DoD Spends $31.7M on DMR Production Radios from General Dynamics, Awarded via Non-Competitive Delivery Order
Contract Overview
Contract Amount: $31,748,683 ($31.7M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-12-21
End Date: 2019-12-22
Contract Duration: 731 days
Daily Burn Rate: $43.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DMR PRODUCTION RADIOS
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $31.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: DMR PRODUCTION RADIOS Key points: 1. Significant spending on specialized communication equipment. 2. Sole-source award to General Dynamics raises competition concerns. 3. Contract duration of 731 days for production radios. 4. Focus on radio manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract value of $31.7M for production radios appears high given the lack of competitive bidding. Without market research or comparison to similar contracts, it's difficult to ascertain if this price represents fair value.
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 as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this $31.7M award means taxpayers may have overpaid for the DMR production radios.
Public Impact
Taxpayers funded a significant sole-source contract for specialized communication equipment. The Department of Defense relies on General Dynamics for critical radio production. Potential for reduced innovation and higher costs due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No clear justification for sole-sourcing provided
Positive Signals
- Contract awarded to a known defense contractor
- Specific equipment for DoD needs
Sector Analysis
This contract falls within the defense sector, specifically related to radio and wireless communications equipment manufacturing. Spending benchmarks for similar specialized defense electronics can vary widely, but non-competitive awards often exceed market rates.
Small Business Impact
The contract was awarded to General Dynamics Mission Systems, Inc., a large corporation. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price paid was fair and reasonable. The Defense Contract Management Agency's role in overseeing this delivery order is crucial for accountability.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Limited transparency on justification
- Dependency on a single supplier
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. DMR PRODUCTION RADIOS
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 $31.7 million.
What is the period of performance?
Start: 2017-12-21. End: 2019-12-22.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The provided data does not include the justification for the sole-source award. Typically, sole-sourcing is reserved for situations where only one responsible source can provide the required supplies or services, or in cases of urgent need. Without this justification, it's impossible to assess the validity of the non-competitive approach.
How does the unit cost of these DMR production radios compare to similar commercially available or previously procured radios?
A direct comparison of unit cost is not possible with the provided data. The contract value is a total amount, and the number of units is not specified. Furthermore, the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' NAICS code is broad, and specialized military radios may have unique features and costs not reflected in commercial equivalents.
What is the long-term strategic impact of relying on a sole-source provider for critical communication equipment?
Long-term reliance on a sole-source provider can stifle innovation, reduce competition, and potentially lead to price escalation. It also creates a single point of failure and dependency. While ensuring supply chain stability, it can limit the DoD's ability to leverage new technologies or achieve cost savings through competitive procurement.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003917R0147
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corporation
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,748,683
Exercised Options: $31,748,683
Current Obligation: $31,748,683
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003918D0002
IDV Type: IDC
Timeline
Start Date: 2017-12-21
Current End Date: 2019-12-22
Potential End Date: 2019-12-22 00:00:00
Last Modified: 2023-08-21
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