DoD Awards $89.7M Contract for Security Systems Services to General Dynamics
Contract Overview
Contract Amount: $89,695,107 ($89.7M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-01-15
End Date: 2027-01-14
Contract Duration: 1,095 days
Daily Burn Rate: $81.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: FY24 PM, SYS ENG, & BUSINESS MGMT
Place of Performance
Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201
Plain-Language Summary
Department of Defense obligated $89.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: FY24 PM, SYS ENG, & BUSINESS MGMT Key points: 1. Contract awarded to a single large business, raising questions about competition. 2. Significant value of nearly $90 million over three years. 3. Focus on security systems services, a critical area for defense. 4. Potential for cost overruns given the Cost Plus Incentive Fee structure.
Value Assessment
Rating: fair
The contract's Cost Plus Incentive Fee (CPIF) structure allows for shared savings and cost overruns, making direct pricing assessment difficult without performance data. The base value of $81.9 million suggests a substantial project.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may not yield the best value for taxpayers. The rationale for sole-sourcing is not provided.
Taxpayer Impact: The lack of competition suggests taxpayers may not be receiving the most cost-effective solution available.
Public Impact
Ensures critical security systems are maintained for the Department of the Navy. Supports a major defense contractor, potentially impacting the defense industrial base. Funds allocated for essential security infrastructure, contributing to national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Incentive Fee structure
- Sole-source award
Positive Signals
- Addresses critical security needs
- Long-term contract provides stability
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically security systems. Benchmarks for similar security system services contracts are difficult to ascertain without more specific details on the scope of work.
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 award, either as prime contractors or subcontractors.
Oversight & Accountability
The contract type (CPIF) requires careful monitoring by the Department of Defense to ensure cost controls and incentivize efficient performance. Oversight is crucial to manage potential cost overruns and ensure value.
Related Government Programs
- Security Systems Services (except Locksmiths)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and potentially increases costs.
- CPIF contract type carries inherent risk of cost overruns.
- Lack of transparency regarding the justification for sole-sourcing.
- Potential for contractor to prioritize profit over optimal cost-efficiency.
Tags
security-systems-services-except-locksmi, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $89.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. FY24 PM, SYS ENG, & BUSINESS MGMT
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 $89.7 million.
What is the period of performance?
Start: 2024-01-15. End: 2027-01-14.
What was the justification for awarding this contract on a sole-source basis instead of competing it?
The justification for a sole-source award is critical for understanding the necessity and potential limitations of this procurement. Without competition, the Department of Defense may not have explored all available options or secured the most competitive pricing. Further details on the specific requirements and market research conducted are needed to assess the validity of the sole-source decision.
How will the Cost Plus Incentive Fee structure be managed to ensure cost efficiency and prevent overruns?
Effective management of the CPIF structure requires clear performance metrics and incentive targets aligned with the government's objectives. The Department of the Navy must actively monitor costs, track performance against established benchmarks, and ensure that incentives genuinely drive efficiency rather than simply increasing profit margins. Regular audits and performance reviews are essential.
What is the expected impact of these security systems services on the operational readiness of the Department of the Navy?
The successful implementation and maintenance of security systems are vital for the operational readiness of naval forces. This contract should ensure that the Navy's facilities and assets are adequately protected, thereby supporting mission effectiveness. The quality and reliability of the services provided will directly influence the security posture and operational continuity.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003024R1001
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $198,522,653
Exercised Options: $117,929,088
Current Obligation: $89,695,107
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $1,785,701
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-01-15
Current End Date: 2027-01-14
Potential End Date: 2029-01-14 00:00:00
Last Modified: 2026-01-15
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