General Dynamics awarded $59.2M for C5ISR systems support to the Navy, extending through June 2027

Contract Overview

Contract Amount: $59,200,000 ($59.2M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2026-07-01

End Date: 2027-06-30

Contract Duration: 364 days

Daily Burn Rate: $162.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THE NAWCAD WOLF SAIW DIVISION PROVIDES SHIP AND AIR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, COMBAT, INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (C5ISR) SYSTEMS SUPPORT (SACSS) TO SUPPORT THE MODERNIZATION AND INTEGRATION OF C5ISR SYSTEMS.

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23709

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $59.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THE NAWCAD WOLF SAIW DIVISION PROVIDES SHIP AND AIR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, COMBAT, INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (C5ISR) SYSTEMS SUPPORT (SACSS) TO SUPPORT THE MODERNIZATION AND INTEGRATION OF C5ISR SYSTEMS. Key points: 1. Contract focuses on critical C5ISR system modernization and integration for naval platforms. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The cost-plus award fee structure incentivizes performance but requires careful oversight. 4. This award represents a significant investment in maintaining naval technological superiority. 5. The duration of the contract indicates a long-term need for these specialized services. 6. Virginia is the primary state for contract performance, impacting the local tech sector.

Value Assessment

Rating: good

The contract value of $59.2 million over one year appears reasonable for specialized C5ISR support. Benchmarking against similar large-scale defense IT and engineering services contracts is necessary for a definitive value assessment. The cost-plus award fee (CPAF) structure, while common for complex R&D and system integration, can lead to higher costs if not managed tightly, but also allows for flexibility and performance incentives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This approach typically fosters a competitive environment, potentially leading to better pricing and innovative solutions for the government. The number of bidders is not specified, but the open competition is a positive signal for price discovery and market responsiveness.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best value for the government by encouraging multiple companies to offer their best pricing and technical solutions.

Public Impact

The U.S. Navy benefits directly through enhanced C5ISR capabilities for its ships and aircraft. Services delivered include modernization and integration of complex command, control, communications, computers, combat, intelligence, surveillance, and reconnaissance systems. The primary geographic impact is in Virginia, where the contractor is located and likely where much of the work will be performed. The contract supports a segment of the defense technology and engineering workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts require diligent oversight to ensure costs remain reasonable and that award fees are justified by performance.
The complexity of C5ISR systems presents inherent technical risks that need continuous management.
Reliance on a single large contractor for critical systems integration could pose a long-term dependency risk.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract duration of one year with potential for extensions (implied by delivery order structure) allows for adaptive planning.
General Dynamics Information Technology is a well-established defense contractor with significant experience in IT and C5ISR.

Sector Analysis

The C5ISR sector is a critical and rapidly evolving segment of the defense industry, encompassing a wide range of technologies for command, control, communications, intelligence, and surveillance. Spending in this area is substantial, driven by the need for military forces to maintain technological superiority in contested environments. This contract fits within the broader category of defense IT and engineering services, where market size is in the tens of billions annually. Comparable spending benchmarks would involve looking at other large-scale system integration and modernization contracts within the Department of Defense.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a small business set-aside. While the prime contractor is a large business, there may be opportunities for small businesses to participate as subcontractors, depending on the specific requirements and the prime's subcontracting plan. The extent of small business participation will depend on the contractor's strategy and the availability of specialized small business capabilities.

Oversight & Accountability

Oversight for this Cost Plus Award Fee (CPAF) contract will likely be managed by the Naval Air Warfare Center Aircraft Division (NAWCAD) WOLF SAIW Division. Accountability measures are tied to performance metrics that determine the award fee. Transparency is generally maintained through contract reporting mechanisms, though specific details of performance and costs may be subject to confidentiality. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval C5ISR Modernization Programs
Defense Information Technology Support Services
Command and Control Systems Integration
Intelligence, Surveillance, and Reconnaissance (ISR) Systems Support
Ship and Aircraft Systems Engineering

Risk Flags

Cost-plus award fee requires strong oversight to prevent cost overruns.
Complexity of C5ISR systems introduces technical risks.
Long-term reliance on specific contractors for critical systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THE NAWCAD WOLF SAIW DIVISION PROVIDES SHIP AND AIR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, COMBAT, INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (C5ISR) SYSTEMS SUPPORT (SACSS) TO SUPPORT THE MODERNIZATION AND INTEGRATION OF C5ISR SYSTEMS.

