DoD Spends $130M on Guided Missile Components via Sole-Source Contract with General Dynamics
Contract Overview
Contract Amount: $129,634,161 ($129.6M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-11-16
End Date: 2013-07-01
Contract Duration: 2,054 days
Daily Burn Rate: $63.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: GUIDED MISSILE COMPONENTS
Place of Performance
Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201
Plain-Language Summary
Department of Defense obligated $129.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: GUIDED MISSILE COMPONENTS Key points: 1. Significant spending on critical defense components. 2. Sole-source award raises questions about price discovery. 3. Long contract duration (2007-2013) may indicate evolving needs or lack of competitive pressure. 4. Engineering services sector, with a focus on defense applications.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without more specific component data, but the total award value is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition on a $130M contract likely resulted in a higher price than could have been achieved through a competitive bidding process.
Public Impact
Ensures supply of critical guided missile components for national defense. Potential for taxpayer savings if competition were introduced. Highlights reliance on specific contractors for specialized defense needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Ensures critical component supply
- Potential for incentive fee achievement
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense applications. Spending in this area is often characterized by high technical requirements and specialized contractors, but competition is generally encouraged.
Small Business Impact
The data does not indicate any specific involvement of small businesses in this contract, suggesting it was likely awarded to a large prime contractor.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, responsible for ensuring contractor performance and compliance. Oversight of sole-source, cost-plus contracts is crucial to mitigate risks.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- Potential for cost overruns
- Limited transparency on specific components
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 $129.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. GUIDED MISSILE COMPONENTS
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 $129.6 million.
What is the period of performance?
Start: 2007-11-16. End: 2013-07-01.
What specific guided missile components were procured under this contract, and how do their costs compare to industry benchmarks?
The provided data lacks specificity regarding the exact components. Without this detail, a precise cost comparison is impossible. However, the overall $130M value for engineering services related to missile components suggests significant investment. Further investigation into the specific parts and their market prices would be necessary for a thorough value assessment.
What were the justifications for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
Sole-source awards typically occur when only one responsible source can provide the required supplies or services. Justifications often involve unique capabilities, proprietary technology, or urgent needs. The data indicates the contract was 'NOT COMPETED,' implying a specific reason existed. Understanding this justification and whether alternatives were explored is key to assessing procurement integrity and potential missed savings.
How effectively did the Cost Plus Incentive Fee (CPIF) structure incentivize General Dynamics to control costs and meet performance objectives?
CPIF contracts aim to align contractor and government interests by sharing cost savings or overruns and rewarding performance. The effectiveness hinges on well-defined targets and metrics. Without post-award performance and cost data, it's difficult to definitively assess the CPIF's success in this case. Reviewing the final costs against initial estimates and performance outcomes would reveal its impact.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: GUIDED MISSLES
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
Financial Breakdown
Contract Ceiling: $1,524,608,370
Exercised Options: $760,219,829
Current Obligation: $129,634,161
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-11-16
Current End Date: 2013-07-01
Potential End Date: 2013-07-01 00:00:00
Last Modified: 2023-01-27
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