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 Services › Scientific Research and Development Services › Research and Development in Nanotechnology
Product/Service Code: RESEARCH AND DEVELOPMENT › C – 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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