Department of the Navy awards $16M for Surface Mine Countermeasure services to General Dynamics Mission Systems
Contract Overview
Contract Amount: $16,044,305 ($16.0M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-08-11
End Date: 2012-02-06
Contract Duration: 2,005 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: SURFACE MINE COUNTERMEASURE
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139
Plain-Language Summary
Department of Defense obligated $16.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: SURFACE MINE COUNTERMEASURE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. Services procured fall under Engineering Services (NAICS 541330). 4. The contract duration spans from 2006 to 2012, indicating a medium-term project. 5. The award was made by the Department of the Navy, a major defense procurement agency. 6. The contract value is approximately $16 million.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar services procured during the 2006-2012 timeframe. The Cost Plus Award Fee structure means the final cost could vary based on performance, making a direct price comparison difficult. However, the total award value of $16 million for engineering services related to mine countermeasures over a six-year period suggests a moderate investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that the Department of the Navy sought bids from all responsible sources. The presence of two bids suggests a degree of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed. Full and open competition generally aims to achieve the best value for the government by leveraging market forces.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is intended to drive down costs through competitive bidding, ensuring that the government receives fair market value for the services rendered.
Public Impact
The primary beneficiaries are the Department of the Navy and its operational forces, who receive enhanced capabilities in mine countermeasures. The services delivered likely involve the design, development, integration, or testing of systems or technologies to detect, identify, and neutralize naval mines. The geographic impact is primarily within the operational theaters of the U.S. Navy, potentially worldwide. Workforce implications include employment for engineers, technicians, and support staff within General Dynamics Mission Systems and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can sometimes lead to higher final costs if award fees are consistently met without stringent cost controls.
- Limited information on the specific performance metrics for the award fee makes it difficult to assess if the government received optimal value for the incentive structure.
Positive Signals
- Awarding under full and open competition suggests an effort to maximize competition and achieve competitive pricing.
- The Cost Plus Award Fee structure, when managed effectively, can drive contractor performance and innovation.
- The contract addresses a critical naval capability, contributing to force protection and mission success.
Sector Analysis
The defense engineering services sector is characterized by complex, high-value contracts often involving advanced technology and specialized expertise. Companies like General Dynamics Mission Systems are key players, providing critical support for military platforms and systems. Spending in this sector is driven by national security requirements and technological advancements. Comparable spending benchmarks would involve analyzing other engineering services contracts for naval systems or specialized defense applications.
Small Business Impact
The provided data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss) for this contract. This suggests that the contract was not specifically targeted towards small businesses, and larger, established contractors were likely the primary bidders. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award summary.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded within the Cost Plus Award Fee structure, linking payment to performance. Transparency is generally provided through contract award databases, though detailed performance reviews and cost justifications may be limited to government personnel. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Surface Warfare
- Mine Warfare Systems
- Defense Engineering Services
- Cost Plus Award Fee Contracts
- Department of the Navy Procurement
Risk Flags
- Cost Overruns Potential
- Performance Metric Clarity
- Subjectivity in Award Fee Determination
Tags
defense, department-of-the-navy, engineering-services, definitive-contract, cost-plus-award-fee, full-and-open-competition, surface-mine-countermeasure, general-dynamics-mission-systems, massachusetts, medium-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. SURFACE MINE COUNTERMEASURE
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 $16.0 million.
What is the period of performance?
Start: 2006-08-11. End: 2012-02-06.
What specific engineering services were provided under this contract for Surface Mine Countermeasure?
While the specific details are not fully elaborated in the award data, 'Surface Mine Countermeasure' implies services related to the detection, identification, neutralization, or avoidance of naval mines deployed on or near the sea surface. This could encompass a range of activities including system design, software development, hardware integration, testing and evaluation, technical support, and potentially training. The 'Engineering Services' classification (NAICS 541330) further supports that the contract focused on the application of engineering principles to solve problems or develop solutions related to mine warfare technology for the U.S. Navy.
How does the Cost Plus Award Fee (CPAF) structure typically function in defense contracts?
A Cost Plus Award Fee (CPAF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a fee. This fee consists of two parts: a fixed base fee and an award fee. The award fee is earned based on the contractor's performance against pre-determined criteria and subjective evaluations by the government. The government establishes criteria for performance, and the contractor can earn a portion or all of the award fee if they meet or exceed these standards. This structure aims to incentivize contractors to perform beyond minimum requirements, driving innovation and efficiency, while also providing the government with flexibility to reward superior performance.
What is the significance of the contract being awarded under 'Full and Open Competition'?
Awarding a contract under 'Full and Open Competition' signifies that the procuring agency, in this case, the Department of the Navy, made a concerted effort to solicit offers from all responsible sources and to award the contract to the responsible offeror whose proposal, conforming to the solicitation, is most advantageous to the Government, price and other factors considered. This approach is generally preferred as it maximizes the potential for competition, theoretically leading to better pricing, higher quality, and innovative solutions. It contrasts with sole-source or limited competition procurements, where fewer sources are solicited.
What are the potential risks associated with a Cost Plus Award Fee contract for the government?
While CPAF contracts incentivize performance, they carry inherent risks for the government. One primary risk is that the final cost can be higher than anticipated if the contractor consistently achieves high performance ratings, leading to maximum award fees. There's also a risk of subjective evaluation influencing the award fee, potentially leading to disputes or perceived unfairness. Furthermore, if the performance criteria are not clearly defined or are too easily met, the 'award' aspect may not drive significant additional value. Effective management and clear, objective performance metrics are crucial to mitigate these risks and ensure the government receives true value for the award fee paid.
How does the NAICS code 541330 (Engineering Services) inform our understanding of this contract?
The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' indicates that the primary purpose of this contract was to procure professional engineering expertise. This typically involves providing advice, consultation, design, development, and application of engineering principles. For a 'Surface Mine Countermeasure' contract, this could translate to services such as the design of new mine detection systems, the modification of existing platforms for mine warfare, the development of simulation and modeling tools for mine environments, or providing technical analysis and recommendations for naval mine countermeasures strategies. It signifies a focus on technical solutions and expert knowledge rather than the manufacturing or direct deployment of hardware.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6133106R0019
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Battelle Memorial Institute
Address: 237 PUTNAM AVE, CAMBRIDGE, MA, 02139
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,567,414
Exercised Options: $16,292,773
Current Obligation: $16,044,305
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-08-11
Current End Date: 2012-02-06
Potential End Date: 2012-02-06 00:00:00
Last Modified: 2022-09-02
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