Air Force Awards $46.5M for Mobile User Objective System Ground Sustainment Support to General Dynamics
Contract Overview
Contract Amount: $46,461,898 ($46.5M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-12-01
End Date: 2023-11-30
Contract Duration: 364 days
Daily Burn Rate: $127.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: MOBILE USER OBJECTIVE SYSTEM GROUND SUSTAINMENT SUPPORT
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $46.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: MOBILE USER OBJECTIVE SYSTEM GROUND SUSTAINMENT SUPPORT Key points: 1. General Dynamics Mission Systems, Inc. secured a significant contract for critical ground sustainment support. 2. The contract value of $46.5M indicates substantial investment in the MUOS program. 3. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 4. The sector is Defense, a high-spending area with complex technological requirements.
Value Assessment
Rating: good
The contract type is Cost Plus Award Fee, which allows for flexibility but requires careful monitoring of costs and performance to ensure value. The award fee structure incentivizes contractor performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement method was 'Full and Open Competition After Exclusion of Sources.' This implies that while competition was sought, specific sources were initially excluded, potentially impacting the breadth of price discovery.
Taxpayer Impact: The competitive process, even with exclusions, aims to achieve fair pricing. The final negotiated price reflects the value of the services provided to the Air Force.
Public Impact
Ensures continued operational capability for the Mobile User Objective System (MUOS), a vital satellite communication network. Supports national security by maintaining a critical communication infrastructure for military operations. The contract sustains jobs within the defense sector, particularly in Arizona where the contractor is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Award Fee contracts.
- Dependence on a single contractor for critical sustainment.
- Complexity of the MUOS system may lead to unforeseen sustainment challenges.
Positive Signals
- Award fee structure incentivizes performance.
- Full and open competition aims for best value.
- Contract supports a critical national security asset.
Sector Analysis
This contract falls within the Defense sector, specifically supporting a major satellite communication system. Spending in this area is typically high due to the advanced technology and strategic importance of military communications.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates robust oversight to manage costs and ensure performance objectives are met. The Air Force must actively monitor contractor expenditures and deliverables.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Award Fee contract type can lead to cost overruns if not managed tightly.
- Dependence on a single prime contractor for critical system sustainment.
- Potential for performance issues if award fee metrics are not rigorously enforced.
- Complexity of the MUOS system presents inherent sustainment risks.
Tags
engineering-services, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. MOBILE USER OBJECTIVE SYSTEM GROUND SUSTAINMENT 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 $46.5 million.
What is the period of performance?
Start: 2022-12-01. End: 2023-11-30.
What is the historical cost performance of similar MUOS sustainment contracts?
Analyzing historical cost data for previous MUOS sustainment efforts, particularly those with Cost Plus Award Fee structures, is crucial. Benchmarking against similar complex system sustainment contracts within the DoD can reveal trends in cost efficiency and identify potential areas for savings or overspending. This historical context helps assess the current $46.5M award's reasonableness.
What are the specific performance metrics tied to the award fee, and how are they measured?
Understanding the precise performance metrics and their associated award fee criteria is essential for evaluating contractor accountability. The Air Force needs clearly defined, measurable, achievable, relevant, and time-bound (SMART) objectives. Robust measurement and verification processes are key to ensuring the contractor is incentivized to deliver high-quality sustainment services and that taxpayer funds are used effectively.
How does the 'exclusion of sources' in the competition impact long-term system evolution and cost?
The exclusion of certain sources during the competition phase warrants scrutiny. While it may have been justified for specific reasons, it could limit future innovation and competition, potentially leading to higher costs or slower adoption of new technologies. Assessing the long-term implications for system upgrades and maintenance is important for ensuring the MUOS program remains cost-effective and technologically advanced.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corporation
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: $46,771,075
Exercised Options: $46,771,075
Current Obligation: $46,461,898
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $3,851,461
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003920D0146
IDV Type: IDC
Timeline
Start Date: 2022-12-01
Current End Date: 2023-11-30
Potential End Date: 2023-11-30 00:00:00
Last Modified: 2024-09-25
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