DoD Spends $147.6M on Advance Mission Computers from General Dynamics, Awarded via Limited Competition
Contract Overview
Contract Amount: $147,625,554 ($147.6M)
Contractor: General Dynamics Information S
Awarding Agency: Department of Defense
Start Date: 2007-02-05
End Date: 2010-09-30
Contract Duration: 1,333 days
Daily Burn Rate: $110.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TYPE 3 ADVANCE MISSION COMPUTER (AMC)
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55425
Plain-Language Summary
Department of Defense obligated $147.6 million to GENERAL DYNAMICS INFORMATION S for work described as: TYPE 3 ADVANCE MISSION COMPUTER (AMC) Key points: 1. Significant spending on a critical defense component. 2. General Dynamics is a major defense contractor, indicating potential market concentration. 3. The contract's limited competition raises questions about price discovery and value. 4. The sector is characterized by high technological complexity and long procurement cycles.
Value Assessment
Rating: fair
The total award of $147.6M over three years for Advance Mission Computers suggests a substantial investment. Benchmarking against similar complex electronic systems is difficult without more granular data, but the price appears significant given the duration and quantity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may restrict the pool of potential bidders, potentially impacting price competitiveness and innovation.
Taxpayer Impact: Taxpayer funds are utilized for defense procurement. Limited competition can lead to higher costs than a fully open process, potentially reducing the overall value for taxpayers.
Public Impact
Ensures operational capability for naval platforms through advanced computing. Supports a major defense contractor and its supply chain. Potential for technological advancements in military hardware. Impacts the defense industrial base and national security readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Reliance on a single source for critical components.
- Potential for obsolescence in rapidly evolving tech sector.
Positive Signals
- Supports critical defense mission requirements.
- Awarded to a known, established defense contractor.
- Long-term contract provides stability for production.
Sector Analysis
The defense sector involves complex, high-value procurements for specialized electronic systems. Spending benchmarks are difficult to establish due to unique requirements, but $147.6M for mission computers is a substantial sum, reflecting the critical nature of the equipment.
Small Business Impact
The data indicates the primary awardee is General Dynamics Information Technology, a large business. There is no explicit mention of small business participation in this specific contract award, suggesting limited direct impact on SMBs for this particular procurement.
Oversight & Accountability
Oversight is typically managed by the Department of the Navy contracting officers and program managers. The 'exclusion of sources' clause warrants scrutiny to ensure the justification for limited competition was robust and in the government's best interest.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition raises cost concerns.
- Potential for vendor lock-in.
- Risk of technological obsolescence.
- Dependence on a single large contractor.
Tags
electronic-computer-manufacturing, department-of-defense, mn, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $147.6 million to GENERAL DYNAMICS INFORMATION S. TYPE 3 ADVANCE MISSION COMPUTER (AMC)
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 $147.6 million.
What is the period of performance?
Start: 2007-02-05. End: 2010-09-30.
What was the specific justification for excluding other sources in this full and open competition?
The justification for excluding other sources in a 'full and open competition after exclusion of sources' award typically involves demonstrating that only one or a limited number of responsible sources possess the unique capabilities, technology, or proprietary data necessary for the requirement. This could be due to specialized research and development, unique manufacturing processes, or specific integration needs with existing platforms.
How does the per-unit cost of these Advance Mission Computers compare to industry benchmarks for similar systems?
Without specific unit counts and detailed technical specifications, a direct per-unit cost comparison is challenging. However, given the total award of $147.6M over three years, the per-unit cost is likely substantial, reflecting the advanced technology, ruggedization, and specialized software required for military applications. Benchmarking would require access to classified or proprietary data on comparable systems.
What is the long-term strategy for upgrading or replacing these Advance Mission Computers to avoid technological obsolescence?
The long-term strategy likely involves periodic technology refresh initiatives and future contract awards for next-generation systems. The Department of Defense typically plans for technology insertion and replacement cycles to keep pace with advancements. This contract's duration suggests a focus on current operational needs, with future planning for upgrades or replacements already underway.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001906R0030
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8800 QUEEN AVE. SOUTH, BLOOMINGTON, MN, 03
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $149,723,994
Exercised Options: $147,996,564
Current Obligation: $147,625,554
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-02-05
Current End Date: 2010-09-30
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2011-03-23
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