DoD awards $19.3M contract to General Dynamics for unspecified services, raising value-for-money questions

Contract Overview

Contract Amount: $19,337,871 ($19.3M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-11-10

End Date: 2026-11-09

Contract Duration: 1,460 days

Daily Burn Rate: $13.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PMT# N61340-22-RFPREQ-136100G-0133

Place of Performance

Location: MANASSAS, MANASSAS CITY County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: PMT# N61340-22-RFPREQ-136100G-0133 Key points: 1. Contract value appears high given the lack of defined services and limited competition. 2. Sole-source award limits price discovery and potentially inflates costs for taxpayers. 3. Lack of competition indicators suggests potential risks to performance and innovation. 4. Contract duration of four years warrants scrutiny for ongoing necessity and adaptability. 5. The award falls within the Commercial and Service Industry Machinery Manufacturing sector, but specific application is unclear. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: questionable

The contract value of $19.3 million for a four-year period, with no clear definition of services, raises concerns about value for money. Without a competitive bidding process, it is difficult to benchmark pricing against market rates or similar contracts. The cost-plus-fixed-fee structure, while common for complex or uncertain scopes, can incentivize cost overruns if not rigorously managed. Further details on the specific services and performance metrics are needed to make a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one source is capable of meeting the agency's needs, often due to proprietary technology, urgent requirements, or unique capabilities. The lack of competition means that the Department of the Navy did not solicit bids from multiple vendors, which can limit price negotiation and potentially lead to higher costs.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competitive bidding. Taxpayers may bear a higher cost for the goods or services procured under such arrangements.

Public Impact

The primary beneficiary is General Dynamics Mission Systems, Inc., which will receive $19.3 million in federal funding. The specific services delivered are not detailed in the provided data, making it impossible to identify the direct impact on end-users or mission objectives. The geographic impact is likely concentrated in Virginia, where the contractor is located, but the ultimate operational area of the services is unknown. Workforce implications are unclear without knowing the nature of the services provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal performance.
Undefined scope of work introduces risk of cost creep and unmet requirements.
Sole-source award limits transparency and accountability in the procurement process.
Contract duration of four years may not align with evolving technological needs or strategic priorities.
Absence of small business participation could indicate missed opportunities for economic inclusion.

Positive Signals

Award to a known entity, General Dynamics Mission Systems, Inc., suggests a potentially established relationship and understanding of requirements.
Cost-plus-fixed-fee contract type can provide flexibility for evolving or complex requirements.
The contract is with the Department of the Navy, a major federal agency with significant procurement needs.
The contract is for a definitive period, allowing for reassessment at its conclusion.

Sector Analysis

The Commercial and Service Industry Machinery Manufacturing sector (NAICS 333310) encompasses a wide range of equipment production. This contract, valued at $19.3 million, falls within this broad category but its specific application is not detailed. Comparable spending in this sector can vary significantly based on the type of machinery. Without more information on the services, it's difficult to benchmark against specific industry spending trends or market sizes.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb: false'. This means that the procurement was not specifically reserved for small businesses. Consequently, opportunities for small businesses to compete for or subcontract on this award may be limited. The absence of a set-aside could also mean that larger, established contractors were deemed the only viable options, potentially impacting the broader small business ecosystem within this sector.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. As a Department of Defense contract, it would likely fall under the purview of the Department of Defense's Inspector General for audits and investigations. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract, which are currently unknown. Transparency is limited due to the sole-source nature of the award and the lack of public detail regarding the services.

Related Government Programs

Department of Defense Procurement
Naval Operations Support
Commercial and Service Industry Machinery Manufacturing Contracts
Sole-Source Procurements
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Sole-source award
Undefined scope of work
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. PMT# N61340-22-RFPREQ-136100G-0133

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 $19.3 million.

What is the period of performance?

Start: 2022-11-10. End: 2026-11-09.

What specific services are being procured under this contract, and why were they deemed suitable for a sole-source award?

The provided data does not specify the services being procured under PMT# N61340-22-RFPREQ-136100G-0133. A sole-source award is typically justified when only one responsible source is available to meet the agency's needs. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without further information from the Department of the Navy, the rationale for the sole-source designation and the nature of the services remain unclear. This lack of transparency hinders a full assessment of the contract's necessity and value.

How does the $19.3 million contract value compare to similar services procured by the Department of the Navy or other federal agencies?

Benchmarking the $19.3 million contract value is challenging without knowing the specific services rendered. General Dynamics Mission Systems, Inc. is a large defense contractor, and their contract values can vary widely depending on the scope of work. If the services are related to commercial and service industry machinery manufacturing, the price might be comparable to other large-scale industrial support contracts. However, if the services are more specialized or related to advanced technology, a direct comparison becomes more difficult. The absence of competition further complicates value assessment, as there is no market-driven price point to reference.

What are the key performance indicators (KPIs) and deliverables associated with this contract, and how will performance be measured?

The provided data does not include details on the key performance indicators (KPIs) or specific deliverables for this contract. For a Cost Plus Fixed Fee (CPFF) contract, performance is typically measured against a defined scope of work and established milestones. The fixed fee component incentivizes the contractor to complete the work within the estimated cost, while the cost-plus aspect covers the actual allowable costs incurred. Without knowing the specific objectives and metrics, it is impossible to assess the likelihood of successful performance or the potential risks associated with unmet requirements.

What is the track record of General Dynamics Mission Systems, Inc. in performing similar sole-source contracts for the Department of the Navy?

General Dynamics Mission Systems, Inc. (GDMS) has a long history of contracting with the Department of Defense, including the Navy. They are a major provider of defense electronics, communications, and IT solutions. While specific details on their past sole-source contracts with the Navy for services analogous to this award are not provided here, GDMS generally has a strong track record in delivering complex systems and services. However, the effectiveness and value of any sole-source award, regardless of the contractor's history, depend heavily on the justification for the sole-source approach and the clarity of the contract's objectives.

What is the historical spending pattern for similar services within the Department of the Navy or the broader Department of Defense?

Historical spending patterns for services within the Commercial and Service Industry Machinery Manufacturing sector (NAICS 333310) by the Department of the Navy are not detailed in the provided data. However, the Department of Defense, as a whole, spends billions annually on a wide array of services and manufactured goods. Contracts in this sector can range from maintenance and repair of industrial equipment to the production of specialized machinery. Without knowing the specific nature of the services procured under this $19.3 million contract, it is difficult to place it within a precise historical spending context or identify trends.

Are there any identified risks or concerns associated with this specific contract award or the contractor?

The primary risk identified with this contract is its sole-source nature. This limits competition, potentially leading to higher costs and reduced innovation. The lack of a defined scope of work also presents a risk of cost overruns and unmet requirements. While General Dynamics Mission Systems, Inc. is a reputable contractor, the inherent risks of a sole-source, undefined scope contract warrant close monitoring. Further assessment would require details on the specific services and the justification for the sole-source award.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6134022R0074

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 9500 INNOVATION DR, MANASSAS, VA, 20110

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

Financial Breakdown

Contract Ceiling: $35,282,133

Exercised Options: $23,476,365

Current Obligation: $19,337,871

Actual Outlays: $556,281

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $8,394,669

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline