DHS Spends $66.6M on General Dynamics Rescue 21 System Support, Lacking Competition
Contract Overview
Contract Amount: $66,629,236 ($66.6M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2019-09-01
End Date: 2021-02-28
Contract Duration: 546 days
Daily Burn Rate: $122.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS IS A FIRM FIXED PRICE TASK ORDER TO PROVIDE MAINTENANCE AND SUPPORT FOR THE RESCUE 21 COASTAL SYSTEM.
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $66.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: THIS IS A FIRM FIXED PRICE TASK ORDER TO PROVIDE MAINTENANCE AND SUPPORT FOR THE RESCUE 21 COASTAL SYSTEM. Key points: 1. Significant spending on a critical coastal system highlights reliance on a single vendor. 2. The firm-fixed-price contract structure aims to control costs for maintenance and support. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. Engineering services sector sees substantial investment, but this award is not benchmarked. 5. The duration of the contract (546 days) suggests ongoing operational needs.
Value Assessment
Rating: questionable
The contract value of $66.6 million for engineering services is substantial. Without competitive bids, it's difficult to assess if this price is fair market value compared to similar maintenance and support contracts for specialized systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Dynamics Mission Systems, Inc. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a $66.6 million contract means taxpayers may be paying a premium for maintenance and support services, as competitive market forces were not leveraged.
Public Impact
Ensures continued operation of the vital Rescue 21 coastal system, crucial for maritime safety. Supports national security by maintaining critical communication and surveillance infrastructure. The significant investment could impact funding for other federal programs or initiatives. Potential for reduced taxpayer value due to the absence of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No clear justification for sole-source
- Potential for overpricing
Positive Signals
- Maintains critical infrastructure
- Firm fixed price contract
Sector Analysis
This award falls under Engineering Services (NAICS 541330). While engineering services are a broad category, specialized system maintenance like this can be niche. Benchmarking is difficult without comparable sole-source contracts.
Small Business Impact
The contract was awarded to General Dynamics Mission Systems, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further investigation into the justification for not competing this requirement is needed to ensure accountability and responsible use of taxpayer funds.
Related Government Programs
- Engineering Services
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole-source award lacks transparency
- Potential for inflated costs due to no competition
- Limited opportunity for small business participation
- No clear justification provided for sole-source status
- Risk of vendor lock-in
Tags
engineering-services, department-of-homeland-security, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $66.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. THIS IS A FIRM FIXED PRICE TASK ORDER TO PROVIDE MAINTENANCE AND SUPPORT FOR THE RESCUE 21 COASTAL SYSTEM.
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 Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $66.6 million.
What is the period of performance?
Start: 2019-09-01. End: 2021-02-28.
What was the justification for awarding this contract sole-source instead of conducting a competitive procurement?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services, such as in cases of urgent need, unique capabilities, or compatibility with existing systems. A thorough review would be needed to validate this justification.
How does the $66.6 million cost compare to similar maintenance contracts for comparable systems, if available?
Without access to a database of comparable sole-source contracts for specialized systems like Rescue 21, it is challenging to benchmark this $66.6 million expenditure. The lack of competition prevents a direct price comparison against market alternatives, making it difficult to assess value for money.
What is the long-term strategy for maintaining the Rescue 21 system, and will future procurements be competed?
The provided data does not offer insight into the long-term strategy for the Rescue 21 system or future procurement plans. It is crucial for the U.S. Coast Guard to outline a strategy that maximizes competition for future requirements to ensure cost-effectiveness and leverage technological advancements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $66,629,236
Exercised Options: $66,629,236
Current Obligation: $66,629,236
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HSCG7916DPC5023
IDV Type: IDC
Timeline
Start Date: 2019-09-01
Current End Date: 2021-02-28
Potential End Date: 2021-02-28 00:00:00
Last Modified: 2020-07-02
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