DoD Spends $15.6M on Engineering Support with General Dynamics, Facing Potential Value Concerns
Contract Overview
Contract Amount: $15,610,787 ($15.6M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-01-13
End Date: 2013-12-31
Contract Duration: 1,813 days
Daily Burn Rate: $8.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING AND TECHNICAL SUPPORT
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ENGINEERING AND TECHNICAL SUPPORT Key points: 1. Significant expenditure on engineering services highlights reliance on specialized contractors. 2. General Dynamics Mission Systems, Inc. is a major player in defense contracting. 3. The contract's duration and cost-plus structure may present value risks. 4. The 'full and open competition after exclusion of sources' method warrants scrutiny for potential limitations.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, coupled with a long duration, can lead to cost overruns and reduced incentive for efficiency. Benchmarking against similar engineering support contracts is crucial to determine if the $15.6 million expenditure represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while competition was sought, it was not entirely open, potentially limiting the pool of bidders and impacting price discovery. This could lead to higher costs than a truly open competition.
Taxpayer Impact: The limited competition and CPFF structure may result in taxpayers paying more than necessary for engineering and technical support services.
Public Impact
Taxpayers may be overpaying for essential engineering services due to limited competition and contract type. The Department of Defense's reliance on specific contractors for critical support functions is highlighted. Long-term contracts can tie up significant federal funds, potentially impacting budget flexibility for other priorities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Limited competition method
- Long contract duration (1813 days)
- Lack of small business participation
Positive Signals
- Contract awarded to a known entity (General Dynamics)
- Services provided to the Department of Defense
Sector Analysis
This contract falls within the Engineering Services sector, a critical component for defense projects. Spending benchmarks in this area vary widely based on project complexity, but long-term CPFF contracts often face scrutiny for cost control.
Small Business Impact
The data indicates no small business participation in this contract. This suggests a missed opportunity to foster small business growth within the defense supply chain and potentially leverage innovative solutions they might offer.
Oversight & Accountability
The 'VA' (Virginia) designation and the 'Defense Contract Management Agency' suggest oversight is in place. However, the contract's structure and limited competition raise questions about the effectiveness of that oversight in ensuring optimal value for taxpayer dollars.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Limited competition may have inflated prices
- Lack of small business involvement
- Long contract duration could indicate inflexibility
- Insufficient transparency on specific services rendered
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. ENGINEERING AND TECHNICAL SUPPORT
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 $15.6 million.
What is the period of performance?
Start: 2009-01-13. End: 2013-12-31.
What specific engineering and technical support tasks were performed under this contract, and how do they align with the fixed fee awarded?
The contract was for general engineering and technical support. Without detailed task breakdowns and performance reports, it's difficult to assess the alignment between the work performed and the fixed fee. The CPFF structure inherently shifts some risk to the government, making precise alignment challenging without robust oversight and clear deliverables.
What were the specific reasons for excluding other potential sources during the 'full and open competition after exclusion of sources' process?
The exclusion of sources typically occurs when only a limited number of contractors possess the necessary specialized skills, technology, or security clearances. For this contract, the specific reasons would likely relate to unique capabilities required by the Department of Defense for its engineering and technical support needs, potentially involving proprietary technology or highly specialized expertise.
How effectively did the contract's structure incentivize General Dynamics to control costs and deliver high-quality engineering services within the allocated budget?
The Cost Plus Fixed Fee (CPFF) structure provides a guaranteed profit margin (the fixed fee) regardless of the final cost, which can reduce the contractor's incentive to aggressively control costs. While the fee is fixed, the 'cost plus' element means the government bears the risk of cost increases. Effectiveness hinges heavily on strong government oversight and clear performance metrics.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002408R6255
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 9500 INNOVATION DR, MANASSAS, VA, 20110
Business Categories: Category Business, Small Business, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $53,830,918
Exercised Options: $53,830,918
Current Obligation: $15,610,787
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-01-13
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2023-04-17
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