DoD awards $31M to General Dynamics for Engineering Services, with contract ending 2027

Contract Overview

Contract Amount: $31,032,860 ($31.0M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-28

End Date: 2027-09-27

Contract Duration: 1,825 days

Daily Burn Rate: $17.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SBIR PHASE III AWARD

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23501

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: SBIR PHASE III AWARD Key points: 1. The award is a Phase III SBIR, indicating a follow-on effort from prior Small Business Innovation Research. 2. General Dynamics Mission Systems is a large, established defense contractor, suggesting significant market presence. 3. The contract type is Cost Plus Fixed Fee, which can carry higher risk if costs are not well-managed. 4. The sector is Engineering Services within the Department of Defense, a critical area for national security.

Value Assessment

Rating: fair

The contract type (Cost Plus Fixed Fee) and lack of specific pricing details make a direct value assessment difficult. Benchmarking against similar large-scale engineering service contracts is challenging without more granular data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is a Phase III SBIR, which typically implies a continuation of work initiated under a previous SBIR award. While not explicitly sole-source, the nature of SBIR Phase III often limits competition to the original awardee or a very small pool.

Taxpayer Impact: Taxpayer funds are being used for advanced engineering services, the value of which depends on the successful execution and innovation stemming from the SBIR program.

Public Impact

Supports advanced engineering and technology development within the Navy. Potential for innovation and technological advancements benefiting national defense. Funds allocated to a large, established defense contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
  • Limited competition may reduce price discovery and potentially increase costs.
  • Lack of detailed pricing information hinders value assessment.

Positive Signals

  • Phase III SBIR indicates a progression of innovative technology.
  • Contract supports critical Department of Defense engineering needs.
  • Long-term contract duration allows for sustained development.

Sector Analysis

This contract falls within the Engineering Services sector, a broad category encompassing design, development, and technical support. Spending in this area is substantial within the DoD, supporting complex weapon systems and infrastructure.

Small Business Impact

While this is a Phase III SBIR award, the prime contractor is General Dynamics Mission Systems, a large business. The initial SBIR phases would have been awarded to small businesses, but this follow-on contract is with a large entity.

Oversight & Accountability

Oversight will be crucial for the Department of the Navy to ensure cost control and performance under the Cost Plus Fixed Fee structure. Tracking milestones and deliverables will be key to accountability.

Related Government Programs

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

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Limited competition.
  • Large prime contractor on an SBIR follow-on.
  • Lack of detailed pricing information.

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 $31.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. SBIR PHASE III AWARD

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 $31.0 million.

What is the period of performance?

Start: 2022-09-28. End: 2027-09-27.

What specific technological advancements or capabilities are expected to result from this $31 million investment in engineering services?

The specific technological advancements are tied to the original SBIR topic that this Phase III contract supports. Phase III awards focus on the commercialization and further development of technologies that originated in earlier SBIR phases. Without knowing the original SBIR topic, it's difficult to pinpoint the exact expected outcomes, but they likely relate to enhancing naval systems, platforms, or operational capabilities through innovative engineering solutions.

Given the Cost Plus Fixed Fee structure and limited competition, what are the primary risks to the government regarding cost and performance?

The primary risks include potential cost overruns, as the government bears the cost of performance plus a fixed fee, and the contractor has less incentive to control costs aggressively. Limited competition may also mean the government does not achieve the most competitive pricing. Performance risks involve ensuring the contractor delivers the required engineering services effectively and on schedule to meet the Department of the Navy's objectives.

How does this contract contribute to the overall effectiveness of the Department of the Navy's engineering and technological capabilities?

This contract contributes by providing specialized engineering services that may be beyond the organic capabilities of the Navy or require specific expertise held by General Dynamics. As a Phase III SBIR, it signifies the maturation of a technology developed through the SBIR program, aiming to transition innovative solutions into operational use, thereby enhancing the effectiveness and technological edge of naval forces.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTIONEQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6523622R0016

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 9500 INNOVATION DR, MANASSAS, VA, 20110

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: $47,611,296

Exercised Options: $37,273,697

Current Obligation: $31,032,860

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $468,039

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2022-09-28

Current End Date: 2027-09-27

Potential End Date: 2027-09-27 00:00:00

Last Modified: 2025-12-15

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