DoD's $5.7M engineering support contract for P481 project awarded to General Dynamics

Contract Overview

Contract Amount: $5,688,313 ($5.7M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-08-24

End Date: 2021-10-31

Contract Duration: 799 days

Daily Burn Rate: $7.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ENGINEERING SUPPORT FOR FULL CAPABILITY OF P481 PROJECT SUPPORT

Place of Performance

Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95134

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $5.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ENGINEERING SUPPORT FOR FULL CAPABILITY OF P481 PROJECT SUPPORT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract duration of 799 days suggests a significant, ongoing need for specialized engineering. 3. Fixed-price contract type aims to control costs, but sole-source nature limits competitive pressure. 4. Performance is located in California, potentially impacting local specialized engineering workforce. 5. The contract falls under Engineering Services, a critical but often high-cost sector for defense. 6. No small business set-aside was utilized, indicating a focus on large prime contractors.

Value Assessment

Rating: fair

Benchmarking the value of this $5.7 million contract is challenging without more detailed service descriptions and comparable sole-source awards. However, the firm fixed-price structure is a positive indicator for cost control. Given the sole-source nature, it's difficult to assess if the pricing reflects competitive market rates. Further analysis would require comparing the specific engineering tasks and deliverables against industry standards and similar sole-source procurements within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary specialized capabilities or when urgency precludes a full and open competition. The lack of competition means that price discovery through market forces was absent, potentially leading to higher costs than if multiple bids had been solicited.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the government secured the best possible price for the engineering services rendered.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force, receiving critical engineering support for the P481 project. The services delivered are specialized engineering support, crucial for the successful execution and full capability realization of the P481 project. The geographic impact is concentrated in California, where the contractor is located and likely where the work is performed. Workforce implications include the utilization of highly skilled engineers employed by General Dynamics Mission Systems, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-source award.
Contract duration is substantial, requiring ongoing financial commitment.
No small business participation noted, potentially excluding smaller innovative firms.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
General Dynamics is a large, established defense contractor with a track record.
Contract supports a specific, critical project (P481), indicating strategic importance.

Sector Analysis

The engineering services sector is vital for defense projects, providing specialized expertise for complex systems. This contract, valued at approximately $5.7 million, falls within the broader engineering services market, which is characterized by high barriers to entry due to specialized knowledge and security clearances. General Dynamics Mission Systems, Inc. is a major player in this space. Comparable spending benchmarks for similar sole-source engineering support contracts within the DoD would be necessary for a more precise valuation.

Small Business Impact

This contract did not include a small business set-aside, nor is there an indication of subcontracting to small businesses. This suggests that the primary contract was awarded directly to a large prime contractor, General Dynamics Mission Systems, Inc. The absence of small business participation means that opportunities for smaller, potentially more agile firms to contribute to this specific project were not pursued through this award mechanism. This could limit the broader impact on the small business defense ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, the justification and approval process would be subject to specific regulations and potentially higher levels of review. Transparency regarding the specific reasons for the sole-source designation and the performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

P481 Project Support
Department of the Air Force Engineering Contracts
General Dynamics Mission Systems Contracts
Sole-Source Defense Procurements
Engineering Services for Defense Systems

Risk Flags

Sole-source award may lead to higher costs.
Lack of competition limits price discovery.
Potential for contractor lock-in due to specialized nature of work.
Limited transparency on justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. ENGINEERING SUPPORT FOR FULL CAPABILITY OF P481 PROJECT SUPPORT

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 $5.7 million.

What is the period of performance?

Start: 2019-08-24. End: 2021-10-31.

What specific engineering services were provided under this contract, and how do they align with the P481 project's objectives?

The contract data indicates 'ENGINEERING SUPPORT FOR FULL CAPABILITY OF P481 PROJECT SUPPORT.' While specific technical details are not provided, this suggests the services encompassed a broad range of engineering disciplines necessary to ensure the P481 project reaches its complete operational capability. This could include design, integration, testing, analysis, and technical documentation. The alignment with project objectives would be direct, as the contract's purpose is to facilitate the P481 project's full realization. Without access to the P481 project's specific goals and the detailed statement of work, a precise alignment assessment is limited. However, the substantial duration and value suggest a critical and ongoing role in the project's lifecycle.

What was the justification for awarding this contract on a sole-source basis to General Dynamics Mission Systems, Inc.?

The provided data explicitly states the contract type as 'NOT COMPETED,' which typically implies a sole-source justification. Common reasons for sole-source awards in defense contracting include the unique capability of a specific contractor, urgent and compelling needs where competition is impractical, or when only one responsible source exists. For General Dynamics Mission Systems, Inc., this could be due to proprietary technology, existing system integration expertise, or a critical role in the P481 project's prior development phases. A formal Justification for Other Than Full and Open Competition (JOFOC) would typically be required and publicly available, detailing the specific rationale approved by the contracting authority.

How does the $5.7 million contract value compare to similar engineering support contracts for major defense projects?

Directly comparing this $5.7 million contract value requires access to a database of similar sole-source engineering support contracts for major defense projects, ideally within the same timeframe and for comparable system types. However, as a general benchmark, $5.7 million for nearly two years (799 days) of specialized engineering support for a significant project like P481 is not unusually high, especially considering the potential for high labor costs, specialized equipment, and the overhead associated with a large defense contractor like General Dynamics. The sole-source nature, however, means this figure cannot be directly equated to a competitively bid price, which might have been lower.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

The primary risk associated with a sole-source contract of this magnitude ($5.7 million) and duration (799 days) is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government has less leverage to negotiate the lowest possible price. There's also a risk of complacency from the contractor, as there's no immediate threat of losing future work to competitors. Furthermore, if the contractor's performance falters, the government's options for recourse or switching providers are limited and potentially costly, given the specialized nature of the work and the sole-source award.

What is General Dynamics Mission Systems, Inc.'s track record with the Department of Defense, particularly in engineering support roles?

General Dynamics Mission Systems, Inc. (GDMS) is a well-established and significant defense contractor with a long history of providing a wide array of products and services to the Department of Defense (DoD). Their expertise spans command and control, communications, cyber, intelligence, surveillance, and reconnaissance (ISR) systems, and platform integration. They frequently engage in complex engineering, development, and sustainment contracts. While this specific contract focuses on engineering support for the P481 project, GDMS's broader track record with the DoD suggests they possess the necessary technical capabilities and experience to handle such requirements. Performance history on prior contracts, including quality, timeliness, and cost management, would be detailed in DoD procurement databases.

Are there any performance metrics or oversight mechanisms specified for this contract to ensure value for money?

The provided data indicates a 'FIRM FIXED PRICE' contract type, which inherently includes a level of cost certainty for the government. However, specific performance metrics and detailed oversight mechanisms are not included in the summary data. For a contract of this nature, oversight would typically involve regular program reviews, technical inspections, milestone tracking, and adherence to the statement of work. The effectiveness of value for money assurance relies heavily on the diligence of the contracting officer's representative (COR) and the program management team in monitoring progress, quality, and adherence to the contract terms. Without access to the full contract details, it's impossible to ascertain the robustness of these mechanisms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 2688 ORCHARD PKWY, SAN JOSE, CA, 95134

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

Financial Breakdown

Contract Ceiling: $5,688,313

Exercised Options: $5,688,313

Current Obligation: $5,688,313

Actual Outlays: $1,302,506

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $216,658

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA855516D0070

IDV Type: IDC

Timeline