DoD Awards $7.9M for Circuit Cards to General Dynamics, Lacking Competition

Contract Overview

Contract Amount: $7,903,653 ($7.9M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-05

End Date: 2027-10-20

Contract Duration: 684 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CIRCUIT CARD ASSEMB NSN: 5998-01-720-5681 MFR CAGE: 19207 MFR PART NUMBER: 57K7433 QTY: 338

Place of Performance

Location: TALLAHASSEE, LEON County, FLORIDA, 32303

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $7.9 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: CIRCUIT CARD ASSEMB NSN: 5998-01-720-5681 MFR CAGE: 19207 MFR PART NUMBER: 57K7433 QTY: 338 Key points: 1. Significant award of $7.9 million for circuit cards. 2. Sole-source award to General Dynamics, raising competition concerns. 3. Contract duration extends to October 2027. 4. No small business participation indicated.

Value Assessment

Rating: questionable

The contract value of $7.9 million for 338 circuit cards appears high, especially given the lack of competition. Benchmarking against similar contracts for bare printed circuit boards is difficult without more detailed specifications, but the per-unit cost seems elevated.

Cost Per Unit: $23,383.59

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to General Dynamics. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition may result in inflated prices, impacting taxpayer value.

Public Impact

Military readiness could be impacted if these circuit cards are critical components. Taxpayers may be overpaying due to the sole-source nature of the award. Lack of transparency in the procurement process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • High per-unit cost
  • No small business participation

Positive Signals

  • Definitive contract awarded
  • Long-term supply secured

Sector Analysis

This contract falls under the Defense sector, specifically for electronic components. Spending benchmarks for bare printed circuit boards can vary widely based on complexity and volume, but a $7.9 million award for 338 units suggests a specialized or high-value item.

Small Business Impact

The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. This represents a missed opportunity to support small business participation in defense contracting.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price is fair and reasonable. Accountability for the lack of competition should be investigated.

Related Government Programs

  • Bare Printed Circuit Board Manufacturing
  • Department of Defense Contracting
  • Defense Logistics Agency Programs

Risk Flags

  • Sole-source award limits competition and price discovery.
  • High per-unit cost raises concerns about fair and reasonable pricing.
  • Lack of small business participation.
  • Long contract duration without clear performance metrics.
  • Potential for supply chain disruption due to single source.

Tags

bare-printed-circuit-board-manufacturing, department-of-defense, fl, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.9 million to GENERAL DYNAMICS LAND SYSTEMS INC.. CIRCUIT CARD ASSEMB NSN: 5998-01-720-5681 MFR CAGE: 19207 MFR PART NUMBER: 57K7433 QTY: 338

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS LAND SYSTEMS INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $7.9 million.

What is the period of performance?

Start: 2025-12-05. End: 2027-10-20.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to explore competitive options?

The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies typically require detailed documentation, such as a Justification and Approval (J&A), to support sole-source procurements. This document should outline market research conducted, reasons why only one source can meet the requirement, and efforts to ensure fair and reasonable pricing. Without this information, it's difficult to assess the necessity and potential cost implications.

How does the per-unit cost of $23,383.59 compare to industry benchmarks for similar bare printed circuit boards, considering the manufacturer and part number?

The per-unit cost of $23,383.59 for this circuit card is exceptionally high and warrants scrutiny. Without specific technical details of the board (e.g., layers, components, complexity), direct benchmarking is challenging. However, for standard bare printed circuit boards, this price is significantly above typical market rates. Further investigation into the board's specifications and potential proprietary nature is needed to validate this cost.

What is the criticality of these circuit cards to the Department of Defense's operations, and what are the risks associated with a sole-source supply chain?

The criticality of these circuit cards directly impacts the risk assessment. If they are essential for key defense systems, a sole-source supply chain creates significant vulnerability. Risks include potential disruptions due to the single manufacturer's issues (production, financial, geopolitical), lack of innovation, and continued high-cost pricing without competitive pressure. This dependency could jeopardize program timelines and operational readiness.

Industry Classification

NAICS: ManufacturingSemiconductor and Other Electronic Component ManufacturingBare Printed Circuit Board Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 38500 MOUND RD, STERLING HEIGHTS, MI, 48310

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: $16,053,807

Exercised Options: $7,903,653

Current Obligation: $7,903,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2025-12-05

Current End Date: 2027-10-20

Potential End Date: 2027-10-20 12:10:00

Last Modified: 2025-12-05

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