General Dynamics Mission Systems awarded $21.8M for engineering and technical support over 8 years
Contract Overview
Contract Amount: $21,764,079 ($21.8M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-10-21
End Date: 2013-08-31
Contract Duration: 2,871 days
Daily Burn Rate: $7.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: ENGINEERING AND TECHNICAL SUPPORT TAS::17 1804::TAS
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ENGINEERING AND TECHNICAL SUPPORT TAS::17 1804::TAS Key points: 1. Contract value represents a significant investment in specialized engineering services. 2. Long contract duration suggests a sustained need for these capabilities. 3. Sole-source award raises questions about potential cost efficiencies and market alternatives. 4. The 'Cost Plus Award Fee' structure incentivizes performance but requires careful oversight. 5. This contract falls within the broader Defense sector's extensive spending on technical expertise. 6. The specific TAS code indicates a focus on engineering and technical services.
Value Assessment
Rating: fair
The contract's total value of $21.8 million over nearly 9 years averages to approximately $2.4 million annually. Without specific benchmarks for comparable engineering and technical support contracts within the Department of Defense, it is difficult to definitively assess value for money. The 'Cost Plus Award Fee' (CPAF) pricing structure, while allowing for performance incentives, can lead to costs exceeding initial estimates if not managed rigorously. The lack of a stated contract type (e.g., fixed-price) further complicates direct cost comparisons.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically justified when only one vendor possesses the necessary specialized capabilities, security clearances, or proprietary knowledge required for the service. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple bids had been solicited.
Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive bidding, which usually drives down prices. The government relied on negotiation and oversight to ensure a fair price, but the absence of alternatives limits the government's leverage.
Public Impact
The Department of Defense benefits from specialized engineering and technical expertise to support its missions. Services delivered likely include system design, integration, testing, and lifecycle support for defense systems. The geographic impact is primarily tied to the contractor's facilities and the Department of Defense locations where the supported systems are deployed. Workforce implications include employment for engineers, technicians, and support staff at General Dynamics Mission Systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Cost Plus Award Fee structure requires robust oversight to control costs.
- Long contract duration may not adapt well to rapidly changing technological needs.
- Lack of detailed contract type information hinders value assessment.
Positive Signals
- Award to a large, established defense contractor suggests a high likelihood of technical capability.
- Long-term contract indicates a stable, ongoing requirement for these services.
- The 'Award Fee' component provides an incentive for high performance.
Sector Analysis
This contract falls within the broader Defense sector, which heavily relies on specialized engineering and technical support services for the development, maintenance, and modernization of complex military systems. The market for these services is substantial, with numerous large defense contractors competing for government contracts. Benchmarking this contract's value is challenging without specific data on comparable engineering support contracts, but the annual spend of approximately $2.4 million is moderate within the context of major defense procurements.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if subcontracting plans were included and their scope.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) or the relevant Department of Defense contracting office. Accountability measures are embedded in the 'Cost Plus Award Fee' structure, which links a portion of the contractor's profit to performance metrics. Transparency is generally limited for sole-source contracts, with details often classified or restricted due to national security or proprietary concerns. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Engineering Services
- Technical Support Contracts
- Cost Plus Award Fee Contracts
- Sole Source Procurements
- Department of Defense IT and Systems Support
Risk Flags
- Sole-source award limits price competition.
- Cost Plus Award Fee structure requires diligent oversight.
- Long contract duration may lead to obsolescence risk.
Tags
defense, department-of-defense, engineering-services, technical-support, general-dynamics-mission-systems, cost-plus-award-fee, sole-source, definitive-contract, virginia, c4isr, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. ENGINEERING AND TECHNICAL SUPPORT TAS::17 1804::TAS
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 $21.8 million.
What is the period of performance?
Start: 2005-10-21. End: 2013-08-31.
What specific engineering and technical support services were provided under this contract?
The provided data indicates the contract was for 'ENGINEERING AND TECHNICAL SUPPORT' under TAS code 1804. While the specific nature of the services is not detailed, this typically encompasses a broad range of activities including system design, development, integration, testing, analysis, maintenance, and lifecycle support for complex defense systems. Given the contractor, General Dynamics Mission Systems, it is likely related to command, control, communications, computer, intelligence, surveillance, and reconnaissance (C4ISR) systems, electronic warfare, or other advanced defense technologies. The 'Cost Plus Award Fee' structure suggests that performance metrics related to technical execution, schedule adherence, and cost control were established and evaluated.
How does the $21.8 million contract value compare to similar engineering support contracts within the Department of Defense?
Direct comparison of the $21.8 million total contract value is challenging without access to a comprehensive database of similar sole-source engineering support contracts awarded by the Department of Defense over the same period (2005-2013). However, this value represents an average annual spend of approximately $2.4 million. This is a moderate figure for a long-term, specialized support contract within the defense sector. Larger, more complex system development contracts can reach hundreds of millions or billions of dollars, while smaller, more focused support tasks might be in the low millions. The sole-source nature and CPAF structure also influence its comparability to competitively bid, fixed-price contracts.
What are the potential risks associated with a sole-source 'Cost Plus Award Fee' contract of this duration?
A sole-source 'Cost Plus Award Fee' (CPAF) contract of this duration (nearly 9 years) presents several potential risks. Firstly, the lack of competition means the government did not benefit from price reductions that competitive bidding typically yields. Secondly, the CPAF structure, while incentivizing performance, can lead to cost overruns if the award fee criteria are not tightly defined and rigorously monitored, as the contractor is reimbursed for allowable costs plus a fee that can be adjusted based on performance. Thirdly, a long duration increases the risk of the contracted services becoming outdated or misaligned with evolving technological requirements or strategic priorities, potentially leading to inefficiencies or the need for costly modifications. Robust government oversight is crucial to mitigate these risks.
What was the historical spending pattern for this type of engineering and technical support by the Department of Defense prior to this award?
The provided data does not include historical spending patterns for this specific contract or the broader category of 'ENGINEERING AND TECHNICAL SUPPORT' by the Department of Defense prior to this award. To assess historical trends, one would need access to historical contract databases, budget allocations for relevant TAS codes (like 1804), and analyses of defense spending priorities. Generally, the Department of Defense has consistently allocated significant portions of its budget to engineering and technical support services, recognizing their critical role in maintaining technological superiority and operational readiness. Spending in this area often fluctuates based on geopolitical events, modernization programs, and specific platform sustainment needs.
What is the track record of General Dynamics Mission Systems in delivering similar engineering and technical support services?
General Dynamics Mission Systems (GDMS) is a well-established and significant defense contractor with a long history of providing complex systems and services to the U.S. military and government agencies. Their track record in engineering and technical support is extensive, particularly in areas such as C4ISR systems, cybersecurity, and platform integration. While specific performance details for this particular $21.8 million contract are not provided, GDMS generally has a reputation for technical competence. However, like any large contractor, they may have faced scrutiny or challenges on specific contracts regarding cost, schedule, or performance. A thorough assessment would require reviewing performance evaluations and past performance questionnaires for GDMS on similar contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 9500 INNOVATION DR, MANASSAS, VA, 20110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $61,846,025
Exercised Options: $21,764,079
Current Obligation: $21,764,079
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-10-21
Current End Date: 2013-08-31
Potential End Date: 2013-08-31 00:00:00
Last Modified: 2023-01-12
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