DoD Awards $114.8M for MK 54 Sonar Kits to General Dynamics, Limited Competition
Contract Overview
Contract Amount: $114,848,674 ($114.8M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-12-20
End Date: 2027-12-31
Contract Duration: 1,106 days
Daily Burn Rate: $103.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: MK 54 MOD 1 LWT SONAR ASSEMBLY KITS
Place of Performance
Location: CANONSBURG, WASHINGTON County, PENNSYLVANIA, 15317
Plain-Language Summary
Department of Defense obligated $114.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: MK 54 MOD 1 LWT SONAR ASSEMBLY KITS Key points: 1. Significant investment in naval defense technology. 2. General Dynamics holds a strong position in this specialized market. 3. Potential for cost overruns due to fixed-price incentive contract type. 4. Focus on Search, Detection, Navigation, and Guidance systems.
Value Assessment
Rating: fair
The contract value of $114.8M for sonar assembly kits appears substantial. Benchmarking against similar specialized defense equipment contracts is difficult without more data on unit quantities and specific technical requirements. The fixed-price incentive structure suggests potential for cost growth if targets are not met.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited or sole-source procurement. This lack of competition likely impacts price discovery, potentially leading to higher costs than if multiple vendors were involved. The definitive contract award suggests a pre-existing relationship or specialized capability.
Taxpayer Impact: Taxpayer funds are being allocated to a single vendor for critical defense equipment, with limited transparency on price competitiveness.
Public Impact
Enhances naval capabilities for submarine detection and tracking. Supports the U.S. Navy's operational readiness and national security. Contributes to the defense industrial base, particularly in specialized electronics manufacturing. Potential impact on future procurement strategies for similar systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Fixed-price incentive contract carries cost overrun risk.
- Lack of detailed public cost breakdown.
- Long contract duration (2024-2027).
Positive Signals
- Procures critical defense technology.
- Supports established defense contractor.
- Clear end-date for contract performance.
Sector Analysis
This contract falls within the defense sector, specifically focusing on advanced sonar technology for naval applications. Spending benchmarks for such specialized systems are highly variable, depending on technological complexity, quantity, and the competitive landscape, which appears limited in this case.
Small Business Impact
The data indicates this is a large contract awarded to a major defense contractor, General Dynamics Mission Systems. There is no explicit mention of small business participation in this specific award, suggesting it may not directly benefit small businesses unless they are subcontractors.
Oversight & Accountability
The award is managed by the Department of the Navy, a component of the Department of Defense. Oversight would typically involve program managers, contracting officers, and potentially Inspector General reviews to ensure contract compliance and fiscal responsibility, though specific oversight mechanisms are not detailed here.
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
- Limited competition.
- Fixed-price incentive contract risk.
- Lack of detailed cost transparency.
- Long contract duration.
- Potential for sole-source dependency.
Tags
search-detection-navigation-guidance-aer, department-of-defense, pa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $114.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. MK 54 MOD 1 LWT SONAR ASSEMBLY KITS
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 $114.8 million.
What is the period of performance?
Start: 2024-12-20. End: 2027-12-31.
What is the specific technical advantage or unique capability that justifies the limited competition for these sonar assembly kits?
The justification for limited competition often stems from unique technical requirements, proprietary technology, or the need for interoperability with existing systems that only a specific contractor can meet. Without further details on the MK 54 MOD 1 LWT SONAR ASSEMBLY KITS, it's difficult to ascertain the exact reason, but it likely relates to specialized expertise or intellectual property held by General Dynamics.
How does the fixed-price incentive (FPI) contract structure mitigate or exacerbate the risk of cost overruns for this $114.8M award?
An FPI contract aims to control costs by establishing a target cost and target profit. If the final cost is below the target, both the contractor and the government share in the savings. Conversely, if costs exceed the target, both share the overrun up to a ceiling. This structure incentivizes the contractor to manage costs but still carries risk if the ceiling is breached, especially with complex, evolving technology.
What is the expected impact of these new sonar kits on the Navy's anti-submarine warfare (ASW) capabilities?
The MK 54 MOD 1 Lightweight Torpedo (LWT) Sonar Assembly Kits are crucial components for modern ASW. Upgrades or new kits like these are expected to enhance the detection range, accuracy, and classification capabilities of sonar systems, potentially improving the Navy's ability to track and neutralize submarine threats in increasingly complex underwater environments.
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: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002423R6401
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $793,270,145
Exercised Options: $140,562,959
Current Obligation: $114,848,674
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $25,034,020
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-12-20
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-08-14
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