DoD Awards $46.9M for Naval Undersea Warfare Systems Support to General Dynamics IT

Contract Overview

Contract Amount: $46,914,312 ($46.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-04-13

End Date: 2024-01-02

Contract Duration: 3,186 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF SERVICES FOR NUWCDIVNPT CODE 8542 INCLUDING DESIGN, ENGINEERING, ASSEMBLY, INTEGRATION, INSTALLATION, DOCUMENTATION, TESTING, MAINTENANCE, REPAIR, TRAINING, AND LOGISTICAL SUPPORT OF SSTD SYSTEMS INCLUDING THE TWS, AN/SLQ-25 NIXIE, AN/SLQ-61 LWT, AND EMERGENT SSTD SYSTEMS.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $46.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF SERVICES FOR NUWCDIVNPT CODE 8542 INCLUDING DESIGN, ENGINEERING, ASSEMBLY, INTEGRATION, INSTALLATION, DOCUMENTATION, TESTING, MAINTENANCE, REPAIR, TRAINING, AND LOGISTICAL SUPPORT OF SSTD SYSTEMS INCLUDING THE TWS, AN/SLQ-25 NIXIE, AN/SLQ-61 LWT, AND EMERGENT SSTD SY… Key points: 1. Contract covers comprehensive support for various undersea warfare systems. 2. General Dynamics Information Technology is the sole awardee. 3. Potential for cost overruns exists with Cost Plus Fixed Fee contract type. 4. The Defense sector sees significant investment in advanced naval technology.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns compared to fixed-price contracts. Benchmarking per-unit costs is difficult due to the broad scope of services and system integration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award mechanism (Delivery Order) implies it might be against a previously established contract vehicle.

Taxpayer Impact: Taxpayer funds are utilized for critical defense systems, with the final cost influenced by the CPFF structure and competition effectiveness.

Public Impact

Ensures continued operational readiness of vital naval undersea warfare systems. Supports advanced technological development and maintenance for national security. Provides specialized engineering and logistical support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher costs than anticipated.
Sole awardee may limit future competitive pricing opportunities.
Long contract duration increases exposure to changing technological needs and costs.

Positive Signals

Awarded under full and open competition.
Supports critical national defense infrastructure.
Includes comprehensive service offerings.

Sector Analysis

This contract falls within the Defense sector, specifically supporting naval undersea warfare systems. Spending in this area is driven by national security priorities and the need for advanced technological capabilities.

Small Business Impact

The data indicates the awardee is General Dynamics Information Technology, Inc., a large business. There is no explicit mention of small business participation in this specific award.

Oversight & Accountability

Oversight is provided by the Defense Contract Management Agency (DCMA). The CPFF structure necessitates robust oversight to manage costs and ensure performance objectives are met.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type.
Long contract duration (over 8 years).
Sole awardee for comprehensive system support.
Potential for scope creep with emergent systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF SERVICES FOR NUWCDIVNPT CODE 8542 INCLUDING DESIGN, ENGINEERING, ASSEMBLY, INTEGRATION, INSTALLATION, DOCUMENTATION, TESTING, MAINTENANCE, REPAIR, TRAINING, AND LOGISTICAL SUPPORT OF SSTD SYSTEMS INCLUDING THE TWS, AN/SLQ-25 NIXIE, AN/SLQ-61 LWT, AND EMERGENT SSTD 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $46.9 million.

What is the period of performance?

Start: 2015-04-13. End: 2024-01-02.

What is the projected total cost if all options are exercised and cost overruns occur under the CPFF structure?

The current award is $46.9M with a duration of 3186 days. The Cost Plus Fixed Fee (CPFF) structure means the government pays the actual costs plus a fixed fee. Without specific cost targets or historical data on cost overruns for similar systems, predicting the exact total cost is challenging. However, the CPFF inherently carries a risk of exceeding initial estimates if costs escalate significantly.

How effectively did the full and open competition ensure competitive pricing for these specialized engineering services?

While the contract states 'full and open competition,' the award mechanism as a 'Delivery Order' suggests it might be against an existing indefinite-delivery/indefinite-quantity (IDIQ) contract. The effectiveness of competition in driving down prices depends on the number of bids received and the pricing strategies employed by competitors. Further analysis of the bidding process would be needed to confirm price discovery effectiveness.

What is the long-term strategic value of consolidating support for multiple SSTD systems under a single contract?

Consolidating support can lead to efficiencies through economies of scale, streamlined management, and potentially better knowledge retention within the contractor. For the government, it simplifies contract administration and can foster deeper technical expertise with the awardee. However, it also concentrates risk and reduces flexibility if the chosen contractor underperforms or market conditions change.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002413R3345

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

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: $52,694,875

Exercised Options: $52,694,875

Current Obligation: $46,914,312

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $616,024

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4012

IDV Type: IDC

Timeline