DoD's $20.3M R&D Contract with General Dynamics Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $20,315,204 ($20.3M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-12-01
End Date: 2025-05-31
Contract Duration: 2,008 days
Daily Burn Rate: $10.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: HSPS SUPPORT SERVICES
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21702
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $20.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: HSPS SUPPORT SERVICES Key points: 1. The contract value of $20.3 million for R&D services is significant, requiring careful assessment of its alignment with project scope. 2. General Dynamics Information Technology, Inc. secured this contract under full and open competition, indicating a competitive bidding process. 3. Potential risks include ensuring the R&D outcomes meet the Defense Health Agency's evolving needs and are cost-effective. 4. The sector is Research and Development in Physical, Engineering, and Life Sciences, a critical area for defense innovation.
Value Assessment
Rating: fair
The contract value of $20.3 million for R&D services needs to be benchmarked against similar contracts for physical, engineering, and life sciences research. Without specific deliverables and performance metrics, assessing value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the effectiveness of this competition in securing the best value for taxpayer dollars depends on the clarity of the SOW and the evaluation criteria used.
Taxpayer Impact: Taxpayer funds are being utilized for R&D, with the ultimate impact on value dependent on the successful development and application of the research outcomes.
Public Impact
This contract supports critical research and development for the Department of Defense, potentially leading to advancements in defense capabilities. The duration of the contract (over 5 years) suggests a long-term investment in specific research areas. Public funds are allocated to a private contractor, highlighting the need for transparency and accountability in R&D spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics for R&D outcomes.
- Potential for cost overruns in research projects.
- Ensuring long-term relevance of R&D findings.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense research and development.
- Contractor has a history of performance in IT and defense sectors.
Sector Analysis
This contract falls within the R&D sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but can be subject to long development cycles and uncertain outcomes. Benchmarks are difficult without specific R&D focus.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The primary contractor, General Dynamics Information Technology, Inc., is a large entity, suggesting limited direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
Oversight will be crucial to ensure the Defense Health Agency effectively manages the R&D process, monitors progress against milestones, and verifies the value and applicability of the research outcomes. Regular reporting and performance reviews are essential for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Lack of specific performance metrics for R&D.
- Potential for R&D to not meet evolving needs.
- Uncertainty of R&D outcomes and potential for failure.
- Long contract duration without clear interim value assessment.
Tags
research-and-development-in-the-physical, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. HSPS SUPPORT SERVICES
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 Health Agency).
What is the total obligated amount?
The obligated amount is $20.3 million.
What is the period of performance?
Start: 2019-12-01. End: 2025-05-31.
How will the effectiveness and value of the R&D outcomes be measured and validated by the Defense Health Agency?
The effectiveness and value of R&D outcomes will be measured through clearly defined milestones, deliverables, and performance metrics outlined in the contract's Statement of Work (SOW). The Defense Health Agency should establish a rigorous review process, potentially involving subject matter experts, to assess the scientific merit, practical applicability, and alignment with strategic defense objectives. Independent validation and testing may also be employed to confirm the successful development and potential impact of the research.
What are the primary risks associated with this R&D contract, and how are they being mitigated?
Key risks include the inherent uncertainty of R&D, potential for project scope creep, cost overruns, and the risk that outcomes may not meet evolving defense needs or be technologically obsolete upon completion. Mitigation strategies should involve robust project management, phased funding tied to achievable milestones, continuous stakeholder engagement, and flexibility to adapt research directions based on emerging findings and strategic priorities. Clear contract terms and performance standards are also critical.
Given the 'full and open competition' award, how can taxpayers be assured that the $20.3 million represents a competitive and fair price for the R&D services?
Assurance of a competitive and fair price stems from the integrity of the full and open competition process itself. This implies that multiple qualified bidders had the opportunity to compete, driving down prices. To further ensure fairness, the Defense Health Agency should have employed a comprehensive evaluation methodology that considered not only price but also technical merit, past performance, and risk. Post-award, ongoing monitoring of contractor performance and adherence to contract terms will help confirm value for money.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W81XWH19R0094
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,107,156
Exercised Options: $21,592,694
Current Obligation: $20,315,204
Actual Outlays: $1,673,044
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,437,290
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-12-01
Current End Date: 2025-05-31
Potential End Date: 2025-05-31 00:00:00
Last Modified: 2025-07-10
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