DoD Awards $43.4M for DMR Production Radios to General Dynamics, Sole-Source
Contract Overview
Contract Amount: $43,435,611 ($43.4M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-05
End Date: 2027-05-09
Contract Duration: 976 days
Daily Burn Rate: $44.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
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 $43.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: DMR PRODUCTION RADIOS Key points: 1. Significant contract value of $43.4 million for specialized radio equipment. 2. Sole-source award to General Dynamics raises questions about competition and potential price inflation. 3. Contract duration of nearly 3 years suggests ongoing need for these communication systems. 4. Manufacturing sector is Radio and Television Broadcasting and Wireless Communications Equipment.
Value Assessment
Rating: questionable
The contract value of $43.4 million for DMR production radios is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to determine if the pricing is optimal for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Dynamics Mission Systems, Inc., was considered. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these essential communication devices.
Public Impact
Military readiness may depend on the reliable functioning of these DMR radios. Taxpayers may be overpaying due to the absence of competitive bidding. The long-term availability and support for this specific radio system could be a concern if alternatives are not explored.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Potential for overpayment due to lack of competition
- Long contract duration without competitive review
Positive Signals
- Essential communication equipment for the Department of Defense
- Established manufacturer with likely technical expertise
Sector Analysis
The Department of Defense is a major consumer of wireless communications equipment. Spending benchmarks for similar specialized radio systems can vary widely based on features and quantities, but sole-source awards often deviate from market norms.
Small Business Impact
This contract was awarded to a large business, General Dynamics Mission Systems, Inc. There is no indication of subcontracting opportunities for small businesses within this award notice.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. Future procurements should explore competitive options to maximize cost savings.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of price competition
- Potential for cost overruns
- Limited transparency in pricing
- Risk of vendor lock-in
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 $43.4 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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $43.4 million.
What is the period of performance?
Start: 2024-09-05. End: 2027-05-09.
What is the justification for the sole-source award, and has the government explored all avenues for competitive sourcing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. The government should have documented these reasons extensively. Without this documentation, it's difficult to assess if all competitive avenues were truly exhausted, raising concerns about potential missed savings and the effectiveness of market research.
How does the unit cost of these DMR radios compare to similar commercially available or previously procured systems?
Benchmarking the unit cost is crucial for assessing value. If this sole-source contract's per-unit price is significantly higher than comparable systems procured competitively, it indicates potential overpayment. A detailed cost analysis comparing features, specifications, and lifecycle costs against market alternatives is necessary to determine if the current pricing is fair and reasonable.
What is the long-term strategy for maintaining and upgrading these radio systems, and does the sole-source award impact future interoperability or cost-effectiveness?
A sole-source award might lock the DoD into a specific vendor's ecosystem, potentially limiting future interoperability with other systems or driving up long-term sustainment costs. The government should have a clear strategy for managing the lifecycle of this equipment, including plans for upgrades and replacements, to ensure continued effectiveness and avoid vendor lock-in.
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: N0003922R2000
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 8201 E MCDOWELL RD, SCOTTSDALE, AZ, 85257
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: $43,435,611
Exercised Options: $43,435,611
Current Obligation: $43,435,611
Subaward Activity
Number of Subawards: 52
Total Subaward Amount: $19,823,970
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003924D2000
IDV Type: IDC
Timeline
Start Date: 2024-09-05
Current End Date: 2027-05-09
Potential End Date: 2027-05-09 00:00:00
Last Modified: 2025-08-01
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