DoD Awards $71.9M to General Dynamics for Navigation Systems, Highlighting Long-Term Contractual Relationship
Contract Overview
Contract Amount: $71,957,711 ($72.0M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-11-02
End Date: 2024-12-31
Contract Duration: 2,616 days
Daily Burn Rate: $27.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: ORDERS
Place of Performance
Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201
Plain-Language Summary
Department of Defense obligated $72.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ORDERS Key points: 1. Significant award to a major defense contractor, indicating sustained demand for specialized navigation systems. 2. The contract spans over seven years, suggesting a long-term strategic need and commitment. 3. Full and open competition was utilized, implying a robust price discovery process. 4. The sector is critical for defense operations, underscoring the importance of reliable system manufacturing.
Value Assessment
Rating: good
The award amount of $71.9 million over a multi-year period suggests a substantial investment. Benchmarking against similar complex system contracts is difficult without more granular data, but the duration and scope indicate a fair valuation for specialized defense equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. This method allows multiple qualified vendors to bid, driving down costs and promoting innovation.
Taxpayer Impact: The use of full and open competition is intended to maximize taxpayer value by ensuring fair pricing and access to the most capable suppliers for critical defense systems.
Public Impact
Ensures continued availability of advanced navigation and guidance systems for naval operations. Supports technological advancements in defense systems manufacturing. Contributes to the readiness and effectiveness of military assets. Impacts the supply chain for specialized electronic components and manufacturing services.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Contract duration extends beyond typical annual appropriations, requiring careful budget management.
- Reliance on a single awardee for a critical system could pose long-term supply chain risks if not managed proactively.
Positive Signals
- Full and open competition utilized, promoting competitive pricing.
- Long-term contract provides stability for critical defense capabilities.
- Award to a reputable contractor with a track record in defense systems.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on the manufacturing of sophisticated navigation and guidance systems. Spending in this area is consistently high due to the critical nature of these technologies for national security and operational effectiveness.
Small Business Impact
The data indicates that the primary awardee is General Dynamics Mission Systems, Inc., a large business. There is no explicit mention of small business participation in this specific award notice, suggesting that subcontracting opportunities for small businesses may be limited or not detailed here.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for oversight. The use of a definitive contract with a long duration suggests established oversight mechanisms are in place, but ongoing monitoring of performance and costs is crucial.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration may exceed typical budget cycles.
- Potential for cost overruns inherent in CPIF contracts.
- Dependence on a single large contractor for critical systems.
- Lack of explicit small business participation noted in the award.
- Need for continuous monitoring of technological obsolescence.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. ORDERS
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 $72.0 million.
What is the period of performance?
Start: 2017-11-02. End: 2024-12-31.
What specific technological advancements or capabilities does this contract aim to deliver beyond existing systems?
The contract details do not specify the exact technological advancements. However, given the nature of 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' it likely involves upgrades to enhance precision, reliability, or integration with newer platforms. Further analysis of contract line items and performance work statements would be needed to detail specific advancements.
How does the Cost Plus Incentive Fee (CPIF) structure mitigate risks for both the government and the contractor?
The CPIF structure incentivizes the contractor to control costs while achieving performance targets. If costs are below the target, both parties share in the savings. If costs exceed the target, the contractor bears a greater share of the overrun. This balances risk, encouraging efficiency and cost-consciousness from the contractor while providing a framework for shared benefits.
What is the potential impact of this long-term contract on future competition for similar systems?
A long-term contract, even with initial full and open competition, can potentially limit future competition if the incumbent contractor develops unique expertise or proprietary technology. However, the contract's duration and the nature of defense procurement often include provisions for review and re-competition, allowing new entrants to compete for subsequent phases or related systems.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: N0002415R6262
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: $87,229,494
Exercised Options: $77,519,155
Current Obligation: $71,957,711
Actual Outlays: $5,263,046
Subaward Activity
Number of Subawards: 108
Total Subaward Amount: $20,677,734
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-11-02
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-04-30
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