DoD awards $115M engineering services contract to General Dynamics Mission Systems, Inc. without competition
Contract Overview
Contract Amount: $114,999,790 ($115.0M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-01-12
End Date: 2011-03-16
Contract Duration: 1,889 days
Daily Burn Rate: $60.9K/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 $115.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: Key points: 1. Significant contract value of $115M awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. Engineering services sector is critical for defense capabilities. 4. Long contract duration of 1889 days suggests a substantial, ongoing need.
Value Assessment
Rating: questionable
The contract's cost-plus incentive fee structure, combined with a lack of competition, makes it difficult to assess value. Without benchmarks from competing bids, it's hard to determine if the $115M price reflects fair market value for the engineering services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was explicitly 'NOT COMPETED,' indicating a sole-source award. This method bypasses the competitive bidding process, potentially limiting price discovery and leading to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a $115M contract likely results in a higher cost to taxpayers than if multiple vendors had vied for the work.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. Potential for reduced innovation and efficiency as the contractor faces no market pressure. Dependence on a single vendor for critical engineering services could pose a risk. Lack of transparency in the procurement process can erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- No small business participation indicated
Positive Signals
- Award to established contractor
- Definitive contract type
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for the Department of Defense's research, development, and sustainment activities. Spending in this area is typically high due to the complexity and specialized nature of defense projects.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award ('sb': false). This suggests that the prime contractor, General Dynamics Mission Systems, Inc., will likely perform the majority of the work, with limited subcontracting opportunities for small businesses.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was robust and that the pricing is reasonable. The Defense Contract Management Agency's role in overseeing this contract is crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- No small business set-aside
- Long contract duration
- Potential for cost overruns
- Limited transparency
Tags
engineering-services, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $115.0 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 $115.0 million.
What is the period of performance?
Start: 2006-01-12. End: 2011-03-16.
What was the specific justification for awarding this $115M engineering services contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or the unavailability of other sources. Without the specific justification document, it's impossible to definitively state why competition was bypassed for this significant Department of Defense contract awarded to General Dynamics Mission Systems, Inc.
How does the cost-plus incentive fee structure mitigate risks in a sole-source engineering services contract?
A cost-plus incentive fee (CPIF) contract aims to incentivize the contractor to control costs by sharing savings or cost overruns with the government. However, in a sole-source scenario, the baseline cost and target profit are negotiated without competitive pressure, potentially limiting the effectiveness of the incentive in ensuring optimal value for the taxpayer.
What is the potential long-term impact of awarding such a large contract without competition on the defense engineering services market?
Consistently awarding large contracts without competition can stifle innovation and reduce market dynamism by limiting opportunities for emerging or smaller firms. It can also lead to a concentration of work within a few large contractors, potentially increasing government reliance and reducing leverage in future negotiations.
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
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
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 ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-01-12
Current End Date: 2011-03-16
Potential End Date: 2011-03-16 00:00:00
Last Modified: 2022-04-02
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