DHS Awards $243M to General Dynamics for Coastal Sustainment Services
Contract Overview
Contract Amount: $242,868,777 ($242.9M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2021-04-01
End Date: 2026-03-31
Contract Duration: 1,825 days
Daily Burn Rate: $133.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: R21 COASTAL SUSTAINMENT SERVICES FIRM FIXED PRIC TASK ORDER
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $242.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: R21 COASTAL SUSTAINMENT SERVICES FIRM FIXED PRIC TASK ORDER Key points: 1. Significant contract value of $243 million. 2. General Dynamics Mission Systems is the sole awardee. 3. Risk of limited competition and potential price inflation. 4. Spending falls under 'All Other Telecommunications' sector.
Value Assessment
Rating: questionable
The contract is a firm-fixed-price delivery order, which provides cost certainty. However, without competitive bidding, it's difficult to assess if the $243 million price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may not have secured the best possible price.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Coast Guard's operational capabilities could be impacted if services are not cost-effective. Lack of transparency in the procurement process hinders public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Firm-fixed-price contract type
Sector Analysis
This contract falls under the 'All Other Telecommunications' category, which can encompass a wide range of services. Benchmarking spending in this broad category is challenging without more specific service details.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award, as the 'sb' field is false. This suggests no specific provisions were made for small business involvement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services at a reasonable cost and meeting all contractual requirements.
Related Government Programs
- All Other Telecommunications
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in procurement
- No small business participation noted
Tags
all-other-telecommunications, department-of-homeland-security, az, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $242.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. R21 COASTAL SUSTAINMENT SERVICES FIRM FIXED PRIC TASK 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 Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $242.9 million.
What is the period of performance?
Start: 2021-04-01. End: 2026-03-31.
What specific coastal sustainment services are being procured, and how do they align with the Coast Guard's mission needs?
The contract details are limited, but 'Coastal Sustainment Services' likely refers to the maintenance, repair, and operational support of critical infrastructure, vessels, or communication systems essential for the Coast Guard's maritime security and operational readiness. Understanding the precise nature of these services is crucial for assessing their necessity and value.
What justification was provided for awarding this contract on a sole-source basis instead of through full and open competition?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without the specific justification documentation, it's impossible to verify the validity of the sole-source determination and ensure it was appropriate.
How will the Department of Homeland Security ensure cost-effectiveness and performance accountability for this $243 million contract over its five-year duration?
Effective oversight will be critical. This includes regular performance reviews, audits of contractor costs, and clear performance metrics. The agency should establish robust mechanisms to track deliverables, ensure quality, and hold General Dynamics accountable for meeting all contractual obligations within the agreed-upon budget.
Industry Classification
NAICS: Information › Other Telecommunications › All Other Telecommunications
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 70Z04421R21000600
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: $243,818,068
Exercised Options: $242,868,777
Current Obligation: $242,868,777
Subaward Activity
Number of Subawards: 121
Total Subaward Amount: $31,759,982
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 70Z04421D21000600
IDV Type: IDC
Timeline
Start Date: 2021-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-03-30
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