DoD's $29.8M VOLDEMORT PRODUCTION EFFORT contract awarded to General Dynamics Mission Systems, Inc
Contract Overview
Contract Amount: $29,783,545 ($29.8M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-06-05
End Date: 2026-02-28
Contract Duration: 2,094 days
Daily Burn Rate: $14.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: VOLDEMORT PRODUCTION EFFORT
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $29.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: VOLDEMORT PRODUCTION EFFORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control but also carries inherent risk. 3. The duration of the contract is 2094 days, indicating a long-term commitment for production. 4. The contract is for 'Other Communications Equipment Manufacturing,' placing it within a specific industrial sector. 5. The award was made by the Department of the Air Force, a major component of the DoD. 6. The contract value of approximately $29.8 million is a significant investment in specialized equipment.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Incentive Fee contract requires detailed cost breakdowns and comparison to similar production runs for specialized communications equipment. Without specific performance metrics and profit margins, it's difficult to definitively assess value for money. The CPIF structure suggests an expectation of shared risk and reward, but the ultimate cost-effectiveness hinges on the contractor's ability to manage expenses within the incentive framework. Further analysis of the contractor's historical performance on similar contracts would provide better context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the open competition framework is a positive sign for market engagement.
Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs and ensuring the government receives the best possible value for its investment.
Public Impact
The primary beneficiaries are likely elements within the Department of Defense requiring specialized communications equipment. The contract supports the production of 'Other Communications Equipment,' contributing to national defense capabilities. The contract is being performed in Arizona, potentially creating or sustaining jobs in the state's manufacturing sector. The workforce implications include skilled labor in manufacturing, engineering, and quality assurance for communications equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can lead to cost overruns if not managed meticulously.
- The long contract duration increases the potential for scope creep or evolving technological requirements.
- Lack of specific performance metrics makes it challenging to assess the true value for money.
- The 'Other Communications Equipment Manufacturing' category is broad, making direct cost comparisons difficult.
Positive Signals
- Awarded through full and open competition, indicating a competitive market.
- The contractor, General Dynamics Mission Systems, Inc., is a well-established defense contractor.
- The contract is for production, suggesting a tangible output and contribution to defense readiness.
- The contract is being performed in Arizona, potentially supporting domestic manufacturing.
Sector Analysis
This contract falls within the broader 'Communications Equipment Manufacturing' sector, a critical component of the defense industrial base. This sector is characterized by high R&D investment, stringent quality control, and often long production cycles. The market size for defense-related communications equipment is substantial, driven by ongoing modernization efforts and global security needs. This specific contract likely supports a niche but vital capability within the Department of the Air Force's operational requirements.
Small Business Impact
The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in this award notice. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The Cost Plus Incentive Fee structure necessitates close monitoring of costs and performance to ensure incentives are met and the government receives value. Transparency is generally maintained through contract reporting mechanisms, though specific details of cost and performance are often proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- DoD Communications Systems
- Air Force Procurement
- Defense Manufacturing Contracts
- Specialized Electronic Equipment
Risk Flags
- Cost Plus Incentive Fee contract type requires careful monitoring to manage costs.
- Long contract duration increases potential for scope changes and cost escalation.
- Broad category 'Other Communications Equipment Manufacturing' may obscure specific cost drivers.
- Lack of detailed performance metrics makes value assessment challenging.
Tags
defense, department-of-defense, department-of-the-air-force, communications-equipment, manufacturing, cost-plus-incentive-fee, full-and-open-competition, arizona, general-dynamics-mission-systems, long-term-contract, production
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. VOLDEMORT PRODUCTION EFFORT
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 $29.8 million.
What is the period of performance?
Start: 2020-06-05. End: 2026-02-28.
What is the historical performance of General Dynamics Mission Systems, Inc. on similar Cost Plus Incentive Fee contracts with the Department of Defense?
