General Dynamics C4 Systems received $116M for communication equipment, with a 2006 contract value of $189M

Contract Overview

Contract Amount: $115,774,170 ($115.8M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-21

End Date: 2008-08-31

Contract Duration: 710 days

Daily Burn Rate: $163.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200612!008024!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CG409 !A!N! !N! ! !20060921!20070831!188991954!116187758!001381284!N!GENERAL DYNAMICS C4 SYSTEMS, I!400 JOHN QUINCY ADAMS RD !TAUNTON !MA!02780!69170!005!25!TAUNTON !BRISTOL !MASS !+000079403375!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

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $115.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 200612!008024!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CG409 !A!N! !N! ! !20060921!20070831!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. The contract was awarded on a non-competitive basis, potentially impacting price discovery. 2. The firm fixed-price contract type suggests a defined scope and cost control. 3. The contract duration of 710 days indicates a medium-term project. 4. The primary NAICS code is 334210 for Telephone Apparatus Manufacturing. 5. The award was made by the Department of Defense, indicating a strategic procurement. 6. The contract was not set aside for small businesses.

Value Assessment

Rating: fair

The total contract value was $188,991,954, with an initial award of $116,187,758. Comparing this to similar procurements for communication equipment is challenging without more specific details on the technology and services rendered. The firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the price was set appropriately.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not competed. This typically occurs when only one vendor can provide the required goods or services, or for reasons of national security or urgency. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as there was no direct pressure on the contractor to offer the lowest possible price.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical communication equipment. The contract supports the manufacturing of telephone apparatus and related communication equipment. The geographic impact is primarily within Massachusetts, where the contractor is located. The contract likely supports jobs in the electronics and communication equipment manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit innovation by not exploring alternative solutions from other vendors.
Dependence on a single contractor for critical communication systems could pose a supply chain risk.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The contractor, General Dynamics C4 Systems, is a known entity in defense contracting.
The contract specifies a clear end date, allowing for future re-evaluation of needs.

Sector Analysis

The procurement falls within the broader Information Technology and Defense sectors, specifically related to electronics and communication equipment manufacturing. The North American Industry Classification System (NAICS) code 334210, Telephone Apparatus Manufacturing, indicates a specialized segment. Spending in this area is crucial for maintaining secure and advanced communication networks for defense purposes. Benchmarking requires comparison with similar sole-source or competitively awarded contracts for specialized communication systems within the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like General Dynamics C4 Systems suggests that the primary focus was on the prime's capabilities rather than fostering small business participation through this specific award mechanism.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations, managed by agencies like the Defense Contract Management Agency (DCMA). Accountability is established through the firm fixed-price terms and delivery schedules. Transparency is limited by the sole-source nature of the award, but contract modifications and performance reports would be subject to internal DoD review and potentially Inspector General oversight if issues arise.

Related Government Programs

Department of Defense Communications Systems
Tactical Communication Equipment Procurement
Electronics Manufacturing Contracts
Telephone Apparatus Manufacturing Contracts

Risk Flags

Sole-source award limits competitive pricing.
Lack of small business set-aside may reduce opportunities for smaller firms.
Contract value is substantial, requiring careful oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $115.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 200612!008024!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CG409 !A!N! !N! ! !20060921!20070831!188991954!116187758!001381284!N!GENERAL DYNAMICS C4 SYSTEMS, I!400 JOHN QUINCY ADAMS RD !TAUNTON !MA!02780!69170!005!25!TAUNTON !BRISTOL !MASS !+000079403375!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 $115.8 million.

What is the period of performance?

Start: 2006-09-21. End: 2008-08-31.

What specific communication equipment was procured under this contract, and what was its intended use within the Department of Defense?

The provided data indicates the contract was for 'MISCELLANEOUS COMMUNICATION EQUIPMENT' under NAICS code 334210 (Telephone Apparatus Manufacturing). While specific technical details are not available, such equipment typically includes radios, secure communication devices, switching systems, and related hardware essential for maintaining command and control, intelligence sharing, and operational coordination within military branches. The 'C4' in General Dynamics C4 Systems likely refers to Command, Control, Communications, and Computers, suggesting the equipment is integral to these functions.

How does the awarded price of $116,187,758 compare to market rates for similar communication equipment in 2006?

Directly comparing the awarded price to market rates is difficult without detailed specifications of the 'miscellaneous communication equipment.' However, given the sole-source nature of the award, there's a risk that the price may not reflect the most competitive market value. General Dynamics is a major defense contractor, and their pricing often includes significant research, development, and integration costs, alongside manufacturing. A thorough benchmark would require analyzing pricing data from other DoD contracts for comparable sole-source or competitively awarded systems, considering factors like quantity, technological sophistication, and required security certifications.

What are the potential risks associated with awarding a contract of this magnitude ($189M total) on a sole-source basis?

The primary risk of a sole-source award for a contract of this size is the potential for inflated pricing due to the lack of competitive pressure. Taxpayers may not receive the best value for their money. Additionally, it can stifle innovation by not exploring potentially more cost-effective or technologically advanced solutions that other vendors might offer. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier for critical systems, potentially leading to future pricing leverage for the contractor and supply chain vulnerabilities.

What was the historical spending pattern for General Dynamics C4 Systems (or its parent) with the Department of Defense prior to and following this contract?

The provided data focuses solely on this specific contract (W15P7T06CG409). To assess historical spending patterns, one would need to access broader federal procurement databases (like FPDS or USASpending) to track all contracts awarded to General Dynamics C4 Systems and its parent company by the Department of Defense over several years. This would reveal trends in contract types, values, agencies, and the types of goods/services procured, helping to contextualize this particular award within their overall relationship with the DoD.

Were there any performance issues or contract modifications during the period of performance (2006-2008) for this $189M contract?

The provided data snippet does not contain information on contract modifications or performance issues. Such details would typically be found in more comprehensive contract award files or databases that track contract actions over time. Investigating contract modification history (e.g., through FPDS) would reveal if the scope, value, or timeline of this contract was altered after the initial award, and the reasons behind those changes. Performance reviews and any associated corrective actions are usually documented internally by the contracting officer.

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