DoD's $62.4M Engineering Services Contract for USW DSS Awarded to General Dynamics in 2008
Contract Overview
Contract Amount: $62,444,345 ($62.4M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-06-13
End Date: 2022-01-31
Contract Duration: 4,980 days
Daily Burn Rate: $12.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENGINEERING SERVICES FOR USW DSS (FY 08)
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $62.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ENGINEERING SERVICES FOR USW DSS (FY 08) Key points: 1. Contract awarded in 2008 for engineering services related to the Undersea Warfare Decision Support System (USW DSS). 2. The contract utilized a 'full and open competition after exclusion of sources' approach. 3. A significant duration of nearly 14 years (4980 days) indicates a long-term project or series of task orders. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 5. The primary NAICS code (541712) points to Research and Development in Physical, Engineering, and Life Sciences. 6. The contract was awarded by the Department of the Navy, a component of the Department of Defense. 7. The total award amount was approximately $62.4 million. 8. The contract was not set aside for small businesses.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its age and specific R&D focus. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, carries inherent risks of cost escalation. Without detailed performance metrics or comparisons to similar R&D contracts for undersea warfare systems, it's difficult to definitively assess value for money. The significant duration suggests ongoing needs, but the total award amount spread over nearly 14 years implies a moderate annual spend.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources.' This designation suggests that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for exclusion are not detailed, making it difficult to assess the impact on competition. A limited competition can sometimes lead to less competitive pricing.
Taxpayer Impact: The limited competition may have resulted in higher costs for taxpayers compared to a truly full and open competition, as the number of potential bidders was restricted.
Public Impact
The primary beneficiaries are the Department of the Navy and the broader Department of Defense, receiving engineering services for critical undersea warfare systems. The services delivered likely involve research, development, and potentially sustainment of the USW DSS, enhancing naval capabilities. The geographic impact is primarily within the defense sector, supporting national security objectives. Workforce implications include employment for engineers and technical specialists involved in defense R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize fee.
- The 'exclusion of sources' in competition limits the number of potential bidders, potentially reducing price competitiveness.
- The long contract duration (nearly 14 years) could indicate scope creep or a lack of clear initial requirements.
- Lack of specific performance data makes it hard to gauge the effectiveness and efficiency of the engineering services provided.
Positive Signals
- Awarded to a major defense contractor (General Dynamics), suggesting a level of established capability.
- The contract addresses a critical defense capability (Undersea Warfare Decision Support System).
- The R&D focus indicates investment in future technological advancements for national security.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on engineering services for defense applications. The market for specialized defense R&D is often characterized by a limited number of highly capable contractors. Spending in this area is driven by national security priorities and technological advancements. Comparable spending benchmarks would typically be found within other large-scale defense R&D contracts for complex systems.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This means the competition was open to all eligible contractors, including large businesses. There is no direct information on subcontracting plans for small businesses within this specific award notice, but large defense contracts often include subcontracting goals.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is generally limited for specific R&D contracts, with details often classified or proprietary, but basic award information is publicly available.
Related Government Programs
- Undersea Warfare Systems
- Defense Research and Development Programs
- Naval Technology Development
- Decision Support Systems
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited competition may have impacted price.
- Long contract duration could indicate scope management issues.
- Lack of detailed performance metrics hinders value assessment.
Tags
department-of-defense, department-of-the-navy, research-and-development, engineering-services, definitive-contract, cost-plus-fixed-fee, full-and-open-competition-after-exclusion-of-sources, general-dynamics-mission-systems, undersea-warfare, decision-support-system, virginia, fy08
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. ENGINEERING SERVICES FOR USW DSS (FY 08)
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $62.4 million.
What is the period of performance?
Start: 2008-06-13. End: 2022-01-31.
What was the specific nature of the 'exclusion of sources' in the competition for this contract?
The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, certain potential sources were deliberately excluded from bidding. The specific reasons for these exclusions are not detailed in the provided data. Common justifications for excluding sources can include proprietary technology, unique capabilities required, or prior performance issues. Without further documentation, it's impossible to determine the exact rationale. This exclusion inherently limits the competitive landscape, potentially impacting price discovery and the final award price compared to a scenario where all qualified sources were permitted to bid.
How does the Cost Plus Fixed Fee (CPFF) contract type typically perform in R&D settings like this?
Cost Plus Fixed Fee (CPFF) contracts are common in research and development (R&D) because the final costs are often uncertain at the outset. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee, which represents their profit. While this structure allows for flexibility in R&D where requirements can evolve, it carries risks. The contractor is incentivized to control costs to ensure the fixed fee remains profitable, but there's also a risk that the government may end up paying more than anticipated if costs escalate significantly. Effective oversight and clear definition of work are crucial to manage the potential for cost overruns in CPFF R&D contracts.
What are the potential risks associated with a contract duration of nearly 14 years?
A contract duration of approximately 14 years (4980 days) for engineering services can present several risks. Firstly, it may indicate a lack of clear, well-defined requirements at the outset, leading to scope creep over time. Secondly, long-term contracts can sometimes mask inefficiencies or a lack of urgency, as the extended timeline might reduce pressure to complete tasks promptly. Thirdly, technology and operational needs can change significantly over such a long period, potentially rendering the original scope of work outdated or less relevant. Finally, managing such a long-term engagement requires sustained oversight to ensure continued alignment with evolving strategic goals and to prevent cost escalation.
Can we compare the value of this contract to other similar R&D contracts for undersea warfare systems?
Direct value comparison is difficult without access to detailed performance data, specific deliverables, and the technological sophistication of the USW DSS compared to other systems. The $62.4 million award over nearly 14 years suggests a moderate annual expenditure. However, the 'value' is intrinsically tied to the effectiveness of the engineering services in advancing the USW DSS capabilities, which is not quantifiable from the award data alone. Benchmarking would require analyzing similar R&D efforts in naval warfare, considering factors like complexity, innovation, and the criticality of the system being developed.
What is the significance of the NAICS code 541712 for this contract?
The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' signifies that the core purpose of this contract was to engage in scientific and technical research and development activities. This includes activities like basic and applied research, and experimental development. For this specific contract, it implies that General Dynamics Mission Systems was tasked with advancing knowledge and capabilities related to the physical and engineering sciences pertinent to undersea warfare decision support systems, rather than manufacturing or routine services.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002408R5206
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 9500 INNOVATION DR, MANASSAS, VA, 20110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $69,097,277
Exercised Options: $62,460,483
Current Obligation: $62,444,345
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-06-13
Current End Date: 2022-01-31
Potential End Date: 2022-01-31 00:00:00
Last Modified: 2022-01-27
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