DoD's $13.3M Submarine Modernization Contract Awarded to General Dynamics

Contract Overview

Contract Amount: $13,301,950 ($13.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-12-21

End Date: 2009-12-11

Contract Duration: 721 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: Defense

Official Description: SUBMARINE SHIPALT AND MODERNIZATION

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112, UNITED STATES OF AMERICA

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $13.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SUBMARINE SHIPALT AND MODERNIZATION Key points: 1. Contract awarded to General Dynamics Information Technology, Inc. for submarine ship alterations and modernization. 2. The contract value is $13,301,949.85. 3. This falls under Engineering Services (NAICS 541330). 4. The award was made under full and open competition. 5. The contract duration was 721 days.

Value Assessment

Rating: fair

The contract was awarded on a Cost No Fee (CNF) basis, which can present challenges in cost control. The awarded value of $13.3M for modernization services needs to be benchmarked against similar submarine upgrade contracts to assess its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible contractors to bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives the best value.

Public Impact

Enhances the operational capabilities and lifespan of U.S. Navy submarines. Supports critical national defense infrastructure and readiness. Contributes to the technological advancement of naval warfare systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee (CNF) contract type can lead to cost overruns if not managed tightly.
Lack of specific performance metrics or deliverables in the provided data.
Potential for scope creep in complex modernization projects.

Positive Signals

Awarded under full and open competition, indicating competitive pricing.
Supports a critical national defense asset (submarines).
Contract duration of over 700 days allows for thorough execution.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related infrastructure. Spending in this sector is often driven by national security needs and technological advancements, with significant government investment.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further investigation would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for the oversight of this contract. Standard procurement regulations and contract management practices would apply to ensure accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost No Fee (CNF) contract type.
Potential for cost overruns.
Lack of detailed performance metrics.
Complexity of submarine modernization projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SUBMARINE SHIPALT AND MODERNIZATION

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 $13.3 million.

What is the period of performance?

Start: 2007-12-21. End: 2009-12-11.

What was the final cost compared to the initial estimated cost, and were there any significant cost variances?

The provided data does not include information on the initial estimated cost or the final incurred cost. A Cost No Fee (CNF) contract type means the contractor is reimbursed for allowable costs but does not receive a fee. Analyzing the final allowable costs against the initial budget is crucial for assessing value and identifying potential cost overruns or efficiencies.

Were there any performance issues or challenges encountered during the contract period that impacted the modernization outcome?

The available data does not detail specific performance metrics or any challenges faced during the contract's execution. For a modernization contract, understanding if the project met its technical objectives, timelines, and quality standards is essential for evaluating its effectiveness and the contractor's performance.

How does the cost per unit of modernization for this submarine compare to similar projects on other vessels?

Benchmarking the cost per unit of modernization is difficult without specific details on the scope of work performed and the type/class of submarine. A 'per-unit cost' is not directly calculable from the provided data. A comprehensive analysis would require comparing the total cost against the specific modernization tasks completed relative to industry standards for similar naval vessels.

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: N0002407R3344

Offers Received: 3

Pricing Type: COST NO FEE (S)

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: $18,817,024

Exercised Options: $18,817,024

Current Obligation: $13,301,950

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4012

IDV Type: IDC

Timeline