DoD's $34M Engineering Services Contract with General Dynamics: A Cost Plus Fixed Fee Award
Contract Overview
Contract Amount: $34,097,177 ($34.1M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-02-08
End Date: 2012-05-30
Contract Duration: 477 days
Daily Burn Rate: $71.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ENGINEERING AND TECHNICAL SERVICES
Place of Performance
Location: NORCO, RIVERSIDE County, CALIFORNIA, 92860
Plain-Language Summary
Department of Defense obligated $34.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENGINEERING AND TECHNICAL SERVICES Key points: 1. The contract awarded to General Dynamics Information Technology, Inc. for engineering services represents a significant investment by the Department of Defense. 2. The 'NOT COMPETED' status raises questions about the procurement process and potential missed opportunities for competitive pricing. 3. The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently, posing a risk to taxpayer funds. 4. The sector is Engineering Services, a critical area for defense operations and technological advancement.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) structure, while offering flexibility, can be prone to cost escalation. Without competitive bidding, it's difficult to benchmark pricing against market rates, making the value assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This lack of competition likely resulted in higher prices than could have been achieved through an open bidding process, impacting price discovery.
Taxpayer Impact: The absence of competition for a $34 million contract suggests that taxpayers may have paid a premium for these engineering services.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The reliance on a single contractor for critical engineering services could create dependency and limit future innovation. The effectiveness of the services provided under this contract warrants scrutiny to ensure value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Awarded to a known entity (General Dynamics)
- Contract duration aligns with project needs
Sector Analysis
Engineering services are vital for the Department of Defense's operational readiness and technological superiority. Benchmarking spending in this sector is complex due to the specialized nature of services, but competitive procurement is generally preferred to ensure cost-effectiveness.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. This suggests a missed opportunity to support small business participation in defense contracting.
Oversight & Accountability
The 'NOT COMPETED' status raises concerns about the oversight of the procurement process. Robust oversight is needed to ensure that sole-source awards are justified and that taxpayer funds are used efficiently.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may have led to inflated costs.
- CPFF contract type increases risk of cost overruns.
- No clear indication of small business participation.
- Potential for reduced innovation due to sole-source award.
Tags
engineering-services, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENGINEERING AND TECHNICAL SERVICES
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 $34.1 million.
What is the period of performance?
Start: 2011-02-08. End: 2012-05-30.
What was the justification for not competing this significant engineering services contract?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required services, or in cases of urgent need. Without this information, it's impossible to assess if the non-competitive award was appropriate and in the best interest of the government.
How were costs controlled under this Cost Plus Fixed Fee contract to mitigate risk?
Controlling costs under a CPFF contract relies heavily on effective government oversight, detailed cost accounting, and clear performance metrics. The agency would need to rigorously audit General Dynamics' expenditures to ensure they align with the contract's scope and fixed fee. The contract's duration and the final cost relative to the initial estimate would be key indicators of cost control success.
What was the overall effectiveness and value delivered by General Dynamics under this contract?
The provided data does not include metrics on the effectiveness or value delivered by General Dynamics. To assess this, one would need to review performance reports, project outcomes, and user feedback related to the engineering services provided. Comparing the delivered results against the contract's objectives and the price paid is crucial for a complete value assessment.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6339411R5057
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 2727 HAMNER AVE, NORCO, CA, 92860
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,367,274
Exercised Options: $36,367,274
Current Obligation: $34,097,177
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,999,894
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-02-08
Current End Date: 2012-05-30
Potential End Date: 2012-05-30 00:00:00
Last Modified: 2023-10-02
More Contracts from General Dynamics Information Technology, Inc.
- Global Security Engineering&supply Chain Services — $1.5B (Department of State)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (Department of State)
- Cloud Products&tools (CPT) — $902.0M (Department of Health and Human Services)
- Beneficiary Contact Center Operations — $879.1M (Department of Health and Human Services)
- Award of Task Order 47qfca210051-Nawcad Wolf Ship and AIR C5isr Systems Support — $832.3M (General Services Administration)
View all General Dynamics Information Technology, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)