DoD Awards $61.8M Nanotechnology R&D Contract to General Dynamics Mission Systems

Contract Overview

Contract Amount: $61,830,345 ($61.8M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-07-27

End Date: 2026-10-07

Contract Duration: 2,994 days

Daily Burn Rate: $20.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENGINEERING SERVICES BASE YEAR

Place of Performance

Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $61.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ENGINEERING SERVICES BASE YEAR Key points: 1. Significant investment in nanotechnology research and development. 2. Sole-source award to General Dynamics Mission Systems raises competition concerns. 3. Contract duration extends through October 2026, indicating long-term project scope. 4. Potential for high-impact technological advancements in defense applications.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the $61.8M price is optimal compared to market rates for similar nanotechnology R&D services.

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 for this substantial contract may result in taxpayers paying a premium for the engineering services.

Public Impact

Advancements in nanotechnology could lead to next-generation defense capabilities. Potential for job creation within General Dynamics and its subcontractors. Long-term contract may foster specialized expertise within the DoD. Public funds are directed towards cutting-edge scientific research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost Plus Fixed Fee contract type
  • Long contract duration

Positive Signals

  • Investment in advanced R&D
  • Potential for technological breakthroughs

Sector Analysis

This contract falls under Research and Development (R&D) in Nanotechnology, a highly specialized and rapidly evolving sector. Spending in this area is critical for maintaining technological superiority but often involves higher costs due to the inherent risks and expertise required.

Small Business Impact

The contract was awarded to General Dynamics Mission Systems, a large business. There is no indication that small businesses were involved in the subcontracting process, suggesting limited opportunities for small business participation in this specific award.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates robust oversight from the Department of the Navy to ensure costs are reasonable and the project stays within scope. The long duration requires sustained accountability mechanisms.

Related Government Programs

  • Research and Development in Nanotechnology
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of competitive bidding
  • Potential for cost overruns (CPFF)
  • Limited transparency on specific R&D goals
  • No stated small business participation

Tags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. ENGINEERING SERVICES BASE YEAR

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 $61.8 million.

What is the period of performance?

Start: 2018-07-27. End: 2026-10-07.

What specific nanotechnology advancements are being pursued, and what is the expected return on investment for the $61.8M?

The specific nanotechnology advancements are not detailed in the provided data. A Cost Plus Fixed Fee contract, especially when sole-sourced, makes it challenging to precisely define ROI upfront. The value is tied to the potential for future defense capabilities derived from the R&D, which is inherently uncertain and difficult to quantify financially at this stage.

What are the risks associated with a sole-source, long-duration R&D contract, and how are they mitigated?

Risks include potential cost overruns due to the CPFF structure, lack of innovation from reduced competitive pressure, and the possibility of the technology becoming obsolete or not meeting evolving requirements over the long duration. Mitigation would typically involve stringent oversight, clear performance metrics, and regular reviews to ensure alignment with DoD objectives.

How effective is the Department of the Navy in managing sole-source R&D contracts to ensure taxpayer value?

Effectiveness is difficult to gauge without more data on contract performance and oversight processes. Sole-source R&D contracts inherently carry higher risk regarding value for money. The DoD employs various mechanisms like technical reviews and cost audits, but the success of these in ensuring value for taxpayer money in this specific instance remains to be seen.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in Nanotechnology

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002418R6265

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $91,995,472

Exercised Options: $91,995,472

Current Obligation: $61,830,345

Actual Outlays: $5,119,494

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $12,621,906

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2018-07-27

Current End Date: 2026-10-07

Potential End Date: 2026-10-07 00:00:00

Last Modified: 2025-02-04

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