DoD Awards $13.6M for Navy Radio Production to General Dynamics, Lacking Competition
Contract Overview
Contract Amount: $13,632,238 ($13.6M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-04
End Date: 2027-08-03
Contract Duration: 698 days
Daily Burn Rate: $19.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OP 2: PROCUREMENT OF DMR 4 - CHANNEL PRODUCTION RADIOS AND ANCILLARY HARDWARE.
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $13.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: OP 2: PROCUREMENT OF DMR 4 - CHANNEL PRODUCTION RADIOS AND ANCILLARY HARDWARE. Key points: 1. Significant award value of $13.6 million for essential communication hardware. 2. Sole-source award to General Dynamics raises concerns about competitive pricing. 3. Potential risk of inflated costs due to lack of market competition. 4. Sector focus on communications equipment manufacturing, vital for defense operations.
Value Assessment
Rating: questionable
The award value of $13.6 million for radio and ancillary hardware is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or industry benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Dynamics Mission Systems. This lack of competition limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for this essential hardware, as there was no market pressure to drive down prices.
Public Impact
Ensures critical communication capabilities for the Department of the Navy. Supports a major defense contractor, potentially impacting jobs and industry stability. Highlights potential for increased defense spending without competitive oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Sole-Source Award
- Potential for Overpricing
Positive Signals
- Essential Defense Procurement
- Supports Established Contractor
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area is critical for maintaining modern defense communication infrastructure, with benchmarks often influenced by technological advancements and specialized production capabilities.
Small Business Impact
The data indicates this contract was awarded to General Dynamics Mission Systems and does not mention any subcontracting goals for small businesses. Therefore, the direct impact on small businesses appears minimal in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is justified and that future procurements explore competitive avenues where feasible to maximize taxpayer value.
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 limits price competition.
- Potential for inflated costs.
- Lack of transparency in vendor selection.
- No clear small business participation noted.
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 $13.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. OP 2: PROCUREMENT OF DMR 4 - CHANNEL PRODUCTION RADIOS AND ANCILLARY HARDWARE.
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 $13.6 million.
What is the period of performance?
Start: 2025-09-04. End: 2027-08-03.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without further details, it's presumed the Department of the Navy determined General Dynamics Mission Systems was the only viable option for these specific radios and hardware.
What are the potential risks associated with a sole-source procurement of this magnitude?
The primary risks include paying a non-competitive price, potentially higher than if the contract were competed. There's also a risk of reduced innovation and less incentive for the contractor to offer superior service or features. Furthermore, it limits opportunities for other capable vendors to enter the market.
How will the effectiveness of these radios be measured and ensured given the lack of competition?
Effectiveness will be measured through contract performance metrics, delivery schedules, and adherence to technical specifications outlined in the award. The Department of the Navy will likely conduct acceptance testing and monitor operational performance post-delivery to ensure the radios meet their intended mission requirements.
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: $13,632,238
Exercised Options: $13,632,238
Current Obligation: $13,632,238
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $3,845,919
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: 2025-09-04
Current End Date: 2027-08-03
Potential End Date: 2029-02-05 00:00:00
Last Modified: 2025-09-10
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