General Electric Company awarded $18.3M for R&D in physical, engineering, and life sciences by DoD
Contract Overview
Contract Amount: $18,286,314 ($18.3M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2007-05-24
End Date: 2013-11-15
Contract Duration: 2,367 days
Daily Burn Rate: $7.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES
Place of Performance
Location: SCHENECTADY, SCHENECTADY County, NEW YORK, 12309
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $18.3 million to GENERAL ELECTRIC COMPANY for work described as: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. Duration of 2367 days (over 6 years) indicates a long-term research and development effort. 4. The North American Industry Classification System (NAICS) code 541710 points to significant investment in scientific research. 5. Awarded by the Department of Defense, likely for projects with national security implications. 6. The contract was awarded by the Defense Contract Management Agency, indicating established oversight.
Value Assessment
Rating: fair
Benchmarking the value of this R&D contract is challenging without specific deliverables and performance metrics. Cost Plus Fixed Fee contracts can sometimes lead to higher costs than fixed-price agreements if not managed carefully. However, for complex R&D, this contract type can be appropriate to allow for flexibility and innovation. The fixed fee component provides some cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specific R&D effort. While full and open competition is generally preferred, the number of bidders can influence price discovery.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.
Public Impact
The primary beneficiaries are likely the Department of Defense and potentially other government agencies requiring advancements in physical, engineering, and life sciences. Services delivered include research and development activities aimed at technological innovation. The geographic impact is centered in New York, where General Electric Company is located. Workforce implications include employment for scientists, engineers, and support staff involved in the R&D projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
- Long contract durations may present challenges in adapting to evolving technological landscapes.
- The specific R&D outcomes and their alignment with strategic goals require ongoing assessment.
Positive Signals
- Awarded through full and open competition, indicating a robust and fair bidding process.
- The contract is managed by the Defense Contract Management Agency, suggesting established oversight protocols.
- The long duration allows for in-depth research and development, potentially leading to significant breakthroughs.
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, a critical area for technological advancement and national security. The market for such R&D is characterized by high specialization and significant investment from both government and private entities. Comparable spending benchmarks would depend on the specific sub-disciplines within physical, engineering, and life sciences being researched.
Small Business Impact
There is no indication that this contract included small business set-asides, as the 'ss' field is false. Similarly, the 'sb' field being false suggests no explicit small business participation was mandated. This implies that large businesses were the primary focus or participants in this procurement, with potential subcontracting opportunities for small businesses not explicitly detailed in this summary.
Oversight & Accountability
Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting on costs incurred and progress made. Transparency would be facilitated through contract reporting mechanisms, though specific public transparency levels are not detailed here.
Related Government Programs
- Defense Research and Development Programs
- Advanced Technology Development Contracts
- Scientific Research Services
- Engineering Services Contracts
- Life Sciences Research Initiatives
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost risk.
- Long contract duration may lead to evolving requirements or technological obsolescence.
- Limited number of bidders (2) may indicate potential barriers to entry or niche expertise required.
Tags
research-and-development, department-of-defense, general-electric-company, cost-plus-fixed-fee, full-and-open-competition, new-york, physical-sciences, engineering, life-sciences, long-term-contract, defense-contract-management-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to GENERAL ELECTRIC COMPANY. RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES
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 $18.3 million.
What is the period of performance?
Start: 2007-05-24. End: 2013-11-15.
What specific research areas within physical, engineering, and life sciences were prioritized under this contract?
The provided data indicates the contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' However, it does not specify the precise research areas. Given the Department of Defense as the awarding agency, potential areas could include advanced materials, aerospace engineering, cybersecurity research, biomedical technologies for defense applications, or energy solutions relevant to military operations. Further details would require examining the contract's statement of work or associated documentation.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other R&D contract types in terms of cost efficiency for the government?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. This structure is often used for R&D where the scope is uncertain or subject to change. While it provides flexibility, it can be less cost-efficient than fixed-price contracts if costs escalate significantly, as the government bears the risk of cost overruns beyond the fixed fee. However, for highly innovative or exploratory R&D, CPFF can be more appropriate than fixed-price contracts, which might stifle innovation due to perceived risks. Benchmarking requires comparing similar R&D projects with different contract types.
What is the typical duration for R&D contracts of this nature, and how does this contract's duration compare?
Research and Development contracts, especially those involving complex scientific inquiry or technological advancement, often have longer durations to allow for thorough investigation, experimentation, and iteration. A duration of 2367 days (approximately 6.5 years) is substantial but not uncommon for significant R&D efforts, particularly those funded by agencies like the Department of Defense that may be pursuing long-term strategic objectives. Shorter-term contracts might focus on specific, well-defined research tasks, while longer durations are typical for more foundational or exploratory R&D.
What does the 'aw': 'DCA' designation signify in the context of this contract?
The 'aw': 'DCA' designation likely refers to the Awarding Activity or Contracting Activity. In this case, 'DCA' could stand for a specific contracting office or department within the Department of Defense responsible for issuing this particular award. Without further context or a lookup table for DoD contracting acronyms, its precise meaning is speculative. However, it identifies the specific governmental entity that managed and executed the contract award process.
What are the potential risks associated with a long-term R&D contract awarded to a single large contractor like General Electric?
A primary risk with long-term R&D contracts awarded to a single large contractor is the potential for complacency or a lack of sustained innovation if competition is not maintained through other means (e.g., internal R&D, other contracts). There's also the risk of vendor lock-in, where the government becomes heavily reliant on one contractor's technology or expertise. Furthermore, if the contractor's strategic priorities shift, the R&D effort might lose momentum. Robust oversight and clear performance metrics are crucial to mitigate these risks.
How does the $18.3 million total award amount compare to overall federal spending on R&D in physical, engineering, and life sciences?
The $18.3 million award to General Electric Company represents a specific investment within the vast landscape of federal R&D spending. Federal spending on R&D in physical, engineering, and life sciences is typically in the tens of billions of dollars annually across various agencies like the Department of Defense, National Science Foundation, and NIH. Therefore, this individual contract, while significant for the contractor, is a relatively small component of the total federal R&D budget. Its importance lies in its specific contribution to the DoD's research objectives.
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: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1 RESEARCH CIR, NISKAYUNA, NY, 20
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,286,314
Exercised Options: $18,286,314
Current Obligation: $18,286,314
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-05-24
Current End Date: 2013-11-15
Potential End Date: 2013-11-15 00:00:00
Last Modified: 2013-11-13
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