DoD's $27.4M contract for satellite support awarded to General Dynamics Mission Systems, Inc
Contract Overview
Contract Amount: $27,389,798 ($27.4M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-10-01
End Date: 2026-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $25.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS PURPOSE OF THIS ACTION IS TO ACQUIRE TECHNICAL SUPPORT FOR THE ENHANCED MOBILE SATELLITE SERVICES CAPABILITIES OFFICE.
Place of Performance
Location: WAHIAWA, HONOLULU County, HAWAII, 96786
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $27.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: THIS PURPOSE OF THIS ACTION IS TO ACQUIRE TECHNICAL SUPPORT FOR THE ENHANCED MOBILE SATELLITE SERVICES CAPABILITIES OFFICE. Key points: 1. Contract awarded for technical support of enhanced mobile satellite services capabilities. 2. Sole-source award to General Dynamics Mission Systems, Inc. raises questions about competition. 3. Contract duration of 1095 days (3 years) suggests a long-term need for services. 4. Firm Fixed Price contract type aims to control costs for the government. 5. Awarded by the Department of the Air Force, indicating a focus on aerospace and defense needs. 6. The NAICS code 541513 points to Computer Facilities Management Services, a critical IT support area.
Value Assessment
Rating: questionable
Benchmarking the value of this $27.4 million contract is challenging without specific performance metrics or comparable sole-source awards. The firm fixed-price structure is a positive indicator for cost control. However, the lack of competition inherently limits the government's ability to ensure it is receiving the best possible price and value. Further analysis would require understanding the specific technical support required and whether alternative providers could offer similar services at a lower cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Dynamics Mission Systems, Inc., was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they typically result in less price discovery and potentially higher costs for the government compared to full and open competition.
Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings that could arise from a competitive bidding process. The government may have paid a premium due to the absence of multiple offers.
Public Impact
The primary beneficiaries are the Department of the Air Force and potentially other Department of Defense entities relying on enhanced mobile satellite services. The contract delivers essential technical support for critical satellite communication capabilities. The geographic impact is likely global, given the nature of satellite services, with a specific focus on operations within Hawaii (ST='HI'). Workforce implications may include the direct employment of personnel by General Dynamics Mission Systems, Inc. to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential cost savings for taxpayers.
- Lack of transparency in the justification for a sole-source award.
- Potential for vendor lock-in given the specialized nature of satellite services.
Positive Signals
- Firm Fixed Price contract type helps to control costs and provides budget certainty.
- Long-term contract duration (3 years) indicates a stable and ongoing requirement for these services.
- Award to an established contractor (General Dynamics Mission Systems, Inc.) suggests a level of confidence in their capabilities.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer facilities management services related to satellite communications. The market for such specialized technical support is often dominated by a few key defense contractors with the requisite expertise and security clearances. Benchmarking spending in this niche requires comparing it to other sole-source or competitively awarded contracts for similar satellite communication support services within the DoD.
Small Business Impact
This contract does not appear to involve a small business set-aside, as indicated by 'sb': false. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific set-aside goals or subcontracting requirements, the direct impact on the small business ecosystem for this particular contract is likely minimal, though General Dynamics Mission Systems, Inc. may engage small businesses as part of their supply chain.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officer and the relevant program management office within the Department of the Air Force. Transparency is limited due to the sole-source nature of the award. Accountability measures would be defined by the contract's performance work statement and any associated quality assurance surveillance plans. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Mobile Satellite Services
- Defense Communications Systems
- IT Support Services
- Aerospace and Defense Contracting
- Satellite Technology Procurement
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for overpayment due to lack of competition.
- Limited transparency regarding specific technical requirements and justifications.
Tags
it, defense, department-of-the-air-force, general-dynamics-mission-systems, sole-source, definitive-contract, firm-fixed-price, computer-facilities-management-services, satellite-communications, hawaii, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. THIS PURPOSE OF THIS ACTION IS TO ACQUIRE TECHNICAL SUPPORT FOR THE ENHANCED MOBILE SATELLITE SERVICES CAPABILITIES OFFICE.
