DoD's $144M R&D contract for electronics and communication equipment awarded to General Dynamics

Contract Overview

Contract Amount: $14,418,212 ($14.4M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-08-25

End Date: 2011-09-30

Contract Duration: 1,862 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200611!007619!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CP813 !A!N! !N! ! !20060825!20110331!011364531!116187758!001381284!N!GENERAL DYNAMICS C4 SYSTEMS, I!77 A ST !NEEDHAM !MA!02494!69170!005!25!TAUNTON !BRISTOL !MASS !+000002128840!N!N!000000000000!AC65!RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !99990909!B! ! !B! !A!N!U!2!002!B! !A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: DEDHAM, NORFOLK County, MASSACHUSETTS, 02026

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 200611!007619!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CP813 !A!N! !N! ! !20060825!20110331!011364531!116187758!001381284!N!GENERAL DYNAMICS C4 SYSTEMS, I!77 A ST !NEEDHAM !MA!02494!69170!005!25!TAUNTON !BRIS… Key points: 1. Contract awarded for research and development in electronics and communication equipment. 2. Significant investment in advanced technology for defense applications. 3. Long-term contract duration suggests a need for sustained development. 4. Awarded through full and open competition, indicating market availability. 5. Contract type is Cost Plus Fixed Fee, which can shift risk to the government. 6. Geographic focus on Massachusetts, a hub for defense contracting.

Value Assessment

Rating: fair

The contract's value of $144.2 million over approximately five years for R&D in electronics and communication equipment appears reasonable given the nature of defense research. However, without specific benchmarks for comparable R&D efforts in this specialized field, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, carries inherent risks for the government if cost overruns occur. Further analysis of the contractor's performance and final costs against the initial estimates would be needed for a more definitive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The presence of two bids indicates a degree of competition, which is generally positive for price discovery and innovation. However, the specific number of bidders (two) might suggest a niche market or a high barrier to entry for potential competitors in this specialized area of defense electronics.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices and encourages efficiency. While two bidders is better than one, a higher number of bids would generally provide stronger assurance of competitive pricing.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advanced electronics and communication equipment. Services delivered include research, development, engineering, and manufacturing of specialized equipment. The geographic impact is concentrated in Massachusetts, supporting the local defense industry and workforce. Workforce implications include employment for engineers, scientists, and technicians involved in R&D and manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly.
Limited competition (two bidders) may not have yielded the lowest possible price.
The long duration of the contract could present challenges in adapting to rapidly evolving technologies.

Positive Signals

Awarded through full and open competition, maximizing potential vendor pool.
General Dynamics is a well-established defense contractor with a track record in C4 systems.
Contract focuses on critical R&D for national security.

Sector Analysis

This contract falls within the broader Defense sector, specifically focusing on Research and Development (R&D) for Electronics and Communication Equipment. The market for defense electronics is highly specialized, characterized by significant R&D investment, long product cycles, and stringent performance requirements. Comparable spending benchmarks are difficult to establish without detailed knowledge of the specific technologies involved, but R&D contracts of this magnitude are typical for major defense system development.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of defense electronics R&D and the prime contractor's size, it is likely that any small business involvement would be through subcontracting opportunities. The extent of small business participation would depend on the prime contractor's subcontracting plan and the availability of small businesses capable of providing specialized components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms, cost controls, and performance standards. Accountability measures are embedded in the CPFF structure, requiring the contractor to justify costs and achieve defined milestones. Transparency is generally limited in defense R&D contracts due to national security considerations, but reporting requirements would be stipulated in the contract.

Related Government Programs

Defense Communications Systems
Electronic Warfare Systems
Command and Control Systems
Research and Development Contracts
Tactical Communication Equipment

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Limited competition (two bidders) may not have resulted in the most cost-effective outcome.
R&D projects are inherently risky, with potential for technical challenges and schedule delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 200611!007619!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CP813 !A!N! !N! ! !20060825!20110331!011364531!116187758!001381284!N!GENERAL DYNAMICS C4 SYSTEMS, I!77 A ST !NEEDHAM !MA!02494!69170!005!25!TAUNTON !BRISTOL !MASS !+000002128840!N!N!000000000000!AC65!RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !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 $14.4 million.

What is the period of performance?

Start: 2006-08-25. End: 2011-09-30.

What is the specific nature of the electronics and communication equipment being developed under this contract?

The data indicates the contract is for 'ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV' under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). While the precise nature of the equipment is not detailed in the provided data, it likely pertains to advanced communication systems, electronic warfare capabilities, or command and control technologies critical for defense operations. The contractor, General Dynamics C4 Systems (now General Dynamics Mission Systems), specializes in these areas, suggesting the R&D could involve next-generation radios, secure communication networks, or integrated electronic systems for military platforms.

How does the $144.2 million award compare to typical R&D spending for similar defense electronics?

Assessing the $144.2 million award against typical R&D spending for similar defense electronics is challenging without more specific technical details and market data. However, R&D contracts for advanced military hardware can range widely, from tens of millions to billions of dollars, depending on the complexity, technological maturity, and intended application. Given that General Dynamics is a major defense contractor and the contract spans over five years (from August 2006 to September 2011, with an extended end date), this funding level appears within the expected range for developing sophisticated communication and electronic systems for the Department of Defense. The Cost Plus Fixed Fee structure also suggests a degree of uncertainty in the final costs, common in R&D.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?

The primary risk of a CPFF contract for the government is the potential for cost overruns. While the contractor is paid their actual costs plus a fixed fee, there is less incentive for them to control costs as rigorously as in a fixed-price contract. If the R&D effort encounters unforeseen technical challenges or requires more resources than initially estimated, the total cost to the government could exceed initial projections. Effective oversight by the contracting agency is crucial to monitor expenditures, ensure efficiency, and prevent unnecessary costs. The fixed fee, however, does provide some predictability regarding the contractor's profit margin.

What is General Dynamics' track record with similar defense electronics contracts?

General Dynamics, particularly through its C4 Systems division (now General Dynamics Mission Systems), has a long and extensive track record in developing and delivering complex command, control, communications, computers, and intelligence (C4I) systems for the U.S. military and allied nations. They are a major player in areas such as tactical radios, network-centric warfare solutions, and integrated electronic systems for various platforms. Their history includes numerous large-scale R&D and production contracts, indicating significant experience and capability in managing complex defense technology programs, which suggests a lower performance risk for this specific contract.

How has spending on defense electronics R&D evolved since this contract was awarded in 2006?

Spending on defense electronics R&D has generally remained a significant priority for the Department of Defense, although specific allocations fluctuate based on strategic needs and budget cycles. Since 2006, there has been a continued emphasis on modernizing military capabilities, including advancements in areas like cyber warfare, artificial intelligence, secure communications, and networked systems – all areas related to defense electronics. While this specific contract concluded in 2011, the underlying need for innovation in defense electronics persists. Post-2006 trends have seen increased investment in rapid prototyping, agile development, and technologies supporting multi-domain operations, reflecting evolving geopolitical landscapes and technological advancements.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 77 A ST, NEEDHAM, MA, 02494

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