DoD's $18.8M ONR contract for R&D services awarded to General Atomics shows questionable value
Contract Overview
Contract Amount: $18,817,690 ($18.8M)
Contractor: General Atomics
Awarding Agency: Department of Defense
Start Date: 2005-02-23
End Date: 2011-02-23
Contract Duration: 2,191 days
Daily Burn Rate: $8.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE
Sector: R&D
Official Description: 200505!003346!1700!N00014!OFFICE OF NAVAL RESEARCH !N0001404C0618 !A!N! !N! ! !20050223!20110131!067638957!067638957!859181984!N!GENERAL ATOMICS !3550 GENERAL ATOMICS CT !SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000003632000!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!V!2!002!E! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1714!N00014!0001! !
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $18.8 million to GENERAL ATOMICS for work described as: 200505!003346!1700!N00014!OFFICE OF NAVAL RESEARCH !N0001404C0618 !A!N! !N! ! !20050223!20110131!067638957!067638957!859181984!N!GENERAL ATOMICS !3550 GENERAL ATOMICS CT !SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN … Key points: 1. The contract awarded to General Atomics for R&D services appears to have questionable value given the lack of detailed performance metrics. 2. Competition was limited, with the award made after exclusion of sources, potentially impacting price discovery. 3. The risk of overpaying is moderate due to the Cost Plus Incentive fee structure and limited competition. 4. Spending in the R&D sector is significant, but this specific contract's efficiency is unclear.
Value Assessment
Rating: questionable
The contract value of $18.8 million for R&D services is substantial. Without clear performance benchmarks or comparison data for similar research contracts, assessing its value for money is difficult. The Cost Plus Incentive fee structure adds complexity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating limited competition. This method may not have resulted in the most competitive pricing, as potential bidders were excluded.
Taxpayer Impact: The limited competition and Cost Plus Incentive fee structure raise concerns about potential overspending, impacting taxpayer funds negatively.
Public Impact
Taxpayers may be overpaying for research and development services due to a lack of robust competition. The long duration of the contract (2005-2011) suggests a significant, ongoing investment of public funds. The specific nature of the R&D is not detailed, making it hard for the public to understand the direct benefits.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Incentive fee structure
- Lack of detailed performance metrics
- Unclear taxpayer benefit
Positive Signals
- Awarded to a known entity (General Atomics)
- Contract supports Office of Naval Research objectives
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Federal spending in R&D is crucial for innovation, but oversight is key to ensure efficiency and value.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation in federal R&D spending.
Oversight & Accountability
The contract's award justification and oversight mechanisms are not detailed here. Robust oversight is essential for Cost Plus contracts to ensure funds are used efficiently and effectively, especially given the limited competition.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPIF structure
- Lack of transparency in competition method
- Absence of clear performance metrics for value assessment
- Limited public information on research outcomes
- No apparent small business participation
Tags
research-and-development-in-the-physical, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.8 million to GENERAL ATOMICS. 200505!003346!1700!N00014!OFFICE OF NAVAL RESEARCH !N0001404C0618 !A!N! !N! ! !20050223!20110131!067638957!067638957!859181984!N!GENERAL ATOMICS !3550 GENERAL ATOMICS CT !SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000003632000!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is GENERAL ATOMICS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $18.8 million.
What is the period of performance?
Start: 2005-02-23. End: 2011-02-23.
What specific research outcomes were achieved under this contract, and how do they align with the initial objectives and investment?
The provided data lacks specific details on the research outcomes. To assess value, a review of the final reports, deliverables, and their impact on naval research objectives would be necessary. Without this, it's difficult to determine if the $18.8 million investment yielded significant advancements or met expectations.
How did the 'exclusion of sources' process impact the final negotiated price compared to a full and open competition?
The 'exclusion of sources' inherently limits the pool of potential bidders, which can reduce competitive pressure and potentially lead to higher prices than might be achieved in a full and open competition. A thorough analysis would require comparing the negotiated price against benchmarks for similar services procured through open competition.
What mechanisms were in place to ensure the Cost Plus Incentive fee structure effectively controlled costs and incentivized performance?
The data does not detail the specific incentive targets or the oversight applied to the Cost Plus Incentive fee structure. Effective control requires clear performance metrics, regular monitoring of costs against targets, and a well-defined process for adjusting fees based on contractor performance and cost management.
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 INCENTIVE (V)
Evaluated Preference: NONE
Contractor Details
Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,192,573
Exercised Options: $3,192,573
Current Obligation: $18,817,690
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-02-23
Current End Date: 2011-02-23
Potential End Date: 2011-02-23 00:00:00
Last Modified: 2014-09-19
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