General Dynamics Mission Systems awarded $25M for IMSE Depot Level Management and Operations support

Contract Overview

Contract Amount: $25,000,000 ($25.0M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-01-06

End Date: 2016-02-19

Contract Duration: 1,139 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: LETTER CONTRACT FOR THE CONTINUED SUPPORT OF IMSE DEPOT LEVEL MANAGEMENT AND OPERATIONS

Place of Performance

Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $25.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: LETTER CONTRACT FOR THE CONTINUED SUPPORT OF IMSE DEPOT LEVEL MANAGEMENT AND OPERATIONS Key points: 1. Contract value of $25 million over approximately 3.8 years indicates a significant investment in depot-level support. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The Cost Plus Fixed Fee (CPFF) pricing structure carries inherent risk of cost overruns if not closely managed. 4. This contract falls under 'Other Computer Related Services,' a broad category that requires specific performance metrics for effective oversight. 5. The duration of the contract (1139 days) suggests a need for sustained and stable support services. 6. The award to a single contractor, General Dynamics Mission Systems, Inc., highlights the specialized nature of the required services.

Value Assessment

Rating: fair

The contract value of $25 million for approximately 3.8 years of support for IMSE Depot Level Management and Operations suggests a moderate annual expenditure. Benchmarking this against similar IT support contracts for depot-level operations is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, can lead to higher costs if not managed diligently, potentially impacting value for money. Further analysis of the fixed fee component and the contractor's performance history would be necessary to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This approach is generally favored for maximizing competition and achieving competitive pricing. The number of bidders is not specified, but the use of full and open competition suggests a robust process was intended. The effectiveness of this competition in driving down costs depends on the number and quality of the bids received.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of receiving the best possible price and quality for the services rendered, fostering a more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense, specifically entities requiring IMSE depot-level management and operations. The services delivered are critical for maintaining and operating essential defense systems at the depot level. Geographic impact is likely concentrated around the specific depot locations where IMSE operations are managed. Workforce implications may include the retention or augmentation of skilled personnel required for depot-level technical support and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit if not properly monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.
The broad 'Other Computer Related Services' NAICS code may obscure the specific technical requirements and associated risks.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment that should drive better pricing and quality.
The contract duration of over three years implies a stable and predictable need for these services, allowing for efficient planning.
General Dynamics Mission Systems, Inc. is a large, established defense contractor with significant experience in complex systems.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on specialized depot-level management and operations. The market for such services is characterized by a mix of large defense contractors and specialized IT service providers. Spending in this area is driven by the need to maintain complex military systems, often requiring long-term support contracts. Comparable spending benchmarks would typically be found within defense IT sustainment and lifecycle management categories.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, General Dynamics Mission Systems, Inc., may engage small businesses as subcontractors for specific components or services, though this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract award notice, but detailed operational oversight and Inspector General jurisdiction would depend on the specific agency and program management.

Related Government Programs

Defense IT Sustainment Contracts
Military Depot Operations Support
Information Technology Management Services
Logistics and Maintenance Support Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Challenges (Broad NAICS)
Dependency on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. LETTER CONTRACT FOR THE CONTINUED SUPPORT OF IMSE DEPOT LEVEL MANAGEMENT AND OPERATIONS

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 $25.0 million.

What is the period of performance?

Start: 2013-01-06. End: 2016-02-19.

What is the track record of General Dynamics Mission Systems, Inc. in managing similar depot-level IT operations contracts for the Department of Defense?

General Dynamics Mission Systems, Inc. (GDMS) has a substantial track record with the Department of Defense, often handling complex systems integration, sustainment, and operational support. While specific details on their performance for IMSE depot-level management are not provided in this award notice, GDMS is known for its extensive experience in areas like command, control, communications, computers, and intelligence (C4I) systems, which often involve depot-level maintenance and lifecycle support. Their history includes numerous large-scale contracts across various defense branches. A deeper dive into their past performance evaluations, contract modifications, and any associated disputes or awards for similar services would provide a more comprehensive understanding of their capabilities and reliability in this specific domain.

How does the $25 million contract value compare to similar IMSE depot-level management and operations contracts awarded by the DoD?

The $25 million contract value for approximately 3.8 years of support for IMSE Depot Level Management and Operations represents an average annual value of roughly $6.6 million. Comparing this to similar contracts requires access to a database of comparable procurements. However, for specialized IT management and depot-level operations within the defense sector, this value is within a common range for medium-to-large scale support efforts. Contracts for depot-level services can vary significantly based on the complexity of the systems supported, the scope of maintenance required (e.g., repair, overhaul, calibration), and the specific technologies involved. Without more granular data on the specific IMSE systems and the full scope of services, a precise benchmark is difficult, but it suggests a significant, ongoing operational requirement.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this IMSE support, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government reimburses allowable costs plus a predetermined fixed fee. This can lead to cost overruns if not managed effectively. For IMSE depot-level support, risks include scope creep, inefficient labor utilization, and unexpected technical challenges that drive up costs. Mitigation strategies employed by the government typically involve rigorous oversight of incurred costs, detailed review of contractor's accounting systems, performance metrics tied to the fixed fee, and clear definition of allowable costs. The Defense Contract Management Agency (DCMA) would play a crucial role in monitoring expenditures and ensuring compliance with the contract terms to manage these risks.

What are the key performance indicators (KPIs) likely used to measure the effectiveness of General Dynamics Mission Systems, Inc. in this contract?

Key Performance Indicators (KPIs) for a contract like this would likely focus on the reliability, availability, and maintainability of the IMSE systems managed at the depot level. Specific KPIs could include: Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), system uptime percentages, on-time delivery of maintenance and repair services, adherence to maintenance schedules, and quality of repairs (e.g., low repeat failure rates). Additionally, financial KPIs related to cost control and efficient resource management might be tracked. The effectiveness of the contractor's management and operations would be assessed against these predefined metrics, which are crucial for ensuring the readiness and operational capability of the supported defense assets.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved, and where does this $25M contract fit within that trend?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally seen a consistent upward trend over the past decade, reflecting the increasing reliance of government agencies on specialized IT support, cybersecurity, data management, and cloud services. This category is broad and encompasses a wide array of services beyond standard software development or hardware maintenance. The $25 million contract for IMSE Depot Level Management and Operations fits within this trend as a significant, albeit specific, instance of federal investment in specialized IT operational support for critical defense infrastructure. While this single contract is a small fraction of the total federal spending in this NAICS code, it represents the type of complex, long-term service requirement that contributes to the overall growth in this spending category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 400 JOHN QUINCY ADAMS RD, TAUNTON, MA, 02780

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: $25,000,000

Exercised Options: $25,000,000

Current Obligation: $25,000,000

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $10,882,219

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline