DoD awards $36.5M contract for radionuclide monitoring system support to General Dynamics
Contract Overview
Contract Amount: $36,502,695 ($36.5M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-28
End Date: 2027-09-27
Contract Duration: 1,825 days
Daily Burn Rate: $20.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: OPERATIONS & MAINTENANCE SUPPORT FOR RADIONUCLIDE INTERNATIONAL MONITORING SYSTEM
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $36.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: OPERATIONS & MAINTENANCE SUPPORT FOR RADIONUCLIDE INTERNATIONAL MONITORING SYSTEM Key points: 1. Contract focuses on essential operations and maintenance for a critical national security system. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long-term contract duration (5 years) suggests a need for sustained, specialized support. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of work. 5. Contractor, General Dynamics Mission Systems, Inc., has a significant presence in defense contracting. 6. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not closely managed.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its specialized nature and sole-source award. The Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility for evolving technical requirements, carries inherent risks of cost escalation. Without competitive bids, it's difficult to ascertain if the fixed fee represents a fair profit margin or if the overall cost structure is optimized. Further analysis would require comparing the labor rates and overhead applied to similar O&M contracts for complex technical systems within the DoD.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Dynamics Mission Systems, Inc., was solicited. This approach is typically justified when a unique capability or proprietary technology is required, or in cases of urgent and compelling need where competition is not feasible. The lack of competition limits price discovery and may result in higher costs for the government compared to a fully competed procurement.
Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive pressure to drive down prices. The government's negotiating position is weakened without alternative offers to benchmark against.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Defense Threat Reduction Agency, ensuring the continued operation of a vital radionuclide monitoring system. Services delivered include operations and maintenance, crucial for the reliability and effectiveness of the monitoring system. The geographic impact is likely national, given the nature of radionuclide monitoring, though specific deployment locations are not detailed. Workforce implications include the employment of specialized technical personnel by General Dynamics to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings.
- Cost Plus Fixed Fee contract type can lead to cost overruns if not rigorously managed.
- Lack of transparency in the sole-source justification requires scrutiny.
- Long contract duration may not adapt well to rapidly changing technological landscapes.
- Specialized nature of the system could create vendor lock-in.
Positive Signals
- General Dynamics Mission Systems, Inc. is an established contractor with relevant expertise.
- Contract ensures continuity of operations for a critical national security asset.
- Fixed fee component provides some level of cost predictability.
- Long-term award suggests a stable requirement and potential for efficiency gains through sustained support.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically related to defense and national security. The market for specialized technical support for monitoring systems is often characterized by a limited number of highly qualified contractors. Spending in this sub-sector is driven by the need for advanced technological solutions to address complex threats. Comparable spending benchmarks would involve analyzing other O&M contracts for sophisticated sensor networks and intelligence systems within the Department of Defense.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, General Dynamics Mission Systems, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. This suggests that the primary contract value will likely flow to the large prime contractor, with limited direct benefit to the small business ecosystem unless subcontracting opportunities are pursued independently by the prime.
Oversight & Accountability
Oversight for this contract would primarily reside with the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. Accountability measures would be embedded within the contract's performance work statement (PWS) and reporting requirements. Transparency is limited due to the sole-source nature, but contract awards are generally published. The Inspector General for the Department of Defense would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.
Related Government Programs
- DoD Operations & Maintenance
- National Security Systems Support
- Scientific and Technical Services
- Radionuclide Detection and Monitoring
- Defense Threat Reduction Agency Contracts
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
- Long contract duration
Tags
defense, department-of-defense, defense-threat-reduction-agency, general-dynamics-mission-systems, definitive-contract, cost-plus-fixed-fee, sole-source, operations-maintenance, scientific-and-technical-services, radionuclide-monitoring, national-security, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. OPERATIONS & MAINTENANCE SUPPORT FOR RADIONUCLIDE INTERNATIONAL MONITORING SYSTEM
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 $36.5 million.
What is the period of performance?
Start: 2022-09-28. End: 2027-09-27.
What is the specific nature of the 'Radionuclide International Monitoring System' and its criticality to national security?
The Radionuclide International Monitoring System (RIMS) is a network of sensors designed to detect and identify radioactive materials in the environment. Its criticality to national security stems from its role in treaty verification, such as the Comprehensive Nuclear-Test-Ban Treaty (CTBT), by detecting potential nuclear explosions. It also aids in monitoring illicit trafficking of nuclear materials and assessing radiological threats. The system's continuous operation and accurate data are vital for intelligence gathering, diplomatic signaling, and maintaining global non-proliferation efforts. The Defense Threat Reduction Agency (DTRA) likely manages or utilizes this system to fulfill its mission of countering weapons of mass destruction.
What are the typical justifications for sole-source procurements in the defense sector, and how do they apply here?
Sole-source procurements in the defense sector are typically justified under specific circumstances outlined in federal acquisition regulations. Common reasons include: 1) Unique capability or proprietary technology where only one source can provide the required item or service. 2) Urgent and compelling need where delays associated with competition would cause significant harm to national security or government interests. 3) Post-competition situations where only one responsive bidder remains. 4) Essential follow-on support for highly specialized systems where the original contractor possesses unique knowledge. For this contract, the justification likely hinges on the specialized nature of maintaining and operating the Radionuclide International Monitoring System, suggesting that General Dynamics possesses unique expertise or access critical to its function.
How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor incentives?
The Cost Plus Fixed Fee (CPFF) contract type is characterized by the government paying the contractor's actual allowable costs plus a predetermined fixed fee, representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve, providing flexibility. However, it presents a risk of cost overruns, as the contractor is incentivized to incur costs to cover their base operations, knowing the fee is fixed. The government's primary incentive is to ensure the work is completed, while the contractor's incentive is to maximize the return on their fixed fee. Effective cost control requires robust government oversight, detailed cost tracking, and negotiation of a reasonable fixed fee that reflects the risk and effort involved.
What is the historical spending pattern for similar 'All Other Professional, Scientific, and Technical Services' contracts within the DoD?
Historical spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) within the DoD is substantial and diverse, reflecting the broad range of services encompassed. This category includes everything from specialized scientific research and development support to environmental consulting and technical testing. While specific figures for radionuclide monitoring system support are not readily available without deeper data mining, overall DoD spending in this NAICS code often runs into billions of dollars annually. Trends indicate a consistent demand for specialized technical expertise to support complex weapon systems, intelligence operations, and research initiatives. The 'All Other' classification means it captures services not fitting into more specific categories, making direct comparisons challenging without granular detail on the service provided.
What are the potential risks associated with a long-term (5-year) contract for specialized technical support?
Long-term contracts for specialized technical support, like this 5-year award, carry several potential risks. Firstly, technology can rapidly evolve, making the system or the support methods obsolete before the contract ends, leading to diminished value. Secondly, vendor lock-in can occur, where the contractor gains such deep institutional knowledge and control over the system that switching providers becomes prohibitively expensive or complex. Thirdly, complacency can set in for both the contractor and the government oversight team, potentially leading to reduced vigilance in cost control and performance monitoring. Finally, the fixed nature of the contract may not adequately account for unforeseen market shifts in labor costs or material prices, impacting the government's overall cost-effectiveness over the duration.
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: HDTRA122R0017
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 12450 FAIR LAKES CIR, 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: $48,346,649
Exercised Options: $36,902,695
Current Obligation: $36,502,695
Actual Outlays: $7,428,847
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $7,910,946
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-28
Current End Date: 2027-09-27
Potential End Date: 2027-09-27 00:00:00
Last Modified: 2025-12-23
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