DoD's $38.7M laptop and workstation contract awarded to General Dynamics Mission Systems, Inc. via full and open competition

Contract Overview

Contract Amount: $38,702,379 ($38.7M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-12-11

End Date: 2011-02-15

Contract Duration: 431 days

Daily Burn Rate: $89.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: UNDEFINITIZED CONTRACTUAL ACTION (UCA) FOR COMMON HARDWARE SYSTEM-3 (CHS-3) TO PROCURE COMMERCIAL WORKSUITES AND BASIC ANALYST LAPTOPS (BALS) WITH PERIPHERALS

Place of Performance

Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $38.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: UNDEFINITIZED CONTRACTUAL ACTION (UCA) FOR COMMON HARDWARE SYSTEM-3 (CHS-3) TO PROCURE COMMERCIAL WORKSUITES AND BASIC ANALYST LAPTOPS (BALS) WITH PERIPHERALS Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract covers commercial work suites and basic analyst laptops, indicating a need for standard computing hardware. 3. The duration of the contract (431 days) is relatively short, suggesting a focus on immediate needs rather than long-term sustainment. 4. The contract was awarded as an Undefinitized Contractual Action (UCA), which may indicate urgency or initial uncertainty in scope. 5. The base award amount of $8.98M represents a significant portion of the total potential value, highlighting initial commitment. 6. The contract's focus on commercial off-the-shelf (COTS) items generally implies lower risk and faster delivery compared to custom solutions.

Value Assessment

Rating: fair

The contract's value of $38.7 million for laptops and workstations appears reasonable for a Department of Defense procurement. However, without specific details on the quantity and configuration of the hardware, a precise value-for-money assessment is challenging. The use of commercial items suggests an effort to leverage existing market prices, which is generally a positive indicator for cost efficiency. Benchmarking against similar large-scale COTS hardware procurements would be necessary for a more definitive evaluation of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were considered after an initial exclusion. The specific reason for exclusion is not detailed, but the 'full and open' designation implies a broad solicitation. The presence of competition is generally beneficial for price discovery and ensuring the government receives competitive pricing. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. This approach maximizes the potential for obtaining the best value for the government.

Public Impact

Personnel within the Department of the Army will benefit from access to updated computing hardware. The contract delivers commercial work suites and basic analyst laptops, essential tools for various analytical and operational tasks. The geographic impact is likely widespread across Army installations where these systems are deployed. Workforce implications include ensuring that military and civilian personnel have the necessary technological tools to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The use of an Undefinitized Contractual Action (UCA) can introduce financial risk if the final negotiated price is significantly higher than the initial estimate.
Lack of specific configuration details makes it difficult to assess if the procured hardware meets the precise needs of analysts, potentially leading to over or under-specification.
The relatively short contract duration might necessitate follow-on procurements, potentially increasing administrative overhead and the risk of price increases in subsequent contracts.

Positive Signals

Awarding through full and open competition suggests a robust process aimed at achieving competitive pricing.
The procurement of commercial off-the-shelf (COTS) items typically leads to faster delivery and easier maintenance compared to custom-developed solutions.
The contract specifies 'Firm Fixed Price' terms, which provides cost certainty for the government once the contract is definitized.

Sector Analysis

This contract falls within the Information Technology (IT) hardware manufacturing and sales sector. The market for commercial laptops and workstations is highly competitive, dominated by major manufacturers. The Department of Defense is a significant customer in this sector, often procuring large volumes of COTS hardware. Spending benchmarks for similar IT hardware procurements by government agencies can vary widely based on quantity, specifications, and vendor, but this contract's value is substantial for a single award.

Small Business Impact

The data indicates that small business participation (sb) was false and that there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. General Dynamics Mission Systems, Inc. is a large prime contractor, and while they may utilize small business subcontractors, the primary award is not a set-aside. This contract's structure does not appear to directly benefit the small business ecosystem through a set-aside mechanism.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As an Undefinitized Contractual Action (UCA), there would be a specific focus on definitization to establish a firm fixed price. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. Accountability measures would involve performance monitoring and adherence to contract terms.