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 Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $27.4 million.
What is the period of performance?
Start: 2023-10-01. End: 2026-09-30.
What specific technical support is required under this contract for the Enhanced Mobile Satellite Services Capabilities Office?
The provided data indicates the purpose is to 'ACQUIRE TECHNICAL SUPPORT FOR THE ENHANCED MOBILE SATELLITE SERVICES CAPABILITIES OFFICE.' While the exact nature of the technical support is not detailed, it likely encompasses a range of services critical to the operation, maintenance, and enhancement of mobile satellite communication systems. This could include network management, system integration, hardware/software support, cybersecurity, user training, and potentially lifecycle management of the satellite communication infrastructure. Given the 'Computer Facilities Management Services' NAICS code (541513), the support is heavily focused on the IT infrastructure and operational aspects of these services.
What is the justification for awarding this contract on a sole-source basis to General Dynamics Mission Systems, Inc.?
The provided data explicitly states the contract was 'NOT COMPETED' and is a 'SOLE SOURCE'. However, the specific justification for this sole-source award is not detailed in the provided data. Typically, sole-source justifications are required by federal acquisition regulations and might include reasons such as the unique capability of the contractor, the urgency of the requirement, or the unavailability of other sources. Without the official justification document, it's impossible to definitively state why competition was bypassed. This lack of transparency is a common concern with sole-source awards.
How does the $27.4 million contract value compare to similar IT support contracts within the Department of Defense?
Comparing the $27.4 million value requires context regarding the scope and duration of similar contracts. For a three-year contract (1095 days) for specialized IT support related to mobile satellite services, this figure may be within a reasonable range, especially if General Dynamics Mission Systems, Inc. possesses unique expertise or proprietary technology. However, without access to a database of comparable sole-source or competitively bid IT support contracts within the DoD for similar services, a precise benchmark is difficult. The absence of competition inherently makes it harder to ascertain if this represents optimal value for taxpayer dollars compared to what a competitive process might yield.
What are the potential risks associated with a sole-source award for critical satellite communication support?
The primary risk associated with a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. Taxpayers may not receive the best value for their money. Another significant risk is vendor lock-in, where the government becomes overly reliant on a single provider, making it difficult and costly to switch vendors in the future, even if performance or pricing becomes unsatisfactory. Furthermore, the absence of competition can sometimes lead to complacency in service delivery or a slower pace of technological advancement compared to a market driven by multiple bidders.
What is the historical spending pattern for Enhanced Mobile Satellite Services technical support within the Department of the Air Force or DoD?
The provided data does not include historical spending patterns for this specific requirement or contractor. To assess historical spending, one would need to query federal procurement databases (like FPDS or USASpending) for previous contracts awarded to General Dynamics Mission Systems, Inc. or other entities for similar mobile satellite services technical support. Analyzing past awards, including their values, durations, and competition levels, would provide crucial context for understanding whether the current $27.4 million award represents an increase, decrease, or consistent level of investment in these capabilities.
What is the significance of the NAICS code 541513 (Computer Facilities Management Services) in the context of this contract?
The NAICS code 541513 signifies that the primary service being procured is Computer Facilities Management Services. This category typically includes establishments primarily engaged in providing on-site management and operation of clients' computer systems and/or data processing facilities. This can encompass a wide range of activities such as operating clients' computer systems, providing technical support, systems administration, and managing computer infrastructure. For a contract supporting mobile satellite services, this NAICS code suggests the focus is on the IT infrastructure, network operations, and ongoing management required to ensure the reliability and functionality of the satellite communication systems.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 8201 E MCDOWELL RD, 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: $84,294,364
Exercised Options: $35,956,506
Current Obligation: $27,389,798
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Timeline
Start Date: 2023-10-01
Current End Date: 2026-09-30
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2026-01-15
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