DoD's $47.5M Gateway Operations & Maintenance contract awarded to General Dynamics raises questions on competition and value
Contract Overview
Contract Amount: $47,556,649 ($47.6M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-04-01
End Date: 2023-09-30
Contract Duration: 2,008 days
Daily Burn Rate: $23.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GATEWAY OPERATIONS&MAINTENANCE (24/7)
Place of Performance
Location: WAHIAWA, HONOLULU County, HAWAII, 96786
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $47.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: GATEWAY OPERATIONS&MAINTENANCE (24/7) Key points: 1. The contract awarded to General Dynamics Mission Systems, Inc. for $47.5M covers 24/7 Gateway Operations & Maintenance. 2. Awarded as a 'NOT COMPETED' definitive contract, the lack of competition raises concerns about price discovery. 3. The contract duration is 5 years, ending September 30, 2023. 4. The NAICS code 541513 indicates Computer Facilities Management Services. 5. The contract was awarded in Hawaii.
Value Assessment
Rating: questionable
The contract's value of $47.5M over five years, awarded without competition, makes a direct pricing assessment difficult. Benchmarking against similar, competed contracts for computer facilities management services would be necessary to determine if the price is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source (NOT COMPETED) method. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition on this $47.5M contract may result in taxpayers paying more than necessary for these services.
Public Impact
Essential 24/7 operations and maintenance services for a critical defense facility. Potential for increased costs due to sole-source award impacting taxpayer funds. Long-term contract (5 years) suggests a need for sustained, specialized services. Awarded in Hawaii, potentially impacting local economic factors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration without re-competition
Positive Signals
- Ensures 24/7 critical operations
- Awarded to an established defense contractor
Sector Analysis
This contract falls within the IT and Defense sectors, specifically for computer facilities management. Spending benchmarks for similar competed contracts in this area are crucial for evaluating the value of this sole-source award.
Small Business Impact
The data indicates this contract was not awarded to small businesses (SB is false). Further analysis would be needed to determine if small business set-asides were considered or if opportunities were missed.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services effectively and at a reasonable cost, despite the absence of competition.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for inflated costs due to lack of competition.
- Long contract duration without re-competition.
- No indication of small business participation.
- Need for strong performance oversight.
Tags
computer-facilities-management-services, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. GATEWAY OPERATIONS&MAINTENANCE (24/7)
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 (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $47.6 million.
What is the period of performance?
Start: 2018-04-01. End: 2023-09-30.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies explored?
The justification for a sole-source award is critical. Typically, it requires demonstrating that only one source can meet the requirement due to unique capabilities, urgent need, or specific circumstances. Without this justification, the lack of competition on a $47.5M contract is a significant concern regarding responsible stewardship of taxpayer funds.
How does the per-unit cost of these services compare to industry benchmarks for similar competed contracts?
A comprehensive comparison to industry benchmarks for competed contracts is essential. Given the sole-source award, it's difficult to ascertain if the $47.5M price reflects fair market value. Benchmarking would reveal potential overpricing and inform future procurement strategies to ensure better value for the government.
What performance metrics are in place to ensure the effectiveness and efficiency of the 24/7 Gateway Operations & Maintenance?
Effective performance metrics are crucial, especially for a sole-source contract. These should include uptime percentages, response times, incident resolution rates, and security compliance. Regular reviews of these metrics by the Defense Information Systems Agency are necessary to ensure the contractor is meeting all requirements and delivering value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC101317R9025
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $50,257,141
Exercised Options: $47,556,649
Current Obligation: $47,556,649
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $1,249,260
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2018-04-01
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2023-12-07
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