DoD's $20M R&D contract to General Dynamics Mission Systems shows long-term engagement with a single provider

Contract Overview

Contract Amount: $20,096,686 ($20.1M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-04-18

End Date: 2022-04-13

Contract Duration: 5,108 days

Daily Burn Rate: $3.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TAS::21 2040::TAS::SW-SMDC-01-08

Place of Performance

Location: OAKTON, FAIRFAX County, VIRGINIA, 22124

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: TAS::21 2040::TAS::SW-SMDC-01-08 Key points: 1. The contract's duration of over 14 years suggests a sustained need for the research and development services provided. 2. As a sole-source award, the absence of competitive bidding raises questions about potential price efficiencies and market innovation. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' classification indicates a focus on advanced scientific endeavors. 4. The contract's cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 5. The significant duration and value point to a critical, long-term requirement within the Department of Defense. 6. The lack of small business involvement (ss: false, sb: false) suggests limited opportunities for smaller firms in this specific R&D area.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and long duration, spanning over 14 years. Without competitive bids, it's difficult to ascertain if the pricing reflects market rates or if alternative, more cost-effective solutions were overlooked. The cost-plus-fixed-fee structure, while common in R&D, can lead to higher final costs compared to fixed-price contracts if not managed diligently. The total award amount of approximately $20 million over such an extended period suggests a substantial investment, but its value-for-money proposition is obscured by the lack of competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically justified when only one vendor possesses the necessary capabilities, technology, or security clearances. However, the absence of competition limits the government's ability to leverage market forces to achieve the best possible pricing and explore a wider range of innovative solutions. The lack of bidders means there was no direct price discovery through a competitive process.

Taxpayer Impact: For taxpayers, sole-source awards can mean potentially higher costs compared to competitively bid contracts, as the government may not benefit from the price reductions that competition typically drives. It also limits the opportunity to foster a broader base of qualified contractors for future needs.

Public Impact

The primary beneficiary is the Department of Defense, which receives specialized research and development services crucial for its technological advancement. The contract supports the development of advanced physical, engineering, and life sciences technologies, potentially enhancing national security capabilities. The geographic impact is primarily centered around the contractor's facilities, likely within Virginia given the 'VA' state code, and any research sites involved. The contract supports a specialized workforce of scientists, engineers, and researchers employed by General Dynamics Mission Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Long contract duration (over 14 years) may indicate a lack of market alternatives or potential for vendor lock-in.
Cost-plus-fixed-fee structure can lead to cost escalations if not rigorously managed.
No small business set-aside or participation noted, potentially limiting broader economic impact.

Positive Signals

Sustained R&D investment indicates a critical and ongoing need for the services provided.
Award to a known entity like General Dynamics Mission Systems suggests a focus on established expertise and reliability.
The contract supports advanced scientific and engineering development, crucial for technological progress.

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, involving innovation in materials, systems, and processes. The market for such specialized R&D is often characterized by high barriers to entry, requiring significant expertise, intellectual property, and security clearances. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of R&D, but significant government investment is typical in this domain to maintain a technological edge.

Small Business Impact

This contract does not appear to have any specific small business set-aside provisions (ss: false, sb: false). The award to a large prime contractor like General Dynamics Mission Systems suggests that subcontracting opportunities for small businesses may exist, but these are not explicitly mandated by the contract's structure. The lack of direct small business involvement in the prime award means that the direct economic benefit to the small business ecosystem from this specific contract is likely limited unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance, compliance, and proper cost accounting. The cost-plus-fixed-fee nature necessitates close financial oversight to prevent unnecessary cost growth. Transparency is generally maintained through contract reporting mechanisms, though specific details of the R&D activities may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
General Dynamics Mission Systems Contracts
Cost-Plus-Fixed-Fee Contracts
Sole-Source Defense Contracts
Virginia State Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Long contract duration may indicate vendor lock-in.
Cost-plus-fixed-fee structure poses risk of cost overruns.
Limited transparency into specific R&D activities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. TAS::21 2040::TAS::SW-SMDC-01-08

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 $20.1 million.

What is the period of performance?

Start: 2008-04-18. End: 2022-04-13.

What specific research and development activities are encompassed by this contract?

The contract falls under the North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' While the specific project details are not publicly disclosed due to the sensitive nature of defense R&D, this classification suggests work related to advanced materials, sensor technologies, communication systems, propulsion, or other scientific and engineering disciplines critical to defense applications. The long duration and sole-source award imply a deep, ongoing research effort requiring specialized expertise and potentially proprietary knowledge held by General Dynamics Mission Systems.

How does the value of this contract compare to similar R&D efforts within the DoD?

Direct comparison is difficult due to the sole-source nature and the specific, often classified, R&D focus. However, a $20 million award over 14 years averages approximately $1.4 million per year. This annual figure is modest for large-scale R&D but could be substantial for highly specialized, niche research. Many DoD R&D programs involve significantly larger sums, especially those focused on major system development. The value here suggests a focused, long-term research initiative rather than a broad program.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee R&D contract of this duration?

The primary risks include potential cost overruns due to the cost-plus-fixed-fee structure, where the contractor is reimbursed for allowable costs plus a fixed fee. Without competition, there's a risk that the government is not achieving the best possible price or that the contractor lacks sufficient incentive to control costs aggressively. Vendor lock-in is another risk, as the government becomes reliant on a single provider over a long period. Furthermore, the lack of competitive pressure might stifle innovation or lead to less efficient research methodologies compared to a more dynamic, competed environment.

What is the track record of General Dynamics Mission Systems in fulfilling similar DoD R&D contracts?

General Dynamics Mission Systems is a well-established defense contractor with a long history of delivering complex systems and services to the U.S. military. They have extensive experience in areas like command and control, intelligence, surveillance, reconnaissance, and cyber security. While specific performance metrics for this particular contract are not detailed here, the company's overall track record suggests a capacity to handle sophisticated R&D projects. However, the long duration and sole-source nature of this specific award warrant close monitoring of performance and cost control.

What does the historical spending pattern for this specific R&D area reveal?

Historical spending patterns for this specific R&D area (NAICS 541712 within DoD) are generally characterized by significant, sustained investment. The DoD consistently allocates substantial budgets to research and development to maintain technological superiority. Contracts in this domain often have long durations, reflecting the iterative and lengthy nature of scientific discovery and engineering development. While this specific contract is a single award, it represents a piece of the broader DoD R&D portfolio, which collectively amounts to billions of dollars annually across various scientific and engineering disciplines.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9113M08R0004

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 10467 WHITE GRANITE DR STE 304, OAKTON, VA, 22124

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,364,005

Exercised Options: $20,351,984

Current Obligation: $20,096,686

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline