DoD Awards $32M R&D Contract to General Dynamics Mission Systems, Sole-Source

Contract Overview

Contract Amount: $32,266,323 ($32.3M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-07-28

End Date: 2013-12-31

Contract Duration: 1,982 days

Daily Burn Rate: $16.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: AWARD OF CLIN 0003 ONLY. TAS::17 1804::TAS

Place of Performance

Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: AWARD OF CLIN 0003 ONLY. TAS::17 1804::TAS Key points: 1. Significant award to a major defense contractor. 2. Sole-source award raises questions about competition and price discovery. 3. Long contract duration (1982 days) may impact cost control. 4. R&D focus in physical sciences suggests potential for innovation.

Value Assessment

Rating: questionable

The contract value of $32.26M is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar R&D contracts. The lack of competition is a primary concern for value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may have paid a premium, as there was no incentive for the contractor to offer the lowest possible price.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Potential for advanced R&D outcomes, but cost-effectiveness is uncertain. Long-term commitment to a single vendor for critical R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Long contract duration
  • Lack of transparency in pricing

Positive Signals

  • Award to established contractor
  • Focus on R&D

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). Spending in this sector is crucial for technological advancement but can be prone to cost overruns due to the inherent uncertainties of R&D.

Small Business Impact

The awardee, General Dynamics Mission Systems, Inc., is a large business. There is no indication that small businesses were involved in this specific contract, missing an opportunity for their participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is meeting performance requirements and that costs are reasonable, despite the lack of competition.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Lack of competition
  • Potential for inflated pricing
  • Limited transparency on R&D outcomes
  • Long contract duration may lead to scope creep or cost increases

Tags

research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. AWARD OF CLIN 0003 ONLY. TAS::17 1804::TAS

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 $32.3 million.

What is the period of performance?

Start: 2008-07-28. End: 2013-12-31.

What specific R&D objectives were pursued under this contract, and how were they aligned with national security priorities?

The contract focused on Research and Development in Physical, Engineering, and Life Sciences (NAICS 541712). While the specific objectives are not detailed, R&D in these areas typically supports advancements in defense technology, materials science, or engineering capabilities crucial for national security. The long duration suggests a complex, multi-faceted research effort.

Given the sole-source nature, what mechanisms were in place to ensure fair and reasonable pricing and prevent cost overruns?

Sole-source contracts often rely on cost analysis, historical pricing data, and negotiation to establish fair and reasonable prices. However, without competitive pressure, the government's ability to secure the best value is diminished. Robust oversight and detailed cost auditing would be critical to mitigate risks of overpayment and ensure efficient use of funds.

What is the expected return on investment or technological advancement from this $32M R&D expenditure?

The return on investment for R&D contracts is often long-term and can be difficult to quantify precisely, especially in the physical and engineering sciences. Expected outcomes could include new technologies, improved system performance, or foundational research. The success hinges on the contractor's innovation and the alignment of research goals with strategic defense needs.

Industry Classification

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

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002407R6233

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 9500 INNOVATION DR, MANASSAS, VA, 20110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,810,266

Exercised Options: $32,543,828

Current Obligation: $32,266,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2008-07-28

Current End Date: 2013-12-31

Potential End Date: 2013-12-31 00:00:00

Last Modified: 2025-02-03

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