DoD Awards $153M+ for Digital System Resources, Inc. to Support Naval Systems
Contract Overview
Contract Amount: $51,013,833 ($51.0M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2000-02-07
End Date: 2031-12-03
Contract Duration: 11,622 days
Daily Burn Rate: $4.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200005!1700!001333!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002400C5130 !A!*!B !20000207!20051230!153245857!153245857!153245857!N!2Y865!DIGITAL SYSTEM RESOURCES, INC.!12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !0001!+000000050000!N!N!000000000000!AC65!RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !7373!3!*!*!C!B!N!Z!D !N!U!1!001!N!1G!Z!Y!Z!* !* !N!B!N!A!*!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $51.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 200005!1700!001333!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002400C5130 !A!*!B !20000207!20051230!153245857!153245857!153245857!N!2Y865!DIGITAL SYSTEM RESOURCES, INC.!12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAI… Key points: 1. The contract, valued at over $153 million, is for digital system resources. 2. General Dynamics Mission Systems, Inc. is a potential competitor, though the contract was not competed. 3. The risk associated with this contract is moderate due to the lack of competition. 4. The sector is Defense, specifically IT and electronics/communication equipment.
Value Assessment
Rating: fair
The contract value is $153,245,857. Without comparable contracts or detailed cost breakdowns, it's difficult to assess if this price is competitive. The Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source procurement, meaning it was not competed. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this significant contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Naval operations and readiness could be impacted by the availability and performance of these digital systems. The defense industrial base relies on companies like Digital System Resources, Inc. for critical technological support. Taxpayers may be paying a premium due to the absence of competitive bidding on this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration (over 11 years)
Positive Signals
- Supports critical naval systems
- Long-term engagement provides stability
Sector Analysis
This contract falls within the Defense sector, specifically IT and electronics manufacturing. Spending in this area is substantial, and competitive bidding is crucial for cost efficiency.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, which is a missed opportunity for their participation.
Oversight & Accountability
Oversight will be critical to ensure Digital System Resources, Inc. delivers on its obligations and that costs are managed effectively, especially given the sole-source nature of the award.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in specific deliverables
- Potential for cost overruns
Tags
computer-systems-design-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 200005!1700!001333!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002400C5130 !A!*!B !20000207!20051230!153245857!153245857!153245857!N!2Y865!DIGITAL SYSTEM RESOURCES, INC.!12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !0001!+000000050000!N!N!000000000000!AC65!RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !7373!3!*!*!C!B!N!Z!D !N!U!
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $51.0 million.
What is the period of performance?
Start: 2000-02-07. End: 2031-12-03.
What specific digital system resources are being procured, and how do they enhance naval capabilities?
The contract specifies 'Digital System Resources, Inc.' and is categorized under 'RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV'. While the exact nature of the resources is not detailed, they are intended to support naval systems, likely involving advanced electronics, communication equipment, and related engineering or manufacturing development to enhance operational capabilities and technological superiority.
What are the primary risks associated with a sole-source contract of this magnitude and duration?
The primary risks include inflated pricing due to the absence of competitive pressure, potential for scope creep, and reduced incentive for the contractor to innovate or optimize costs. The long duration also increases the risk of technological obsolescence or changing requirements not being adequately addressed without re-competition.
How can the Department of Defense ensure effective oversight and value for money on this Cost Plus Fixed Fee contract?
Effective oversight requires robust contract management, including detailed performance monitoring, regular cost reviews, and clear communication channels. The DoD should establish stringent milestones, audit contractor expenditures, and ensure the fixed fee is justified based on realistic cost projections and performance metrics to maximize value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 12450 FAIR LAKES CIR STE 800, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2000-02-07
Current End Date: 2031-12-03
Potential End Date: 2031-12-03 00:00:00
Last Modified: 2018-02-12
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