General Dynamics awarded $31.1M for Next Generation Overhead Persistent Infrared Polar Program by the Air Force

Contract Overview

Contract Amount: $31,099,673 ($31.1M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-08-30

End Date: 2026-12-31

Contract Duration: 1,584 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: NEXT GENERATION OVERHEAD PERSISTENT INFRARED POLAR PROGRAM

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: NEXT GENERATION OVERHEAD PERSISTENT INFRARED POLAR PROGRAM 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 contract duration is over 4 years, indicating a long-term commitment to this program. 4. The program focuses on Overhead Persistent Infrared (OPIR) systems, critical for missile warning and intelligence. 5. The award is a delivery order against a larger contract, implying a phased approach to procurement. 6. The contractor, General Dynamics Mission Systems, is a significant player in defense technology. 7. The contract is managed by the Department of the Air Force, a major defense spender. 8. The North American Industry Classification System (NAICS) code 334290 points to specialized communications equipment manufacturing.

Value Assessment

Rating: fair

Benchmarking the value of this $31.1 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Incentive Fee (CPIF) structure means the final cost could fluctuate based on performance and cost targets. While General Dynamics is a reputable contractor, the CPIF type introduces a degree of uncertainty regarding the ultimate value for money compared to fixed-price contracts. Further analysis would require understanding the specific cost drivers and incentive structures within the contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and innovation. The Air Force's use of full and open competition suggests a commitment to maximizing value and exploring a broad range of capabilities.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best available solution through an open process.

Public Impact

The primary beneficiaries are the Department of Defense and intelligence agencies requiring advanced missile warning and tracking capabilities. The program delivers critical Overhead Persistent Infrared (OPIR) data and systems. The contract's geographic impact is primarily within the United States, supporting defense infrastructure and operations. The contract supports a specialized segment of the defense technology workforce involved in advanced sensor and communications systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPIF contract type introduces potential for cost overruns if not managed tightly.
Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness upfront.
Reliance on a single delivery order against a larger contract could indicate phased development with potential for future scope changes.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
General Dynamics Mission Systems is an established defense contractor with relevant expertise.
The program addresses a critical national security need for missile warning and intelligence.

Sector Analysis

The defense electronics and communications sector is highly specialized, with significant R&D investment. Contracts like this contribute to the ongoing development of advanced sensor technologies, particularly in the realm of space-based infrared systems. The market is characterized by a few large prime contractors and numerous specialized subcontractors. Spending in this area is driven by evolving threats and the need for persistent surveillance capabilities.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans for small businesses. Given the specialized nature of OPIR systems and the prime contractor's profile, it is possible that subcontracting opportunities may exist for niche technology providers, but this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would typically 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 against established targets. Transparency is generally maintained through contract reporting requirements, though specific details of cost and performance may be sensitive for national security reasons. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Space-Based Infrared Systems (SBIRS)
Missile Warning Systems
Intelligence, Surveillance, and Reconnaissance (ISR) Programs
Defense Satellite Communications
Advanced Sensor Technology Development

Risk Flags

Cost Plus Incentive Fee (CPIF) contract type requires careful monitoring of costs and performance.
Potential for scope creep or changes in requirements in long-term technology development programs.
Dependence on specialized technology and contractor expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. NEXT GENERATION OVERHEAD PERSISTENT INFRARED POLAR PROGRAM

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 $31.1 million.

What is the period of performance?

Start: 2022-08-30. End: 2026-12-31.

What is the track record of General Dynamics Mission Systems with similar CPIF contracts for defense programs?

General Dynamics Mission Systems (GDMS) has a long history of executing complex defense contracts, including those utilizing Cost Plus Incentive Fee (CPIF) structures. GDMS is a major provider of C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems, electronic warfare solutions, and space systems. Their experience often involves large-scale, multi-year programs where CPIF is used to balance risk and reward between the government and contractor. While specific performance data for all past CPIF contracts is not publicly available, GDMS's consistent presence as a prime contractor on significant defense programs suggests a general capability to manage such agreements. However, the success of any CPIF contract is highly dependent on the specific terms, the clarity of performance metrics, and the rigor of government oversight.

How does the $31.1 million award compare to historical spending on Overhead Persistent Infrared (OPIR) systems?

The $31.1 million award for the Next Generation OPIR Polar Program represents a specific investment within the broader OPIR architecture. Historical spending on OPIR systems, such as the Space-Based Infrared Systems (SBIRS) program, has been in the billions of dollars over its lifecycle, encompassing satellite development, launch, and ground system operations. This particular contract appears to be for a component or a specific phase of a next-generation system, likely focusing on specialized capabilities or upgrades. Therefore, while $31.1 million is a substantial sum, it should be viewed in the context of the overall, much larger, and long-term investment required for a comprehensive national missile warning and intelligence capability.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for advanced technology development like OPIR?

The primary risks associated with a CPIF contract for advanced technology development, such as the OPIR Polar Program, revolve around cost control and performance definition. For the government, the risk is that costs could exceed initial estimates if the contractor is unable to meet efficiency targets or if unforeseen technical challenges arise, even with incentive clauses. The contractor's risk is tied to achieving performance milestones and managing costs within the incentive framework; failure to do so can reduce profit margins. For advanced programs, defining clear, measurable, and achievable performance metrics can be particularly challenging, increasing the risk that incentives may not drive the desired outcomes or that disputes may arise over performance achievement. Effective oversight is crucial to mitigate these risks.

What is the expected program effectiveness and impact of the Next Generation OPIR Polar Program?

The Next Generation OPIR Polar Program is expected to enhance the United States' capability for early warning of ballistic missile launches and provide critical intelligence data. OPIR systems are designed to detect infrared signatures emitted by missiles during their boost phase. Enhancements in 'next generation' systems typically aim for improved sensitivity, faster data processing, broader geographic coverage (including polar regions, as suggested by 'Polar Program'), and greater resilience. The program's effectiveness will be measured by its ability to provide timely, accurate, and actionable information to decision-makers, thereby contributing to national security and strategic deterrence. The specific impact will be a more robust and potentially more responsive missile warning and tracking capability.

How does this contract fit into the broader landscape of US missile defense and intelligence gathering efforts?

This contract is a component of the United States' comprehensive strategy for missile defense and intelligence gathering. OPIR systems are a foundational element of the early warning architecture, providing the initial detection of missile threats. This data is then fused with information from other intelligence, surveillance, and reconnaissance (ISR) assets, including radar and signals intelligence, to build a complete picture of the threat. The 'Next Generation' aspect suggests an effort to modernize and improve upon existing capabilities, potentially incorporating advancements in sensor technology, data analytics, and processing to counter evolving threats and provide more precise tracking. It directly supports the Department of Defense's mission to defend the homeland and project power globally.

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: FA830722R0003

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: $35,679,201

Exercised Options: $35,664,481

Current Obligation: $31,099,673

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $5,592,704

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