DoD's $26.7M hardware contract for Project Manager Mission Network awarded to General Dynamics

Contract Overview

Contract Amount: $26,767,467 ($26.8M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-01-22

End Date: 2021-08-31

Contract Duration: 952 days

Daily Burn Rate: $28.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: HARDWARE DELIVERY FOR PROJECT MANAGER MISSION NETWORK

Place of Performance

Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: HARDWARE DELIVERY FOR PROJECT MANAGER MISSION NETWORK Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Delivery order under an existing contract indicates potential for streamlined procurement. 4. Contract duration of 952 days spans over two fiscal years. 5. The contract falls under the 'Telephone Apparatus Manufacturing' NAICS code. 6. No small business set-aside was applied to this award.

Value Assessment

Rating: fair

The contract value of $26.7 million for hardware delivery is substantial. Without comparable sole-source contracts for similar mission network hardware, a precise value-for-money assessment is challenging. The firm fixed-price structure provides cost predictability, but the lack of competition may have led to a higher price than a competed award.

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 can provide the required goods or services, or for specific reasons outlined in federal acquisition regulations. The absence of competition limits the government's ability to leverage market forces to achieve the best possible price.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices.

Public Impact

The Department of Defense benefits from the acquisition of critical hardware for its Mission Network. This contract supports the operational readiness and communication capabilities of military personnel. The hardware delivered is essential for maintaining secure and reliable command and control systems. The contract's impact on the workforce is likely concentrated within General Dynamics' manufacturing and support divisions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a suboptimal price.
Sole-source awards can reduce transparency in pricing.
Reliance on a single vendor could pose supply chain risks if not managed carefully.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Awarded under an existing contract vehicle, potentially indicating a streamlined process.
General Dynamics is a large, established defense contractor with a track record.

Sector Analysis

The defense sector is characterized by complex, high-value procurements for advanced technologies and systems. Contracts like this, for specialized hardware supporting critical communication networks, are common. The market for such systems is often dominated by a few large prime contractors. Benchmarking would require comparing this to similar sole-source awards for communication hardware within the DoD.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like General Dynamics suggests that the primary focus was on capability and existing relationships rather than small business participation.

Oversight & Accountability

As a sole-source award, oversight would focus on ensuring the contractor meets the terms and conditions of the contract, including delivery schedules and quality standards. The Department of the Army's contracting officers are responsible for monitoring performance. Transparency is limited due to the non-competitive nature of the award.

Related Government Programs

Defense Communication Systems
Military Network Infrastructure
Project Manager Mission Network

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher cost to taxpayers due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. HARDWARE DELIVERY FOR PROJECT MANAGER MISSION NETWORK

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 $26.8 million.

What is the period of performance?

Start: 2019-01-22. End: 2021-08-31.

What is the track record of General Dynamics Mission Systems, Inc. with the Department of Defense for similar hardware contracts?

General Dynamics Mission Systems, Inc. (GDMS) is a major defense contractor with a long history of providing complex systems and hardware to the Department of Defense (DoD). They have a significant portfolio of contracts related to command, control, communications, computers, and intelligence (C4I) systems, including network hardware. Their track record typically involves large, multi-year contracts for specialized equipment and integrated solutions. For contracts similar to this hardware delivery for the Mission Network, GDMS has consistently been a prime contractor, often winning awards through competitive processes but also through sole-source negotiations when specific capabilities are required. Their performance is generally viewed as reliable, though like any large contractor, they have experienced contract disputes and performance reviews over their extensive history. Specific performance metrics for this particular contract would be found in contract performance reports and award fee evaluations, which are not publicly detailed here.

How does the price of this contract compare to similar hardware procurements for military communication networks?

Direct price comparison for this $26.7 million contract is difficult without access to detailed pricing data and specifications for comparable systems. As a sole-source award, it inherently lacks the competitive benchmarking that would typically drive down prices. However, the firm fixed-price (FFP) contract type suggests that the government aimed to establish a definitive price, with the risk of cost overruns falling on the contractor. To assess value, one would need to compare the unit costs of the delivered hardware against market rates for similar commercial off-the-shelf (COTS) or specialized military-grade equipment, adjusted for any unique specifications, integration, or support requirements. Given the sole-source nature, it is plausible that the price is higher than what might have been achieved through a competitive bidding process.

What are the primary risks associated with this sole-source contract award?

The primary risk associated with this sole-source contract is the potential for a suboptimal price due to the lack of competition. Without competing bids, the government may not be achieving the best possible value for its investment. Another risk is vendor lock-in; if the hardware is proprietary or deeply integrated, future procurements or upgrades might also be limited to General Dynamics, potentially at inflated prices. There's also a risk related to the contractor's performance and delivery schedule, although this is a standard risk for any contract. For sole-source awards, ensuring that the justification for non-competition is valid and that the price negotiated is fair and reasonable is a critical oversight function to mitigate financial risks to the government.

What is the expected effectiveness of the hardware being delivered under this contract for the Project Manager Mission Network?

The effectiveness of the hardware is expected to be high, given that it is being procured by the Department of the Army for a critical function like the Mission Network. The Project Manager Mission Network (PM MN) is responsible for providing robust and secure communication capabilities to support military operations. The hardware likely includes components such as routers, switches, servers, and other network infrastructure devices designed to meet stringent military requirements for reliability, security, and performance in potentially harsh environments. The firm fixed-price contract type suggests a clear definition of requirements and deliverables, aiming for predictable outcomes. The effectiveness will ultimately be measured by the network's ability to support command and control, data transmission, and situational awareness for the intended users, contributing directly to mission success.

How does this contract's spending compare to historical spending on similar communication hardware for the DoD?

This contract represents a significant, single award of $26.7 million for communication hardware. Historical spending on similar items within the DoD can vary widely depending on the specific technology, quantity, and program. The DoD invests billions annually in its communication and information technology infrastructure. Contracts for network hardware can range from tens of thousands for specific components to hundreds of millions for large-scale network overhauls or new system deployments. Without knowing the exact nature and quantity of hardware procured under this specific delivery order, a precise historical comparison is difficult. However, $26.7 million is a substantial sum, indicating a significant procurement, likely for a critical component or a substantial quantity of equipment supporting a key military network.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone 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 Corp (UEI: 001381284)

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: $26,767,467

Exercised Options: $26,767,467

Current Obligation: $26,767,467

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T10DC007

IDV Type: IDC

Timeline