DoD Awards $32.6M for Configuration Items to General Dynamics, Sole-Source

Contract Overview

Contract Amount: $42,926,710 ($42.9M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-27

End Date: 2025-12-31

Contract Duration: 2,287 days

Daily Burn Rate: $18.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF DELIVERY ORDER W15P7T-19-F-0022 UNDER CONTRACT W15P7T-10-D-C007 IS TO PROCURE CONFIGURATION ITEMS BASED YEAR 10 PRICING IN THE AMOUNT OF $ 32,597,493.00.

Place of Performance

Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $42.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: THE PURPOSE OF DELIVERY ORDER W15P7T-19-F-0022 UNDER CONTRACT W15P7T-10-D-C007 IS TO PROCURE CONFIGURATION ITEMS BASED YEAR 10 PRICING IN THE AMOUNT OF $ 32,597,493.00. Key points: 1. Spending focused on configuration items for Year 10 pricing. 2. Sole-source award to General Dynamics Mission Systems, Inc. 3. Contract duration is 2287 days, ending December 31, 2025. 4. The procurement falls under NAICS code 334210 (Telephone Apparatus Manufacturing).

Value Assessment

Rating: questionable

The contract is a firm-fixed-price delivery order. Pricing is based on Year 10 pricing from a previous contract, making direct comparison difficult without historical data. The total award amount is $32,597,493.00.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is bypassed.

Taxpayer Impact: The lack of competition for this $32.6 million award means taxpayers may not be receiving the best possible price.

Public Impact

Procurement of essential configuration items for the Department of the Army. Long contract duration of nearly 6.5 years. Potential for increased costs due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • Pricing based on older data

Positive Signals

  • Firm-fixed-price contract type
  • Procurement of necessary configuration items

Sector Analysis

This contract falls within the IT and Defense sectors, specifically related to telephone apparatus manufacturing. Spending benchmarks for similar configuration item procurements are difficult to ascertain without more specific details on the items themselves.

Small Business Impact

The contract was awarded to General Dynamics Mission Systems, Inc., a large business. There is no indication that small businesses were involved in this specific delivery order, nor is there a stated set-aside for small business participation.

Oversight & Accountability

The award is a delivery order under an existing contract, suggesting some level of prior oversight. However, the sole-source nature warrants scrutiny to ensure the government's interests were protected and fair pricing was achieved.

Related Government Programs

  • Telephone Apparatus Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Sole-source award bypasses competition.
  • Pricing based on potentially outdated 'Year 10' data.
  • Lack of transparency regarding specific configuration items.
  • Long contract duration (2287 days) increases long-term risk.
  • No indication of small business participation.

Tags

telephone-apparatus-manufacturing, department-of-defense, ma, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. THE PURPOSE OF DELIVERY ORDER W15P7T-19-F-0022 UNDER CONTRACT W15P7T-10-D-C007 IS TO PROCURE CONFIGURATION ITEMS BASED YEAR 10 PRICING IN THE AMOUNT OF $ 32,597,493.00.

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 $42.9 million.

What is the period of performance?

Start: 2019-09-27. End: 2025-12-31.

What was the justification for the sole-source award, and was a market research report conducted to confirm the lack of viable competitive alternatives?

The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a justification, such as a unique capability or proprietary technology held by the contractor. Without this justification, it's difficult to assess if the government adequately explored competitive options or if this was a missed opportunity for cost savings.

How does the 'Year 10 pricing' compare to current market rates for similar configuration items, and what mechanisms are in place to ensure this pricing remains fair over the contract's duration?

Using 'Year 10 pricing' from a previous contract raises concerns about its relevance and fairness in the current market. Without a benchmark against contemporary pricing or adjustments for inflation and market fluctuations, the government risks overpaying. The firm-fixed-price nature provides cost certainty but doesn't guarantee value if the baseline price is inflated.

What specific configuration items are being procured, and what is their criticality to the Department of the Army's operations to justify a sole-source, long-term award?

The data specifies 'configuration items' but lacks detail on their nature or function. Understanding the criticality of these items to the Army's mission is essential for evaluating the risk associated with a sole-source award. If these are standard or easily replaceable components, the justification for bypassing competition becomes weaker.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingTelephone Apparatus Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

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: $42,926,710

Exercised Options: $42,926,710

Current Obligation: $42,926,710

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T10DC007

IDV Type: IDC

Timeline

Start Date: 2019-09-27

Current End Date: 2025-12-31

Potential End Date: 2025-12-31 00:00:00

Last Modified: 2023-08-18

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