DoD's $15.3M R&D contract with General Dynamics Mission Systems shows long-term engagement for advanced technology development
Contract Overview
Contract Amount: $15,312,080 ($15.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-08-16
End Date: 2025-09-30
Contract Duration: 7,715 days
Daily Burn Rate: $2.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: Key points: 1. Contract awarded through full and open competition, indicating a robust selection process. 2. Long duration suggests a sustained need for the research and development services. 3. Cost Plus Fixed Fee pricing structure requires careful monitoring of contractor performance and cost efficiency. 4. The contract's focus on R&D in physical, engineering, and life sciences aligns with strategic defense modernization efforts. 5. Awarded by the Department of the Army, this contract supports critical national security objectives. 6. The significant duration and value point to a complex and potentially high-impact technological undertaking.
Value Assessment
Rating: good
The contract's value of $15.3 million over its extended period appears reasonable for specialized R&D. Benchmarking against similar long-term, complex R&D contracts in defense is challenging due to unique technological requirements. However, the Cost Plus Fixed Fee structure necessitates diligent oversight to ensure costs remain aligned with the fixed fee and that the value delivered is commensurate with the investment. The extended duration suggests a strategic commitment to developing advanced capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was initially broad, specific sources may have been excluded based on defined criteria. The presence of 5 bidders suggests a competitive environment, though the exclusion of sources warrants further examination to ensure no viable competitors were unfairly barred. This level of competition generally supports fair pricing.
Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best value for taxpayers by encouraging multiple firms to offer their best technical solutions and pricing. A competitive award helps prevent overpayment and ensures the government receives high-quality research.
Public Impact
The primary beneficiaries are the Department of Defense and potentially the broader national security apparatus, through the development of advanced technologies. Services delivered include research and development in physical, engineering, and life sciences, contributing to future military capabilities. The geographic impact is primarily national, focusing on advancing U.S. technological superiority. Workforce implications include highly skilled R&D professionals within General Dynamics Mission Systems and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can incentivize cost overruns if not managed rigorously, potentially increasing the final cost to the government.
- The long contract duration (over 20 years) raises questions about the adaptability of the research to evolving technological landscapes and potential for scope creep.
- The 'after exclusion of sources' clause in the competition type requires scrutiny to ensure it did not unduly limit competition and potentially impact price discovery.
Positive Signals
- Award through full and open competition indicates a structured and fair process for selecting the contractor.
- The sustained award over a long period suggests the contractor possesses unique capabilities or a strong track record valued by the agency.
- The contract's focus on R&D aligns with the government's strategic investment in innovation and future technological advantage.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization, where significant government investment is directed towards maintaining technological superiority. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of R&D, but the overall federal R&D spending is in the hundreds of billions annually, with defense being a major component. This contract represents a specific, long-term investment in a particular technological domain.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, as a large prime contractor, General Dynamics Mission Systems may engage small businesses as subcontractors for specialized services or components, contributing to the small business ecosystem indirectly. The extent of this subcontracting is not detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs against the fixed fee. Transparency is facilitated through contract databases and reporting requirements, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Research and Development
- Advanced Technology Development
- Engineering Services
- Life Sciences Research
- Department of Defense Contracts
- Army Research Laboratory Contracts
Risk Flags
- Long contract duration may lead to technological obsolescence or changing requirements.
- Cost Plus Fixed Fee structure requires robust oversight to manage costs effectively.
- Exclusion of sources in competition needs justification to ensure fair market access.
Tags
department-of-defense, department-of-the-army, research-and-development, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, general-dynamics-mission-systems, virginia, long-term-contract, technology-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. See the official description on USAspending.
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 Army).
What is the total obligated amount?
The obligated amount is $15.3 million.
What is the period of performance?
Start: 2004-08-16. End: 2025-09-30.
What is the specific nature of the research and development being conducted under this contract?
The contract specifies 'Research and Development in the Physical, Engineering, and Life Sciences.' While the exact nature of the R&D is not detailed in the provided data, this broad classification suggests work in areas such as materials science, advanced manufacturing, robotics, artificial intelligence, biotechnology, or other scientific and engineering disciplines critical to defense applications. The long duration and significant value imply a project of substantial complexity and strategic importance, likely aimed at developing next-generation technologies or capabilities for the Department of Defense.
How does the $15.3 million value compare to similar long-term R&D contracts in the defense sector?
Directly comparing the $15.3 million value is challenging without knowing the specific R&D focus and duration. However, for long-term, complex R&D projects within the Department of Defense, this figure represents a moderate investment. Large-scale defense R&D programs can range from tens of millions to billions of dollars over their lifecycles. The contract's duration of over 20 years (7715 days) means the annual average spending is relatively low (approx. $1.98 million/year), suggesting a focused, sustained effort rather than a rapid, large-scale development initiative. It is crucial to benchmark against contracts with similar technical scope and project timelines for a more accurate assessment.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration?
The primary risk with a CPFF contract, especially one spanning over two decades, is the potential for cost overruns if the fixed fee does not adequately account for unforeseen complexities or inflation. The contractor has an incentive to control costs to maximize profit, but the government bears the risk of cost increases beyond the estimate. For long-duration contracts, there's also the risk that the technology or requirements may evolve significantly, necessitating contract modifications that could impact the fixed fee or scope. Effective oversight is paramount to manage these risks, ensuring that costs remain reasonable and that the contractor remains motivated to deliver within the agreed-upon parameters.
What does the 'Full and Open Competition After Exclusion of Sources' designation imply for the bidding process?
This designation means that the solicitation was initially intended for full and open competition, but specific sources were subsequently excluded. This exclusion must be justified by the agency, often due to reasons like proprietary data, unique capabilities, or national security concerns. While it allows for competition among the remaining eligible sources (5 bidders in this case), it raises questions about whether the exclusion limited the pool of potential offerors and potentially impacted the level of competition and price discovery. A thorough review of the justification for exclusion is necessary to ensure fairness and maximize value for the government.
What is the historical spending pattern for this specific contract or similar R&D efforts by the Department of the Army?
The provided data shows the total award amount and duration, but not historical spending patterns. This contract, awarded on August 16, 2004, and ending September 30, 2025, has a very long lifecycle. Historical spending would likely show gradual expenditure over the years, reflecting the phased nature of R&D. Without access to contract performance reports or historical obligation data, it's impossible to detail specific spending trends. However, the longevity suggests consistent funding allocation over multiple fiscal years, indicating a sustained strategic priority for this R&D effort within the Department of the Army.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: BASIC RESEARCH
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Wico Limited
Address: 12450 FAIR LAKES CIR STE 800, FAIRFAX, VA, 22033
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: 2004-08-16
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-08-21
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