DoD awards $189M for Communication Equipment to General Dynamics, a sole-source contract
Contract Overview
Contract Amount: $38,317,344 ($38.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-05-10
End Date: 2007-10-31
Contract Duration: 539 days
Daily Burn Rate: $71.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200608!003689!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CG001 !A!N! !N! ! !20060510!20070731!188991954!116187758!001381284!N!GENERAL DYNAMICS C4 SYSTEMS, I!400 JOHN QUINCY ADAMS RD !TAUNTON !MA!02780!69170!005!25!TAUNTON !BRISTOL !MASS !+000028867952!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334210!E! !1! ! ! ! ! !99990909!B! ! !N!A!D!N!J!1!001!N!2A!A!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780
Plain-Language Summary
Department of Defense obligated $38.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 200608!003689!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CG001 !A!N! !N! ! !20060510!20070731!188991954!116187758!001381284!N!GENERAL DYNAMICS C4 SYSTEMS, I!400 JOHN QUINCY ADAMS RD !TAUNTON !MA!02780!69170!005!25!TAUNTON !BRIS… Key points: 1. Contract awarded to General Dynamics C4 Systems for communication equipment. 2. The contract is a sole-source award, raising questions about competition. 3. The total value is $188,991,954, with an initial award of $116,187,758. 4. The sector is Defense, specifically related to electronics and communication equipment. 5. The contract duration is 539 days, from May 2006 to October 2007.
Value Assessment
Rating: fair
The contract value of $189M for communication equipment appears high compared to industry benchmarks for similar systems. Without detailed specifications, a precise comparison is difficult, but the scale suggests a significant procurement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the lack of competitive bidding.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The DoD received specialized communication equipment, potentially critical for operations. The award to a single large contractor could impact market dynamics for similar equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for overpayment due to lack of competitive bidding.
- Contract duration is relatively short, suggesting a specific need or limited scope.
Positive Signals
- Award to a known entity (General Dynamics) suggests reliability.
- Contract addresses a specific need for communication equipment.
- Firm Fixed Price contract provides cost certainty once negotiated.
Sector Analysis
This contract falls within the Defense sector, specifically for miscellaneous communication equipment. Spending in this area is driven by military modernization and operational needs, with benchmarks varying widely based on technology and quantity.
Small Business Impact
The contract was awarded to General Dynamics C4 Systems, a large prime contractor. There is no indication of small business participation in this specific award, suggesting a lack of subcontracting opportunities for smaller firms.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price was fair and reasonable. Oversight should focus on the justification for not pursuing competition and the negotiation process.
Related Government Programs
- Telephone Apparatus Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award.
- Potential for inflated pricing.
- Lack of transparency in competition.
- No clear indication of small business involvement.
Tags
telephone-apparatus-manufacturing, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 200608!003689!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CG001 !A!N! !N! ! !20060510!20070731!188991954!116187758!001381284!N!GENERAL DYNAMICS C4 SYSTEMS, I!400 JOHN QUINCY ADAMS RD !TAUNTON !MA!02780!69170!005!25!TAUNTON !BRISTOL !MASS !+000028867952!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334210!E! !1! ! ! ! ! !999
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $38.3 million.
What is the period of performance?
Start: 2006-05-10. End: 2007-10-31.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other sources. Without access to the contract file, it's impossible to confirm the specific justification used here. However, such awards require rigorous documentation to prove that competition was truly not feasible or would be detrimental to the government's interests.
How does the per-unit cost of this communication equipment compare to commercially available or previously procured similar systems?
A direct per-unit cost comparison is challenging without detailed specifications of the 'MISCELLANEOUS COMMUNICATION EQUIPMENT.' However, given the $189M total value and the lack of competition, there's a risk that the unit cost may be higher than if multiple vendors had competed. Benchmarking against similar DoD procurements or commercial equivalents would be necessary for a definitive assessment.
What is the long-term strategic value of this communication equipment to the Department of Defense, beyond the immediate operational need?
The long-term strategic value depends on the specific capabilities of the communication equipment. If it provides a unique or superior communication capability essential for national security, its value extends beyond immediate operational use. However, if it's a standard component, its value is primarily in fulfilling current operational requirements and maintaining readiness.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 400 JOHN QUINCY ADAMS RD, TAUNTON, MA, 02780
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-05-10
Current End Date: 2007-10-31
Potential End Date: 2007-10-31 00:00:00
Last Modified: 2016-05-10
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