DoD Awards $38.8M for MUOS Ground System Sustainment to General Dynamics

Contract Overview

Contract Amount: $38,849,430 ($38.8M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-12-01

End Date: 2026-01-21

Contract Duration: 1,877 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MUOS GROUND SYSTEM SUSTAINMENT

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $38.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: MUOS GROUND SYSTEM SUSTAINMENT Key points: 1. Contract awarded to General Dynamics Mission Systems, Inc. 2. Focuses on sustainment of the MUOS Ground System. 3. Contract duration extends to January 2026. 4. Engineering Services sector, NAICS 541330. 5. No small business participation noted.

Value Assessment

Rating: fair

The award amount of $38.8 million for sustainment services appears reasonable given the contract duration and the critical nature of the MUOS system. Benchmarking against similar complex system sustainment contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may impact price discovery, potentially leading to higher costs than a truly open competition.

Taxpayer Impact: Taxpayer funds are being used for sustainment of a critical defense communication system. The limited competition raises questions about maximizing value for taxpayer dollars.

Public Impact

Ensures continued operation of the Mobile User Objective System (MUOS) ground infrastructure. Supports secure and reliable communications for U.S. military personnel globally. Potential impact on future technology integration and upgrades for the MUOS system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may reduce cost savings.
  • Lack of small business participation.

Positive Signals

  • Sustains critical military communication capabilities.
  • Long-term contract provides stability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to defense communication systems. Spending in this area is crucial for maintaining national security infrastructure, but often involves high costs due to specialized requirements.

Small Business Impact

The contract data indicates no small business participation. This is a missed opportunity to leverage the innovation and capabilities of small businesses within the defense contracting ecosystem.

Oversight & Accountability

Oversight will be critical to ensure General Dynamics meets performance requirements and that the limited competition process was justified and managed effectively to protect taxpayer interests.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Potential for cost overruns due to limited competition.
  • Lack of transparency in source exclusion.
  • No small business involvement.
  • Long contract duration may not adapt to rapid technological changes.

Tags

engineering-services, department-of-defense, az, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. MUOS GROUND SYSTEM SUSTAINMENT

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 Air Force).

What is the total obligated amount?

The obligated amount is $38.8 million.

What is the period of performance?

Start: 2020-12-01. End: 2026-01-21.

What specific sustainment activities are covered under this $38.8 million contract, and how do they align with the operational needs of the MUOS ground system?

The contract covers sustainment activities for the MUOS ground system, which are essential for maintaining the operational readiness and functionality of this critical satellite communication network. These activities likely include maintenance, repair, software updates, and technical support to ensure continuous service availability for military users worldwide. The scope is designed to meet the ongoing demands of the system's lifecycle.

What were the specific reasons for excluding other sources in this 'full and open competition after exclusion of sources' award, and how was the pricing validated?

Excluding other sources typically occurs when only one or a limited number of contractors possess the unique capabilities, proprietary data, or specialized knowledge required for a specific system. The government must justify this exclusion based on technical requirements or prior investments. Pricing validation would involve detailed cost analysis, comparison to historical data, and negotiation to ensure the final price is fair and reasonable.

How does the sustainment of the MUOS ground system contribute to overall mission effectiveness and what are the potential risks if this sustainment is inadequate?

The MUOS ground system is the terrestrial backbone for the MUOS satellite constellation, enabling command, control, and data relay for warfighters. Inadequate sustainment risks communication disruptions, degraded performance, and potential mission failures, impacting tactical operations and personnel safety. Ensuring robust sustainment is paramount for maintaining the integrity and effectiveness of this vital national security asset.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0003918R0146

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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: $38,849,430

Exercised Options: $38,849,430

Current Obligation: $38,849,430

Subaward Activity

Number of Subawards: 143

Total Subaward Amount: $18,596,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003920D0146

IDV Type: IDC

Timeline

Start Date: 2020-12-01

Current End Date: 2026-01-21

Potential End Date: 2026-01-21 00:00:00

Last Modified: 2025-12-18

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