Air Force awards $17.4M for GDMS TNE Sustainment, a sole-source contract for computer systems design
Contract Overview
Contract Amount: $17,382,941 ($17.4M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-04-01
End Date: 2021-03-31
Contract Duration: 364 days
Daily Burn Rate: $47.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: GDMS TNE SUSTAINMENT 20
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $17.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: GDMS TNE SUSTAINMENT 20 Key points: 1. Contract awarded to General Dynamics Mission Systems, Inc. for sustainment services. 2. The contract is for Computer Systems Design Services, a common IT sector. 3. Awarded as a sole-source contract, raising questions about competition. 4. The total value is $17.4 million over approximately one year.
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 sole-source contracts for sustainment services is difficult without more data.
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 a higher cost to taxpayers than if the services were procured through a competitive bidding process.
Public Impact
Taxpayers may be paying a premium due to the sole-source nature of the award. The sustainment of critical Air Force systems relies on this single vendor. Lack of transparency in the procurement process could mask inefficiencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- No small business participation noted
Positive Signals
- Awarded to a known entity for sustainment services
- Contract duration is approximately one year, allowing for future reassessment
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending in this area is substantial across the government, with a mix of competitive and sole-source awards.
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 fair pricing and necessity. Further oversight is needed to confirm the justification for not competing the requirement.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type carries risk of cost overruns.
- No small business participation.
- Lack of transparency in procurement justification.
- Potential for inflated pricing due to lack of competition.
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 $17.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. GDMS TNE SUSTAINMENT 20
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 $17.4 million.
What is the period of performance?
Start: 2020-04-01. End: 2021-03-31.
What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without specific documentation, it's difficult to ascertain the exact reason, but it implies a lack of readily available alternatives or a critical dependency on the incumbent provider.
How does the Cost Plus Fixed Fee structure impact the potential for cost overruns in this sustainment contract?
The Cost Plus Fixed Fee (CPFF) contract type allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can fluctuate. This structure can incentivize contractors to incur costs to increase the fee base, potentially leading to overruns if not rigorously monitored and controlled by the government. Effective oversight is crucial to manage costs under CPFF agreements.
What is the long-term strategy for ensuring cost-effectiveness and competition for these sustainment services beyond this contract period?
The long-term strategy should involve a thorough market analysis to identify potential competitors and explore options for breaking down the requirement into smaller, more competitive packages. If sole-source is unavoidable, robust negotiation strategies and performance-based metrics should be employed. Planning for future competition, even if phased, is essential to drive down costs and ensure value for taxpayer dollars.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP 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: $18,901,124
Exercised Options: $18,901,124
Current Obligation: $17,382,941
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: 2020-04-01
Current End Date: 2021-03-31
Potential End Date: 2021-03-31 00:00:00
Last Modified: 2025-12-16
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