DoD's $73M Littoral Combat Ship engineering support contract awarded to General Dynamics Mission Systems

Contract Overview

Contract Amount: $72,914,604 ($72.9M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-05

End Date: 2027-03-31

Contract Duration: 1,090 days

Daily Burn Rate: $66.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LITTORAL COMBAT SHIP INDEPENDENCE CLASS OVERALL IN-SERVICE ENGINEERING AND LIFE CYCLE SUPPORT FOR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, COMBAT SYSTEMS, AND INTELLIGENCE SYSTEMS CRITICAL ENGINEERING DESIGN INTEGRATION AND EVALUATION.

Place of Performance

Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $72.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: LITTORAL COMBAT SHIP INDEPENDENCE CLASS OVERALL IN-SERVICE ENGINEERING AND LIFE CYCLE SUPPORT FOR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, COMBAT SYSTEMS, AND INTELLIGENCE SYSTEMS CRITICAL ENGINEERING DESIGN INTEGRATION AND EVALUATION. Key points: 1. Contract focuses on critical engineering design and integration for C4ISR systems. 2. Sole-source award raises questions about competition and potential price impacts. 3. Long-term support contract (1090 days) indicates a need for specialized, ongoing expertise. 4. High dollar value suggests significant complexity and importance of the systems supported. 5. Contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 6. Focus on C4ISR systems is vital for naval combat effectiveness.

Value Assessment

Rating: fair

Benchmarking the value of this specific engineering support contract is challenging due to its specialized nature and sole-source award. The Cost Plus Fixed Fee structure, while common for complex R&D or services where costs are uncertain, carries inherent risks of exceeding initial estimates. Without competitive bids, it's difficult to definitively assess if the fixed fee represents optimal value for the government. However, the contract's duration and scope suggest a significant investment in maintaining critical naval capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, General Dynamics Mission Systems, Inc., was considered. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means the government did not benefit from a bidding process that could drive down prices or foster innovation among multiple potential providers.

Taxpayer Impact: The absence of competition for this substantial contract means taxpayers may not be receiving the most cost-effective solution. Without alternative bids, there's less pressure on the contractor to optimize costs, potentially leading to higher overall expenditures.

Public Impact

The U.S. Navy benefits directly through enhanced engineering and life cycle support for its Littoral Combat Ships. Critical C4ISR systems will receive specialized engineering, integration, and evaluation, improving combat readiness. The contract supports advanced technological capabilities essential for modern naval operations. Workforce implications include specialized engineering roles within General Dynamics Mission Systems, potentially requiring advanced technical skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
Lack of transparency in the sole-source justification process.
Potential for scope creep in complex engineering services.
Dependence on a single contractor for critical system support.

Positive Signals

Contract awarded to a known entity with existing knowledge of LCS systems.
Long-term support contract ensures continuity of critical engineering services.
Focus on essential C4ISR systems vital for mission success.
Clear contract end dates provide a defined period for services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related IT and combat systems. The market for specialized naval engineering and systems integration is highly concentrated, often dominated by large defense contractors with established relationships and expertise. Spending in this niche is driven by defense modernization efforts and the lifecycle support requirements of complex platforms like the Littoral Combat Ship.

Small Business Impact

This contract does not appear to involve small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of specialized engineering and systems integration for advanced naval platforms often requires large, established prime contractors. This could limit direct opportunities for small businesses to participate in this specific contract, though they may be involved further down the supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification. Transparency may be limited due to the sole-source nature, but contract performance metrics and milestone achievements should be tracked. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Littoral Combat Ship Program
Naval Surface Warfare Center
Department of Defense C4ISR Systems
Defense Engineering Services Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Potential for cost overruns
Lack of competitive benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. LITTORAL COMBAT SHIP INDEPENDENCE CLASS OVERALL IN-SERVICE ENGINEERING AND LIFE CYCLE SUPPORT FOR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, COMBAT SYSTEMS, AND INTELLIGENCE SYSTEMS CRITICAL ENGINEERING DESIGN INTEGRATION AND EVALUATION.

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 $72.9 million.

What is the period of performance?

Start: 2024-04-05. End: 2027-03-31.

What is the track record of General Dynamics Mission Systems, Inc. in supporting naval C4ISR systems?

General Dynamics Mission Systems, Inc. (GDMS) has a long-standing and extensive track record in developing and supporting complex command, control, communications, computer, intelligence, surveillance, and reconnaissance (C4ISR) systems for various branches of the U.S. military, including the Navy. They are a key player in integrating advanced technologies into naval platforms, often holding prime positions on major shipbuilding and modernization programs. Their experience with the Littoral Combat Ship (LCS) program specifically includes providing critical systems and support. GDMS is known for its capabilities in areas such as network-centric warfare, cybersecurity, and electronic warfare systems, making them a logical choice for specialized engineering and life cycle support related to the LCS's combat systems.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for similar engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is often used for complex services where the scope of work is well-defined but the exact costs are uncertain, such as research, development, or specialized engineering. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This differs from Fixed Price contracts, where the price is set regardless of actual costs, offering more cost certainty to the buyer but shifting risk to the contractor. It also differs from Cost Plus Incentive Fee (CPIF) contracts, which include provisions for adjusting the fee based on performance against targets. For specialized engineering like this, CPFF aims to balance the need for contractor expertise with government oversight of costs, though it carries a risk of cost overruns if not managed diligently.

What are the primary risks associated with a sole-source award for critical engineering support?

The primary risks associated with a sole-source award for critical engineering support include a lack of competitive pricing, potentially leading to higher costs for the government. Without multiple bidders, there is reduced incentive for the awarded contractor to innovate or optimize efficiency to win future contracts. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, making it difficult and costly to switch vendors later. Furthermore, the absence of a competitive process can sometimes obscure potential technical risks or alternative solutions that might have been identified by other qualified firms during a bidding process. Effective oversight and robust contract management become paramount to mitigate these risks.

What is the historical spending pattern for Littoral Combat Ship engineering and life cycle support?

Historical spending on Littoral Combat Ship (LCS) engineering and life cycle support has been substantial, reflecting the complexity and ongoing evolution of these vessels. The LCS program has faced scrutiny regarding its costs and effectiveness over its lifespan. Spending typically includes platform design, systems integration, testing, training, and sustainment. Contracts for engineering services, particularly for critical systems like C4ISR, represent a significant portion of this lifecycle cost. While specific historical figures for this exact type of support contract are not detailed here, the overall LCS program budget and sustainment costs indicate a consistent and considerable investment in maintaining the fleet's operational readiness and technological relevance.

How does the scope of this contract align with the overall mission objectives of the Littoral Combat Ship program?

This contract's scope, focusing on 'in-service engineering and life cycle support for Command, Control, Communications, Computers, Combat Systems, and Intelligence Systems' for the Independence Class Littoral Combat Ship, directly aligns with the program's core mission objectives. The LCS program aims to provide a versatile, networked surface combatant capable of operating in littoral (near-shore) environments. Effective C4ISR capabilities are fundamental to this objective, enabling the ships to gather intelligence, communicate securely, command forces, and employ their combat systems effectively. Ensuring the continuous engineering integrity and lifecycle support of these critical systems is essential for maintaining the LCS's intended warfighting capabilities and operational readiness.

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: N6339424R0004

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $92,493,886

Exercised Options: $80,560,284

Current Obligation: $72,914,604

Actual Outlays: $1,450,007

Subaward Activity

Number of Subawards: 51

Total Subaward Amount: $8,754,726

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline