DoD Awards $92M Engineering Services Contract to General Dynamics Mission Systems

Contract Overview

Contract Amount: $91,991,749 ($92.0M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-05-24

End Date: 2024-11-15

Contract Duration: 1,271 days

Daily Burn Rate: $72.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DAS - LABOR BASE YR. - HOLDING SLIN

Place of Performance

Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $92.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: DAS - LABOR BASE YR. - HOLDING SLIN Key points: 1. Significant contract value of $92.0 million for engineering services. 2. General Dynamics Mission Systems is a major defense contractor, indicating potential for established relationships. 3. The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. 4. The Engineering Services sector is critical for defense modernization and R&D.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk for cost escalation. Without clear performance metrics and robust oversight, the final cost could exceed initial projections. Benchmarking CPFF contracts in engineering services is challenging due to variable scope and overhead.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and competitive pressure, potentially leading to higher costs for the government compared to a fully competed contract. The justification for sole-source is not provided.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these engineering services, as market forces were not leveraged to secure the best possible price.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of the Navy relies on these services for critical operations. Potential for cost overruns due to the CPFF contract structure. Lack of transparency in the sole-source award process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Cost Plus Fixed Fee contract type poses risk of cost escalation.
  • Lack of transparency in award justification.
  • No small business participation noted.

Positive Signals

  • Contract awarded to a known, established defense contractor.
  • Services are critical for Department of the Navy operations.
  • Contract duration extends to November 2024, providing continuity.

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for supporting complex defense systems and technological advancements. Spending in this sector is often driven by specific program needs and national security requirements, with benchmarks varying widely based on project complexity.

Small Business Impact

There is no indication of small business participation in this contract. Sole-source awards often bypass opportunities for small businesses to compete, potentially limiting their access to government contracts.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Robust monitoring of the CPFF structure is essential to control costs and ensure the contractor meets performance expectations.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of competition
  • Cost Plus Fixed Fee contract type
  • Potential for cost overruns
  • No small business participation
  • Vague contract description
  • Lack of award justification

Tags

engineering-services, department-of-defense, ma, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. DAS - LABOR BASE YR. - HOLDING SLIN

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 $92.0 million.

What is the period of performance?

Start: 2021-05-24. End: 2024-11-15.

What was the justification for awarding this contract on a sole-source basis instead of competing it?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without the specific justification document, it's impossible to determine the exact reasoning, but it's a critical piece of information for assessing the value and necessity of this procurement.

How will the Department of the Navy ensure cost control and prevent overruns under this Cost Plus Fixed Fee contract?

Effective cost control under a CPFF contract relies on stringent government oversight, detailed performance metrics, and regular audits. The Navy must actively monitor the contractor's incurred costs, ensure they align with the fixed fee, and scrutinize any deviations. Establishing clear milestones and deliverables, along with robust communication channels, are crucial for managing expectations and mitigating the risk of uncontrolled spending.

What specific engineering services are being provided, and how do they contribute to the Navy's mission effectiveness?

The contract description 'DAS - LABOR BASE YR. - HOLDING SLIN' is too vague to determine the specific engineering services. Understanding the precise nature of these services (e.g., design, development, testing, maintenance of specific systems) is essential to evaluate their contribution to the Navy's mission. Without this detail, assessing the overall effectiveness and value of the $92 million expenditure is challenging.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6339420R0035

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 100 PLASTICS AVE, PITTSFIELD, MA, 01201

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

Financial Breakdown

Contract Ceiling: $92,193,826

Exercised Options: $92,112,342

Current Obligation: $91,991,749

Actual Outlays: $11,947,322

Subaward Activity

Number of Subawards: 212

Total Subaward Amount: $28,763,276

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2021-05-24

Current End Date: 2024-11-15

Potential End Date: 2024-11-15 00:00:00

Last Modified: 2025-11-10

More Contracts from General Dynamics Mission Systems, Inc.

View all General Dynamics Mission Systems, Inc. federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending