DoD Awards $12M for DDG Modernization Engineering, Led by General Dynamics IT
Contract Overview
Contract Amount: $11,984,134 ($12.0M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-05-15
End Date: 2026-02-28
Contract Duration: 1,020 days
Daily Burn Rate: $11.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING AND TECHNICAL FOR THE DDG MODERNIZATION PROGRAM ON THE DDG-93
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $12.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENGINEERING AND TECHNICAL FOR THE DDG MODERNIZATION PROGRAM ON THE DDG-93 Key points: 1. Contract awarded to General Dynamics Information Technology, Inc. for critical DDG modernization. 2. Significant investment in naval shipbuilding and repair sector. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Competition method appears robust, but specific price discovery needs review.
Value Assessment
Rating: good
The contract value of $11.98M for 1020 days of service appears reasonable for specialized engineering support. Benchmarking against similar DDG modernization contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense modernization.
Public Impact
Enhances the operational readiness of the DDG fleet. Supports advanced naval technology and shipbuilding capabilities. Contributes to the economic activity within the shipbuilding and repair sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can incentivize contractor cost overruns.
- Long duration (1020 days) increases exposure to potential scope creep or changing requirements.
- Reliance on a single awardee for a critical program phase.
Positive Signals
- Awarded under full and open competition.
- Supports modernization of key naval assets.
- Clear period of performance defined.
Sector Analysis
This contract falls within the Ship Building and Repairing sector, specifically supporting the modernization of guided-missile destroyers (DDG). Spending in this area is crucial for maintaining naval superiority and technological advancement.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The contract's duration and CPFF structure warrant close monitoring to ensure cost control and adherence to scope.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Long contract duration.
- Potential for scope creep.
- Reliance on a single prime contractor for critical engineering.
Tags
ship-building-and-repairing, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENGINEERING AND TECHNICAL FOR THE DDG MODERNIZATION PROGRAM ON THE DDG-93
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.0 million.
What is the period of performance?
Start: 2023-05-15. End: 2026-02-28.
What is the projected cost efficiency of this CPFF contract compared to other contract types for similar modernization efforts?
Cost Plus Fixed Fee contracts, while offering flexibility for complex projects, can sometimes lead to higher costs if not managed rigorously. Benchmarking against fixed-price or other incentive-based contracts for comparable DDG modernization tasks would reveal if this approach yields optimal value. The government's ability to control costs hinges on detailed oversight and clear performance metrics.
What are the specific technical risks associated with the DDG modernization program that necessitate a CPFF contract?
The DDG modernization program likely involves complex, evolving technical challenges where the full scope and cost are difficult to define upfront. Risks might include integration of new technologies, unforeseen system compatibility issues, or the need for adaptive engineering solutions. A CPFF contract allows for flexibility in addressing these unknowns while providing a fixed fee for the contractor's effort.
How effectively will the performance metrics within this contract ensure the successful modernization of the DDG fleet?
The effectiveness hinges on the clarity and measurability of the performance metrics defined in the contract. For a CPFF contract, these metrics should focus on technical milestones, system integration success, and adherence to modernization goals. Robust government oversight is crucial to validate progress against these metrics and ensure the modernization achieves its intended operational improvements.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6449823Q3037
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,584,134
Exercised Options: $13,584,134
Current Obligation: $11,984,134
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $55,535
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6449821D0015
IDV Type: IDC
Timeline
Start Date: 2023-05-15
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2026-01-06
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)