DoD awards $66.4M for MUOS Ground System Sustainment to General Dynamics, facing limited competition
Contract Overview
Contract Amount: $66,436,172 ($66.4M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-12-01
End Date: 2023-10-31
Contract Duration: 699 days
Daily Burn Rate: $95.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS AWARD FEE
Sector: IT
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 $66.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: LABOR - MUOS GROUND SYSTEM SUSTAINMENT Key points: 1. Contract value of $66.4M for engineering services. 2. General Dynamics Mission Systems is the sole awardee. 3. Risk of limited competition impacting price discovery. 4. Sector: Information Technology/Defense Engineering Services.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed effectively. Benchmarking against similar engineering service contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition scenario. This approach may restrict the pool of potential bidders and potentially lead to higher prices than a fully open competition.
Taxpayer Impact: Taxpayer funds are being used for sustainment services. The limited competition raises concerns about whether the government achieved the best possible price.
Public Impact
Ensures continued operation of the MUOS ground system, critical for communications. Supports a major defense contractor, General Dynamics. Potential for increased costs due to limited competition. Impacts the Department of the Air Force's operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Award Fee contract type
- No small business participation noted
Positive Signals
- Sustains critical communication infrastructure
- Awarded to an established defense contractor
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related IT infrastructure. Spending in this area is substantial, driven by the need for advanced technological sustainment and upgrades.
Small Business Impact
The data indicates no small business participation in this contract. Efforts to include small businesses in the supply chain for such large defense contracts are often limited.
Oversight & Accountability
Oversight is crucial given the Cost Plus Award Fee structure and limited competition. The Department of the Air Force must ensure robust monitoring of performance and costs to safeguard taxpayer funds.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Lack of robust competition may lead to suboptimal pricing.
- Dependence on a single contractor for critical system sustainment.
- No clear indication of small business involvement.
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 $66.4 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 $66.4 million.
What is the period of performance?
Start: 2021-12-01. End: 2023-10-31.
What specific technical capabilities does General Dynamics provide under this sustainment contract, and how do they compare to potential alternatives?
The contract focuses on sustaining the MUOS (Mobile User Objective System) ground system. This likely involves maintaining software, hardware, and network infrastructure essential for the system's operation. While General Dynamics is a key player, a thorough analysis would require understanding the specific proprietary technologies or unique expertise they possess that might justify limited competition.
How was the 'exclusion of sources' justified, and what steps were taken to ensure fair pricing despite limited competition?
The justification for excluding sources needs to be clearly documented, often citing unique capabilities or prior development investments. To ensure fair pricing, the Air Force likely relied on independent cost estimates, historical pricing data, and negotiation strategies. However, the inherent limitation on bidders reduces the pressure for competitive pricing.
What is the long-term strategy for MUOS ground system sustainment, and will future contracts involve broader competition?
The long-term strategy is critical for understanding the ongoing need for this specific sustainment. Future contracting approaches should be evaluated to determine if the system's evolution allows for increased competition, potentially through modularization or standardization, to achieve better value for the government.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: COST PLUS AWARD FEE (R)
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: $67,485,763
Exercised Options: $67,485,763
Current Obligation: $66,436,172
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $1,939,568
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: 2021-12-01
Current End Date: 2023-10-31
Potential End Date: 2023-10-31 00:00:00
Last Modified: 2024-09-25
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