Air Force awards $18.2M contract for security support services to General Dynamics

Contract Overview

Contract Amount: $18,241,048 ($18.2M)

Contractor: General Dynamics ONE Source LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-18

End Date: 2029-02-28

Contract Duration: 1,471 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SECURITY SUPPORT SERVICES (SSS) FOR THE DEPARTMENT OF THE AIR FORCE (DAF).

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: SECURITY SUPPORT SERVICES (SSS) FOR THE DEPARTMENT OF THE AIR FORCE (DAF). Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a competitive process. 2. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 3. The duration of the contract is over 4 years, suggesting a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541690 points to 'Other Scientific and Technical Consulting Services'. 5. The contract is a delivery order under a larger contract, implying it's part of an existing framework. 6. The primary place of performance is Virginia, a common hub for federal contracting.

Value Assessment

Rating: fair

Benchmarking the value of this $18.2 million contract requires more detailed cost breakdowns and comparisons to similar security support services contracts. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring to ensure costs remain reasonable and the fixed fee is justified by the scope of work. Without specific performance metrics or comparisons to industry standards for security support, a definitive value assessment is challenging. However, the competitive award process may have helped to secure a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, certain sources were excluded, potentially limiting the number of bidders. The fact that it's a delivery order under a larger contract also implies a pre-existing framework that might influence competition. The number of bidders (2) is on the lower side for a full and open competition, which could indicate a specialized service or a concentrated market.

Taxpayer Impact: A limited number of bidders (2) in a competition, even if initially full and open, may result in less aggressive pricing than a scenario with numerous competitive offers. Taxpayers may not benefit from the lowest possible price due to this reduced competition.

Public Impact

The Department of the Air Force benefits from essential security support services, ensuring operational readiness and protection of assets. Personnel in Virginia will likely be involved in the delivery of these services, potentially impacting the local workforce. The services provided are critical for maintaining a secure environment for Air Force operations. This contract contributes to the overall defense infrastructure and national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
Limited competition (2 bidders) may not yield the most cost-effective outcome for taxpayers.
The exclusion of sources in the competition process warrants further investigation into the justification.

Positive Signals

Awarded through a competitive process, indicating an effort to secure services through market forces.
The contract duration of over 4 years suggests a stable and predictable need for these services.
General Dynamics is a large, established defense contractor with a track record in providing support services.

Sector Analysis

The federal spending on security support services is a significant component of the broader professional, scientific, and technical services sector. This contract falls under NAICS code 541690, 'Other Scientific and Technical Consulting Services,' which encompasses a wide range of specialized advisory and support functions. The defense sector, in particular, relies heavily on such services for operational security, intelligence analysis, and technical consulting. Spending in this area is often driven by evolving threats and the need for advanced security solutions, making it a dynamic market.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). As a delivery order under a larger contract, subcontracting opportunities for small businesses may exist, depending on the prime contractor's strategy and the specific requirements of the delivery order. However, without explicit set-aside provisions, the primary awardee is a large business, and the direct impact on the small business ecosystem is likely limited unless subcontracting plans are robust.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Air Force and the Department of Defense. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight and auditing will be crucial to monitor expenditures and ensure the fixed fee remains appropriate for the work performed. The contract's status as a delivery order under a larger contract suggests that the initial contract vehicle likely has established oversight mechanisms. Transparency will depend on the reporting requirements within the contract and the agency's commitment to public disclosure.

Related Government Programs

Defense Security Services
Technical Consulting Services
Department of Defense Support Contracts
Air Force Operations Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited competition (2 bidders) may impact price competitiveness.
Exclusion of sources in competition warrants review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to GENERAL DYNAMICS ONE SOURCE LLC. SECURITY SUPPORT SERVICES (SSS) FOR THE DEPARTMENT OF THE AIR FORCE (DAF).

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.

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 $18.2 million.

What is the period of performance?

Start: 2025-02-18. End: 2029-02-28.

What is the specific nature of the 'security support services' being provided under this contract?

The provided data indicates the contract is for 'SECURITY SUPPORT SERVICES (SSS) FOR THE DEPARTMENT OF THE AIR FORCE (DAF)' and falls under NAICS code 541690, 'Other Scientific and Technical Consulting Services.' While the exact nature of the services is not detailed, this classification suggests a broad range of potential activities. These could include physical security, cybersecurity consulting, threat assessment, risk management, personnel security vetting, or specialized technical security advice. The 'delivery order' nature implies these services are part of a larger, pre-existing contract framework, and the specific tasks would be defined within the order itself. Further details would typically be found in the contract statement of work (SOW).

How does the $18.2 million value compare to similar security support services contracts awarded by the Air Force or DoD?

Comparing the $18.2 million value requires context regarding the duration and scope of the services. This contract has a duration of 1471 days (approximately 4 years). To benchmark effectively, one would need to analyze other contracts for similar security support services awarded by the Department of the Air Force or the broader Department of Defense over comparable periods. Factors such as the specific services rendered (e.g., cybersecurity vs. physical security), the level of expertise required, and the geographic locations of performance would influence pricing. Without access to a comprehensive database of comparable contracts and their specific details, a precise value comparison is difficult. However, $18.2 million over four years averages to approximately $4.55 million per year, which is a substantial but not necessarily outlier figure for specialized defense support services.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this security support services acquisition?

The Cost Plus Fixed Fee (CPFF) contract type presents inherent risks, primarily related to cost control. While the 'fixed fee' provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total cost. For the government, the risk is that the total contract cost could exceed initial estimates if costs are not meticulously monitored and controlled. Effective oversight, detailed cost accounting, and clear definitions of allowable costs are critical to mitigating these risks and ensuring value for money. The Air Force must ensure robust auditing and reporting mechanisms are in place.

Given the 'Full and Open Competition After Exclusion of Sources' and only two bidders, what does this imply about the contractor's track record and market dynamics?

The award method 'Full and Open Competition After Exclusion of Sources' suggests that the initial solicitation was broad, but specific sources were later excluded. This could be due to various reasons, such as specific qualifications, past performance requirements, or proprietary technology. The fact that only two bidders ultimately participated indicates a potentially concentrated market for these specialized security support services, or that the exclusion criteria significantly narrowed the field. For General Dynamics, winning this contract suggests they met the stringent requirements and were competitive. A track record of successful performance on similar contracts would have been crucial for their bid. The limited competition implies that the market may not have many entities capable of fulfilling these specific needs, potentially impacting future pricing if similar exclusions persist.

What are the historical spending patterns for security support services within the Department of the Air Force?

Historical spending patterns for security support services within the Department of the Air Force (DAF) are generally substantial and consistent, reflecting the ongoing need for robust security measures across its vast operations. The DAF, like other branches of the Department of Defense (DoD), allocates significant resources to protect personnel, assets, and information. Spending in this category often fluctuates based on geopolitical conditions, evolving threat landscapes, and specific modernization or operational initiatives. While the $18.2 million for this specific delivery order is a notable amount, it represents a fraction of the DAF's overall security budget. Analyzing historical data would reveal trends in contract types (e.g., CPFF vs. fixed-price), key service providers, and the evolution of service requirements over time, likely showing a steady demand for a range of security-related consulting and support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,673,493

Exercised Options: $19,673,493

Current Obligation: $18,241,048

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA824023D3501

IDV Type: IDC

Timeline