DoD's $30M Communication Equipment Repair Contract Awarded to General Dynamics Mission Systems

Contract Overview

Contract Amount: $30,232,082 ($30.2M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-04-01

End Date: 2019-01-25

Contract Duration: 1,395 days

Daily Burn Rate: $21.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $30.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: IGF::OT::IGF Key points: 1. Contract value of $30.2M for communication equipment repair and maintenance. 2. Awarded to a single vendor, raising questions about competition. 3. Long contract duration of 1395 days suggests a need for sustained support. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 5. Geographic focus on Arizona for this specific award. 6. No small business set-aside was included in this contract.

Value Assessment

Rating: fair

The contract value of $30.2 million for communication equipment repair and maintenance appears substantial. Benchmarking this against similar contracts for specialized defense equipment repair is challenging without more specific details on the equipment covered and the scope of services. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D or uncertain scope work, carries inherent risks of cost escalation if the fixed fee becomes disproportionate to the actual costs incurred. Without detailed cost breakdowns or comparisons to industry standards for similar repair services, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary specialized knowledge, technology, or capability to perform the required services. The lack of competition means that pricing was not tested against market alternatives, potentially leading to higher costs for the government compared to a competitively bid contract. The government would need to justify the sole-source award based on specific technical or proprietary requirements.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competitive pressures to secure the best possible pricing, potentially resulting in less favorable terms for taxpayers.

Public Impact

The primary beneficiary is the Department of Defense, ensuring the operational readiness of communication equipment. Services include repair and maintenance of critical communication systems. The contract has a geographic impact primarily in Arizona, where the services were likely performed or managed. Workforce implications include employment for skilled technicians and support staff at General Dynamics Mission Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Cost Plus Fixed Fee contract type carries a risk of cost overruns if not closely monitored.
Lack of transparency in the justification for a sole-source award.
Contract duration is long, requiring sustained oversight to ensure performance and cost control.

Positive Signals

Award to a known defense contractor with experience in communication systems.
Ensures continued support for critical defense communication equipment.
Specific geographic focus may indicate tailored support for a particular base or operation.

Sector Analysis

The defense sector relies heavily on specialized contractors for the maintenance and repair of complex communication equipment. This contract falls within the broader IT and defense electronics market, which is characterized by high technological sophistication and stringent security requirements. General Dynamics Mission Systems is a significant player in this space. Benchmarking this contract's value is difficult without knowing the specific communication systems involved, but the $30.2 million figure over approximately 3.7 years suggests a significant scope of work for specialized repair services.

Small Business Impact

This contract does not appear to have included a small business set-aside. Given the sole-source nature of the award and the specialized services required, it is unlikely that subcontracting opportunities for small businesses were a primary consideration or mandated requirement within the contract terms. Further analysis would be needed to determine if General Dynamics Mission Systems has any voluntary subcontracting plans with small businesses for this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency within the Department of Defense, likely managed by the Defense Contract Management Agency (DCMA). The Cost Plus Fixed Fee structure necessitates rigorous oversight to monitor costs, ensure the fixed fee remains appropriate, and verify that all contract deliverables are met. Transparency is limited due to the sole-source nature, but contract performance reports and financial audits would be key accountability measures.

Related Government Programs

Defense Communication Systems Maintenance
Tactical Communication Equipment Repair
Information Technology Support Services (Defense)
General Dynamics Mission Systems Contracts

Risk Flags

Sole-source award may indicate lack of competition.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long contract duration requires sustained oversight.
Specific equipment and scope of work not detailed, hindering precise value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. IGF::OT::IGF

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 $30.2 million.

What is the period of performance?

Start: 2015-04-01. End: 2019-01-25.

What specific communication equipment was covered under this contract?

The provided data does not specify the exact type of communication equipment covered under contract number IGF::OT::IGF. However, the North American Industry Classification System (NAICS) code 811213, 'Electronic and Precision Equipment Repair and Maintenance,' suggests a broad range of electronic devices. Given the contractor, General Dynamics Mission Systems, and the awarding agency (Department of Defense), it is highly probable that the equipment includes tactical radios, satellite communication systems, command and control systems, or other specialized electronic hardware critical for military operations. A detailed review of the contract's Statement of Work (SOW) would be necessary to identify the precise equipment.

How does the $30.2 million contract value compare to similar repair and maintenance contracts for defense communication equipment?

Directly comparing the $30.2 million value without knowing the specific equipment, scope of work, and contract duration is challenging. However, for major defense communication systems, multi-million dollar sustainment and repair contracts are common. The duration of this contract (1395 days, approximately 3.7 years) suggests a significant, long-term support requirement. If the contract covered a wide array of complex systems or a large quantity of equipment, the value might be considered reasonable within the defense contracting landscape. Conversely, if it covered a limited scope or less complex items, it could be on the higher side, especially given the sole-source award.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for communication equipment repair?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts. While a fixed fee is established, the government bears the risk of cost overruns beyond the estimated costs. This can lead to the government paying more than initially anticipated if the contractor's actual costs are higher than estimated. Effective oversight is crucial to monitor the contractor's spending, ensure efficiency, and prevent unnecessary expenses. The government must ensure the fixed fee is fair and that the contractor is performing diligently to manage costs within the estimated range.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED,' implying a sole-source justification. Common reasons for sole-source awards in defense contracting include unique technical capabilities, proprietary technology, urgent and compelling needs where only one source can meet the requirement, or when a previous contract was awarded competitively but only one vendor can provide follow-on support due to compatibility or integration issues. Without access to the specific justification documentation (e.g., Justification and Approval - J&A), the precise reason remains unknown. However, it suggests that the Department of Defense determined that General Dynamics Mission Systems was the only responsible source capable of meeting the requirement.

What is the historical spending pattern for communication equipment repair and maintenance by the Department of Defense?

The Department of Defense historically spends billions of dollars annually on communication systems, encompassing procurement, research and development, and sustainment (including repair and maintenance). Spending patterns can fluctuate based on technological advancements, geopolitical needs, and budget allocations. Contracts like this one, valued at $30.2 million over nearly four years, represent a segment of the broader sustainment spending. Analyzing historical data for similar repair and maintenance contracts, particularly those awarded to General Dynamics Mission Systems or for comparable equipment, would provide context on whether this specific award aligns with established spending trends or represents an outlier.

What is the track record of General Dynamics Mission Systems in fulfilling similar defense contracts?

General Dynamics Mission Systems is a well-established defense contractor with a significant track record in providing a wide range of technology solutions, including communication systems, for the U.S. military and allied nations. They have experience in developing, integrating, and sustaining complex electronic and communication hardware and software. While specific performance metrics for this particular contract (IGF::OT::IGF) are not detailed here, the company generally has extensive experience in this domain. Past performance evaluations on similar contracts, available through government databases like the Contractor Performance Assessment Reporting System (CPARS), would offer a more granular view of their reliability and effectiveness.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W15P7T15R0010

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,533,713

Exercised Options: $34,038,882

Current Obligation: $30,232,082

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $46,776,469

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline