DoD's $84.5M Engineering Services Contract for Ship and Air Warfare Communication Modernization Awarded to General Dynamics

Contract Overview

Contract Amount: $84,551,051 ($84.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-03-04

End Date: 2018-03-05

Contract Duration: 731 days

Daily Burn Rate: $115.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF TECHNICAL ENGINEERING SERVICES IN SUPPORT OF THE SHIP AND AIR INTEGRATED WARFARE (SAIW) DIVISION'S COMMUNICATION MODERNIZATION.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $84.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF TECHNICAL ENGINEERING SERVICES IN SUPPORT OF THE SHIP AND AIR INTEGRATED WARFARE (SAIW) DIVISION'S COMMUNICATION MODERNIZATION. Key points: 1. The contract, valued at $84.5 million, supports the Navy's communication modernization efforts. 2. General Dynamics Information Technology, Inc. is the sole awardee, indicating a lack of competition. 3. The contract type is Cost Plus Fixed Fee, which can pose cost control risks. 4. Engineering Services (NAICS 541330) is a critical sector for defense modernization.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type, while allowing flexibility, can lead to higher costs compared to fixed-price contracts if not managed tightly. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition for an $84.5 million contract raises concerns about whether taxpayers received the best possible value.

Public Impact

Modernizing naval communication systems is crucial for maintaining military readiness and technological superiority. The reliance on a single contractor for such a significant project could impact the pace of innovation and adoption of new technologies. Taxpayers may be overpaying due to the absence of a competitive bidding process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition

Positive Signals

Supports critical defense modernization
Long-term contract duration

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for developing and maintaining complex defense systems. Spending in this area is significant, and competitive procurement is key to ensuring value.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation.

Oversight & Accountability

The 'VA' status suggests this contract may have undergone some level of review, but the sole-source nature and contract type warrant close oversight to ensure cost efficiency and effective delivery.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for inflated costs due to lack of competition.
Risk of cost overruns with Cost Plus Fixed Fee structure.
Limited opportunity for small business participation.
Potential for vendor lock-in and reduced innovation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF TECHNICAL ENGINEERING SERVICES IN SUPPORT OF THE SHIP AND AIR INTEGRATED WARFARE (SAIW) DIVISION'S COMMUNICATION MODERNIZATION.

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $84.6 million.

What is the period of performance?

Start: 2016-03-04. End: 2018-03-05.

What specific factors justified the sole-source award for this critical communication modernization effort, and were alternatives explored?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this contract, the specific rationale for not competing it needs to be documented and publicly accessible to ensure transparency and accountability in the procurement process.

How will the Department of Defense ensure cost control and prevent overruns with a Cost Plus Fixed Fee contract of this magnitude?

Effective cost control for a CPFF contract relies on robust oversight, detailed cost tracking, and clear performance metrics. The agency must actively monitor expenditures, validate costs, and ensure the contractor adheres to the fixed fee while managing the variable cost components efficiently.

What are the long-term implications for technological advancement and potential vendor lock-in resulting from this sole-source award?

Sole-source awards can lead to vendor lock-in, potentially stifling broader technological innovation and limiting future competition. The agency should consider strategies to mitigate this, such as encouraging technology transfer or planning for future competitive procurements with open standards.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042115R0018

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $92,803,956

Exercised Options: $92,803,956

Current Obligation: $84,551,051

Subaward Activity

Number of Subawards: 178

Total Subaward Amount: $14,308,305

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline