DoD Awards $14.2M for NIROP Capital Maintenance to General Dynamics

Contract Overview

Contract Amount: $14,234,656 ($14.2M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-03-27

End Date: 2026-03-26

Contract Duration: 1,095 days

Daily Burn Rate: $13.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: NIROP CAPITAL MAINTENANCE

Place of Performance

Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: NIROP CAPITAL MAINTENANCE Key points: 1. Contract awarded to a single, large business vendor. 2. Focus on repair and maintenance of industrial machinery. 3. Potential for higher costs due to lack of competition. 4. Long-term contract duration of 3 years.

Value Assessment

Rating: fair

The contract type is 'COST NO FEE', which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific cost breakdowns, but the total award value is substantial for maintenance services.

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 may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition raises concerns about whether the government is achieving the best possible value for taxpayer dollars.

Public Impact

Ensures continued operational readiness of critical capital equipment. Supports a major defense contractor's revenue stream. Limited visibility into cost-effectiveness due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost-plus contract type
  • Long contract duration

Positive Signals

  • Ensures critical maintenance is performed
  • Supports established vendor relationship

Sector Analysis

This contract falls under the industrial machinery repair and maintenance sector. Spending in this area is crucial for maintaining the operational readiness of military assets, but competitive bidding is typically preferred to ensure cost efficiency.

Small Business Impact

This contract was awarded to a large business and does not appear to include any specific provisions or set-asides for small businesses.

Oversight & Accountability

The 'COST NO FEE' contract type requires robust oversight from the Department of the Navy to ensure costs are reasonable and necessary. The lack of competition necessitates increased scrutiny.

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

  • Sole-source award limits price competition.
  • Cost-plus contract type increases risk of cost overruns.
  • Lack of transparency in cost justification.
  • Potential for vendor lock-in.
  • No small business participation noted.

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 $14.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 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 $14.2 million.

What is the period of performance?

Start: 2023-03-27. End: 2026-03-26.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further details, it's difficult to assess if this was the most appropriate procurement method. A competitive process would likely yield better pricing and potentially identify alternative solutions.

How will the Department of the Navy ensure cost control under a 'COST NO FEE' contract without competition?

Effective oversight is paramount. The Navy must implement rigorous cost monitoring, review all incurred expenses for reasonableness and necessity, and potentially establish target costs or performance metrics. Regular audits and detailed reporting requirements are essential to mitigate the risks associated with this contract type and sole-source award.

What is the long-term strategy for maintaining this capital equipment, and will future procurements be competed?

The long-term strategy is unclear from this data. While this contract ensures immediate maintenance needs are met, the government should evaluate whether future requirements can be bundled or broken down to encourage competition. A review of the equipment's lifecycle and market availability of maintenance services is needed to inform future procurement strategies.

Industry Classification

NAICS: Other Services (except Public Administration)Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and MaintenanceCommercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003023R1024

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,234,656

Exercised Options: $14,234,656

Current Obligation: $14,234,656

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,558,573

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-03-27

Current End Date: 2026-03-26

Potential End Date: 2026-03-26 00:00:00

Last Modified: 2025-09-25

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