DoD's $1.4B FY19 NIROP Capital Maintenance Contract Awarded to General Dynamics
Contract Overview
Contract Amount: $14,093,166 ($14.1M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-04-01
End Date: 2024-12-31
Contract Duration: 2,101 days
Daily Burn Rate: $6.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: FY19 NIROP CAPITAL MAINTENANCE
Place of Performance
Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201
Plain-Language Summary
Department of Defense obligated $14.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: FY19 NIROP CAPITAL MAINTENANCE Key points: 1. Significant contract value of $1.4 billion for capital maintenance. 2. Sole-source award to General Dynamics Mission Systems, Inc. raises competition concerns. 3. Long contract duration (2019-2024) suggests potential for cost overruns. 4. The sector is Commercial and Industrial Machinery Repair, a critical but potentially opaque area.
Value Assessment
Rating: questionable
The contract type is 'COST NO FEE', which offers limited incentive for cost control by the contractor. The award value of $1.4 billion is substantial, and without competitive bidding, it's difficult to assess if this represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on a $1.4 billion contract likely results in a higher cost to taxpayers than if it had been competitively bid.
Public Impact
Ensures continued operation of critical Navy equipment. Potential for taxpayer funds to be used inefficiently due to sole-source nature. General Dynamics Mission Systems, Inc. benefits from a large, no-bid contract. Long-term maintenance needs of the Navy are addressed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Ensures critical maintenance is performed
- Long-term partnership with a known entity
Sector Analysis
This contract falls under the Commercial and Industrial Machinery and Equipment Repair and Maintenance sector. Spending in this area is crucial for maintaining operational readiness of government assets, but can be prone to cost creep if not managed tightly.
Small Business Impact
The contract was awarded to General Dynamics Mission Systems, Inc., a large business. There is no indication that small businesses were involved in this specific sole-source award, limiting their opportunities.
Oversight & Accountability
The sole-source nature of this large contract warrants close oversight to ensure costs are reasonable and performance meets requirements. The 'COST NO FEE' structure requires diligent monitoring by the Department of the Navy.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost-reimbursement contract type
- Long contract duration
- Potential for cost overruns
- Limited transparency on pricing
- No small business participation indicated
Tags
commercial-and-industrial-machinery-and-, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. FY19 NIROP CAPITAL MAINTENANCE
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 $14.1 million.
What is the period of performance?
Start: 2019-04-01. End: 2024-12-31.
What specific justification was provided for the sole-source award, and how does it align with federal procurement regulations for non-competitive contracts?
The provided data does not include the specific justification for the sole-source award. Federal regulations typically allow sole-source contracts under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review would be needed to confirm the validity of the justification and ensure it meets the stringent criteria for non-competitive procurement.
How does the 'COST NO FEE' contract type impact the government's ability to control costs and ensure value for money compared to fixed-price contracts?
The 'COST NO FEE' contract type reimburses the contractor for allowable costs but provides no fee or profit. This structure is generally used when costs are difficult to estimate. While it can ensure work proceeds, it offers minimal incentive for the contractor to control costs, placing a greater burden on the government to meticulously monitor and audit expenses to prevent overspending and ensure value.
What mechanisms are in place to track and validate the 'allowable costs' under this contract, given its 'COST NO FEE' structure and long duration?
Specific mechanisms for tracking and validating costs are not detailed in the provided data. However, for 'COST NO FEE' contracts, robust government oversight, including regular audits, cost analysis, and performance reviews, is essential. The Department of the Navy would typically assign contracting officers and technical representatives to monitor expenditures, verify the necessity and reasonableness of costs, and ensure compliance with contract terms.
Industry Classification
NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003018R0010
Offers Received: 1
Pricing Type: COST NO FEE (S)
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: $14,093,166
Exercised Options: $14,093,166
Current Obligation: $14,093,166
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $11,569,353
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-04-01
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-09-25
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