Department of the Army awards $32.5M contract for rugged laptops, highlighting IT hardware needs

Contract Overview

Contract Amount: $32,472,125 ($32.5M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-08-24

End Date: 2019-08-29

Contract Duration: 370 days

Daily Burn Rate: $87.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROCURE OTC, TFOCA, V1 JTNT, OTCA, V1 LAT 14-RUGGED EXT LAPTOP

Place of Performance

Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $32.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: PROCURE OTC, TFOCA, V1 JTNT, OTCA, V1 LAT 14-RUGGED EXT LAPTOP Key points: 1. Contract awarded via full and open competition, suggesting a competitive market for rugged IT hardware. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Delivery order awarded under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The award period is relatively short, indicating a specific, immediate need for the equipment. 5. The North American Industry Classification System (NAICS) code suggests a focus on miscellaneous electrical equipment manufacturing. 6. The contractor, General Dynamics Mission Systems, is a significant player in defense technology.

Value Assessment

Rating: good

The contract value of $32.5 million for rugged laptops appears reasonable given the specialized nature of military-grade hardware. Benchmarking against similar contracts for ruggedized computing devices is necessary for a definitive value assessment. However, the firm-fixed-price structure suggests the government secured a defined cost for the specified equipment, mitigating potential overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this approach generally fosters price discovery and encourages competitive pricing. The use of a broad solicitation likely attracted a range of qualified suppliers for these specialized IT assets.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, ensuring the government receives the best value for its investment.

Public Impact

Provides essential computing hardware for military personnel operating in demanding environments. Supports the Department of the Army's operational readiness and mission effectiveness. Likely impacts soldiers and support staff requiring durable and reliable technology in the field. The contract contributes to the IT infrastructure supporting various Army operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this is part of a larger, long-term sustainment strategy.
Dependence on a single contractor for critical hardware could pose supply chain risks.
The specific ruggedization standards and performance requirements need to be clearly defined to ensure suitability.

Positive Signals

Awarded through a competitive process, suggesting a good market selection.
Firm-fixed-price contract provides cost certainty for the government.
General Dynamics Mission Systems has a strong track record in defense contracting.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on hardware procurement for defense applications. The market for ruggedized computing devices is specialized, catering to industries that require durable electronics capable of withstanding harsh environmental conditions. Spending in this area is driven by the need for reliable equipment in military, public safety, and industrial settings. Comparable spending benchmarks would involve analyzing other government procurements for similar rugged laptops and mobile computing solutions.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if General Dynamics Mission Systems engages them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally maintained through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Tactical Computer Systems
Ruggedized Laptops
Military IT Hardware
Defense Procurement
Information Technology Equipment

Risk Flags

Potential for outdated technology if IDIQ contract is not current.
Limited visibility into specific unit pricing without quantity.
Dependence on contractor's supply chain for specialized components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. PROCURE OTC, TFOCA, V1 JTNT, OTCA, V1 LAT 14-RUGGED EXT LAPTOP

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 $32.5 million.

What is the period of performance?

Start: 2018-08-24. End: 2019-08-29.

What is the specific model and technical configuration of the rugged laptops procured under this contract?

The provided data does not specify the exact model or technical configuration of the rugged laptops. The contract description 'PROCURE OTC, TFOCA, V1 JTNT, OTCA, V1 LAT 14-RUGGED EXT LAPTOP' suggests a need for extended, ruggedized laptops, likely with specific performance characteristics suitable for tactical operations (TFOCA, JTNT). Further details would typically be found in the contract's statement of work or technical specifications, which are not included in this summary. These configurations often include enhanced durability against shock, vibration, dust, and water, along with specific processing power, memory, and storage to support military software applications.

How does the awarded price of $32.5 million compare to market rates for similar rugged laptops?

A direct comparison of the $32.5 million total award value to market rates for similar rugged laptops requires knowing the quantity procured and the specific model/configuration. Assuming this is for a significant number of units, the price per unit needs to be calculated. Rugged laptops are premium products, often costing several thousand dollars each due to their specialized construction and testing. Without the quantity, a precise per-unit cost benchmark is impossible. However, the firm-fixed-price nature suggests the government aimed for cost certainty. Industry benchmarks for high-end rugged laptops can range from $3,000 to $8,000+ per unit, depending on specifications and certifications. If this contract procured, for example, 5,000 units at an average of $6,500 each, it would align with market expectations for specialized military-grade hardware.

What is General Dynamics Mission Systems' track record with similar Department of Defense IT contracts?

General Dynamics Mission Systems (GDMS) has an extensive and well-established track record with the Department of Defense (DoD) for providing a wide array of IT solutions, including hardware, software, and integrated systems. They are a major defense contractor known for delivering complex technology solutions for command, control, communications, computers, and intelligence (C4I) systems, as well as cyber and electronic warfare capabilities. Their experience encompasses delivering ruggedized equipment for tactical environments, similar to this contract. GDMS has consistently secured large-value contracts across various military branches, demonstrating their capacity and reliability in meeting stringent DoD requirements and performance standards.

What are the potential risks associated with procuring rugged laptops through a delivery order under an IDIQ contract?

Procuring rugged laptops via a delivery order under an IDIQ contract presents several potential risks. Firstly, the pricing for individual delivery orders might not always be as competitive as a standalone, fully competed contract, depending on the IDIQ's original competition and pricing structure. Secondly, there's a risk of scope creep if the requirements within the delivery order are not precisely defined, potentially leading to cost increases or delays. Thirdly, reliance on a single IDIQ vehicle could limit access to the latest technologies or best-value solutions available from vendors not holding that specific IDIQ. Finally, the government's ability to ensure optimal value is contingent on the quality of the original IDIQ competition and the subsequent management of each delivery order.

How does this contract fit into the broader context of the Army's IT modernization efforts?

This contract for rugged laptops fits into the Army's broader IT modernization efforts by ensuring that frontline personnel have access to reliable and durable computing equipment necessary for operating in diverse and challenging environments. Modernization often involves upgrading hardware to support new software capabilities, enhance network connectivity, and improve data processing in the field. Rugged laptops are critical components for soldiers engaged in tactical operations, reconnaissance, and command and control, enabling them to utilize advanced digital tools effectively. This procurement likely supports initiatives aimed at increasing situational awareness, improving communication, and leveraging data analytics at the tactical edge, thereby enhancing overall mission effectiveness and readiness.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

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: $32,472,125

Exercised Options: $32,472,125

Current Obligation: $32,472,125

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T11DG402

IDV Type: IDC

Timeline