DoD's $16.6M TRANSVIZ contract to General Dynamics Mission Systems shows strong value with a 2007-year duration

Contract Overview

Contract Amount: $16,574,837 ($16.6M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2026-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRANSPORTATION VISUALIZER (TRANSVIZ)

Place of Performance

Location: FORT WAYNE, ALLEN County, INDIANA, 46804

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: TRANSPORTATION VISUALIZER (TRANSVIZ) Key points: 1. The contract's long duration suggests a strategic, long-term need for the services provided. 2. General Dynamics Mission Systems, a large defense contractor, is well-positioned to fulfill this requirement. 3. The firm fixed-price contract type helps mitigate cost overruns. 4. The contract was awarded under full and open competition, indicating a competitive bidding process. 5. The value-for-money assessment is positive due to the extended period of performance and competitive award. 6. Risk indicators are low given the contractor's experience and the contract type.

Value Assessment

Rating: excellent

The total contract value of approximately $16.6 million over a potential 2007-year period (likely a typo in the data, assuming it refers to a duration of years for the contract's existence or a very long-term requirement) suggests a significant investment. Benchmarking against similar long-term communication equipment contracts is difficult without more specific service details. However, the firm fixed-price nature and full and open competition indicate a strong likelihood of achieving good value for the government. The cost per year, if the duration is interpreted as a typical contract length, appears reasonable for specialized defense systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the competitive nature of the award process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition contracts. This approach ensures that the government receives the most advantageous offer.

Taxpayer Impact: Taxpayers benefit from the competitive process, which drives down prices and ensures that the government is not overpaying for the required goods and services.

Public Impact

The Department of Defense (DoD) is the primary beneficiary, receiving critical communication equipment and services. The contract supports the operational readiness and communication capabilities of USTRANSCOM. The geographic impact is likely national, supporting military logistics and transportation across various locations. Workforce implications may include specialized technical roles within General Dynamics Mission Systems and potentially at DoD facilities where the equipment is deployed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the '2007-year' duration is literal and implies evolving requirements over an extended period.
Dependence on a single large contractor for potentially critical communication infrastructure.
The specific nature of 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' could be subject to rapid technological obsolescence.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Firm Fixed Price contract type limits the government's exposure to cost overruns.
Long contract duration (if interpreted as a long-term requirement) indicates strategic planning and a stable need.
General Dynamics Mission Systems is a reputable and experienced defense contractor.

Sector Analysis

This contract falls within the Information Technology and Defense sectors, specifically related to communications equipment manufacturing and services. The market for defense communication systems is highly specialized, with a few large prime contractors dominating. Spending in this area is driven by national security requirements and the need for secure, reliable communication networks. Comparable spending benchmarks would depend on the specific type of communication equipment and its intended use within military logistics.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no specific small business set-aside (ss) noted. This suggests that the contract was not specifically targeted towards small businesses. While General Dynamics Mission Systems may utilize small business subcontractors, the primary awardee is a large corporation. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting officers and the USTRANSCOM. Inspector General (IG) jurisdiction would likely apply, with potential for audits and investigations to ensure compliance with contract terms and prevent fraud. Transparency is facilitated by the contract award being publicly available, though detailed performance metrics may not be fully public.

Related Government Programs

Defense Communications Systems
Military Logistics Technology
Radio and Wireless Communications Equipment
USTRANSCOM Procurement
General Dynamics Contracts

Risk Flags

Potential for technological obsolescence due to long contract duration.
Ambiguity in contract duration ('2007' years) requires clarification.
Lack of specific competition details (number of bidders) limits full assessment of price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. TRANSPORTATION VISUALIZER (TRANSVIZ)

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 (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2020-10-01. End: 2026-03-31.

What is the specific nature of the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' being procured under this contract?

The provided data classifies the North American Industry Classification System (NAICS) code as 334220, which pertains to 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.' This suggests the contract involves the production, modification, or maintenance of equipment used for wireless communication, potentially including radios, transceivers, antennas, and related broadcasting or transmission hardware. Given the agency (USTRANSCOM), the equipment likely supports military logistics and transportation command and control, ensuring reliable communication across various operational environments. The exact specifications and intended use would be detailed in the contract's statement of work, which is not provided here.

How does the approximate $16.6 million contract value compare to similar long-term communication equipment contracts within the DoD?

Direct comparison of the $16.6 million value to similar long-term communication equipment contracts within the DoD is challenging without more granular data on the specific type of equipment, its technological sophistication, and the duration of comparable contracts. However, for specialized defense communication systems, this value appears moderate, especially if the '2007' duration is interpreted as a very long-term requirement or a typo for a more standard contract period (e.g., 5-10 years). Large-scale communication system procurements can easily reach hundreds of millions or billions of dollars. The firm fixed-price nature and full and open competition suggest that this value was determined through a competitive process, implying reasonable market pricing for the scope of work.

What are the primary risks associated with a contract of this duration, assuming the '2007' figure represents a long period?

If the '2007' duration is accurate and implies a very long contract term (e.g., decades), the primary risks include technological obsolescence, where the procured equipment becomes outdated before the contract ends. There's also a risk of changing military requirements and strategic priorities, potentially making the contracted capabilities less relevant. Furthermore, the longer the contract, the greater the potential for contractor performance issues to emerge over time, and the more challenging it becomes to manage and oversee effectively. Economic fluctuations and the contractor's long-term financial stability also become more significant considerations. Finally, the government might be locked into a specific technology or vendor, limiting future flexibility.

What does the 'FULL AND OPEN COMPETITION' award status imply for the contractor, General Dynamics Mission Systems, and the taxpayer?

The 'FULL AND OPEN COMPETITION' award status signifies that the contract was offered to all responsible sources, allowing for a broad range of potential bidders. For General Dynamics Mission Systems, it means they successfully competed against other companies, demonstrating their ability to offer the best value. For the taxpayer, this is generally a positive indicator. It implies that the government sought the most competitive pricing and terms available in the market, reducing the likelihood of overpayment. This process is designed to ensure that taxpayer funds are used efficiently by leveraging market forces to achieve favorable contract outcomes.

How does the contract's focus on 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' align with USTRANSCOM's mission?

USTRANSCOM (United States Transportation Command) is responsible for providing global air, land, and sea transportation for the DoD, both in peace and war. Reliable and secure communication is paramount to coordinating these complex, worldwide logistics operations. Therefore, a contract focused on manufacturing radio and wireless communication equipment directly supports USTRANSCOM's mission by ensuring that its personnel and assets can maintain command and control, track shipments, and communicate effectively across vast distances and potentially contested environments. This equipment is critical for operational efficiency and mission success.

What is the significance of the 'FIRM FIXED PRICE' contract type (pt) in this context?

The 'FIRM FIXED PRICE' (FFP) contract type is significant because it places the primary responsibility for cost control on the contractor, General Dynamics Mission Systems. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This means that if the contractor's costs are higher than anticipated, their profit margin will decrease; conversely, if costs are lower, their profit will increase. For the government (and taxpayers), this provides cost certainty and predictability, as the total amount paid will not exceed the agreed-upon price, barring any contract modifications. It is generally preferred for well-defined requirements where cost risks can be reasonably estimated.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $17,600,812

Exercised Options: $16,574,837

Current Obligation: $16,574,837

Actual Outlays: $2,440,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0060N

IDV Type: FSS

Timeline