Naval Air Systems Command awarded $28.6M for miscellaneous communication equipment, primarily for F/A-18 E/F aircraft

Contract Overview

Contract Amount: $28,612,236 ($28.6M)

Contractor: General Dynamics Information S

Awarding Agency: Department of Defense

Start Date: 2006-06-29

End Date: 2008-09-30

Contract Duration: 824 days

Daily Burn Rate: $34.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: NOT REPORTED

Sector: Defense

Official Description: 200610!488184!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906C0106 !A!N! !N! ! !20060629!20080829!003591992!116187758!001381284!N!GENERAL DYNAMICS INFORMATION S!8800 QUEEN AVE SOUTH !BLOOMINGTON !MN!55431!06616!053!27!BLOOMINGTON !HENNEPIN !MINNESOTA !+000027828796!N!N!000029442090!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !549 !F/A-18 E/F !336413!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1A!A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y!1719!N00019!0001! !

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55425

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $28.6 million to GENERAL DYNAMICS INFORMATION S for work described as: 200610!488184!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906C0106 !A!N! !N! ! !20060629!20080829!003591992!116187758!001381284!N!GENERAL DYNAMICS INFORMATION S!8800 QUEEN AVE SOUTH !BLOOMINGTON !MN!55431!06616!053!27!BLOOMINGTON !HENN… Key points: 1. Contract awarded for communication equipment, with a significant portion allocated to F/A-18 E/F aircraft. 2. The contract was not competed, raising questions about potential cost efficiencies and market-driven pricing. 3. A single award was made to General Dynamics Information S, suggesting a sole-source or limited competition scenario. 4. The duration of the contract was 824 days, indicating a medium-term supply need. 5. The primary product service code (PSC) is '549' for electronic and communication equipment. 6. The contract value of $28.6 million is substantial for specialized communication hardware.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed specifications of the 'miscellaneous communication equipment' and its intended use. The lack of competition limits the ability to assess if the price paid was competitive against market alternatives. However, the total award amount of $28.6 million for a 2-year period suggests a significant investment in specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or potentially a limited competition award. With only one awardee, General Dynamics Information S, there was no opportunity for multiple vendors to bid, which can limit price discovery and potentially lead to higher costs for the government. The rationale for not competing the award is not detailed in the provided data.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the most cost-effective pricing that could have been achieved through a competitive bidding process.

Public Impact

The primary beneficiaries are likely the U.S. Navy, specifically units operating F/A-18 E/F aircraft, who will receive essential communication equipment. The services delivered involve the provision of miscellaneous communication equipment, crucial for maintaining operational readiness and command and control capabilities. The geographic impact is primarily within the Department of Defense's operational theaters, supporting naval aviation missions. Workforce implications may include support and maintenance roles related to the installed communication systems, though direct job creation data is not available.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Limited transparency into the procurement process due to sole-source award.
Potential for vendor lock-in if the equipment is highly specialized and proprietary.

Positive Signals

Ensures supply of critical communication equipment for naval aviation.
Award to a known entity (General Dynamics) may imply established reliability.
Contract supports a specific, vital military platform (F/A-18 E/F).

Sector Analysis

This contract falls within the broader defense electronics and communication equipment sector. The market for such specialized military hardware is often characterized by high barriers to entry, stringent performance requirements, and a limited number of qualified suppliers. Spending in this area is critical for maintaining technological superiority and operational effectiveness of military platforms like the F/A-18 E/F.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. As a sole-source award to a large corporation, it is unlikely to have directly benefited small businesses through set-asides. The impact on the small business ecosystem would be minimal unless General Dynamics Information S engaged small businesses as subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would include performance monitoring and adherence to contract terms. Transparency is limited due to the sole-source nature of the award, with further details likely residing within internal DoD reporting mechanisms.

