DoD's $14.5M Combat Key Generator Contract Awarded to General Dynamics Under Full and Open Competition
Contract Overview
Contract Amount: $14,515,997 ($14.5M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-11-15
End Date: 2016-03-31
Contract Duration: 3,059 days
Daily Burn Rate: $4.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: COMBAT KEY GENERATOR
Place of Performance
Location: NEEDHAM HEIGHTS, NORFOLK County, MASSACHUSETTS, 02494
Plain-Language Summary
Department of Defense obligated $14.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: COMBAT KEY GENERATOR Key points: 1. The Department of Defense awarded a $14.5 million contract for Combat Key Generators. 2. General Dynamics Mission Systems, Inc. secured the contract. 3. The contract was awarded under full and open competition. 4. This contract represents a significant investment in electronic computer manufacturing capabilities.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. The duration of 3059 days (over 8 years) suggests a long-term need, but the total award value of $14.5M over this period may indicate a moderate per-unit cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value and price.
Public Impact
Ensures operational readiness for critical defense systems requiring secure key generation. Supports advanced electronic manufacturing and technological development within the defense sector. The long contract duration indicates a sustained need for this specialized equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type can incentivize higher costs.
- Long contract duration may obscure current market pricing.
- No specific small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense technology.
- Long-term contract provides stability.
Sector Analysis
This contract falls within the Electronic Computer Manufacturing sector, specifically for specialized defense equipment. Spending benchmarks for such niche, high-security items are difficult to establish due to proprietary technology and specific operational requirements.
Small Business Impact
The data indicates that small businesses were not primary awardees for this contract, as it was awarded to General Dynamics Mission Systems, Inc. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve program management offices within the Air Force to ensure contract compliance and performance.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Incentive Fee contract type.
- Long contract duration (over 8 years).
- Lack of specific small business participation noted.
- Potential for cost overruns if incentives are not well-defined.
Tags
electronic-computer-manufacturing, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. COMBAT KEY GENERATOR
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 $14.5 million.
What is the period of performance?
Start: 2007-11-15. End: 2016-03-31.
What was the average annual spending on this contract, and how does it compare to similar systems?
The total award value is $14,515,996.66 over a duration of 3059 days, which is approximately 8.38 years. This averages to about $1.73 million per year. Direct comparisons to similar systems are challenging due to the specialized nature of 'Combat Key Generators' and potential proprietary technology, making public benchmarking difficult.
What are the primary risks associated with a Cost Plus Incentive Fee contract for this type of equipment?
The primary risk with a Cost Plus Incentive Fee (CPIF) contract is that the contractor may incur higher costs than necessary if the incentive targets are not structured effectively or if oversight is insufficient. This can lead to the government paying more than the actual value of the work performed, especially for complex, long-duration projects where cost control is challenging.
How effectively does full and open competition ensure value for money in specialized defense electronics?
Full and open competition is designed to maximize value for money by encouraging multiple vendors to bid, driving down prices and fostering innovation. For specialized defense electronics, its effectiveness depends on the number of capable suppliers and the clarity of technical requirements. If the market is limited or requirements are overly specific, competition may be less robust, potentially impacting the final price achieved.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE (V)
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
Financial Breakdown
Contract Ceiling: $23,956,673
Exercised Options: $15,261,532
Current Obligation: $14,515,997
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-11-15
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 00:00:00
Last Modified: 2016-02-29
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