General Dynamics Mission Systems, Inc. (GDMS) has a long history of performing complex defense contracts, including those utilizing Cost Plus Incentive Fee (CPIF) structures. Analyzing their past CPIF awards would involve examining metrics such as cost variances against targets, achievement of incentive goals, and overall program delivery success. GDMS typically engages in programs requiring advanced technology integration and production. A review of their contract history might reveal patterns in cost management, adherence to schedules, and the effectiveness of their incentive fee structures in driving desired outcomes. Without access to specific historical performance data for this contractor on comparable CPIF contracts, a definitive assessment of their track record is limited. However, their status as a major defense contractor suggests a level of established processes and experience in managing such agreements.
How does the per-unit cost of the 'Other Communications Equipment' compare to industry benchmarks or similar government procurements?
Determining the per-unit cost for this contract is challenging without knowing the exact quantity of 'Other Communications Equipment' to be produced and the total contract value allocated to production versus other potential costs (e.g., development, testing, overhead). The contract value is approximately $29.8 million over a period of 2094 days. If we assume the entire value is for production and a significant quantity is produced, the per-unit cost could be estimated. However, 'Other Communications Equipment Manufacturing' is a broad category, making direct comparisons difficult. Industry benchmarks vary widely based on the complexity, technological sophistication, and volume of production. Government procurements for similar specialized defense equipment often have higher per-unit costs due to stringent specifications, quality assurance requirements, and lower production volumes compared to commercial equivalents. A detailed cost analysis comparing specific features and capabilities would be necessary for an accurate benchmark.
What are the specific risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this particular 'VOLDEMORT PRODUCTION EFFORT'?
The primary risk with a Cost Plus Incentive Fee (CPIF) contract is the potential for cost overruns if the incentive structure is not well-defined or if the contractor's cost control measures are insufficient. While CPIF aims to incentivize efficiency by sharing cost savings or penalties, it still allows the contractor to recover incurred costs plus a fee. For the 'VOLDEMORT PRODUCTION EFFORT,' risks include the contractor potentially incurring higher costs than anticipated, which would be shared with the government, thus increasing the final price. Additionally, the focus on achieving specific performance targets to earn incentives might inadvertently lead to compromises in other areas, such as quality or delivery timelines, if not carefully monitored. The government bears the risk of paying a higher price if costs escalate beyond the target, even with incentives in place.
What is the anticipated program effectiveness and contribution to national defense based on the nature of 'Other Communications Equipment Manufacturing'?
The effectiveness and contribution of this contract to national defense are directly tied to the specific function of the 'Other Communications Equipment' being produced. As it falls under the Department of the Air Force, it likely supports critical command, control, communications, computers, and intelligence (C4I) capabilities. Such equipment is essential for maintaining situational awareness, enabling secure communication between units, and facilitating operational coordination. The production of reliable and advanced communications gear is fundamental to modern military operations, ensuring that forces can effectively communicate and operate in complex environments. The long duration suggests a sustained need for this equipment, implying its ongoing importance to Air Force readiness and mission accomplishment.
How does the $29.8 million spending on this contract compare to historical spending patterns for similar communications equipment by the Department of the Air Force?
Comparing the $29.8 million award for 'VOLDEMORT PRODUCTION EFFORT' to historical spending requires access to detailed historical procurement data for similar communications equipment by the Department of the Air Force (USAF). The USAF procures a vast array of communication systems, ranging from tactical radios to strategic network infrastructure. The significance of this $29.8 million figure depends on the specific type and quantity of equipment. If this represents a new system or a significant upgrade, it could be a substantial investment. If it's for a large quantity of established equipment, it might be within typical spending ranges. Analyzing past contracts for comparable items (e.g., secure communication devices, data links, specialized antennas) would reveal whether this award represents an increase, decrease, or stable level of investment in this particular capability area.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA830720R0085
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $29,864,615
Exercised Options: $29,864,615
Current Obligation: $29,783,545
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $142,169
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA830717D0006
IDV Type: IDC
Timeline
Start Date: 2020-06-05
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-12-10
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