DoD's $494M Engineering Services Contract with General Dynamics Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $49,431,230 ($49.4M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-04-17
End Date: 2023-09-30
Contract Duration: 3,088 days
Daily Burn Rate: $16.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: IGF::OT::IGF ENGINEERING AND TECHNICAL SERVICES
Place of Performance
Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201
Plain-Language Summary
Department of Defense obligated $49.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: IGF::OT::IGF ENGINEERING AND TECHNICAL SERVICES Key points: 1. Significant contract value of $494 million awarded to a single vendor. 2. General Dynamics Mission Systems, Inc. is the sole awardee, raising competition concerns. 3. The contract's 'NOT COMPETED' status and 'COST PLUS INCENTIVE FEE' structure warrant close examination for potential risks. 4. Spending falls within the Engineering Services sector, a critical area for defense operations.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee (CPIF) structure can incentivize cost overruns, especially when awarded without competition. Benchmarking against similar engineering services contracts is difficult without competitive pricing data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis ('NOT COMPETED'), indicating a lack of competitive bidding. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely results in a higher price than could have been achieved through a competitive process, impacting taxpayer value.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding on this large contract. The long duration (2015-2023) and significant value suggest a substantial impact on the Department of the Navy's budget. Reliance on a single vendor for critical engineering services could pose a risk to program continuity if issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
- High contract value
Positive Signals
- Long-term engagement providing stable support
- Specific expertise potentially required
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense readiness and technological advancement. Benchmarks for similar large-scale, sole-source engineering contracts are often difficult to establish due to the inherent lack of transparency.
Small Business Impact
The contract data indicates that small businesses were not involved in this award, as the prime contractor is General Dynamics Mission Systems, Inc. and the 'sb' field is false.
Oversight & Accountability
The sole-source nature of this large contract warrants robust oversight to ensure cost control and performance. The Department of Defense Inspector General's office should scrutinize the justification for not competing the award and monitor contract expenditures closely.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost-plus contract type can incentivize overspending.
- Sole-source award limits market-based price discovery.
- Long contract duration increases exposure to cost growth.
- Potential for vendor lock-in and reduced future competition.
Tags
engineering-services, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. IGF::OT::IGF ENGINEERING AND TECHNICAL SERVICES
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $49.4 million.
What is the period of performance?
Start: 2015-04-17. End: 2023-09-30.
What was the specific justification provided by the Department of the Navy for awarding this significant engineering services contract on a sole-source basis, and has this justification been independe
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require accessing the contract's justification for other than full and open competition (J&A). Typically, such justifications cite reasons like urgency, unique capabilities, or lack of sources. Independent verification would involve assessing the validity and completeness of the documented rationale against federal procurement regulations.
How does the cost performance of this Cost Plus Incentive Fee (CPIF) contract compare to industry benchmarks for similar engineering services, particularly given the absence of competitive pricing?
Assessing cost performance against benchmarks is challenging for sole-source, CPIF contracts. Without competitive bids, there's no baseline for 'fair and reasonable' pricing. Analysis would involve comparing incurred costs and incentive fee payouts against estimated costs and the contractor's performance metrics, looking for deviations that suggest inefficiency or potential overpricing.
What measures are in place to ensure effective oversight and accountability for this $494 million contract, given its sole-source award and long duration, to maximize taxpayer value?
Effective oversight for sole-source contracts typically involves rigorous contract surveillance, performance monitoring, and regular audits. Key measures include establishing clear performance metrics, conducting regular progress reviews, scrutinizing all cost-plus expenditures, and ensuring the contractor meets all contractual obligations. Independent audits by the agency's IG or GAO can further enhance accountability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002414R6228
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 100 PLASTICS AVE, PITTSFIELD, MA, 01201
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $81,821,894
Exercised Options: $56,696,652
Current Obligation: $49,431,230
Actual Outlays: $2,726,311
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-04-17
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2025-02-24
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