Related Government Programs

Department of Defense IT Hardware Procurement
Commercial Off-the-Shelf (COTS) IT Equipment
Army Standard Laptop Procurements
Undefinitized Contractual Actions (UCAs)

Risk Flags

Undefinitized Contractual Action (UCA) requires careful monitoring and definitization.
Potential for scope creep or price increases if UCA is not managed effectively.
Lack of specific technical details in summary data hinders granular value assessment.
Exclusion of sources in competition requires scrutiny of justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. UNDEFINITIZED CONTRACTUAL ACTION (UCA) FOR COMMON HARDWARE SYSTEM-3 (CHS-3) TO PROCURE COMMERCIAL WORKSUITES AND BASIC ANALYST LAPTOPS (BALS) WITH PERIPHERALS

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 Army).

What is the total obligated amount?

The obligated amount is $38.7 million.

What is the period of performance?

Start: 2009-12-11. End: 2011-02-15.

What is the specific configuration and quantity of the 'common hardware system-3' (CHS-3) work suites and basic analyst laptops (BALS) procured under this contract?

The provided data does not specify the exact configurations or quantities of the CHS-3 work suites and BALS. The contract is for commercial items, suggesting standard off-the-shelf models. However, the precise technical specifications (e.g., processor speed, RAM, storage, screen size) and the total number of units ordered are not detailed in the summary data. This information is crucial for a granular assessment of value and suitability for the intended users. Typically, such details would be found in the contract's statement of work or technical exhibits, which are not publicly available in this context.

How does the per-unit cost of these laptops and workstations compare to similar commercial market prices or other government procurements?

A direct per-unit cost comparison is not possible with the provided data, as the total contract value ($38.7M) and the number of units are unknown. The contract was awarded under 'Full and Open Competition,' which generally promotes competitive pricing. Procuring 'commercial work suites and basic analyst laptops' implies leveraging existing market prices for COTS products. To benchmark effectively, one would need to know the specific models procured and compare their unit prices against prevailing market rates or recent government contracts for comparable hardware. Without this, we can only infer that the competitive nature of the award likely aimed for market-aligned pricing.

What were the primary reasons for awarding this contract as an Undefinitized Contractual Action (UCA)?

The data indicates this was an 'UNDEFINITIZED CONTRACTUAL ACTION (UCA)' but does not specify the exact reasons. UCAs are typically used when the government needs to start work immediately but cannot finalize the contract terms and price upfront. Common reasons include urgent requirements, delays in finalizing specifications, or ongoing negotiations. For this contract, it might have been driven by an immediate need for updated computing hardware for analysts, where finalizing all details would have caused unacceptable delays. The contract was later definitized, implying that a final agreement on scope and price was reached.

What is the track record of General Dynamics Mission Systems, Inc. in delivering similar IT hardware contracts to the Department of Defense?

General Dynamics Mission Systems, Inc. (GDMS) has a substantial track record of delivering complex systems and IT solutions to the Department of Defense and other government agencies. They are a major defense contractor with extensive experience in areas like command and control, intelligence, surveillance, reconnaissance, and IT services. While this specific contract focuses on commercial laptops, GDMS's broader experience suggests they possess the logistical and program management capabilities to handle large-scale hardware procurements. Their history includes numerous large contracts, indicating a capacity for delivery, though performance on individual contracts can vary.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type implies that while the competition was broad, certain sources were initially excluded. The primary risk lies in understanding the justification for this exclusion. If the exclusion was based on criteria that unduly limited the pool of potential bidders, it could potentially lead to less robust competition and potentially higher prices than a truly unrestricted full and open competition. However, if the exclusion was based on specific technical requirements or past performance criteria that legitimately narrowed the field to highly qualified vendors, the risk might be minimal. The key is the transparency and validity of the exclusion rationale.

How does this contract fit into the broader IT modernization or sustainment efforts within the Department of the Army?

This contract represents a component of the Department of the Army's ongoing efforts to equip its personnel with modern computing capabilities. Procuring commercial work suites and basic analyst laptops suggests a strategy to standardize and refresh essential end-user devices. Such procurements are critical for maintaining operational readiness, enabling data analysis, and supporting communication across various Army functions. It aligns with broader government initiatives to leverage COTS technology for cost savings and faster deployment, contributing to the overall IT infrastructure sustainment and modernization roadmap.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: HARDWARE AND ABRASIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,702,379

Exercised Options: $38,702,379

Current Obligation: $38,702,379

Contract Characteristics

Cost or Pricing Data: NO

Timeline