Related Government Programs

F/A-18 E/F Aircraft Procurement
Naval Aviation Communication Systems
Defense Electronics Manufacturing
Department of Defense Communication Equipment

Risk Flags

Sole-source award limits price competition.
Lack of detailed product specification hinders value assessment.
Potential for integration challenges with existing aircraft systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.6 million to GENERAL DYNAMICS INFORMATION S. 200610!488184!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906C0106 !A!N! !N! ! !20060629!20080829!003591992!116187758!001381284!N!GENERAL DYNAMICS INFORMATION S!8800 QUEEN AVE SOUTH !BLOOMINGTON !MN!55431!06616!053!27!BLOOMINGTON !HENNEPIN !MINNESOTA !+000027828796!N!N!000029442090!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !549 !F/A-18 E/F !336413!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION S.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.6 million.

What is the period of performance?

Start: 2006-06-29. End: 2008-09-30.

What specific type of 'miscellaneous communication equipment' was procured under this contract?

The provided data classifies the item under PSC 549 (ELECTRONICS AND COMMUNICATION EQUIP) and NAICS 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing). While the term 'miscellaneous communication equipment' is broad, it likely refers to specialized components for airborne communication systems, such as radios, transceivers, antennas, or related hardware essential for the F/A-18 E/F aircraft's operational capabilities. Without more granular product descriptions or technical specifications, the exact nature of the equipment remains general. This type of equipment is critical for maintaining situational awareness, command and control, and interoperability with other assets during missions.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and lists the contract type as 'A', which often signifies a sole-source award. The specific justification for this sole-source determination is not detailed in the extract. Common reasons for sole-source awards include unique capabilities of a single contractor, urgent and compelling needs where competition is not feasible, or when the item is a follow-on to a previously competed contract where only the original contractor can provide necessary compatibility or upgrades. Further investigation into the contract file or agency justifications would be required to ascertain the precise reason.

How does the per-unit cost of this equipment compare to similar systems in the market?

The provided data does not include per-unit cost information or detailed specifications that would allow for a direct comparison to market rates. The total contract value is $28.6 million over approximately two years. Without knowing the quantity of units procured and the specific technical characteristics of the communication equipment, it is impossible to establish a meaningful per-unit cost benchmark. Furthermore, as a sole-source award for specialized military hardware, direct market comparisons may be difficult due to unique requirements and limited commercial off-the-shelf alternatives.

What is General Dynamics Information S's track record with similar defense contracts?

General Dynamics Information S (now General Dynamics Mission Systems) is a major defense contractor with a long history of providing a wide range of products and services to the U.S. military. While this specific contract number (N0001906C0106) pertains to communication equipment for the F/A-18, the company has extensive experience in areas such as command and control systems, secure communications, electronic warfare, and IT solutions for various defense platforms. Their track record generally includes delivering complex systems, though like any large contractor, specific contract performance can vary. A deeper analysis of their past performance ratings on similar contracts would provide more insight.

What is the historical spending trend for this type of communication equipment for the F/A-18 program?

The provided data represents a single contract awarded in 2006 for $28.6 million. To understand historical spending trends for communication equipment on the F/A-18 program, one would need to analyze spending data across multiple years and contract awards. This would involve searching for contracts with similar Product Service Codes (PSCs) and associated with the F/A-18 program from the Department of the Navy. Analyzing trends would reveal whether spending on such equipment has been consistent, increasing, or decreasing over time, and whether this particular award represents a typical investment or an outlier.

What are the performance risks associated with this contract?

Performance risks for this contract could include potential delays in delivery, equipment failing to meet stringent military specifications, integration issues with existing F/A-18 systems, and the contractor's ability to provide adequate post-delivery support and maintenance. Given the sole-source nature, there's also a risk that the contractor may not be as incentivized to perform at peak efficiency compared to a competitively bid contract. The complexity of modern military communication systems and the critical role they play in aviation safety and mission success amplify these potential risks.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: NOT REPORTED (NO)

Evaluated Preference: NONE

Contractor Details

Address: 8800 QUEEN AVE SOUTH, BLOOMINGTON, MN, 03

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline