DoD awards $51M contract to General Dynamics for missile parts, raising questions on value and competition
Contract Overview
Contract Amount: $51,026,941 ($51.0M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-09-29
End Date: 2015-09-30
Contract Duration: 1,827 days
Daily Burn Rate: $27.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PRODUCTION READINESS REVIEW
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $51.0 million to GENERAL DYNAMICS-OTS, INC. for work described as: PRODUCTION READINESS REVIEW Key points: 1. Contract value of $51M for missile parts. 2. Competition method was 'Full and Open', but specific details are limited. 3. Risk assessment needed for cost-plus-fixed-fee structure. 4. Sector is Defense, specifically guided missile parts manufacturing.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. Without detailed pricing breakdowns or benchmarks, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as 'Full and Open Competition', the limited data provided doesn't detail the number of bidders or the price discovery process. This could impact the final price achieved.
Taxpayer Impact: The CPFF structure and potential for cost overruns mean taxpayers could bear a higher cost than necessary if oversight is insufficient.
Public Impact
Ensures supply of critical missile components for national defense. Potential for cost overruns impacts taxpayer funds. Requires robust oversight to ensure fair pricing and quality.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Limited data on competition effectiveness
- Potential for cost overruns
Positive Signals
- Contract awarded under Full and Open Competition
- Addresses critical defense needs
Sector Analysis
This contract falls within the Defense sector, specifically manufacturing parts for guided missiles and space vehicles. Spending in this niche area is often driven by national security requirements rather than market dynamics.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false). Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The contract was awarded by the Defense Contract Management Agency, suggesting a level of oversight. However, the effectiveness of this oversight, particularly for a CPFF contract, requires further investigation.
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
- Cost Plus Fixed Fee contract type
- Lack of detailed competition metrics
- Potential for cost overruns
- Limited transparency on pricing
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 $51.0 million to GENERAL DYNAMICS-OTS, INC.. PRODUCTION READINESS REVIEW
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 $51.0 million.
What is the period of performance?
Start: 2010-09-29. End: 2015-09-30.
What was the competitive landscape like during the 'Full and Open Competition' for this contract?
While the contract was designated 'Full and Open Competition', the provided data lacks specifics on the number of bids received, the evaluation criteria, and the final price negotiation. Understanding these details is crucial to assess if the competition effectively drove down costs and ensured the best value for the government.
What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) structure in this contract?
The primary risk with CPFF is that the contractor is reimbursed for all allowable costs plus a fixed fee. This can incentivize cost overruns, as the contractor may not be as motivated to control expenses if they know costs will be covered. Effective government oversight is essential to scrutinize costs and prevent unnecessary spending.
How does this contract contribute to the overall effectiveness of the Department of Defense's missile programs?
This contract is vital for ensuring the availability of essential parts for guided missiles and space vehicles, directly supporting the operational readiness and effectiveness of DoD's strategic assets. Consistent and reliable supply chains for such components are critical for national security.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002410R5114
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 128 LAKESIDE AVE, BURLINGTON, VT, 05401
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,827,643
Exercised Options: $51,038,318
Current Obligation: $51,026,941
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-29
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2020-06-23
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