DoD awards $14.4M for HM&E Systems Engineering to General Dynamics, raising value concerns
Contract Overview
Contract Amount: $14,426,084 ($14.4M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-26
End Date: 2012-09-28
Contract Duration: 1,829 days
Daily Burn Rate: $7.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING AND TECHNICAL SERVICES FOR 60HZ, 440 HZ AND DC HM&E SYSTEMS
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $14.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENGINEERING AND TECHNICAL SERVICES FOR 60HZ, 440 HZ AND DC HM&E SYSTEMS Key points: 1. Contract awarded for specialized engineering services related to shipboard power systems. 2. General Dynamics Information Technology, Inc. secured the contract. 3. The contract duration is over 5 years, indicating a significant commitment. 4. The award type 'DO' suggests a priority rating, potentially impacting urgency and cost. 5. The 'PA' status code might indicate a specific type of procurement or contract action.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Without a clear benchmark for 'engineering services for HM&E systems,' assessing value is difficult.
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. However, the 'DO' priority rating could have influenced the final price and award decision.
Taxpayer Impact: The CPFF structure and potential for cost overruns present a risk to taxpayer funds if not meticulously overseen.
Public Impact
Ensures operational readiness of critical shipboard power systems. Supports the Department of the Navy's fleet maintenance and upgrade programs. Potential for cost escalation due to CPFF contract type. Impacts the specialized engineering services market within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Priority rating 'DO' awarded
- Long contract duration (over 5 years)
Positive Signals
- Full and open competition utilized
- Services critical for naval operations
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), which is a significant part of the defense industrial base. Spending in this area is often driven by modernization and maintenance needs for complex military assets.
Small Business Impact
The data does not indicate any specific set-aside for small businesses, suggesting that large prime contractors were likely the primary participants in this competition.
Oversight & Accountability
The CPFF contract type necessitates robust oversight to control costs and ensure performance. The Department of the Navy must actively monitor expenditures and contractor performance to mitigate risks.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Priority rating 'DO' may inflate costs.
- Long contract duration requires sustained oversight.
- Lack of specific performance benchmarks makes value assessment difficult.
- Potential for scope creep in engineering services.
Tags
engineering-services, department-of-defense, pa, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENGINEERING AND TECHNICAL SERVICES FOR 60HZ, 440 HZ AND DC HM&E SYSTEMS
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $14.4 million.
What is the period of performance?
Start: 2007-09-26. End: 2012-09-28.
What specific metrics are used to define 'value' in this Cost Plus Fixed Fee contract, and how are they tracked?
Value in a CPFF contract is typically defined by the successful completion of defined tasks and milestones within the scope of work, at a cost not exceeding the fixed fee plus allowable costs. Tracking involves rigorous auditing of contractor expenses, performance reviews against project schedules, and verification of deliverables. The Department of the Navy should have established procedures for cost monitoring and performance evaluation to ensure the contractor is delivering services efficiently and effectively.
How does the 'DO' priority rating potentially impact the cost-effectiveness and risk profile of this contract?
A 'DO' priority rating signifies that the contract is critical for national defense and requires preferential treatment in terms of material allocation and production scheduling. This can expedite delivery but may also lead to higher costs due to expedited processes, limited supplier options, or premium pricing. The risk is that the urgency might overshadow cost-saving opportunities, and the government may pay more than necessary if competition is indirectly limited by the priority.
What is the expected long-term effectiveness of these engineering services in supporting the Navy's HM&E systems?
The long-term effectiveness hinges on the quality of the engineering provided, the contractor's expertise, and the Navy's ability to integrate these services into its maintenance and upgrade strategies. If the services lead to improved system reliability, reduced downtime, and successful modernization, they will be highly effective. Conversely, if the services are merely reactive or do not address underlying system issues, their long-term impact could be limited, potentially requiring further costly interventions.
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: N0002407R3319
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $29,166,985
Exercised Options: $29,166,985
Current Obligation: $14,426,084
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4012
IDV Type: IDC
Timeline
Start Date: 2007-09-26
Current End Date: 2012-09-28
Potential End Date: 2012-09-28 00:00:00
Last Modified: 2016-10-05
More Contracts from General Dynamics Information Technology, Inc.
- Global Security Engineering&supply Chain Services — $1.5B (Department of State)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (Department of State)
- Cloud Products&tools (CPT) — $902.0M (Department of Health and Human Services)
- Beneficiary Contact Center Operations — $879.1M (Department of Health and Human Services)
- Award of Task Order 47qfca210051-Nawcad Wolf Ship and AIR C5isr Systems Support — $832.3M (General Services Administration)
View all General Dynamics Information Technology, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)