DoD Awards $32.8M for Nuclear-Hardened Aircrew Communications System to General Dynamics

Contract Overview

Contract Amount: $32,862,427 ($32.9M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-11

End Date: 2026-01-20

Contract Duration: 862 days

Daily Burn Rate: $38.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: GLOBAL AIRCREW STRATEGIC NETWORK TERMINAL INCREMENT 2 (GASNTI2), BLOCK 1 IS A REQUIREMENT FOR A NUCLEAR HARDENED AND SURVIVABLE COMMUNICATION SYSTEM TO ENABLE AIRCREW ING AND COMMUNICATION.

Place of Performance

Location: DEDHAM, NORFOLK County, MASSACHUSETTS, 02026

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $32.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: GLOBAL AIRCREW STRATEGIC NETWORK TERMINAL INCREMENT 2 (GASNTI2), BLOCK 1 IS A REQUIREMENT FOR A NUCLEAR HARDENED AND SURVIVABLE COMMUNICATION SYSTEM TO ENABLE AIRCREW ING AND COMMUNICATION. Key points: 1. The contract funds a critical nuclear-hardened communication system for aircrew. 2. General Dynamics Mission Systems is the sole awardee. 3. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns. 4. This spending falls under the 'Other Communications Equipment Manufacturing' sector.

Value Assessment

Rating: questionable

The $32.8 million award for a specialized communication system is difficult to benchmark without more detailed cost breakdowns. The Cost Plus Incentive Fee structure introduces potential for costs to exceed initial estimates.

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 the government compared to a competitive process.

Taxpayer Impact: The lack of competition for this critical system may result in taxpayers paying a premium for the required specialized communication capabilities.

Public Impact

Ensures critical communication for aircrews in high-threat environments. Supports national defense by providing survivable communication infrastructure. Potential for increased costs due to sole-source award and CPIF contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost Plus Incentive Fee contract type can lead to cost overruns.
Requirement for nuclear hardening suggests high criticality and potential for specialized, expensive components.

Positive Signals

Addresses a critical national defense requirement for survivable communication.
Supports aircrew safety and operational effectiveness in extreme conditions.

Sector Analysis

This contract falls under 'Other Communications Equipment Manufacturing,' a sector that can include highly specialized and niche products. Benchmarking is challenging without specific product details, but defense-related communication systems often command premium pricing due to stringent requirements.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award. Future opportunities for small businesses in this specialized sector would likely depend on subcontracting by the prime contractor.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. The Department of the Air Force should monitor cost performance closely given the CPIF contract type.

Related Government Programs

Other Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition.
CPIF contract type poses risk of cost overruns.
Lack of transparency on specific technology and cost drivers.
Potential for high lifecycle costs due to specialized nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. GLOBAL AIRCREW STRATEGIC NETWORK TERMINAL INCREMENT 2 (GASNTI2), BLOCK 1 IS A REQUIREMENT FOR A NUCLEAR HARDENED AND SURVIVABLE COMMUNICATION SYSTEM TO ENABLE AIRCREW ING AND COMMUNICATION.

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 $32.9 million.

What is the period of performance?

Start: 2023-09-11. End: 2026-01-20.

What specific technological advancements justify the sole-source award and the associated cost for this communication system?

The justification for a sole-source award typically rests on unique capabilities, proprietary technology, or essential integration with existing systems that only one vendor can provide. For the GASNTI2, Block 1, the nuclear-hardened and survivable nature of the communication system likely involves highly specialized engineering and components that are not readily available through competitive procurement. Further details on the specific technological requirements and the vendor's unique qualifications would be needed to fully assess this.

How will the Cost Plus Incentive Fee (CPIF) structure be managed to mitigate potential cost overruns and ensure taxpayer value?

Effective management of a CPIF contract requires robust government oversight of the contractor's cost performance and adherence to established targets. The Air Force must establish clear incentive metrics tied to cost, schedule, and performance, and actively monitor progress against these metrics. Regular audits and reviews of incurred costs are crucial. The government should also ensure that the target cost is realistic and that the sharing ratio for cost savings or overruns is structured to incentivize efficiency without compromising essential system capabilities.

What is the long-term sustainment and upgrade strategy for this nuclear-hardened communication system, and how will future costs be managed?

The long-term sustainment and upgrade strategy for such a critical and specialized system is paramount. The initial contract should ideally include provisions or options for future sustainment, maintenance, and potential technology refreshes. The government needs a clear roadmap for how these systems will be maintained over their lifecycle, considering the rapid pace of technological change and the unique demands of nuclear hardening. Planning for future upgrades will be essential to ensure the system remains effective and survivable against evolving threats, and competitive strategies should be explored for these future phases.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 400 JOHN QUINCY ADAMS RD, TAUNTON, MA, 02780

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

Financial Breakdown

Contract Ceiling: $34,248,616

Exercised Options: $33,709,239

Current Obligation: $32,862,427

Subaward Activity

Number of Subawards: 57

Total Subaward Amount: $11,940,932

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA873523DB004

IDV Type: IDC

Timeline