DoD Navy Awards $35.8M Sole-Source SBIR Phase III Contract to General Dynamics for Navigation Systems
Contract Overview
Contract Amount: $35,777,431 ($35.8M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-06-24
End Date: 2029-06-23
Contract Duration: 1,825 days
Daily Burn Rate: $19.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FY24 - FY29 SBIR PHASE III TOPIC N96-278, TECHNOLOGY INFUSION FOLLOW-ON
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $35.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: FY24 - FY29 SBIR PHASE III TOPIC N96-278, TECHNOLOGY INFUSION FOLLOW-ON Key points: 1. Contract awarded to General Dynamics Mission Systems for SBIR Phase III technology infusion. 2. Sole-source award indicates limited competition, potentially impacting price discovery. 3. The contract spans five years, from FY24 to FY29, for navigation system instruments. 4. The NAICS code 334511 covers Search, Detection, Navigation, Guidance, and Aeronautical/Nautical Systems.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without a competitive bidding process, it's difficult to assess if the fixed fee represents a fair market price for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not open to competition. This limits the government's ability to leverage market forces to achieve the best possible price and value.
Taxpayer Impact: The lack of competition raises concerns about potential overspending of taxpayer funds, as there was no benchmark set by competing bids.
Public Impact
Ensures continued development and integration of critical navigation technologies for the Navy. Supports a specific technology infusion pathway for Small Business Innovation Research (SBIR) projects. Potential for advanced navigation capabilities to enhance operational effectiveness. Long-term commitment to a single vendor may limit future technological innovation from other sources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing due to no competition
Positive Signals
- Supports critical SBIR Phase III technology infusion
- Long-term contract provides stability for technology development
- Focus on advanced navigation systems
Sector Analysis
The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for defense capabilities, but competitive procurement is generally preferred to ensure value.
Small Business Impact
While this is an SBIR Phase III contract, which originates from small business innovation, the prime awardee is General Dynamics Mission Systems, a large business. The extent of small business subcontracting is not detailed here.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and that the contractor is meeting all performance milestones effectively.
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
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of competitive pricing benchmark.
- Potential for vendor lock-in.
- Limited transparency on price reasonableness.
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 $35.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. FY24 - FY29 SBIR PHASE III TOPIC N96-278, TECHNOLOGY INFUSION FOLLOW-ON
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 $35.8 million.
What is the period of performance?
Start: 2024-06-24. End: 2029-06-23.
What is the justification for the sole-source award, and how was the fixed fee determined to be fair and reasonable?
The justification for a sole-source award typically involves specific criteria such as unique capabilities, urgent needs, or follow-on work from a prior SBIR effort. The determination of a fair and reasonable fixed fee without competition relies on historical pricing data, independent government cost estimates, and potentially benchmarking against similar, albeit not identical, contracts. Detailed documentation supporting these assessments is crucial for accountability.
What are the potential risks associated with a Cost Plus Fixed Fee contract for advanced technology development?
Cost Plus Fixed Fee (CPFF) contracts carry risks for both the government and the contractor. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the government bears the cost overruns beyond the fixed fee. Conversely, the contractor might inflate costs to maximize profit within the fixed fee structure. Effective oversight and clear performance metrics are essential to mitigate these risks.
How does this sole-source award impact the government's ability to access innovative navigation technologies from other sources?
Sole-source awards, by definition, limit access to innovation from other potential vendors for the duration of the contract. While this contract supports a specific SBIR Phase III infusion, it may reduce opportunities for other companies to compete and offer alternative or potentially superior navigation solutions. This could lead to a narrower technology base and potentially slower overall advancement in the long run.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002424R6230
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $119,429,360
Exercised Options: $45,273,579
Current Obligation: $35,777,431
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $4,092,536
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-06-24
Current End Date: 2029-06-23
Potential End Date: 2029-06-23 00:00:00
Last Modified: 2025-12-23
More Contracts from General Dynamics Mission Systems, Inc.
- 200410!005969!2100!w15p7t!usa Communications-Electronics !w15p7t04ce405 !A!N! !N! ! !20040716!20111230!046863929!046863929!001381284!n!general Dynamics Decision Syst!8201 E Mcdowell Road !scottsdale !az!85257!65000!013!04!scottsdale !maricopa !arizona !+000010000000!n!n!000000000000!ac63!rdte/Electronics&communication Eq-Adv Tech DEV !A7 !electronics and Communication Equip !360 !jtrs Cluster I !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!b! !A!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $1.5B (Department of Defense)
- Federal Contract — $1.4B (Department of Defense)
- THE Space Network (SN) Consists of a Space Segment Comprised of the Tracking and Data Relay Satellites (tdrss), and a Ground Segment (sngs). the SN Provides the Capability for Global Space-To-Ground Telecommunications and Tracking Coverage for LOW Earth Orbit (LEO) and Near-Earth Spaceflight Missions, Including Both Robotic and Human Space Flight. the Sngs Includes Facilities and Systems Located AT the White Sands Complex (WSC) AT LAS Cruces, NM the Guam Remote Ground Terminal (grgt) AT Guam and Space Network Expansion (SNE) East AT Blossom Point, MD. the Purpose of the Sgss Project IS to Implement a Modern Ground Segment That Will Enable the SN to Continue to Deliver High Quality Services to the SN Community, Meet Stakeholder Requirements, and Significantly Reduce Required Operations and Maintenance Resources — $1.2B (National Aeronautics and Space Administration)
- Federal Contract — $1.2B (Department of Defense)
- SDA Tranche 1 Operations and Integration — $861.6M (Department of Defense)
View all General Dynamics Mission Systems, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)