DoD Awards General Dynamics $861.6M for SDA Tranche 1 Operations and Integration
Contract Overview
Contract Amount: $861,625,034 ($861.6M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-05-26
End Date: 2029-09-30
Contract Duration: 2,684 days
Daily Burn Rate: $321.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: SDA TRANCHE 1 OPERATIONS AND INTEGRATION
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $861.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: SDA TRANCHE 1 OPERATIONS AND INTEGRATION Key points: 1. Significant investment in space-based defense capabilities. 2. General Dynamics Mission Systems is the sole awardee. 3. Potential for cost overruns given the Cost Plus Award Fee contract type. 4. Research and Development sector, focusing on advanced physical and engineering sciences.
Value Assessment
Rating: questionable
The Cost Plus Award Fee (CPAF) contract type allows for significant profit potential based on performance, which can lead to higher costs compared to fixed-price contracts. Benchmarking is difficult without more granular data on specific deliverables and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific awardee is General Dynamics Mission Systems, Inc., and the nature of the award (Definitive Contract) implies a single entity received the full amount.
Taxpayer Impact: Taxpayer funds are being allocated to a large-scale defense technology program, with the ultimate value and efficiency dependent on program execution and cost control.
Public Impact
Enhances national security through advanced satellite technology. Supports technological innovation in the defense sector. Potential for job creation in specialized engineering and technical fields. Long-term contract duration may indicate sustained government need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can incentivize cost growth.
- Long contract duration (2029) increases exposure to changing requirements and economic conditions.
- Sole awardee may limit competitive pressure on future phases.
- Lack of small business participation noted.
Positive Signals
- Significant investment in a critical defense capability.
- Awarded under full and open competition.
- Focus on advanced R&D aligns with modernization goals.
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority but can be subject to high uncertainty and long development cycles.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a large entity, and subcontracting opportunities for small businesses are not explicitly detailed in this summary.
Oversight & Accountability
The Department of the Air Force is the awarding agency, indicating oversight within the Department of Defense. The definitive contract structure and long duration necessitate robust program management and regular performance reviews to ensure accountability and effective use of funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Award Fee contract type.
- Long contract duration.
- Sole awardee for this definitive contract.
- No noted small business participation.
- Research and Development sector carries inherent uncertainty.
Tags
research-and-development-in-the-physical, department-of-defense, az, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $861.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. SDA TRANCHE 1 OPERATIONS AND INTEGRATION
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 $861.6 million.
What is the period of performance?
Start: 2022-05-26. End: 2029-09-30.
What specific performance metrics will be used to determine award fees for General Dynamics Mission Systems, and how will these be objectively measured to ensure fair compensation and taxpayer value?
The specific performance metrics for award fees are not detailed in the provided data. Typically, for Cost Plus Award Fee contracts, these metrics are tied to program milestones, technical performance, schedule adherence, and cost control. Objective measurement would involve independent verification of achieved targets, adherence to specifications, and timely delivery of key components or capabilities. The contracting officer's determination of award fee is crucial for ensuring value.
Given the 'full and open competition' designation, what was the rationale for awarding a definitive contract to a single entity, and were alternative contracting strategies considered to foster ongoin
While the initial award was under full and open competition, the definitive contract structure implies a single award to General Dynamics Mission Systems, Inc. The rationale might stem from the need for a specific, integrated capability where one entity demonstrated the best overall technical and cost proposal. Alternative strategies like phased development or multiple awards for different segments could have been considered but potentially deemed less efficient or effective for this particular Tranche 1 requirement.
How does the $861.6 million investment align with the broader SDA Tranche 1 objectives, and what are the projected long-term cost implications beyond this initial contract?
This significant investment is intended to fund the operations and integration of the Space Development Agency's Tranche 1 capabilities, likely encompassing satellite development, launch, and ground systems. The alignment with objectives depends on the successful execution of the contract. Long-term cost implications are substantial, as this is likely one part of a larger, multi-tranche acquisition strategy for a persistent space-based defense network.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ085022R0002
Offers Received: 7
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,217,186,199
Exercised Options: $1,094,366,431
Current Obligation: $861,625,034
Actual Outlays: $143,555,291
Subaward Activity
Number of Subawards: 103
Total Subaward Amount: $145,308,807
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-05-26
Current End Date: 2029-09-30
Potential End Date: 2029-09-30 00:00:00
Last Modified: 2026-01-13
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