DoD Awards $18.8M for MEDUSA System Design & RRA to General Dynamics, Full & Open Competition

Contract Overview

Contract Amount: $18,849,120 ($18.8M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2032-01-26

Contract Duration: 2,677 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: MEDUSA SYSTEM DESIGN & RRA

Place of Performance

Location: QUINCY, NORFOLK County, MASSACHUSETTS, 02169

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: MEDUSA SYSTEM DESIGN & RRA Key points: 1. Contract awarded to General Dynamics Mission Systems, Inc. for the MEDUSA System Design & RRA. 2. The contract has a value of $18,849,119.98 and an estimated completion date of January 26, 2032. 3. This is a Cost Plus Incentive Fee contract type, indicating potential for shared cost savings. 4. The procurement was conducted under Full and Open Competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract value of $18.8M over approximately 7.5 years suggests a moderate annual spend. Benchmarking against similar R&D or system design contracts would be necessary for a precise pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using Full and Open Competition, which typically allows for the widest possible range of bidders and promotes price discovery through competitive proposals.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it aims to secure the best value through market forces.

Public Impact

The MEDUSA system is likely critical for naval operations, impacting readiness and technological advancement. General Dynamics' role as a major defense contractor highlights the concentration of significant contracts within large corporations. The long duration of the contract suggests a sustained need for the system's development and support.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

  • Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not managed tightly.
  • Long contract duration may present risks related to evolving technological requirements and obsolescence.

Positive Signals

  • Full and Open Competition is a strong positive signal for achieving competitive pricing.
  • The contract is for system design and RRA, indicating investment in future capabilities.

Sector Analysis

The Department of the Navy's award falls within the broader defense sector, specifically related to ordnance and accessories. Spending in this area is crucial for maintaining military readiness and technological superiority.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it went to a large prime contractor. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The use of Full and Open Competition and a Cost Plus Incentive Fee structure suggests standard oversight mechanisms are in place. However, the long-term nature of the contract necessitates ongoing monitoring of performance and costs.

Related Government Programs

  • Small Arms, Ordnance, and Ordnance Accessories Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for cost growth due to CPIF structure.
  • Risk of technological obsolescence over the long contract duration.
  • Dependence on a single prime contractor for a critical system.
  • Lack of transparency on specific system capabilities and performance metrics.

Tags

small-arms-ordnance-and-ordnance-accesso, department-of-defense, ma, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. MEDUSA SYSTEM DESIGN & RRA

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 $18.8 million.

What is the period of performance?

Start: 2024-09-27. End: 2032-01-26.

What specific capabilities does the MEDUSA system provide, and how does its design and RRA contribute to the Navy's mission effectiveness?

The MEDUSA system's specific capabilities are not detailed in the provided data. However, its designation as 'System Design & RRA' implies it is a developmental project focused on research, development, testing, and evaluation. Its contribution to mission effectiveness would depend on its intended operational role, potentially enhancing situational awareness, command and control, or weapon system performance for naval assets.

Given the Cost Plus Incentive Fee (CPIF) contract type, what are the key performance metrics and incentive targets that General Dynamics must meet to achieve optimal pricing?

CPIF contracts tie the final profit to the contractor's performance against pre-defined targets, such as cost, schedule, or technical performance. For MEDUSA, the specific metrics and incentive targets would be detailed in the contract's Statement of Work and Incentive clauses. These could include achieving specific design milestones, meeting performance specifications within a certain cost range, or adhering to delivery schedules, with bonuses for exceeding targets and penalties for falling short.

How does the $18.8M contract value for MEDUSA system design and RRA compare to similar R&D investments made by the Department of Defense in recent years?

Without specific benchmarks for comparable MEDUSA-like system R&D contracts, a direct comparison is difficult. However, $18.8M over approximately 7.5 years represents an average annual spend of roughly $2.5M. This figure needs to be contextualized against the complexity and novelty of the MEDUSA system. Larger, more complex R&D programs can easily reach hundreds of millions or billions, while smaller, more focused efforts might be in this range.

Industry Classification

NAICS: ManufacturingOther Fabricated Metal Product ManufacturingSmall Arms, Ordnance, and Ordnance Accessories Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002423R6315

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 553 SOUTH ST, QUINCY, MA, 02169

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: $62,562,753

Exercised Options: $22,021,725

Current Obligation: $18,849,120

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $19,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2024-09-27

Current End Date: 2032-01-26

Potential End Date: 2032-01-26 00:00:00

Last Modified: 2025-12-31

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