DoD's $24.2M R&D contract with GXM Technologies shows fair value, but limited competition raises concerns
Contract Overview
Contract Amount: $24,249,862 ($24.2M)
Contractor: GXM Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2012-04-30
End Date: 2016-11-30
Contract Duration: 1,675 days
Daily Burn Rate: $14.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: ADAPTIVE APPLICATION CREATION ENHANCEMENT TESTING AND DEMONSTRATION
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.2 million to GXM TECHNOLOGIES LLC for work described as: ADAPTIVE APPLICATION CREATION ENHANCEMENT TESTING AND DEMONSTRATION Key points: 1. Contract value appears reasonable given the R&D nature and duration. 2. Competition was limited, potentially impacting price discovery and value for money. 3. Risk indicators are moderate, with a firm-fixed-price contract mitigating some cost overruns. 4. Performance context is within R&D for physical, engineering, and life sciences. 5. Sector positioning is in specialized research and development services. 6. The contract duration of over 4 years suggests a significant project scope.
Value Assessment
Rating: fair
The contract's total value of $24.2 million over approximately 4 years suggests an average annual spend of around $6 million. Benchmarking R&D contracts is challenging due to unique scopes, but this figure appears within a reasonable range for specialized research services. The firm-fixed-price structure provides cost certainty, though the absence of detailed performance metrics makes a precise value-for-money assessment difficult without further context on deliverables and outcomes.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, the data shows only one award was made, which could imply that while the competition was open, the number of qualified bidders or the proposals received resulted in a single successful offeror. This scenario warrants scrutiny to ensure that the competitive process effectively drove down prices and maximized value.
Taxpayer Impact: While the competition was open, a single award suggests that taxpayers may not have benefited from the full spectrum of competitive pricing that multiple bids could have generated.
Public Impact
Benefits the Department of Defense by advancing research and development capabilities. Services delivered likely include advanced testing, demonstration, and application enhancement. Geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include specialized R&D personnel employed by GXM Technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of bidders despite open competition could indicate barriers to entry or a niche market.
- Lack of detailed performance metrics makes it difficult to assess the true value and impact of the R&D investment.
- Firm-fixed-price contracts can sometimes lead to scope creep if not managed tightly, although they offer cost predictability.
Positive Signals
- Awarded under full and open competition, adhering to principles of fair opportunity.
- Firm-fixed-price contract provides cost certainty for the government.
- Contract duration suggests a substantial and potentially impactful research project.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a highly specialized area where innovation and technological advancement are critical for national security. The market for such R&D services is often characterized by a limited number of highly skilled firms capable of meeting complex government requirements. Comparable spending benchmarks are difficult to establish due to the bespoke nature of R&D projects.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary focus was on technical capability and research expertise rather than small business utilization. There is no explicit information on subcontracting plans for small businesses, which means their involvement would depend on GXM Technologies' own procurement strategies. Without specific set-asides, the direct impact on the small business ecosystem for this particular contract is likely minimal.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified research outcomes. Transparency is generally maintained through contract databases, but detailed programmatic oversight and Inspector General jurisdiction would depend on specific agency policies and any identified performance issues or fraud concerns.
Related Government Programs
- Department of Defense Research and Development
- Advanced Technology Development
- Engineering Services Contracts
- Physical Sciences Research
- Life Sciences Research
Risk Flags
- Limited competition despite open solicitation
- Potential for scope creep in R&D contracts
- Uncertainty inherent in research and development outcomes
Tags
department-of-defense, department-of-the-army, research-and-development, definitive-contract, firm-fixed-price, full-and-open-competition, gxm-technologies-llc, virginia, naics-541712, technology-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.2 million to GXM TECHNOLOGIES LLC. ADAPTIVE APPLICATION CREATION ENHANCEMENT TESTING AND DEMONSTRATION
Who is the contractor on this award?
The obligated recipient is GXM TECHNOLOGIES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $24.2 million.
What is the period of performance?
Start: 2012-04-30. End: 2016-11-30.
What specific research and development activities were undertaken under this contract?
The contract, titled 'ADAPTIVE APPLICATION CREATION ENHANCEMENT TESTING AND DEMONSTRATION,' suggests a focus on developing, refining, testing, and demonstrating novel applications. This likely involved activities such as software development, systems engineering, prototype creation, rigorous testing protocols, and performance demonstrations to validate the functionality and effectiveness of new technologies or enhancements. The specific nature of these applications within physical, engineering, or life sciences would require access to detailed contract statements of work and technical reports, which are not publicly available in this data extract.
How does the $24.2 million contract value compare to similar R&D efforts within the DoD?
Benchmarking this $24.2 million contract against similar DoD R&D efforts is complex due to the highly specialized and often unique nature of research projects. However, considering the contract duration of approximately 4 years (1675 days), the average annual spend is around $6 million. This figure is within the typical range for significant R&D initiatives that require dedicated teams and substantial resources. Larger, more foundational research programs can easily exceed hundreds of millions, while smaller exploratory studies might be in the low millions. This contract appears to represent a mid-to-large scale R&D investment for a specific technological advancement.
What are the primary risks associated with this firm-fixed-price R&D contract?
The primary risks associated with this firm-fixed-price R&D contract include potential scope creep if the definition of 'enhancement,' 'testing,' and 'demonstration' is not tightly managed, leading to cost overruns beyond the fixed price if not carefully controlled through contract modifications. Another risk is the contractor's ability to deliver the desired innovative outcomes within the specified timeframe and budget, as R&D inherently involves uncertainty. Furthermore, if the research proves less fruitful than anticipated or fails to meet critical performance thresholds, the value derived from the investment could be diminished, even if the contractor fulfills the contractual obligations.
What was the historical spending pattern for similar R&D services by the Department of the Army?
Analyzing historical spending patterns for similar R&D services by the Department of the Army requires access to comprehensive historical contract data. Without that, it's difficult to provide specific figures. However, the Army consistently invests significant funds in R&D across various domains, including but not limited to, advanced materials, communication systems, cybersecurity, robotics, and soldier modernization. Contracts in this 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541712) typically range from hundreds of thousands to tens of millions of dollars, depending on the project's scale, duration, and technological complexity. This $24.2 million contract aligns with substantial R&D investments the Army makes to maintain technological superiority.
What is the track record of GXM Technologies LLC in performing government R&D contracts?
Information regarding the specific track record of GXM Technologies LLC in performing government R&D contracts is not detailed in the provided data. To assess their performance history, one would need to examine past contract awards, performance evaluations (e.g., CPARS reports), and any history of contract disputes or successes. As this contract was awarded in 2012 and completed in 2016, their performance on this specific project would be a key indicator. A thorough review would involve searching federal procurement databases and performance assessment systems for prior engagements and their outcomes.
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 › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 42986 FARMINGDALE DR, ASHBURN, VA, 20147
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $24,249,862
Exercised Options: $24,249,862
Current Obligation: $24,249,862
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-04-30
Current End Date: 2016-11-30
Potential End Date: 2016-11-30 00:00:00
Last Modified: 2016-09-22
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