DoD awards $26.5M for MUOS Ground System Sustainment to General Dynamics Mission Systems

Contract Overview

Contract Amount: $26,550,083 ($26.6M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-05-20

End Date: 2025-04-30

Contract Duration: 1,076 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LABOR - MUOS GROUND SYSTEM SUSTAINMENT

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $26.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: LABOR - MUOS GROUND SYSTEM SUSTAINMENT Key points: 1. Contract awarded for sustainment of a critical satellite communications ground system. 2. General Dynamics Mission Systems, Inc. is the sole awardee. 3. The contract has a duration of approximately 3 years. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. This award falls under Engineering Services NAICS code 541330. 6. The contract was awarded via Full and Open Competition after Exclusion of Sources. 7. The base award amount is $26.55 million.

Value Assessment

Rating: good

The contract value of $26.55 million for a 3-year sustainment effort appears reasonable for a specialized system like MUOS. Benchmarking against similar complex ground system sustainment contracts is challenging due to the unique nature of MUOS. However, the firm-fixed-price structure suggests that the government has locked in costs, which is a positive indicator for value. Further analysis would require comparing the scope of services and performance metrics to other defense sustainment contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded using 'Full and Open Competition after Exclusion of Sources.' This procurement method suggests that while competition was sought, certain sources may have been excluded based on specific criteria, potentially related to unique capabilities or prior involvement with the system. The exact number of bidders is not specified, but the 'exclusion of sources' implies a potentially narrower competitive pool than a standard full and open competition.

Taxpayer Impact: The 'Exclusion of Sources' aspect warrants scrutiny to ensure it did not unduly limit competition and potentially impact price discovery for taxpayers. A narrower field of bidders could lead to higher prices than if a broader range of qualified vendors were allowed to compete.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, ensuring continued operation of the Mobile User Objective System (MUOS). This contract ensures the sustainment of critical ground infrastructure supporting global satellite communications for military personnel. The geographic impact is national, with the system supporting operations worldwide, though the physical work is likely concentrated in Arizona. Workforce implications include the retention of specialized engineering and technical roles at General Dynamics Mission Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for limited competition due to 'Exclusion of Sources' could impact long-term cost efficiency.
  • Reliance on a single contractor for sustainment may create vendor lock-in.
  • The specific criteria for excluding sources are not detailed, raising questions about the breadth of competition.

Positive Signals

  • Firm Fixed Price contract type provides cost certainty for the government.
  • Sustainment of a critical defense asset ensures operational readiness.
  • The contractor, General Dynamics Mission Systems, likely possesses specialized knowledge for this system.

Sector Analysis

The defense sector relies heavily on complex communication systems like MUOS. Sustainment contracts are crucial for maintaining the operational readiness of these assets. The market for specialized satellite ground system support is often concentrated among a few large defense contractors with the requisite expertise and security clearances. This contract fits within the broader category of defense IT and C4ISR (Command, Control, Communications, Computers, and Intelligence, Surveillance, and Reconnaissance) sustainment spending.

Small Business Impact

This contract does not appear to have a small business set-aside component (sb: false). There is no explicit mention of subcontracting goals for small businesses. The nature of the specialized sustainment services required for the MUOS ground system may limit the opportunities for broad small business subcontracting, though specific components or support functions could potentially be outsourced.

Oversight & Accountability

Oversight is likely managed by the contracting officer and program management office within the Department of the Air Force. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are typically internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Mobile User Objective System (MUOS)
  • Satellite Communications Systems
  • Defense Information Technology Contracts
  • Ground Station Maintenance and Support
  • Department of Defense C4ISR Contracts

Risk Flags

  • Limited competition due to 'Exclusion of Sources'
  • Potential for vendor lock-in
  • Technological obsolescence risk for aging systems

Tags

defense, satellite-communications, ground-system, sustainment, general-dynamics-mission-systems, firm-fixed-price, limited-competition, engineering-services, department-of-defense, air-force, arizona, it-services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. LABOR - 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 $26.6 million.

What is the period of performance?

Start: 2022-05-20. End: 2025-04-30.

What is the specific nature of the 'Exclusion of Sources' in this procurement, and how did it impact the competitive landscape?

The procurement utilized 'Full and Open Competition after Exclusion of Sources.' This typically means that while the competition was intended to be open, specific potential offerors were excluded based on predefined criteria. These criteria could relate to proprietary technology, unique capabilities, prior performance on the system, or specific security requirements. Without further details on the exclusion justification, it's difficult to definitively assess its impact on the competitive landscape. However, such exclusions generally narrow the field of potential bidders compared to a standard full and open competition, which could potentially affect price negotiation and innovation. The rationale for exclusion is critical for understanding if it was necessary for program success or if it limited beneficial competition.

How does the $26.55 million award compare to historical spending on MUOS ground system sustainment?

Historical spending data for the MUOS ground system sustainment is not provided in the given data. To perform a meaningful comparison, one would need access to previous contract awards for the sustainment of this specific system or comparable systems. Analyzing trends in spending over time, including the number of contracts, award amounts, and contract durations, would provide context for the current $26.55 million award. Without this historical data, it is challenging to determine if this award represents an increase, decrease, or stable level of investment in the MUOS ground system sustainment.

What are the key performance indicators (KPIs) associated with this sustainment contract, and how is performance being measured?

The provided data does not specify the key performance indicators (KPIs) or the methods used for measuring the performance of General Dynamics Mission Systems under this contract. Typically, sustainment contracts for critical systems like MUOS would include metrics related to system availability, uptime, response times for maintenance, defect resolution rates, and adherence to maintenance schedules. The effectiveness of the sustainment effort is crucial for ensuring the continuous operation of the MUOS satellite communications network. A thorough review of the contract's Performance Work Statement (PWS) would be necessary to identify the specific KPIs and evaluation criteria.

What is the track record of General Dynamics Mission Systems in sustaining complex defense communication systems?

General Dynamics Mission Systems, Inc. has a significant track record in developing, integrating, and sustaining complex defense communication and information systems. They are known for their work on various classified and unclassified programs, including satellite communications, command and control systems, and cyber security solutions. Their experience often involves handling large-scale, technologically advanced projects for the U.S. military and allied nations. While specific performance details for every contract are not publicly available, their position as a major defense contractor suggests a substantial capacity and history of managing such critical sustainment efforts, including those requiring high levels of security and technical expertise.

Are there any identified risks associated with the long-term sustainment of the MUOS ground system beyond this contract period?

Potential long-term risks associated with the sustainment of the MUOS ground system could include technological obsolescence of components, evolving cyber threats requiring system upgrades, and the potential for increased sustainment costs as the system ages. Furthermore, reliance on a single contractor for sustainment, especially if competition remains limited in future procurements, could pose a risk of vendor lock-in and potentially higher prices. Ensuring a robust technology refresh strategy and maintaining a competitive environment for future sustainment contracts will be critical to mitigating these long-term risks and ensuring the system's continued viability and cost-effectiveness.

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: $26,550,083

Exercised Options: $26,550,083

Current Obligation: $26,550,083

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,014,343

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: 2022-05-20

Current End Date: 2025-04-30

Potential End Date: 2025-04-30 00:00:00

Last Modified: 2024-12-06

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