DoD awards $47.9M to General Dynamics for Engineering Services, a sole-source contract
Contract Overview
Contract Amount: $47,888,195 ($47.9M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-09-24
End Date: 2007-03-31
Contract Duration: 918 days
Daily Burn Rate: $52.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Place of Performance
Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201
Plain-Language Summary
Department of Defense obligated $47.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: Key points: 1. Contract awarded to a single vendor, raising questions about price competition. 2. Long contract duration (918 days) may indicate complex or evolving requirements. 3. Cost-plus contract type can incentivize spending, requiring strong oversight. 4. No small business participation noted, potentially missing opportunities for smaller firms.
Value Assessment
Rating: questionable
The contract's cost-plus incentive fee structure, awarded without competition, makes direct pricing assessment difficult. Benchmarking against similar sole-source engineering services contracts is crucial to determine if the $47.9M award represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The lack of competition limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a significant contract value raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The long-term nature of the contract suggests ongoing reliance on this specific vendor. Potential for cost overruns exists with cost-plus contract types if not closely monitored.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Established vendor with experience
- Contract awarded by Department of Defense
Sector Analysis
This contract falls under Engineering Services, a broad category often supporting complex defense systems. Spending benchmarks for sole-source engineering services can vary widely, but competitive procurements typically yield better value.
Small Business Impact
The contract data indicates no small business participation. This suggests that opportunities to engage smaller, innovative firms in this procurement were not pursued, potentially limiting broader economic impact.
Oversight & Accountability
The cost-plus incentive fee structure necessitates robust oversight from the Defense Contract Management Agency to ensure cost control and prevent contractor overreach. Monitoring expenditures against milestones is critical.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- No small business participation
- Long contract duration
Tags
engineering-services, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. See the official description on USAspending.
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $47.9 million.
What is the period of performance?
Start: 2004-09-24. End: 2007-03-31.
What specific engineering services were procured, and why was competition deemed impractical or impossible?
The specific engineering services are not detailed in the provided data. However, sole-source awards are typically justified when only one vendor possesses the unique capability, technology, or security clearance required for a specialized need, or in cases of urgent and compelling circumstances where competition is not feasible.
How effectively was the cost-plus incentive fee structure managed to control overall spending?
Effective management of a cost-plus incentive fee contract relies heavily on stringent oversight, clear performance metrics, and well-defined target costs and fee structures. Without detailed performance and cost data, it's difficult to assess the effectiveness of this specific contract's management in controlling overall spending.
What was the rationale for awarding this contract as sole-source rather than seeking competitive bids?
The rationale for a sole-source award typically stems from a determination that only one responsible source can provide the required supply or service. This could be due to unique capabilities, proprietary technology, urgent needs, or specific security requirements that preclude competition.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Parent Company: General Dynamics Corp
Address: 100 PLASTICS AVE, PITTSFIELD, MA, 01201
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2004-09-24
Current End Date: 2007-03-31
Potential End Date: 2007-03-31 00:00:00
Last Modified: 2023-01-27
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