DoD's $156M AEGIS Director Contract Awarded to General Dynamics-OTS, Inc. with Limited Competition
Contract Overview
Contract Amount: $15,642,876 ($15.6M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-01-10
End Date: 2010-12-31
Contract Duration: 1,451 days
Daily Burn Rate: $10.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AEGIS DIRECTORS AND AEGIS DIRECTOR CONTROLLERS FOR AUSTRALIA AND SPAIN
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $15.6 million to GENERAL DYNAMICS-OTS, INC. for work described as: AEGIS DIRECTORS AND AEGIS DIRECTOR CONTROLLERS FOR AUSTRALIA AND SPAIN Key points: 1. The contract, valued at $156.4 million, is for AEGIS Directors and Controllers for Australia and Spain. 2. General Dynamics-OTS, Inc. is the sole awardee, indicating a lack of broader competition. 3. The contract spans from 2007 to 2010, with a duration of 1451 days. 4. The award type is Firm Fixed Price, providing cost certainty for the government. 5. This procurement falls under the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $156.4 million for specialized AEGIS components appears significant. Benchmarking against similar specialized defense manufacturing contracts is difficult without more specific data on the components' complexity and quantity. The 'NOT AVAILABLE FOR COMPETITION' status suggests potential price escalation due to limited market options.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited source award. This significantly impacts price discovery, as the government likely had fewer options to negotiate favorable terms compared to an open competition. The specific reasons for the limited competition are not detailed.
Taxpayer Impact: The limited competition likely resulted in a higher price for taxpayers than if multiple vendors had competed for the contract.
Public Impact
This contract supports critical defense systems for the U.S. Navy and allied nations (Australia and Spain). The procurement of AEGIS Directors and Controllers is essential for naval defense capabilities. The long duration of the contract (nearly 4 years) indicates a sustained need for these components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about potential overpricing.
- Lack of transparency on the reasons for limited competition.
- Long contract duration without clear performance metrics provided.
Positive Signals
- Firm Fixed Price contract provides cost predictability.
- Supports critical naval defense systems for multiple nations.
Sector Analysis
This contract falls within the specialized manufacturing sector for guided missile and space vehicle parts. Spending in this niche area is typically driven by defense modernization programs and international military sales. Benchmarks are hard to establish due to the highly specialized nature of AEGIS components.
Small Business Impact
The data indicates that the awardee is General Dynamics-OTS, Inc., a large defense contractor. There is no indication in the provided data that small businesses were involved as prime contractors or significant subcontractors in this specific award.
Oversight & Accountability
The contract was awarded by the Department of the Navy. Oversight would typically involve contract management, performance monitoring, and financial accountability to ensure the government receives the specified goods and services within the agreed-upon terms and price.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for higher costs due to lack of competition.
- Lack of detailed justification for limited competition.
- Long contract duration without clear performance metrics.
- Potential for technology obsolescence over time.
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, vt, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.6 million to GENERAL DYNAMICS-OTS, INC.. AEGIS DIRECTORS AND AEGIS DIRECTOR CONTROLLERS FOR AUSTRALIA AND SPAIN
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $15.6 million.
What is the period of performance?
Start: 2007-01-10. End: 2010-12-31.
What specific factors led to the 'NOT AVAILABLE FOR COMPETITION' designation for this contract, and were alternative sourcing strategies considered?
The designation 'NOT AVAILABLE FOR COMPETITION' typically implies that only one responsible source exists, or that the need is of such urgency that only one source can be used. For specialized defense components like AEGIS Directors, this could be due to proprietary technology, unique manufacturing capabilities, or existing system integration requirements. Without further documentation, it's unclear if alternative sourcing was explored or if these factors genuinely limited the competitive landscape.
How does the unit cost of these AEGIS Directors and Controllers compare to similar components procured through competitive means, if such comparisons are possible?
Direct comparison of unit costs is challenging without knowing the exact specifications, quantities, and the competitive environment for similar components. However, contracts awarded under limited or sole-source conditions often carry a price premium compared to those secured through robust competition. The absence of a competitive bid process means the government may not have achieved the lowest possible price, impacting overall value for taxpayer funds.
What is the long-term strategic value and potential obsolescence risk associated with these AEGIS Director components, given the contract's duration and the evolving nature of defense technology?
The long-term value depends on the AEGIS system's continued relevance in naval defense strategies for the US, Australia, and Spain. The contract's duration (2007-2010) suggests these components were critical at the time. However, defense technology evolves rapidly; there's a potential risk of obsolescence if upgrades or replacements are needed sooner than anticipated, which could necessitate future sole-source procurements or costly modernization efforts.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 128 LAKESIDE AVE, BURLINGTON, VT, 00
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,642,876
Exercised Options: $15,642,876
Current Obligation: $15,642,876
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-01-10
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2011-06-14
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