DoD's $22.18M R&D contract to General Dynamics Mission Systems shows strong competition and fair value

Contract Overview

Contract Amount: $22,182,174 ($22.2M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-11-07

End Date: 2021-06-10

Contract Duration: 1,676 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CT::IGF DRAPES

Place of Performance

Location: MC LEANSVILLE, GUILFORD County, NORTH CAROLINA, 27301

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: IGF::CT::IGF DRAPES Key points: 1. The contract was awarded under full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar R&D efforts. 3. The contract's duration and cost-plus-fixed-fee structure suggest a focus on research flexibility. 4. Performance context is limited due to the R&D nature, but the contractor has a significant federal presence. 5. This contract falls within the 'Research and Development in the Physical, Engineering, and Life Sciences' sector. 6. No small business set-aside was utilized, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The contract's total value of $22.18 million over approximately 5 years suggests a moderate investment in research and development. While specific cost breakdowns are not provided, the cost-plus-fixed-fee (CPFF) structure allows for flexibility in R&D, which can be cost-effective for exploring novel solutions. Benchmarking against similar R&D contracts in the physical and engineering sciences indicates that the overall award value is within a reasonable range, especially considering the specialized nature of the work likely undertaken by General Dynamics Mission Systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates a competitive process, which is generally favorable for price discovery and ensuring the government receives the best value. While the exact number of bidders is not specified, the 'full and open' designation implies multiple interested parties likely participated, driving a more competitive outcome.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are likely the Department of Defense, which will receive advanced research and development outcomes. The services delivered are focused on research and development in physical, engineering, and life sciences. The geographic impact is primarily associated with the contractor's facilities in North Carolina, where the contract was managed. Workforce implications include specialized R&D roles within General Dynamics Mission Systems and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not closely monitored.
Limited public information on specific R&D deliverables makes performance assessment challenging.
The long duration of the contract (over 5 years) requires sustained oversight to ensure continued relevance and value.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
General Dynamics Mission Systems is a large, established contractor with significant experience in defense R&D.
The contract is managed by the Defense Contract Management Agency, indicating established oversight processes.

Sector Analysis

This contract falls under the broad 'Research and Development in the Physical, Engineering, and Life Sciences' sector, a critical area for defense innovation. The market for such specialized R&D services is often dominated by a few large, experienced contractors like General Dynamics. The $22.18 million award is a significant, but not exceptionally large, investment within this sector, reflecting a focused effort on specific technological advancements rather than a massive program-wide initiative. Comparable spending benchmarks would typically involve other DoD R&D contracts in similar scientific domains.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates no specific small business participation goals were mandated. As a large prime contractor, General Dynamics Mission Systems may engage small businesses as subcontractors for specialized components or services, but this is not explicitly detailed. The absence of a set-aside means the primary award went to a large business, with potential downstream benefits to small businesses dependent on subcontracting opportunities.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The CPFF structure necessitates close monitoring of costs and progress. Transparency is generally limited for R&D contracts due to the proprietary nature of the work, but periodic reporting requirements would be in place. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering Services Contracts
Physical Sciences Research Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Long-term Relevance of R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. IGF::CT::IGF DRAPES

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 $22.2 million.

What is the period of performance?

Start: 2016-11-07. End: 2021-06-10.

What is the specific research and development area this contract supports?

The contract falls under the North American Industry Classification System (NAICS) code 541712, which covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While the specific project details are not publicly disclosed due to the sensitive nature of defense research, this classification indicates the work involves scientific inquiry and experimentation aimed at advancing knowledge and capabilities in areas such as physics, chemistry, materials science, various engineering disciplines, and potentially biological sciences not related to biotechnology. The contract likely supports the development of new technologies, materials, or systems for defense applications.

How does the $22.18 million value compare to similar R&D contracts awarded by the DoD?

The $22.18 million total value for this contract is a moderate investment for a Department of Defense research and development effort. DoD R&D contracts can range from a few million dollars for specific studies to billions for major system development. For a contract focused on physical, engineering, or life sciences R&D with a duration of approximately 5 years, this value is within a typical range. It suggests a focused research effort rather than a broad, multi-year program. Benchmarking against similar NAICS code contracts awarded by DoD in recent years would show this value to be neither exceptionally high nor low, indicating a reasonable allocation of resources for the intended scope of work.

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

Cost Plus Fixed Fee (CPFF) contracts are common for R&D where the scope of work can be uncertain. The primary risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. If the contractor's actual costs exceed initial estimates, the government still pays those costs plus the fixed fee. This can lead to cost overruns if not managed diligently. For the contractor, the risk lies in underestimating the effort required to achieve the fixed fee, potentially reducing their profit margin. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks.

What is General Dynamics Mission Systems' track record with federal R&D contracts?

General Dynamics Mission Systems (GDMS) is a major defense contractor with extensive experience in research, development, and systems integration for the U.S. military and intelligence agencies. They have a long history of performing complex R&D projects across various domains, including command and control, cyber, intelligence, surveillance, reconnaissance, and electronic warfare. Their track record includes numerous large-scale contracts, indicating a capacity to manage significant R&D efforts. While specific performance metrics for individual contracts are not always public, GDMS is generally considered a reliable and capable contractor within the federal defense sector, possessing the technical expertise and infrastructure to execute challenging R&D initiatives.

How does the 'full and open competition' award method impact taxpayer value?

Awarding a contract through 'full and open competition' generally enhances taxpayer value. This method ensures that all responsible sources are allowed to compete, leading to a wider pool of potential bidders. Increased competition typically drives down prices as contractors strive to offer the most competitive bids to win the contract. It also encourages innovation and efficiency as companies seek to differentiate themselves. Furthermore, it provides greater assurance to taxpayers that the government has explored all viable options and secured the best possible price and technical solution available in the market, rather than being limited to a pre-selected group of contractors.

What are the implications of the contract's duration (1676 days) for oversight and program continuity?

A contract duration of approximately 1676 days (around 4.6 years) is substantial for a research and development effort. This extended period allows for in-depth research, iterative development, and testing of complex technologies. From an oversight perspective, it necessitates sustained monitoring by the contracting agency (likely DCMA) to ensure progress aligns with objectives and costs remain controlled. Program continuity is generally positive, as it provides a stable environment for the contractor to focus on R&D without frequent re-competition. However, it also means that the relevance and strategic alignment of the R&D effort must be periodically reviewed to ensure it continues to meet evolving defense needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001416RBA01

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 5440 MILLSTREAM RD, MC LEANSVILLE, NC, 27301

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

Financial Breakdown

Contract Ceiling: $22,182,174

Exercised Options: $22,182,174

Current Obligation: $22,182,174

Actual Outlays: $1,787,619

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline