DOT Awards $50.2M for ETR First Production Order to General Dynamics
Contract Overview
Contract Amount: $50,256,517 ($50.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Transportation
Start Date: 2024-08-29
End Date: 2026-02-25
Contract Duration: 545 days
Daily Burn Rate: $92.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ETR FIRST PRODUCTION ORDER
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Transportation obligated $50.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ETR FIRST PRODUCTION ORDER Key points: 1. Significant award for wireless communications equipment manufacturing. 2. General Dynamics Mission Systems is the sole awardee. 3. Potential for future orders based on this initial production. 4. Contract duration is 545 days.
Value Assessment
Rating: good
The award amount of $50.2M for a first production order appears reasonable given the scope. Benchmarking against similar large-scale wireless communications equipment contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair market prices.
Taxpayer Impact: Taxpayer funds are being utilized for essential communications equipment, with competition aiming for cost-effectiveness.
Public Impact
Enhances critical communication infrastructure for the FAA. Supports advanced wireless technology deployment. Potential for improved air traffic management capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee may limit future competitive pricing.
- Dependence on a single supplier for critical equipment.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports a key government agency (FAA).
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector is driven by technological advancements and government needs for secure and reliable communication systems.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this particular award. Further investigation into the prime contractor's overall small business utilization plan would be necessary.
Oversight & Accountability
The Federal Aviation Administration is responsible for overseeing this contract. Standard procurement oversight processes should ensure compliance and performance.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Sole awardee for production phase.
- Potential for future sole-source negotiations.
- Dependence on specific technology.
- Long contract duration.
Tags
radio-and-television-broadcasting-and-wi, department-of-transportation, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $50.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. ETR FIRST PRODUCTION ORDER
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 Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $50.3 million.
What is the period of performance?
Start: 2024-08-29. End: 2026-02-25.
What is the expected impact of this 'first production order' on future procurement costs and timelines for similar equipment?
The 'first production order' typically establishes baseline costs and manufacturing processes. Subsequent orders may benefit from economies of scale and refined production, potentially leading to lower per-unit costs. However, initial production runs can also be more expensive due to setup and learning curves. Timelines will depend on the contractor's capacity and the complexity of the equipment, with potential for acceleration in later phases if initial production is successful.
What are the primary risks associated with awarding a significant production order to a single entity, even under full and open competition?
The primary risks include potential vendor lock-in, reduced leverage for future price negotiations, and supply chain vulnerabilities if the sole awardee faces production issues. While competition was used initially, ongoing reliance on one supplier can limit market responsiveness and innovation. Contingency planning for sole-source follow-on contracts or alternative suppliers is crucial to mitigate these risks.
How does this $50.2 million award contribute to the FAA's overall mission effectiveness and technological modernization goals?
This award directly supports the FAA's mission by providing essential wireless communications equipment, likely for air traffic management or related operational systems. It represents a tangible step in modernizing the agency's technological infrastructure, aiming to enhance safety, efficiency, and capacity. The success of this production order will be a key indicator of the effectiveness of the chosen technology and the contractor's ability to deliver.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $50,256,517
Exercised Options: $50,256,517
Current Obligation: $50,256,517
Actual Outlays: $24,756,695
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 693KA821D00002
IDV Type: IDC
Timeline
Start Date: 2024-08-29
Current End Date: 2026-02-25
Potential End Date: 2029-02-25 00:00:00
Last Modified: 2025-12-19
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