DoD's $7.6M R&D contract for information security research awarded to General Dynamics Mission Systems
Contract Overview
Contract Amount: $7,582,605 ($7.6M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-08-19
End Date: 2026-08-26
Contract Duration: 1,833 days
Daily Burn Rate: $4.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SERVICES AND MATERIALS NECESSARY TO CONDUCT RESEARCH UNDER SBIR TOPIC N98-115 ENTITLED COMMERCIAL OFF THE SHELF APPROACH TO INFORMATION SECURITY.
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $7.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: SERVICES AND MATERIALS NECESSARY TO CONDUCT RESEARCH UNDER SBIR TOPIC N98-115 ENTITLED COMMERCIAL OFF THE SHELF APPROACH TO INFORMATION SECURITY. Key points: 1. Contract focuses on developing commercial off-the-shelf (COTS) solutions for information security. 2. Research and Development (R&D) in physical, engineering, and life sciences is a key government priority. 3. The contract duration of 1833 days suggests a long-term commitment to the research objective. 4. Awarded by the Department of the Navy, indicating a specific defense-related need. 5. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, common in R&D where final costs are uncertain. 6. This contract is not a small business set-aside, suggesting the scope or nature of the work is not tailored for smaller enterprises.
Value Assessment
Rating: fair
Benchmarking the value of this specific R&D contract is challenging without comparable projects. The CPFF structure means costs can fluctuate, but the fixed fee provides some predictability. The total award amount of $7.6 million over approximately five years suggests a moderate investment for advanced research in a critical area like information security. Further analysis would require understanding the specific research deliverables and comparing them to industry standards for similar R&D efforts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning it was awarded directly to General Dynamics Mission Systems without offering other companies the opportunity to bid. Sole-source awards are typically justified when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition may limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. This also means the government did not explore alternative solutions or innovative approaches that other firms might have offered.
Public Impact
The primary beneficiaries are the Department of the Navy and potentially other branches of the Department of Defense, gaining enhanced information security capabilities. The services delivered involve research and development aimed at creating commercial off-the-shelf (COTS) information security solutions. The geographic impact is primarily within the United States, where the research will be conducted and its findings applied. Workforce implications include employment for researchers, engineers, and technical staff at General Dynamics Mission Systems and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and limited innovation.
- The CPFF contract type can incentivize cost overruns if not closely monitored.
- Sole-source awards can create a dependency on a single contractor, reducing future flexibility.
Positive Signals
- Award to a large, established defense contractor like General Dynamics suggests a high level of technical capability.
- Focus on information security aligns with critical national defense priorities.
- The long contract duration indicates a significant commitment to achieving the research objectives.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on information security. The market for cybersecurity solutions is vast and rapidly evolving, driven by increasing digital threats. Government spending in this area is substantial, as defense agencies require robust protection for sensitive data and systems. General Dynamics Mission Systems is a major player in the defense technology market, offering a wide range of solutions including cybersecurity.
Small Business Impact
This contract was not awarded as a small business set-aside. General Dynamics Mission Systems is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a set-aside suggests that the scope of the research or the required expertise was deemed beyond the typical capabilities of small businesses in this specific domain, or that the agency did not prioritize small business participation for this particular award.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the CPFF contract structure, requiring detailed reporting and justification of costs. Transparency may be limited due to the sole-source nature and the sensitive R&D focus. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Defense Research and Development Programs
- Navy Information Technology and Cybersecurity Initiatives
- Small Business Innovation Research (SBIR) Program (though this is not an SBIR award, it addresses similar R&D goals)
- Commercial Off-the-Shelf (COTS) Technology Adoption
Risk Flags
- Sole-source award lacks competitive pricing.
- CPFF contract type requires diligent cost oversight.
- R&D projects inherently carry technical and schedule risks.
- Information security is a critical and evolving domain, requiring continuous adaptation.
Tags
research-and-development, information-security, department-of-defense, department-of-the-navy, general-dynamics-mission-systems, cost-plus-fixed-fee, sole-source, large-business, us-government, cybersecurity, technology-research
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. SERVICES AND MATERIALS NECESSARY TO CONDUCT RESEARCH UNDER SBIR TOPIC N98-115 ENTITLED COMMERCIAL OFF THE SHELF APPROACH TO INFORMATION SECURITY.
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 $7.6 million.
What is the period of performance?
Start: 2021-08-19. End: 2026-08-26.
What is the specific technical objective of the research under SBIR Topic N98-115?
The provided data indicates the research is under SBIR Topic N98-115, titled 'Commercial Off-the-Shelf Approach to Information Security.' The objective is to develop and research information security solutions that leverage existing commercial off-the-shelf (COTS) technologies. This approach aims to reduce development time and cost by adapting readily available products rather than building custom solutions from scratch. The research likely focuses on integrating, configuring, and validating COTS products to meet specific defense information security requirements, potentially addressing areas like network security, data encryption, threat detection, or secure communications.
How does the Cost Plus Fixed Fee (CPFF) contract type influence cost management for this R&D effort?
The Cost Plus Fixed Fee (CPFF) contract type is common for research and development where the scope and final costs are not precisely known at the outset. Under CPFF, the contractor (General Dynamics Mission Systems) is reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it also requires robust government oversight to ensure that all claimed costs are reasonable, allocable, and necessary for the R&D effort. The government bears the risk of cost overruns beyond the estimated costs, but the fixed fee provides a ceiling on the contractor's profit.
What are the potential risks associated with awarding this R&D contract on a sole-source basis?
Awarding this R&D contract on a sole-source basis to General Dynamics Mission Systems carries several potential risks. Firstly, the absence of competition means the Department of the Navy may not have secured the most cost-effective solution, potentially leading to higher prices than if multiple vendors had competed. Secondly, it limits the opportunity for innovation, as other companies with potentially novel approaches or technologies were not considered. Thirdly, it can foster contractor complacency and reduce the incentive for efficiency and cost control. Finally, it may create a dependency on General Dynamics for this specific area of information security research, potentially limiting future options and flexibility for the Navy.
What is the significance of the NAICS code 541715 for this contract?
The North American Industry Classification System (NAICS) code 541715 designates 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' This classification indicates that the contract's primary purpose is scientific research and experimental development in these broad fields. For this specific contract, it signifies that the work involves systematic study and investigation to gain new knowledge and understanding, leading to the development of new or improved products, processes, or services related to information security, utilizing principles from physical sciences, engineering, and potentially life sciences where applicable to security systems.
How does the contract's duration (1833 days) impact the R&D objectives?
A duration of 1833 days, approximately five years, is substantial for a research and development contract. This extended timeframe suggests that the research objectives are complex, long-term, and may involve multiple phases of investigation, experimentation, and refinement. Such a duration is often necessary for fundamental research or the development of advanced technologies where breakthroughs are not immediate. It allows the contractor, General Dynamics Mission Systems, to dedicate resources over an extended period, fostering deeper exploration and potentially leading to more robust and innovative outcomes in information security compared to shorter-term projects.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,193,156
Exercised Options: $9,193,156
Current Obligation: $7,582,605
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,522,144
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6833520G1046
IDV Type: BOA
Timeline
Start Date: 2021-08-19
Current End Date: 2026-08-26
Potential End Date: 2026-08-26 00:00:00
Last Modified: 2025-12-03
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