DoD's $20.4M MUOS Ground System Software Upgrade Enhances Capabilities, Faces Limited Competition
Contract Overview
Contract Amount: $20,419,851 ($20.4M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-02-06
End Date: 2027-02-05
Contract Duration: 729 days
Daily Burn Rate: $28.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: NON-RECURRING ENGINEERING, ANALYSIS, DESIGN, DEVELOPMENT, AND TEST OF HARDWARE AND/OR SOFTWARE SOLUTIONS FOR THE MOBILE USER OBJECTIVE SYSTEM GROUND SYSTEM (MUOS) AND WAVEFORM SOFTWARE WHICH IMPROVE MUOS USABILITY AND ENHANCE SYSTEM CAPABILITIES.
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $20.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: NON-RECURRING ENGINEERING, ANALYSIS, DESIGN, DEVELOPMENT, AND TEST OF HARDWARE AND/OR SOFTWARE SOLUTIONS FOR THE MOBILE USER OBJECTIVE SYSTEM GROUND SYSTEM (MUOS) AND WAVEFORM SOFTWARE WHICH IMPROVE MUOS USABILITY AND ENHANCE SYSTEM CAPABILITIES. Key points: 1. Spending focuses on critical MUOS ground system software and hardware enhancements. 2. General Dynamics Mission Systems is the sole awardee, raising competition concerns. 3. The contract type (Cost Plus Award Fee) may incentivize cost overruns. 4. This IT infrastructure spending supports national defense communication capabilities.
Value Assessment
Rating: fair
The $20.4M contract for non-recurring engineering is substantial for software and hardware development. Benchmarking is difficult without specific comparable MUOS system upgrades, but the cost-plus award fee structure warrants scrutiny for potential inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition scenario. This approach may restrict price discovery and potentially lead to higher costs compared to broader competition.
Taxpayer Impact: Taxpayer funds are directed towards enhancing a critical defense communication system, with potential for cost inefficiencies due to limited competition.
Public Impact
Enhances the usability and capabilities of the Mobile User Objective System (MUOS) ground system. Supports secure and reliable communications for military personnel. Invests in advanced technology for national defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Cost-plus award fee structure may lack cost control.
- Sole awardee limits market price discovery.
Positive Signals
- Enhances critical defense communication capabilities.
- Invests in advanced technology for national security.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330) for defense IT infrastructure. Spending benchmarks for similar specialized defense system development are highly variable, but $20.4M for non-recurring engineering is significant.
Small Business Impact
The contract was not awarded to small businesses, as indicated by 'sb': false. There is no indication of subcontracting plans for small businesses within the provided data.
Oversight & Accountability
The contract's oversight will be crucial given the cost-plus award fee structure and limited competition. The Department of Defense's contracting officers will need to ensure performance metrics are met and costs are justified.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition may lead to higher costs.
- Cost Plus Award Fee structure can incentivize cost overruns.
- Lack of small business participation.
- Potential for scope creep in development projects.
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 $20.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. NON-RECURRING ENGINEERING, ANALYSIS, DESIGN, DEVELOPMENT, AND TEST OF HARDWARE AND/OR SOFTWARE SOLUTIONS FOR THE MOBILE USER OBJECTIVE SYSTEM GROUND SYSTEM (MUOS) AND WAVEFORM SOFTWARE WHICH IMPROVE MUOS USABILITY AND ENHANCE SYSTEM CAPABILITIES.
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 $20.4 million.
What is the period of performance?
Start: 2025-02-06. End: 2027-02-05.
What is the specific justification for excluding other sources in this 'limited competition' award?
The justification for excluding other sources is not detailed in the provided data. Typically, such exclusions are based on proprietary technology, unique capabilities, or urgent needs where only a specific contractor can fulfill the requirement. Further investigation into the contract's justification documentation would be necessary to understand the rationale.
How will the 'award fee' component of the contract be structured to ensure value for money?
The 'award fee' component is performance-based, meaning the contractor receives a fee based on achieving specific performance objectives outlined in the contract. The government will establish criteria for evaluating performance, and the fee will be adjusted accordingly. Robust oversight is needed to ensure these criteria genuinely reflect value and incentivize cost-effective delivery.
What are the long-term cost implications of this non-recurring engineering investment for the MUOS system?
This $20.4M investment is for non-recurring engineering, meaning it's for initial development and design. While it aims to improve usability and capabilities, the long-term cost implications depend on the effectiveness of the enhancements, potential sustainment costs, and future upgrade needs. Successful implementation could reduce long-term operational costs through increased efficiency.
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: Wico Limited
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: $43,122,306
Exercised Options: $43,122,306
Current Obligation: $20,419,851
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $809,347
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: 2025-02-06
Current End Date: 2027-02-05
Potential End Date: 2029-11-07 00:00:00
Last Modified: 2025-07-30
More Contracts from General Dynamics Mission Systems, Inc.
- 200410!005969!2100!w15p7t!usa Communications-Electronics !w15p7t04ce405 !A!N! !N! ! !20040716!20111230!046863929!046863929!001381284!n!general Dynamics Decision Syst!8201 E Mcdowell Road !scottsdale !az!85257!65000!013!04!scottsdale !maricopa !arizona !+000010000000!n!n!000000000000!ac63!rdte/Electronics&communication Eq-Adv Tech DEV !A7 !electronics and Communication Equip !360 !jtrs Cluster I !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!b! !A!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $1.5B (Department of Defense)
- Federal Contract — $1.4B (Department of Defense)
- THE Space Network (SN) Consists of a Space Segment Comprised of the Tracking and Data Relay Satellites (tdrss), and a Ground Segment (sngs). the SN Provides the Capability for Global Space-To-Ground Telecommunications and Tracking Coverage for LOW Earth Orbit (LEO) and Near-Earth Spaceflight Missions, Including Both Robotic and Human Space Flight. the Sngs Includes Facilities and Systems Located AT the White Sands Complex (WSC) AT LAS Cruces, NM the Guam Remote Ground Terminal (grgt) AT Guam and Space Network Expansion (SNE) East AT Blossom Point, MD. the Purpose of the Sgss Project IS to Implement a Modern Ground Segment That Will Enable the SN to Continue to Deliver High Quality Services to the SN Community, Meet Stakeholder Requirements, and Significantly Reduce Required Operations and Maintenance Resources — $1.2B (National Aeronautics and Space Administration)
- Federal Contract — $1.2B (Department of Defense)
- SDA Tranche 1 Operations and Integration — $861.6M (Department of Defense)
View all General Dynamics Mission Systems, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)