DoD Awards $286M for Guided Missile Components to General Dynamics, Facing Limited Competition
Contract Overview
Contract Amount: $28,640,796 ($28.6M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-09-17
End Date: 2009-10-31
Contract Duration: 2,236 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200312!036609!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002403C5123 !A!N! !N! !20030917!20070916!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVENUE !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITTENDEN !VERMONT !+000007912472!Y!N!000000000000!1420!GUIDED MISSILE COMPONENTS !A3 !SHIPS !2CLN!DIRECTOR/DIRECTOR CONTROLLER !336419!E! !3! ! ! ! ! !99990909!B! ! !B! !A!U!J!2!001!B! !A!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!* !A!C!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $28.6 million to GENERAL DYNAMICS-OTS, INC. for work described as: 200312!036609!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002403C5123 !A!N! !N! !20030917!20070916!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVENUE !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITT… Key points: 1. The contract value of $286.4 million is substantial for specialized defense components. 2. General Dynamics is a major defense contractor, indicating a concentrated market. 3. The 'full and open competition' suggests a competitive bidding process, but the awardee is a known entity. 4. The sector is defense manufacturing, specifically guided missile components, a critical but niche area.
Value Assessment
Rating: good
The contract value of $286.4 million for guided missile components appears reasonable given the specialized nature and the duration of the contract (over 6 years). Benchmarking against similar complex defense systems is difficult without more specific component data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific nature of guided missile components may limit the number of qualified bidders, potentially impacting the breadth of competition.
Taxpayer Impact: The competitive process aims to secure a fair price for taxpayers, but the specialized nature of the components means costs can be high regardless of competition.
Public Impact
Taxpayers are funding critical components for national defense, specifically guided missile systems. The contract supports jobs within the defense manufacturing sector, particularly at General Dynamics. The successful execution of this contract is vital for maintaining the operational readiness of naval assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex defense manufacturing.
- Dependence on a single prime contractor for critical components.
Positive Signals
- Awarded under full and open competition.
- Long-term contract provides stability for production.
- Supports a key defense industrial base capability.
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of guided missile components. Spending in this area is driven by national security requirements and technological advancements in defense systems. Benchmarks are highly specific to the type and complexity of the missile system.
Small Business Impact
The data indicates the prime contractor is General Dynamics, a large corporation. There is no explicit mention of small business participation in this award, suggesting it may be limited or not directly captured in this record.
Oversight & Accountability
The contract is managed by the Naval Sea Systems Command, indicating oversight by a major defense agency. The 'definitive contract' type suggests a structured agreement with defined terms, implying a level of accountability.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration may increase risk of obsolescence.
- Potential for cost growth if unforeseen technical challenges arise.
- Limited visibility into specific component costs for benchmarking.
- Dependence on a single large contractor for critical defense items.
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, vt, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.6 million to GENERAL DYNAMICS-OTS, INC.. 200312!036609!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002403C5123 !A!N! !N! !20030917!20070916!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVENUE !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITTENDEN !VERMONT !+000007912472!Y!N!000000000000!1420!GUIDED MISSILE COMPONENTS !A3 !SHIPS !2CLN!DIRECTOR/DIRECTOR CONTROLLER !336419!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS-OTS, 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 $28.6 million.
What is the period of performance?
Start: 2003-09-17. End: 2009-10-31.
What specific guided missile components are being procured, and how do their costs compare to industry standards for similar technological capabilities?
The provided data identifies the product as 'GUIDED MISSILE COMPONENTS' but lacks specificity on the exact nature or technological sophistication. A detailed breakdown of component types and their associated costs would be necessary to benchmark against industry standards. Without this granular information, assessing the value proposition is challenging, though the overall contract value suggests significant complexity and criticality.
What are the key performance indicators (KPIs) for this contract, and how will the Naval Sea Systems Command ensure timely delivery and quality of these critical components?
The contract details do not explicitly list Key Performance Indicators (KPIs). However, as a definitive contract with a fixed price, the Naval Sea Systems Command likely relies on standard contract clauses for delivery schedules, quality assurance, and defect reporting. Oversight by the Defense Contract Management Agency (DCMA) would also be in place to monitor contractor performance and ensure compliance with specifications.
Given the long contract duration (over 6 years), what mechanisms are in place to mitigate risks associated with technological obsolescence or changes in threat environments?
The long duration necessitates proactive risk management. Mechanisms could include contract clauses allowing for modifications based on technological advancements or changes in threat assessments, periodic reviews of component specifications, and potentially incorporating provisions for upgrades or replacements. The firm fixed-price nature, however, might limit flexibility for the government to unilaterally mandate changes without renegotiation.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 128 LAKESIDE AVENUE, BURLINGTON, VT, 05401
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-09-17
Current End Date: 2009-10-31
Potential End Date: 2009-10-31 00:00:00
Last Modified: 2024-08-15
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