DoD's $96.9M R&D Contract with General Dynamics: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $96,909,184 ($96.9M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2001-02-28
End Date: 2007-12-31
Contract Duration: 2,497 days
Daily Burn Rate: $38.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $96.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: Key points: 1. Significant investment in R&D, totaling $96.9M over nearly 7 years. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. Potential risks include cost overruns given the Cost Plus Award Fee structure. 4. The contract falls within the R&D sector, specifically physical, engineering, and life sciences.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPA) structure can incentivize performance but also carries inherent risk of cost escalation. Without specific award fee criteria and outcomes, assessing the true value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for achieving competitive pricing. This method allows all eligible contractors to bid, fostering a market-driven price discovery.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for the best value. However, the CPA structure requires careful monitoring to ensure costs remain justified.
Public Impact
This contract represents a substantial investment in research and development, potentially leading to advancements in defense capabilities. The duration of the contract (nearly 7 years) suggests a long-term commitment to a specific R&D objective. The involvement of General Dynamics, a major defense contractor, indicates the scale and complexity of the research undertaken.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to higher costs if not managed tightly.
- Long contract duration increases exposure to changing technological landscapes and potential scope creep.
- Lack of specific performance metrics makes it difficult to assess the effectiveness of the award fee component.
Positive Signals
- Full and open competition utilized, promoting competitive pricing.
- Significant investment in R&D, potentially yielding valuable technological advancements.
- Contract awarded to a reputable large business with extensive experience.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). Spending in this area is critical for technological innovation but can be subject to cost overruns due to the inherent uncertainties in research.
Small Business Impact
The contract was awarded to a large business (General Dynamics Information Technology, Inc.) and there is no indication of small business participation. This suggests that the scope of work was likely beyond the capacity or focus of most small businesses.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating a level of oversight. However, the CPA structure necessitates continuous monitoring of performance and costs to ensure accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Award Fee structure.
- Long contract duration (nearly 7 years).
- Potential for cost overruns.
- Lack of specific performance outcome data.
- No explicit small business participation noted.
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 $96.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $96.9 million.
What is the period of performance?
Start: 2001-02-28. End: 2007-12-31.
What specific R&D outcomes were achieved, and did they justify the $96.9M investment?
Assessing the precise R&D outcomes requires access to detailed project reports and deliverables. The value justification hinges on whether the advancements met or exceeded the initial objectives and provided a tangible benefit to the Department of Defense, justifying the significant financial outlay.
How effectively were the award fee criteria structured and applied to ensure contractor performance and cost control?
The effectiveness of the award fee criteria is crucial for a CPA contract. Well-defined, measurable criteria tied to specific performance goals and cost efficiencies would have driven desired contractor behavior. Conversely, vague or easily manipulated criteria could lead to inflated costs without commensurate performance gains.
Given the long duration and CPA structure, what mechanisms were in place to mitigate risks of scope creep and cost overruns?
Mitigation strategies for long-duration CPA contracts typically involve robust change control processes, regular performance reviews, and independent cost analysis. The Department of Defense would need stringent oversight to prevent scope creep and ensure that any cost increases were directly attributable to approved changes or unforeseen, unavoidable circumstances.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: General Dynamics Corp
Address: 700 INDEPENDENCE PKWY STE 100, CHESAPEAKE, VA, 23320
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2001-02-28
Current End Date: 2007-12-31
Potential End Date: 2007-12-31 00:00:00
Last Modified: 2023-01-27
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