DoD's $12.2M Engineering Services Contract Awarded to General Dynamics Land Systems Inc
Contract Overview
Contract Amount: $12,228,169 ($12.2M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2022-01-21
End Date: 2026-09-29
Contract Duration: 1,712 days
Daily Burn Rate: $7.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $12.2 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: ENGINEERING SERVICES Key points: 1. The contract is for engineering services valued at $12.2 million. 2. General Dynamics Land Systems Inc. is the sole awardee. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Defense, specifically engineering services for the Department of the Navy.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning it was not competed among multiple vendors. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these engineering services.
Public Impact
Taxpayers may be paying a premium due to the sole-source award. The Department of the Navy receives specialized engineering services. General Dynamics Land Systems Inc. benefits from a direct award. Potential for cost overruns exists with Cost Plus Fixed Fee contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type.
- Long duration of contract.
Positive Signals
- Award to established defense contractor.
- Specific engineering services for the Navy.
Sector Analysis
This contract falls within the Defense sector, specifically for engineering services. Spending benchmarks for engineering services can vary widely based on complexity and scope, but a lack of competition often inflates costs.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting limited opportunities for small business participation.
Oversight & Accountability
Oversight will be crucial to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that the services provided meet the Navy's requirements effectively.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award.
- Cost Plus Fixed Fee contract.
- Lack of transparency in price discovery.
- Potential for cost overruns.
- Limited small business participation.
Tags
engineering-services, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.2 million to GENERAL DYNAMICS LAND SYSTEMS INC.. ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS LAND 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 $12.2 million.
What is the period of performance?
Start: 2022-01-21. End: 2026-09-29.
What is the justification for the sole-source award, and how was the fixed fee determined?
The justification for a sole-source award typically involves unique capabilities or urgent needs. The fixed fee in a Cost Plus Fixed Fee contract is negotiated separately from the costs. Without further details on the justification and negotiation process, it's difficult to assess if the fee is reasonable or if alternative, more competitive options were thoroughly explored.
What are the specific engineering services required, and how do they align with the stated need?
The data indicates 'Engineering Services' broadly. To assess value and effectiveness, a detailed breakdown of the specific engineering tasks, deliverables, and performance metrics is necessary. Understanding how these services directly support the Department of the Navy's mission objectives is crucial for evaluating the contract's overall merit and necessity.
What is the potential for cost escalation under this Cost Plus Fixed Fee contract?
Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if the government's oversight is insufficient or if the contractor's cost management is poor. The fixed fee is intended to incentivize efficiency, but the government bears the cost risk. Robust monitoring of incurred costs and contractor performance is essential to mitigate this risk.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 38500 MOUND RD, STERLING HEIGHTS, MI, 48310
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: $13,457,185
Exercised Options: $13,334,358
Current Obligation: $12,228,169
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $736,680
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002419G5303
IDV Type: BOA
Timeline
Start Date: 2022-01-21
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2025-10-16
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