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 $59.2 million.

What is the period of performance?

Start: 2026-07-01. End: 2027-06-30.

What is General Dynamics Information Technology's track record with similar C5ISR contracts for the Navy?

General Dynamics Information Technology (GDIT) has a substantial history of supporting the Department of Defense, including the Navy, with complex IT and C5ISR solutions. They have been involved in numerous programs related to system integration, modernization, and sustainment of command, control, and intelligence systems across various platforms. Their experience often includes large-scale efforts requiring deep technical expertise and program management capabilities. Specific past performance on contracts with similar scope and value to this NAWCAD award would be detailed in their proposal and assessed by the government during the source selection process. GDIT's extensive portfolio suggests a strong capability to handle the demands of this contract, though the specific success metrics and client satisfaction on prior, directly comparable efforts would provide a more granular view of their suitability.

How does the $59.2 million value compare to similar C5ISR support contracts awarded by the Navy?

The $59.2 million value for a one-year contract focused on C5ISR systems support is within the typical range for significant defense IT and engineering services. Large-scale modernization and integration efforts for naval platforms can often run into hundreds of millions or even billions of dollars over their lifecycle. This specific award appears to be for a defined scope of work, possibly a specific phase of a larger program or a distinct set of services. Benchmarking against other contracts for similar services, such as system integration, software development, and technical support for command and control or intelligence systems, would reveal if this price point is competitive. Factors like the level of system complexity, the number of platforms supported, and the specific technologies involved heavily influence contract values in this domain.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include technical complexity, potential cost overruns inherent in CPAF contracts, and schedule delays. The C5ISR domain involves highly intricate and rapidly evolving technologies, making integration challenging. Cost overruns are a risk because the award fee is tied to performance, and the base cost structure needs careful management. Schedule delays can impact the Navy's modernization timelines. Mitigation strategies likely involve robust program management by NAWCAD, clear performance metrics for the award fee, regular technical reviews, and potentially strong government oversight of contractor progress and expenditures. GDIT's established processes for risk management and its experience with complex defense programs are also critical mitigation factors.

How effective is the Cost Plus Award Fee (CPAF) contract type in ensuring value for money for this type of service?

The CPAF structure is often employed for services where performance outcomes are critical but difficult to define precisely upfront, such as research, development, and complex system integration. It aims to incentivize contractor performance by offering a base fee plus an award fee determined by the government based on performance against specific criteria. This can drive better results than a simple cost-plus fixed fee or cost-plus incentive fee contract. However, it requires diligent government oversight to ensure that award fees are earned legitimately and that the overall cost remains controlled. If managed effectively, CPAF can yield good value by aligning contractor incentives with government objectives. Ineffective oversight can lead to inflated costs without commensurate performance gains, diminishing value for money.

What is the historical spending trend for C5ISR support services within the Department of the Navy?

Spending on C5ISR support services within the Department of the Navy has historically been substantial and generally increasing, driven by the continuous need to modernize aging platforms and counter evolving threats. The Navy invests heavily in maintaining its technological edge across its fleet and air wings. This includes significant outlays for research, development, procurement, and sustainment of systems related to command and control, communications, intelligence gathering, and combat systems. Trends often show a shift towards more integrated, software-defined, and networked capabilities, requiring ongoing support and upgrades. While specific annual figures fluctuate based on budget cycles and program priorities, the overall trajectory indicates a sustained and significant commitment to C5ISR capabilities, making contracts like this a recurring necessity.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042125R3000

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $987,923,571

Exercised Options: $165,211,285

Current Obligation: $59,200,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7693

IDV Type: IDC

Timeline