DoD's $112M R&D contract for electronics and communication equipment awarded to General Dynamics

Contract Overview

Contract Amount: $11,211,281 ($11.2M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-03-31

End Date: 2009-09-30

Contract Duration: 2,009 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200409!004184!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T04CP019 !A!N! !N! ! !20040331!20051201!125205448!125205448!001381284!N!GENERAL DYNAMICS ADVANCED INFO!8800 QUEEN AVE S !MINNEAPOLIS !MN!55431!06616!053!27!BLOOMINGTON !HENNEPIN !MINNESOTA !+000001600000!N!N!000000000000!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! ! ! ! !99990909!B! ! !N!B!A!N!U!2!001!B! !A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55438

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 200409!004184!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T04CP019 !A!N! !N! ! !20040331!20051201!125205448!125205448!001381284!N!GENERAL DYNAMICS ADVANCED INFO!8800 QUEEN AVE S !MINNEAPOLIS !MN!55431!06616!053!27!BLOOMINGTON !HENN… Key points: 1. Contract awarded for research and development in electronics and communication equipment. 2. General Dynamics received the award, indicating a strong track record in the sector. 3. The contract duration spans over five years, suggesting a long-term need for these services. 4. Awarded under full and open competition, implying a robust bidding process. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 6. The North American Industry Classification System (NAICS) code 541710 points to R&D in physical, engineering, and life sciences.

Value Assessment

Rating: fair

The contract's value of $112 million over approximately five years for R&D in electronics and communication equipment appears substantial. Benchmarking this against similar R&D contracts in the defense sector would be necessary for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for R&D, can lead to cost overruns if not managed tightly. Without specific performance metrics or comparable contract data, it's difficult to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The number of bidders is not specified, but the 'full and open' designation implies a significant number of potential offerors were considered.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through a competitive bidding process, ensuring that the awarded price reflects market conditions and innovation.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advanced electronics and communication equipment research and development. The contract supports the development of cutting-edge technologies in the defense communications sector. The geographic impact is primarily within the United States, with General Dynamics' operations likely centered in Minnesota. This contract likely supports a specialized workforce in R&D, engineering, and technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
The long duration of the contract could present risks if technology requirements change significantly.
Dependence on a single contractor for critical R&D could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive and fair process.
General Dynamics is a well-established defense contractor with a history in advanced information systems.
The contract focuses on R&D, which is crucial for maintaining technological superiority.

Sector Analysis

This contract falls within the broader defense electronics and communication systems sector, a critical area for national security. The market for such R&D is characterized by high innovation, significant government investment, and a limited number of specialized contractors. Comparable spending benchmarks would involve looking at other large-scale R&D efforts within the Department of Defense for similar technological advancements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale R&D contract awarded to a major defense contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the contract's statement of work. The focus is on prime contractor capabilities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which ensures compliance with contract terms, quality standards, and cost controls. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Research and Development
Electronics and Communication Equipment Procurement
Advanced Technology Development
Department of Defense Information Technology Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Contractor Performance Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 200409!004184!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T04CP019 !A!N! !N! ! !20040331!20051201!125205448!125205448!001381284!N!GENERAL DYNAMICS ADVANCED INFO!8800 QUEEN AVE S !MINNEAPOLIS !MN!55431!06616!053!27!BLOOMINGTON !HENNEPIN !MINNESOTA !+000001600000!N!N!000000000000!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! ! ! ! !999

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 $11.2 million.

What is the period of performance?

Start: 2004-03-31. End: 2009-09-30.

What is General Dynamics' track record with similar R&D contracts for the Department of Defense?

General Dynamics, and its various subsidiaries like General Dynamics Advanced Information Systems (the original awardee name in the data), has a long and extensive history of performing research and development contracts for the Department of Defense. They are a major defense contractor involved in a wide array of programs, including command and control systems, intelligence, surveillance, and reconnaissance (ISR) platforms, and communication systems. Their track record generally includes successful delivery on complex, high-technology projects. However, like any large contractor, specific contract performance can vary, and a detailed review of past performance on similar R&D efforts, including any past performance issues or awards, would be necessary for a comprehensive assessment.

How does the $112 million value compare to other R&D contracts in this specific electronics and communication equipment domain?

The $112 million value for a five-year R&D contract in electronics and communication equipment is substantial, reflecting the complexity and strategic importance of such advancements within the defense sector. To benchmark this effectively, one would need to compare it against other contracts awarded by the DoD or other federal agencies for similar research and development activities, particularly those focused on applied research and advanced technology development in areas like signal processing, secure communications, or advanced sensor integration. The North American Industry Classification System (NAICS) code 541710 covers a broad range of R&D, so narrowing the comparison to contracts with very similar technical scopes would be crucial. Without access to a comprehensive database of comparable R&D contract values and scopes, a precise comparison is challenging, but this figure suggests a significant investment in technological advancement.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for Research and Development (R&D) revolve around cost control and contractor incentive. For the government, the main risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the final cost incurred (within the contract's ceiling). This can lead to cost overruns if the contractor's estimates are inaccurate or if unforeseen technical challenges arise, increasing the actual costs. For the contractor, the risk lies in accurately estimating the costs to complete the R&D; if actual costs significantly exceed estimates, their fixed fee may represent a lower profit margin or even a loss. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are critical to mitigating these risks for the government.

What is the expected impact of this contract on technological advancement in defense communications?

This contract is expected to drive significant technological advancement in defense communications by funding research and development into new or improved electronics and communication equipment. The specific nature of the R&D will determine the exact impact, but it could lead to breakthroughs in areas such as faster data transmission, enhanced cybersecurity for communications, improved signal intelligence capabilities, or more resilient and adaptable communication networks for military operations. By investing in applied research, the DoD aims to maintain a technological edge over potential adversaries, ensuring that its communication systems remain state-of-the-art and capable of meeting evolving operational demands in complex environments.

How does the 'full and open competition' award mechanism influence the overall value and innovation of this contract?

The 'full and open competition' award mechanism is designed to maximize value and foster innovation by allowing any responsible source to submit an offer. This broad competition typically leads to more competitive pricing as multiple vendors vie for the contract, potentially driving down costs for the government. Furthermore, it encourages innovation by bringing diverse approaches and technologies to the table. When a contract is competed broadly, the government has a wider pool of potential solutions to choose from, increasing the likelihood of selecting the most advanced and cost-effective approach. This process ensures that the contract is awarded based on merit, technical capability, and price, rather than being restricted to a select few providers.

What are the potential long-term implications of awarding R&D contracts of this magnitude to established prime contractors?

Awarding large-scale R&D contracts to established prime contractors like General Dynamics has several long-term implications. Positively, it leverages their existing infrastructure, expertise, and proven ability to manage complex projects, potentially leading to reliable delivery of advanced technologies. It can also foster long-term strategic partnerships that are crucial for sustained technological superiority. However, a potential downside is the risk of market concentration, where a few large firms dominate the R&D landscape, potentially stifling competition from smaller, innovative firms in the long run. It also raises questions about the government's ability to retain intellectual property and ensure knowledge transfer beyond the prime contractor, which is vital for future innovation and competition.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 8800 QUEEN AVE S, MINNEAPOLIS, MN, 55431

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline