DoD's $23.4M Engineering Services Contract Awarded to General Dynamics Without Competition
Contract Overview
Contract Amount: $23,439,206 ($23.4M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-02-08
End Date: 2013-02-28
Contract Duration: 386 days
Daily Burn Rate: $60.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING TECHNICAL SERVICES
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $23.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENGINEERING TECHNICAL SERVICES Key points: 1. Significant contract value of $23.4 million for engineering technical services. 2. Sole-source award to General Dynamics Information Technology, Inc. raises competition concerns. 3. Contract duration of 386 days suggests a focused, short-term need. 4. The 'VA' contract status and 'VIRGINIA' location may indicate specific agency or regional focus.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against market rates for similar engineering services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was explicitly 'NOT COMPETED,' indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a $23.4 million contract means taxpayers may have paid a premium compared to what could have been achieved through a competitive process.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Lack of transparency in the procurement process raises accountability questions. Potential for reduced innovation as only one vendor was considered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus pricing structure
- Lack of competition
Positive Signals
- Definitive contract award
- Specific NAICS code (541330) indicates specialized engineering services
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a critical sector for defense operations. Spending benchmarks for this category can vary widely based on project complexity and duration, but competitive bidding is generally expected to ensure value.
Small Business Impact
The contract was awarded to General Dynamics Information Technology, Inc., a large corporation. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The 'NOT COMPETED' status warrants further scrutiny regarding the justification for bypassing the competitive process. Oversight should focus on ensuring the necessity of a sole-source award and the reasonableness of the final price.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Limited transparency
- No small business participation indicated
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENGINEERING 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 $23.4 million.
What is the period of performance?
Start: 2012-02-08. End: 2013-02-28.
What was the specific justification for awarding this $23.4 million engineering services contract on a sole-source basis?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified by factors such as urgency, unique capabilities of a single provider, or national security requirements that preclude competition. A thorough review would require access to the contract file and associated documentation detailing these reasons.
How does the Cost Plus Fixed Fee (CPFF) pricing compare to industry benchmarks for similar engineering services, given the lack of competition?
Without competitive bids, establishing a precise benchmark is challenging. CPFF contracts inherently carry risk for the government, as the contractor is reimbursed for allowable costs plus a fixed fee. The government's ability to ensure cost-effectiveness relies heavily on robust oversight and negotiation, which are less impactful without competitive pressure to drive down prices.
What is the potential impact on future defense contracting practices if sole-source awards for significant sums become more common?
An increase in sole-source awards could diminish competition, potentially leading to higher costs for taxpayers and reduced innovation across the defense industrial base. It may also signal a weakening of procurement oversight and a shift away from market-driven efficiencies, impacting the overall value for money in government spending.
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: $64,654,398
Exercised Options: $64,654,398
Current Obligation: $23,439,206
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-02-08
Current End Date: 2013-02-28
Potential End Date: 2013-02-28 00:00:00
Last Modified: 2024-05-14
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