Navy Awards $11.99M for LCS Independence Variant Support to General Dynamics
Contract Overview
Contract Amount: $11,992,795 ($12.0M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-05-01
End Date: 2026-04-30
Contract Duration: 2,190 days
Daily Burn Rate: $5.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LCS INDEPENDENCE VARIANT REAHBACK SUPPORT
Place of Performance
Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201
Plain-Language Summary
Department of Defense obligated $12.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: LCS INDEPENDENCE VARIANT REAHBACK SUPPORT Key points: 1. Contract awarded to General Dynamics Mission Systems, Inc. for engineering services. 2. Significant value of $11.99 million allocated for support. 3. Contract is a definitive contract with a Cost Plus Fixed Fee pricing structure. 4. No small business participation indicated.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar support contracts for naval vessels is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these engineering services.
Public Impact
Ensures continued operational readiness for the Littoral Combat Ship (LCS) Independence variant. Supports critical engineering services for a key naval asset. Potential for increased costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee pricing
- No small business participation
Positive Signals
- Ensures support for critical naval platform
- Long-term contract duration
Sector Analysis
This contract falls under engineering services, a broad category often associated with defense and complex system development. Benchmarks for similar specialized naval support contracts are highly variable.
Small Business Impact
The contract data indicates no small business participation. This represents a missed opportunity to support small businesses within the defense industrial base.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. Accountability for cost management under the CPFF structure is crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns with CPFF
- No small business utilization
- Limited transparency on specific services
Tags
engineering-services, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. LCS INDEPENDENCE VARIANT REAHBACK SUPPORT
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 $12.0 million.
What is the period of performance?
Start: 2020-05-01. End: 2026-04-30.
What specific engineering services are included in this $11.99 million award, and how do they contribute to the LCS Independence variant's readiness?
The contract details engineering services for the LCS Independence variant's sustainment and readiness. This likely includes technical support, maintenance planning, system upgrades, and troubleshooting to ensure the vessel remains operational and effective for its intended missions. The specific breakdown of services would be detailed in the contract's statement of work.
Given the sole-source award, what mechanisms are in place to mitigate the risk of inflated costs and ensure value for taxpayer money?
While sole-source awards inherently reduce competitive pressure, the Cost Plus Fixed Fee (CPFF) structure requires robust government oversight. This includes detailed audits of costs, performance metrics, and regular reviews of the contractor's efficiency. The fixed fee component provides some incentive for the contractor to manage costs effectively to maximize their profit.
How effective is the Cost Plus Fixed Fee contract type in ensuring the successful and cost-efficient delivery of specialized engineering services for naval platforms?
CPFF contracts are often used when the scope of work is not precisely defined or involves significant uncertainty, common in complex engineering projects. They allow flexibility but place a high burden on the government to monitor costs and contractor performance. Effectiveness hinges on strong contract management and clear performance expectations to prevent cost overruns and ensure desired outcomes.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0017819R3000
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 100 PLASTICS AVE, PITTSFIELD, MA, 01201
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,990,132
Exercised Options: $40,990,132
Current Obligation: $11,992,795
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-05-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-10
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