DoD's $40.3M Battlefield Air Ops Machine Contract Awarded to General Dynamics Faces Scrutiny

Contract Overview

Contract Amount: $40,285,422 ($40.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-08-11

End Date: 2023-06-16

Contract Duration: 2,500 days

Daily Burn Rate: $16.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ACAT III; BATTLEFIELD AIR OPERATIONS MACHINE TO MACHINE

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $40.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ACAT III; BATTLEFIELD AIR OPERATIONS MACHINE TO MACHINE Key points: 1. The contract, valued at $40.3 million, is for a critical battlefield air operations system. 2. General Dynamics Information Technology, Inc. is the sole awardee, raising questions about competition. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed tightly. 4. The Software Publishers sector (NAICS 511210) is broad; specific market benchmarks are needed.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type, while common for R&D, can be less price-efficient than fixed-price contracts. Without detailed cost breakdowns and comparisons to similar systems, assessing the value for money is difficult.

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 is no competitive pressure to reduce bids.

Taxpayer Impact: The lack of competition for a $40.3 million contract suggests potential for overpayment, impacting taxpayer funds negatively.

Public Impact

Military readiness and operational effectiveness could be impacted by the performance of this system. Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration (2016-2023) suggests a significant investment in this specific technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Potential for cost overruns
Limited transparency on pricing

Positive Signals

Awarded to a known defense contractor
Supports critical Air Force operations

Sector Analysis

This contract falls within the IT and defense sectors, specifically software development for military applications. Benchmarking against similar ACAT III programs is crucial for assessing cost-effectiveness.

Small Business Impact

The contract was awarded to General Dynamics Information Technology, Inc., a large business. There is no indication of small business participation in this specific award, which could be an area for improvement.

Oversight & Accountability

The ACAT III designation implies a certain level of oversight, but the sole-source nature and contract type warrant close monitoring of expenditures and performance to ensure accountability.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns due to CPFF structure
Limited visibility into pricing justification
No stated small business participation
Long contract duration without clear competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ACAT III; BATTLEFIELD AIR OPERATIONS MACHINE TO MACHINE

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $40.3 million.

What is the period of performance?

Start: 2016-08-11. End: 2023-06-16.

What specific technical capabilities does the Battlefield Air Operations Machine provide, and how do these justify the sole-source award?

The Battlefield Air Operations Machine likely provides critical real-time data processing and communication for air support coordination. Justification for a sole-source award would typically hinge on unique technical capabilities, proprietary technology, or urgent operational needs that only this specific system or contractor can meet, requiring detailed documentation from the agency.

What are the projected cost savings if this contract had been competed, and what mechanisms are in place to control costs under the current Cost Plus Fixed Fee structure?

Quantifying projected savings from competition is challenging without a competitive bidding process. However, agencies often estimate potential savings based on historical data from similar competed contracts. For Cost Plus Fixed Fee contracts, cost control relies heavily on robust government oversight, detailed cost audits, and clearly defined performance metrics to prevent scope creep and unnecessary expenses.

How does the performance of this system contribute to mission effectiveness, and what metrics are used to evaluate its success?

The system's performance is crucial for enabling effective battlefield air operations, potentially improving coordination, reducing response times, and enhancing situational awareness for ground and air units. Success metrics likely include system uptime, data accuracy, communication reliability, and user feedback from operational units, all contributing to overall mission accomplishment.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 15036 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $43,300,023

Exercised Options: $41,846,892

Current Obligation: $40,285,422

Actual Outlays: $1,435,964

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $271,601

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline