DoD Awards $19.8M Task Order to General Dynamics for VoIP Services
Contract Overview
Contract Amount: $19,807,453 ($19.8M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-08-01
End Date: 2027-03-26
Contract Duration: 967 days
Daily Burn Rate: $20.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TNE VOIP TASK ORDER
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $19.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: TNE VOIP TASK ORDER Key points: 1. Significant contract value for computer systems design services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long duration (967 days) suggests a substantial, ongoing requirement. 4. Focus on IT infrastructure highlights a critical area of government spending.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Benchmarking against similar VoIP task orders is difficult without more detailed cost breakdowns, but the lack of competition suggests potential for overpayment.
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 may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, potentially for services that could have been procured at a lower cost.
Public Impact
Ensures critical communication infrastructure for the Air Force. Potential for increased costs due to lack of competition. Long-term commitment to a single vendor for essential IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports critical Air Force operations
- Specific technical expertise likely required
Sector Analysis
This contract falls under IT services, specifically computer systems design. Government spending in this sector is substantial, with a focus on modernizing infrastructure and ensuring cybersecurity. Benchmarks for similar VoIP task orders are highly variable but competitive bids typically drive down costs.
Small Business Impact
The awardee, General Dynamics Mission Systems, Inc., is a large business. There is no indication that small businesses were involved in this specific task order, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. The Department of the Air Force should document the justification for not competing this 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 contract type can lead to higher costs.
- Long contract duration increases exposure to price changes.
- Lack of small business participation.
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 $19.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. TNE VOIP TASK ORDER
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 $19.8 million.
What is the period of performance?
Start: 2024-08-01. End: 2027-03-26.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other responsible sources. Without further details, it's difficult to assess the validity of the justification. However, the agency is obligated to conduct market research and negotiate the best possible price, even in a sole-source scenario, to ensure taxpayer funds are used efficiently.
How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness of this VoIP service acquisition?
Cost Plus Fixed Fee contracts reimburse the contractor for allowable costs plus a predetermined fixed fee. While this structure can incentivize efficiency, it also carries the risk of cost overruns if the contractor's costs exceed estimates. Without detailed cost data and performance metrics, it's challenging to definitively assess cost-effectiveness compared to other contract types or competitive bids.
What are the potential risks associated with a long-term, sole-source VoIP contract for the Department of Defense?
The primary risks include vendor lock-in, reduced innovation, and potentially higher costs over the contract's lifespan due to the lack of competitive pressure. If General Dynamics' technology or service offerings become outdated or less competitive, the Air Force may be constrained in its ability to upgrade or switch providers without incurring significant transition costs or operational disruptions.
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 › IT AND TELECOM - APLLICATIONS
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 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: $19,807,453
Exercised Options: $19,807,453
Current Obligation: $19,807,453
Actual Outlays: $255,537
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $12,230,995
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA714624D0001
IDV Type: IDC
Timeline
Start Date: 2024-08-01
Current End Date: 2027-03-26
Potential End Date: 2027-03-26 00:00:00
Last Modified: 2025-12-18
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