DoD's $58.6M Facilities Support Services contract awarded to General Dynamics Mission Systems, Inc. with no competition

Contract Overview

Contract Amount: $58,573,976 ($58.6M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-06-21

End Date: 2026-05-01

Contract Duration: 2,871 days

Daily Burn Rate: $20.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF BASIC AWARD

Place of Performance

Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $58.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: IGF::CT::IGF BASIC AWARD Key points: 1. The contract's value of $58.6 million over its potential duration indicates significant investment in facilities support. 2. The absence of competition raises questions about potential overpricing and limited value for money. 3. A 'NOT COMPETED' award suggests potential risks related to contractor lock-in and reduced innovation. 4. The contract's performance period extends to May 2026, implying a long-term need for these services. 5. Facilities Support Services is a broad category, and the specific nature of services impacts performance assessment. 6. The contract is a Definitive Contract, indicating a firm commitment for a specified period.

Value Assessment

Rating: questionable

Benchmarking the value of this $58.6 million facilities support contract is challenging without detailed service breakdowns and comparison to similar sole-source awards. The lack of competition inherently limits the ability to assess if the pricing reflects market rates or if a more competitive process could have yielded better value. Without transparency into the cost structure and a competitive baseline, it's difficult to definitively state if this represents excellent or fair value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT COMPETED' basis, meaning there was no open competition. This typically occurs when a specific capability or urgency is identified, but it bypasses the standard process of soliciting bids from multiple vendors. The lack of bidders means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple companies had competed for the work.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without a bidding process, there's less incentive for the contractor to offer the most cost-effective solution.

Public Impact

The Department of the Navy benefits from the provision of essential facilities support services. These services are crucial for maintaining the operational readiness and infrastructure of naval facilities. The contract's geographic impact is likely concentrated in Massachusetts, where the contract is managed. Workforce implications include employment opportunities for personnel involved in facilities management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Absence of competitive bidding limits opportunities for innovative solutions.
Potential for contractor lock-in due to sole-source award.
Limited transparency into the justification for not competing the contract.

Positive Signals

General Dynamics Mission Systems, Inc. is an established contractor with experience in defense services.
The contract ensures continuity of essential facilities support for the Department of the Navy.
The Definitive Contract structure provides a clear commitment for service delivery.

Sector Analysis

Facilities Support Services fall under the broader professional, scientific, and technical services sector. This sector is characterized by a wide range of specialized services supporting government and commercial operations. The market size for such services is substantial, with significant government spending allocated annually. This contract represents a portion of the Department of Defense's investment in maintaining its vast infrastructure, fitting within the larger trend of outsourcing non-core functions to specialized providers.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' flag is also false, suggesting no specific small business subcontracting goals were mandated within this award. This means that opportunities for small businesses to participate in subcontracting roles may be limited or at the discretion of the prime contractor, potentially impacting the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award; the justification for not competing would be a key document for assessing oversight. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Department of Defense Facilities Management
Naval Facilities Engineering Command Contracts
General Services Administration Schedules
Professional, Scientific, and Technical Services Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns due to CPFF contract type.
Limited transparency on the justification for non-competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. IGF::CT::IGF BASIC AWARD

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 $58.6 million.

What is the period of performance?

Start: 2018-06-21. End: 2026-05-01.

What specific facilities support services are covered under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 561210, which corresponds to Facilities Support Services. However, the specific details of the services rendered are not itemized in the abbreviated data. Typically, facilities support services can encompass a wide range of activities including building operations and maintenance, groundskeeping, custodial services, security, mail services, and other support functions necessary for the operation of government facilities. A full review of the contract document would be required to ascertain the precise scope of work.

What is the historical spending pattern for facilities support services by the Department of the Navy?

Historical spending on facilities support services by the Department of the Navy is substantial, reflecting the vast infrastructure the Navy manages globally. While specific historical data for this particular contract is not provided, the Navy consistently allocates significant funds to maintain its bases, installations, and operational facilities. This spending is often influenced by factors such as infrastructure age, modernization efforts, operational tempo, and strategic realignments. Analyzing past solicitations and awards for similar services would reveal trends in contract values, durations, and competition levels, providing context for the current $58.6 million award.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded on a 'NOT COMPETED' basis, which is a form of sole-source procurement. The specific justification for this decision is not included in the abbreviated data. Common reasons for sole-source awards include urgent and compelling needs where competition is not feasible, the availability of only one responsible source, or when a specific technology or capability is proprietary. A formal Justification for Other Than Full and Open Competition (JOFOC) would typically be required and publicly available for such awards, detailing the rationale behind bypassing the competitive bidding process.

How does the contract type (Cost Plus Fixed Fee) influence risk and cost for the government?

A Cost Plus Fixed Fee (CPFF) contract type, indicated by 'PT': 'COST PLUS FIXED FEE', means the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. This type of contract shifts some cost risk to the government, as the final cost is not fixed upfront. However, it can be advantageous when the scope of work is not well-defined or involves research and development, encouraging the contractor to perform the work without being overly constrained by a fixed price. The fixed fee provides a predictable profit margin for the contractor, while the government aims to control costs through oversight and negotiation of allowable expenses.

What is the track record of General Dynamics Mission Systems, Inc. with the Department of Defense?

General Dynamics Mission Systems, Inc. (GDMS) is a well-established defense contractor with a significant track record of performance with the Department of Defense (DoD) and its various branches, including the Department of the Navy. GDMS provides a wide array of products and services, including command and control systems, cybersecurity solutions, intelligence, surveillance, and reconnaissance (ISR) systems, and other mission-critical technologies. Their extensive experience suggests a familiarity with DoD requirements, procurement processes, and operational environments. However, a detailed review of their past performance on similar contracts, including any past performance issues or successes, would be necessary for a comprehensive assessment.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 100 PLASTICS AVE, PITTSFIELD, MA, 01201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,618,158

Exercised Options: $59,259,806

Current Obligation: $58,573,976

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $4,990,291

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline