DoD Awards General Dynamics $15.18M for CAC TI22/24/26 Systems Production
Contract Overview
Contract Amount: $15,179,582 ($15.2M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-05-27
End Date: 2026-09-30
Contract Duration: 1,952 days
Daily Burn Rate: $7.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: BASE AWARD - PRODUCTION OF CAC TI22/24/26 SYSTEMS AND SPARES
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: BASE AWARD - PRODUCTION OF CAC TI22/24/26 SYSTEMS AND SPARES Key points: 1. Contract awarded to General Dynamics Mission Systems, Inc. for production of specific CAC systems. 2. The contract type is Cost Plus Incentive Fee, suggesting potential for cost overruns. 3. Full and open competition after exclusion of sources indicates a specific, but competitive, procurement method. 4. The sector is dominated by large defense contractors, with limited opportunities for smaller players.
Value Assessment
Rating: fair
The Cost Plus Incentive Fee (CPIF) contract type allows for shared savings or cost overruns between the government and contractor. This can incentivize efficiency but also carries risk if costs escalate beyond projections.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement utilized full and open competition after exclusion of sources, suggesting a competitive process that considered multiple bidders but potentially excluded some based on specific criteria. This method aims for best value but the exclusion aspect warrants scrutiny.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure the best possible price for the required systems. However, the CPIF structure requires careful monitoring to ensure cost control.
Public Impact
Ensures continued availability of critical navigation and guidance systems for naval operations. Supports advanced technology development within the defense sector. Potential for job creation within General Dynamics Mission Systems and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 77 / 10
Warning Flags
- CPIF contract type can lead to cost overruns if not managed effectively.
- Exclusion of sources in competition may limit broader market engagement.
- Long contract duration (1952 days) increases exposure to changing technological needs and economic conditions.
Positive Signals
- Full and open competition after exclusion of sources suggests a structured and potentially robust bidding process.
- Award to an established defense contractor implies technical capability and experience.
- Contract supports critical national defense systems.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically related to navigation and guidance systems. Spending in this area is driven by defense modernization efforts and technological advancements, with significant investment typically seen in specialized systems.
Small Business Impact
The contract was awarded to General Dynamics Mission Systems, a large prime contractor. There is no explicit indication of small business participation in the provided data, suggesting limited direct opportunities for SMBs on this specific award.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The CPIF contract type necessitates diligent monitoring of costs and performance to ensure accountability and prevent contractor overspending. Regular reporting and audits will be 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
- Cost Plus Incentive Fee (CPIF) contract type.
- Full and open competition after exclusion of sources.
- Long contract duration (1952 days).
- No explicit small business participation mentioned.
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. BASE AWARD - PRODUCTION OF CAC TI22/24/26 SYSTEMS AND SPARES
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 $15.2 million.
What is the period of performance?
Start: 2021-05-27. End: 2026-09-30.
What specific criteria led to the exclusion of certain sources in this 'full and open competition after exclusion of sources' award, and how did this impact the final price?
The exclusion of sources typically occurs when specific technical capabilities, security clearances, or past performance are required that only a limited number of contractors can meet. This can reduce the number of bidders, potentially impacting price discovery. Without knowing the exact exclusion criteria, it's difficult to definitively assess the price impact, but it suggests the government prioritized specific qualifications over maximum bidder participation.
How will the Cost Plus Incentive Fee (CPIF) structure be managed to mitigate the risk of cost overruns, given the long duration of the contract?
Effective management of a CPIF contract involves establishing clear performance metrics and realistic target costs. The incentive fee structure should be carefully designed to reward efficiency while penalizing excessive spending. Regular performance reviews, detailed cost tracking, and proactive risk management by the Department of the Navy are essential to control costs over the 1952-day duration and ensure value for taxpayer money.
What is the projected return on investment or effectiveness of the CAC TI22/24/26 systems, and how is this measured under the CPIF contract?
The effectiveness of CAC TI22/24/26 systems is likely measured by their operational performance, reliability, and contribution to mission success in navigation, detection, and guidance. Under a CPIF contract, effectiveness is tied to achieving specific performance targets outlined in the contract. The incentive fee component would be linked to exceeding these targets or achieving them within cost parameters, ensuring the systems deliver expected operational value.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
Solicitation ID: N0002420R6119
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 9500 INNOVATION DR, MANASSAS, VA, 20110
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: $81,985,271
Exercised Options: $44,127,529
Current Obligation: $15,179,582
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $7,996,361
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-05-27
Current End Date: 2026-09-30
Potential End Date: 2030-04-30 00:00:00
Last Modified: 2025-09-04
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