DoD awards $18.8M engineering services contract to General Dynamics Mission Systems, Inc. with no competition

Contract Overview

Contract Amount: $18,839,701 ($18.8M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-06-30

End Date: 2016-06-30

Contract Duration: 1,827 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: ENGINEERING SERVICES

Place of Performance

Location: DEDHAM, NORFOLK County, MASSACHUSETTS, 02026

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ENGINEERING SERVICES Key points: 1. Contract awarded on a cost-plus-no-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract was not competed, raising questions about potential price discovery and value for money. 3. A long duration of 1827 days suggests a significant, ongoing need for these engineering services. 4. The contract was awarded to a large, established defense contractor, General Dynamics Mission Systems, Inc. 5. The North American Industry Classification System (NAICS) code 541330 indicates a focus on engineering services. 6. The contract was awarded by the Department of Defense, a major federal agency with substantial procurement needs.

Value Assessment

Rating: questionable

The contract's cost-plus-no-fee (CPNF) structure, combined with a lack of competition, makes a direct value-for-money assessment difficult without further data on the specific services rendered and their necessity. Benchmarking against similar sole-source engineering contracts within the DoD would be crucial. The absence of competitive bidding means there's no market-driven price validation, increasing the risk of overpayment if cost controls are not robust.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other qualified vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition limits the government's ability to leverage market forces to secure the best possible pricing and terms.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. This can result in higher overall spending for the government.

Public Impact

The primary beneficiaries are the Department of Defense, which receives essential engineering services for its programs. The contract supports the development and maintenance of defense systems, contributing to national security. The geographic impact is likely concentrated around the contractor's facilities and DoD operational areas. Workforce implications include employment opportunities for engineers and technical staff at General Dynamics Mission Systems, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost-plus-no-fee contract type requires stringent oversight to control expenses.
Sole-source award raises concerns about the government's ability to secure competitive pricing.
Long contract duration could indicate potential for scope creep or evolving requirements without re-competition.

Positive Signals

Award to a large, established contractor like General Dynamics Mission Systems, Inc. may indicate a high level of trust and proven capability.
The contract addresses a specific engineering services need within the Department of Defense, suggesting a clear requirement.
The contract was awarded by the Defense Contract Management Agency, implying a level of established oversight for defense contracts.

Sector Analysis

This contract falls within the broader engineering services sector, which is critical for supporting complex government programs, particularly in defense. The market for specialized engineering services is often characterized by high barriers to entry due to technical expertise and security clearances required. The DoD is a significant consumer of such services, often awarding large, long-term contracts to prime contractors who manage complex systems integration and development.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large prime contractor, potentially limiting opportunities for small businesses to participate directly in this specific contract, although they may be involved in the broader supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. The cost-plus-no-fee structure necessitates rigorous financial oversight to monitor costs and prevent potential overruns. Transparency regarding the specific engineering tasks performed and the associated costs would be key to assessing accountability.

Related Government Programs

Defense Engineering Services
General Dynamics Mission Systems Contracts
Department of Defense Procurement
Cost-Plus Contracts
Sole-Source Defense Contracts

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. ENGINEERING SERVICES

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2011-06-30. End: 2016-06-30.

What specific engineering services were provided under this contract, and how did they contribute to DoD objectives?

The contract, NAICS code 541330, specifies 'Engineering Services.' While the exact nature of these services is not detailed in the provided data, they likely encompass a range of activities such as system design, development, integration, testing, and technical support for various Department of Defense platforms or programs. These services are crucial for maintaining and advancing the technological capabilities of the armed forces, ensuring operational readiness, and supporting strategic defense initiatives. Without more granular information on the specific tasks performed, it's difficult to quantify their precise contribution beyond supporting the overarching mission of the DoD.

How does the $18.8 million award compare to other engineering services contracts awarded by the DoD during the same period?

Comparing this $18.8 million award requires context regarding the contract's duration and scope. The contract spanned 1827 days (approximately 5 years), from June 30, 2011, to June 30, 2016. This averages to roughly $4 million per year. The DoD awards thousands of contracts annually, with many engineering services contracts ranging from hundreds of thousands to billions of dollars. A $4 million annual spend for specialized engineering services is moderate within the DoD's vast procurement landscape. However, without knowing the specific technical requirements and the number of bidders for comparable sole-source contracts, a precise value comparison is challenging. It is essential to benchmark against contracts with similar technical complexity and duration.

What are the primary risks associated with a sole-source, cost-plus-no-fee contract of this magnitude and duration?

The primary risks associated with this contract are twofold. Firstly, the sole-source nature means the government did not benefit from competitive bidding, potentially leading to inflated costs and reduced value for money. There's a risk that the contractor may not have had the strongest incentive to control costs or innovate aggressively. Secondly, the cost-plus-no-fee (CPNF) structure, while allowing flexibility, carries inherent risks of cost overruns. The 'no fee' aspect means the contractor doesn't earn a profit margin based on costs, but oversight is still critical to ensure costs are reasonable and allocable to the contract. The long duration (1827 days) amplifies these risks, as requirements can evolve, and oversight needs to remain vigilant throughout the contract's life to prevent scope creep and ensure continued alignment with DoD objectives.

What is General Dynamics Mission Systems, Inc.'s track record with similar DoD engineering services contracts?

General Dynamics Mission Systems, Inc. (GDMS) is a major defense contractor with extensive experience in providing engineering and technical services to the Department of Defense. They have a long history of delivering complex systems and solutions across various defense platforms. While this specific contract was sole-source, GDMS frequently competes for and wins large-scale engineering and integration contracts. Their track record generally includes successful execution of programs requiring advanced technological capabilities, cybersecurity, and systems engineering. However, like any large contractor, they may have faced scrutiny or performance issues on specific contracts, which would be detailed in contract performance databases and agency oversight reports.

How does historical spending on engineering services by the DoD compare to this contract's value?

The Department of Defense is consistently one of the largest federal agencies by spending, with a significant portion allocated to research, development, testing, and evaluation (RDT&E), which heavily involves engineering services. Annual DoD spending on engineering services can range from tens to hundreds of billions of dollars, depending on the geopolitical climate and specific program needs. This $18.8 million contract, spread over approximately five years, represents a very small fraction of the DoD's overall engineering services expenditure. It is likely a component of a larger program or a specific project rather than a broad category of spending. Analyzing historical trends shows a consistent demand for engineering expertise to maintain and modernize military capabilities.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 77 A ST, NEEDHAM, MA, 02494

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,963,228

Exercised Options: $18,963,208

Current Obligation: $18,839,701

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline