DoD's $30.8M O&M Contract with General Dynamics Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $30,878,097 ($30.9M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-09-28
End Date: 2022-09-27
Contract Duration: 1,825 days
Daily Burn Rate: $16.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF NACT RN - BASE PERIOD O&M
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $30.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: IGF::OT::IGF NACT RN - BASE PERIOD O&M Key points: 1. The contract value of $30.8 million for O&M services is significant. 2. General Dynamics Mission Systems, Inc. is the sole awardee, raising competition concerns. 3. The 'NOT COMPETED' status and 'sole-source' nature present potential risks. 4. The sector is Professional, Scientific, and Technical Services, specifically 'All Other'.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure for O&M services warrants scrutiny. Without competitive bidding, it's difficult to benchmark pricing against similar contracts for "All Other Professional, Scientific, and Technical Services."
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 was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these O&M services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration (5 years) of a non-competed contract raises questions about ongoing necessity and value. Lack of transparency in pricing could impact public trust in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Sole-Source Award
- Potential for Overpricing
- Long Contract Duration
Positive Signals
- Established Contractor
- Specific Agency Need (implied)
Sector Analysis
The Professional, Scientific, and Technical Services sector is broad. For 'All Other' services, benchmarks are difficult to establish without more specific service details. DoD spending in this area is substantial, making efficient procurement critical.
Small Business Impact
This contract does not appear to involve small businesses, as it was awarded to General Dynamics Mission Systems, Inc. and was not competed.
Oversight & Accountability
The 'NOT COMPETED' status suggests limited oversight during the initial award phase. Further review is needed to understand if justification for sole-source was adequate and if ongoing performance is monitored effectively.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Lack of Competition
- Sole-Source Award
- Potential for Inflated Costs
- Limited Transparency
- Long Contract Duration (5 years)
Tags
all-other-professional-scientific-and-te, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. IGF::OT::IGF NACT RN - BASE PERIOD O&M
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 Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $30.9 million.
What is the period of performance?
Start: 2017-09-28. End: 2022-09-27.
What was the specific justification for not competing this contract, and has it been re-evaluated since the initial award?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a documented justification, such as a critical need or lack of available sources. Re-evaluation of the need for competition should occur periodically, especially for long-term contracts, to ensure taxpayer value and explore potential market solutions.
How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar O&M services?
Without specific details on the O&M services provided and industry benchmarks for 'All Other Professional, Scientific, and Technical Services,' a direct comparison of the fixed fee is challenging. However, the absence of competition inherently limits the ability to validate if this fee represents a fair and reasonable price compared to what a competitive market might yield.
What mechanisms are in place to ensure the effectiveness and efficiency of the services provided under this sole-source contract?
Mechanisms for ensuring effectiveness and efficiency typically involve robust performance metrics, regular progress reviews, and clear deliverables outlined in the contract. For sole-source contracts, rigorous oversight is even more critical to compensate for the lack of market-driven price and quality pressures. The Defense Threat Reduction Agency should have established protocols for monitoring General Dynamics' performance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HDTRA117R0011
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 12450 FAIR LAKES CIR STE 800, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,019,092
Exercised Options: $31,019,092
Current Obligation: $30,878,097
Actual Outlays: $1,412,055
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $2,337,951
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-09-28
Current End Date: 2022-09-27
Potential End Date: 2022-09-27 00:00:00
Last Modified: 2024-04-24
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