DoD awards $9.3M for P481 Project Engineering Support to General Dynamics
Contract Overview
Contract Amount: $9,339,361 ($9.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-08-24
End Date: 2023-01-23
Contract Duration: 882 days
Daily Burn Rate: $10.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SUPPORT FOR FULL CAPABILITY OF P481 PROJECT SUPPORT
Place of Performance
Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95134
Plain-Language Summary
Department of Defense obligated $9.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ENGINEERING SUPPORT FOR FULL CAPABILITY OF P481 PROJECT SUPPORT Key points: 1. General Dynamics secured a significant contract for critical engineering support. 2. The contract value is substantial, indicating a complex and vital project. 3. Lack of competition raises questions about potential overpricing and value. 4. The IT sector often sees high spending on specialized engineering services.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a lack of competition, makes it difficult to assess value. Without benchmarks or competitive bids, it's hard to determine if $9.3M is a fair price for the engineering services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to drive down the price.
Taxpayer Impact: The lack of competition for this $9.3M contract means taxpayers may have paid a premium for engineering services, as there was no competitive bidding process to ensure the best possible price.
Public Impact
Taxpayers may have overpaid due to the sole-source nature of the award. The P481 project's full capability hinges on this engineering support. Transparency in sole-source contract justifications is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus contract type
Positive Signals
- Essential engineering support for a key project
Sector Analysis
Engineering services for defense projects are critical but can be prone to cost overruns, especially when awarded without competition. Benchmarks for similar specialized engineering support contracts are essential for evaluating this award.
Small Business Impact
This contract was awarded to General Dynamics Mission Systems, Inc., a large corporation. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services efficiently and that costs are reasonable. A thorough justification for the lack of competition should be publicly available.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Cost-plus contract type can lead to cost overruns.
- Lack of transparency in justification for sole-source.
- Potential for contractor to inflate costs.
Tags
engineering-services, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.3 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 $9.3 million.
What is the period of performance?
Start: 2020-08-24. End: 2023-01-23.
What was the specific justification for awarding this contract on a sole-source basis instead of competing it?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. For this P481 project engineering support, the Department of Defense would need to demonstrate why General Dynamics Mission Systems, Inc. was the only viable option, especially given the significant contract value.
How does the cost-plus-fixed-fee structure impact the government's ability to control costs on this project?
A Cost-Plus-Fixed-Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can fluctuate based on actual expenses. This structure can incentivize contractors to incur costs to increase the overall contract value, making robust oversight crucial to manage expenses effectively.
What are the long-term implications for the P481 project if the engineering support is not cost-effective?
If the engineering support proves not to be cost-effective, it could lead to significant budget overruns for the P481 project, potentially delaying its full capability realization or requiring additional funding. This could also impact the overall readiness and effectiveness of the asset the P481 project is intended to support.
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: COST PLUS FIXED FEE (U)
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: $9,339,361
Exercised Options: $9,339,361
Current Obligation: $9,339,361
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $2,585,908
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
Start Date: 2020-08-24
Current End Date: 2023-01-23
Potential End Date: 2023-01-23 00:00:00
Last Modified: 2025-12-04
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