DoD's $18.4M H-53 Logistics Support Contract Awarded to General Dynamics

Contract Overview

Contract Amount: $18,429,122 ($18.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-07-01

End Date: 2011-05-31

Contract Duration: 1,795 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LOGISTICS SUPPORT FOR THE H-53 WEAPON SYSTEM PROGRAM

Place of Performance

Location: PATUXENT RIVER, ST. MARY'S County, MARYLAND, 20670, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: LOGISTICS SUPPORT FOR THE H-53 WEAPON SYSTEM PROGRAM Key points: 1. Contract awarded to General Dynamics Information Technology, Inc. for logistics support of the H-53 weapon system. 2. The contract value is $18.4 million over a period of 1795 days. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk for cost overruns. Without detailed cost breakdowns and robust oversight, it's difficult to assess if the $18.4 million represents fair value compared to similar logistics support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the CPFF structure means the government pays actual costs plus a fixed fee, which may not always result in the lowest possible price.

Taxpayer Impact: Taxpayers bear the risk of cost overruns inherent in CPFF contracts, though the fixed fee provides some cost certainty for the contractor's profit.

Public Impact

Ensures continued operational readiness for the H-53 heavy-lift helicopter fleet. Supports critical military logistics and maintenance functions. Potential for cost increases due to the CPFF contract type. Impact on readiness if support is delayed or inadequate.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type increases cost overrun risk.
Lack of specific performance metrics makes value assessment difficult.
No indication of small business participation.

Positive Signals

Awarded under full and open competition.
Supports a critical weapon system.
Fixed fee provides some profit certainty for the contractor.

Sector Analysis

This contract falls within Engineering Services (NAICS 541330) and relates to defense logistics. Spending in this sector is driven by military readiness requirements and the lifecycle of weapon systems. Benchmarks for similar logistics support contracts would be needed for a precise comparison.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (sb: false). There is no information provided regarding subcontracting opportunities for small businesses on this particular award.

Oversight & Accountability

The contract was awarded by the Department of the Navy. Oversight would focus on monitoring costs, ensuring contractor performance meets requirements, and managing the fixed fee under the CPFF structure to prevent excessive spending.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost overrun risk due to CPFF contract type.
Lack of specific performance metrics.
No small business participation noted.
Limited insight into total program cost context.
Potential for inefficient resource allocation without clear performance standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. LOGISTICS SUPPORT FOR THE H-53 WEAPON SYSTEM PROGRAM

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2006-07-01. End: 2011-05-31.

What is the estimated total cost of the H-53 weapon system program, and how does this logistics support contract contribute to its overall lifecycle cost?

The provided data only details the logistics support contract value ($18.4M). To assess the overall program cost, information on procurement, sustainment, upgrades, and other support elements for the H-53 fleet is required. This contract represents a portion of the sustainment costs, and its efficiency impacts the total lifecycle expenditure.

What specific performance metrics are in place to ensure the effectiveness of the logistics support provided by General Dynamics, and how are these measured?

The provided data does not specify performance metrics or key performance indicators (KPIs) for this contract. Effective oversight would require clearly defined metrics related to response times, parts availability, maintenance quality, and cost control. Without these, assessing the contractor's effectiveness and the true value delivered is challenging.

Given the CPFF structure, what mechanisms are in place to control costs and prevent potential overruns beyond the initial $18.4 million estimate?

The CPFF structure inherently allows for actual costs to be reimbursed plus a fixed fee. Cost control relies heavily on robust government oversight, detailed cost reporting from the contractor, and potentially established ceilings or negotiation of the fixed fee. Without specific details on oversight procedures and cost tracking, the risk of cost overruns remains a concern.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002406R3239

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4012

IDV Type: IDC

Timeline