opportunities for small businesses are not explicitly detailed but are possible within the scope of R&D. The impact on the broader small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight is likely managed by the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the CPFF contract terms, requiring detailed reporting on costs and progress. Transparency is generally maintained through contract databases, though specific project details might be classified. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Research Programs
Advanced Technology Development
Robotics and Autonomous Systems
Defense R&D Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 200209!001457!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001402C0204 !A!N! !N! !20020611!20060610!073229523!073229523!073229523!N!BLUEFIN ROBOTICS CORPORATION !301 MASSACHUSETTS AVENUE !CAMBRIDGE !MA!02139!11000!017!25!CAMBRIDGE !MIDDLESEX !MASS !+000001807970!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, 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 $10.5 million.

What is the period of performance?

Start: 2002-06-11. End: 2007-12-31.

What specific advanced technologies were developed under this contract?

The contract data indicates 'Research and Development in the Physical, Engineering, and Life Sciences' with a Product Service Code (PSC) of 541710, and a North American Industry Classification System (NAICS) code of AD93 for 'R&D/OTHER DEFENSE-ADV TECH DEV'. While the specific nature of the 'advanced technologies' is not detailed in the provided data, Bluefin Robotics Corporation is known for its work in autonomous underwater vehicles (AUVs). Therefore, it is highly probable that this contract funded research and development related to AUVs, their navigation, sensing, communication, or operational capabilities for naval applications. Further details would likely be found in classified project reports or specific statements of work not publicly available.

How does the $10.4 million contract value compare to similar R&D contracts for autonomous systems?

Benchmarking the $10.4 million contract value requires comparing it to similar R&D contracts for autonomous systems, particularly those focused on underwater vehicles, awarded around the 2002-2007 timeframe. Contracts of this nature are highly specialized and can vary significantly based on the scope, technological maturity, and specific objectives. For instance, contracts for basic research might be smaller, while those for prototype development or system integration could be substantially larger. Without access to a comprehensive database of comparable classified or unclassified defense R&D contracts for AUVs from that period, a precise comparison is difficult. However, $10.4 million over a five-year period for advanced R&D suggests a significant investment, likely covering personnel, materials, testing, and overhead for a specialized team.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The Cost Plus Fixed Fee (CPFF) contract structure carries inherent risks, particularly for research and development projects. The primary risk for the government is that the contractor may not be sufficiently incentivized to control costs, as all allowable costs are reimbursed. While the fixed fee provides some incentive for efficiency, if the scope of work expands or unforeseen technical challenges arise, costs can escalate. The contractor bears the risk of the fixed fee being insufficient if costs exceed projections, but this is often mitigated by careful initial cost estimation and potential contract modifications. For R&D, where outcomes are uncertain, CPFF can lead to cost overruns if the research proves more complex or time-consuming than initially anticipated. Robust oversight and clear definition of work are crucial to manage these risks.

What does 'Full and Open Competition After Exclusion of Sources' imply for this contract?

'Full and Open Competition After Exclusion of Sources' is a specific contracting procedure. It implies that the agency initially intended to solicit proposals from all responsible sources (full and open competition). However, specific sources were then excluded, meaning only a subset of potential offerors were allowed to bid. This exclusion must be justified based on specific criteria, such as unique capabilities, proprietary technology, or urgent needs that only certain contractors can meet. While it aims for competition among the remaining eligible sources, it inherently limits the breadth of competition compared to a truly unrestricted full and open solicitation. The justification for exclusion is critical for ensuring fairness and maximizing value for the government.

What is the track record of Bluefin Robotics Corporation in defense R&D?

Bluefin Robotics Corporation, prior to its acquisition by General Dynamics, was a recognized leader in the field of autonomous underwater vehicles (AUVs). Their track record included developing and deploying AUVs for various applications, including mine countermeasures, intelligence gathering, and oceanographic research. They were known for their innovative designs and capabilities in deep-water operations. Contracts like this one with the Office of Naval Research would have been instrumental in advancing their technology and solidifying their position as a key contractor in the defense sector. Their expertise in robotics and underwater systems made them a logical choice for advanced naval technology development.

How has spending in the 'Research and Development in Physical, Engineering, and Life Sciences' sector evolved since this contract?

Spending in the 'Research and Development in Physical, Engineering, and Life Sciences' sector (NAICS 541710) has generally seen significant growth since the early 2000s, particularly within the defense and intelligence communities. Driven by geopolitical factors, technological advancements, and the increasing complexity of national security challenges, government investment in R&D has expanded. This includes areas like artificial intelligence, cybersecurity, advanced materials, hypersonics, and autonomous systems – fields likely relevant to the Bluefin Robotics contract. While specific year-over-year figures fluctuate based on budget priorities and economic conditions, the overall trend indicates a sustained and often increasing allocation of resources towards scientific and technological innovation across various government agencies.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Battelle Memorial Institute (UEI: 007901598)

Address: 301 MASSACHUSETTS AVENUE, CAMBRIDGE, MA, 90

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

Financial Breakdown

Contract Ceiling: $19,678,333

Exercised Options: $401,518

Current Obligation: $10,489,018

Contract Characteristics

Cost or Pricing Data: YES

Timeline