DoD's Undersea Weapons Program Office Spends $84.9M on Engineering Services with General Dynamics

Contract Overview

Contract Amount: $84,891,233 ($84.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-02-06

End Date: 2015-10-26

Contract Duration: 5,010 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Defense

Official Description: PMS404 UNDERSEA WEAPONS PROGRAM OFFICE PROFESSIONAL SUPPORT SERVICES

Place of Performance

Location: BURR RIDGE, COOK County, ILLINOIS, 60527

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $84.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PMS404 UNDERSEA WEAPONS PROGRAM OFFICE PROFESSIONAL SUPPORT SERVICES Key points: 1. Significant contract value of $84.9 million for professional support services. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. Contract spans over 13 years, indicating long-term reliance. 4. Engineering Services sector, crucial for defense capabilities.

Value Assessment

Rating: fair

The contract's Cost No Fee (CNF) pricing structure makes direct value assessment difficult without further cost data. The duration and value suggest a substantial investment, but without benchmarks, it's hard to definitively say if it's optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded via Full and Open Competition, suggesting a competitive bidding process. However, the specific award mechanism (Delivery Order) and the long duration might obscure the initial price discovery effectiveness.

Taxpayer Impact: Taxpayer funds are allocated to a critical defense program. The effectiveness of the competition and pricing structure will determine the ultimate value for money.

Public Impact

Supports the development and sustainment of undersea weapons systems, vital for national security. Long-term contract may indicate stable, ongoing needs for specialized engineering expertise. Potential for technology transfer and innovation within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdowns for CNF contracts.
Long contract duration could lead to cost overruns if not managed tightly.
Sole awardee for a significant period raises questions about sustained competition.

Positive Signals

Awarded through full and open competition.
Supports a critical national security program.
Long-term engagement allows for deep expertise development.

Sector Analysis

This contract falls within the Engineering Services sector, which is a significant area of government spending, particularly for the Department of Defense. Benchmarks for similar long-term, high-value engineering support contracts are essential for a comprehensive value assessment.

Small Business Impact

The contract was awarded to General Dynamics Information Technology, Inc., a large business. There is no indication of small business participation in this specific award, which is common for large, specialized defense contracts.

Oversight & Accountability

The Department of Defense, through its various contracting and management agencies, is responsible for overseeing this contract. Robust oversight is crucial to ensure performance, manage costs, and maintain accountability throughout the contract's lifecycle.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost No Fee (CNF) pricing limits transparency.
Long contract duration (13 years) poses potential for cost escalation.
Lack of small business participation.
Sole awardee for an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PMS404 UNDERSEA WEAPONS PROGRAM OFFICE PROFESSIONAL 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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $84.9 million.

What is the period of performance?

Start: 2002-02-06. End: 2015-10-26.

What was the rationale for the Cost No Fee (CNF) pricing structure, and how does it align with achieving best value for the government?

The CNF structure is typically used when the government has significant control over the contractor's costs or when the scope of work is highly uncertain. For this contract, it suggests the government may have had substantial insight into the required resources or that the primary objective was capability delivery rather than strict cost control. However, it complicates direct value-for-money comparisons against fixed-price contracts.

Given the 13-year duration, what mechanisms were in place to ensure continued competition and prevent contractor lock-in?

While awarded under 'Full and Open Competition,' the long duration of this contract, especially if it involved multiple delivery orders or extensions, raises concerns about sustained competition. Agencies should have provisions for periodic re-competition or market research to ensure that the incumbent contractor remains competitive and that new entrants have opportunities to bid on evolving requirements.

How does the $84.9 million expenditure on engineering services for the Undersea Weapons Program compare to industry benchmarks for similar defense programs?

Without specific details on the services rendered and the program's complexity, a direct benchmark comparison is challenging. However, for major defense programs, significant investment in specialized engineering support is typical. The key is whether the cost per unit of capability delivered aligns with or outperforms industry standards, which requires detailed performance and cost data beyond what is publicly available.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002402R7037

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, STE 70, FAIRFAX, VA, 22030

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $2,806,609,418

Exercised Options: $987,669,236

Current Obligation: $84,891,233

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002401D7013

IDV Type: IDC

Timeline