DoD's $13.36M GDMS Contract for Computer Systems Design Services Awarded via Sole Source

Contract Overview

Contract Amount: $13,358,847 ($13.4M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-04-01

End Date: 2020-02-29

Contract Duration: 334 days

Daily Burn Rate: $40.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: GDMS TNE DEVELOPMENT

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: GDMS TNE DEVELOPMENT Key points: 1. Contract awarded to General Dynamics Mission Systems, Inc. for $13.36M. 2. Services are for Computer Systems Design, a critical IT sector. 3. Awarded as a sole-source contract, raising potential competition concerns. 4. The contract duration is 334 days, ending February 29, 2020.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar Computer Systems Design Services contracts is difficult without more detailed scope information.

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 may result in higher costs for taxpayers than if the contract had been awarded through a competitive bidding process.

Public Impact

Taxpayers may have paid more due to the absence of competitive bidding. The Department of Defense relies on these services for critical systems. Lack of transparency in sole-source awards can reduce public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition.
  • Cost-plus contract type can incentivize higher spending.
  • No small business participation noted.

Positive Signals

  • Services provided by a known entity (General Dynamics).
  • Specific need addressed by the Department of the Air Force.

Sector Analysis

This contract falls under the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across the government, with benchmarks varying widely based on complexity and scope.

Small Business Impact

There is no indication of small business participation in this contract. Sole-source awards often bypass opportunities for small businesses to compete for government contracts.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government obtained fair value. Further review of the justification for sole-source procurement is recommended.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Sole-source award.
  • Cost Plus Fixed Fee contract type.
  • No small business participation.
  • Limited transparency due to sole-source nature.

Tags

computer-systems-design-services, department-of-defense, az, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. GDMS TNE DEVELOPMENT

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 $13.4 million.

What is the period of performance?

Start: 2019-04-01. End: 2020-02-29.

What was the justification for awarding this contract on a sole-source basis instead of competing it?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or situations where only one vendor can meet the specific requirements. Without access to the official justification document, it's impossible to determine the precise reason. However, sole-source awards are generally exceptions to the rule, requiring strong justification to ensure fair and open competition principles are upheld.

How does the Cost Plus Fixed Fee structure impact the potential for cost overruns in this contract?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee. While the fee is fixed, the contractor has less incentive to control costs as their profit is not directly tied to cost savings. This can increase the risk of cost overruns if the government's oversight is not robust and if the scope of work is not clearly defined and managed.

What is the potential impact on future contract awards if sole-source justifications are not rigorously reviewed?

If sole-source justifications are not rigorously reviewed, it can lead to a decline in competitive bidding, potentially increasing costs for the government and taxpayers. It can also stifle innovation by limiting opportunities for new or smaller businesses to enter the market. Over time, this practice could erode the principle of fair and open competition, leading to less efficient use of public funds.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,741,092

Exercised Options: $14,741,092

Current Obligation: $13,358,847

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA714618D0360

IDV Type: IDC

Timeline

Start Date: 2019-04-01

Current End Date: 2020-02-29

Potential End Date: 2020-02-29 00:00:00

Last Modified: 2026-01-07

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