DoD Awards $69.6M for Computer Hardware to General Dynamics, Facing Potential Overpricing
Contract Overview
Contract Amount: $69,624,410 ($69.6M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-03-15
End Date: 2023-12-30
Contract Duration: 1,020 days
Daily Burn Rate: $68.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROCURE CHS HARDWARE
Place of Performance
Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780
Plain-Language Summary
Department of Defense obligated $69.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: PROCURE CHS HARDWARE Key points: 1. Significant contract value of $69.6 million for computer hardware. 2. General Dynamics Mission Systems, Inc. is the sole awardee. 3. Risk of overpricing due to lack of competition. 4. Spending falls within the IT sector, specifically electronic computer manufacturing.
Value Assessment
Rating: questionable
The contract's benchmark price of $68.26 million appears high relative to the awarded value of $69.62 million, suggesting potential overpricing or a lack of aggressive negotiation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although advertised as full and open competition, the award went to a single entity, General Dynamics Mission Systems, Inc. This raises questions about the effectiveness of the competition process and whether it truly drove the best possible price for the government.
Taxpayer Impact: The potential for overpricing directly impacts taxpayer funds, as a higher-than-necessary cost reduces the value obtained for the allocated budget.
Public Impact
Taxpayers may be overpaying for essential computer hardware. Lack of competitive pressure could lead to inflated prices for future procurements. The Department of the Army's reliance on a single vendor warrants scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential overpricing
- Limited competition effectiveness
- Lack of small business participation
Positive Signals
- Contract awarded to established vendor
- Clear contract duration and end date
Sector Analysis
This procurement falls under the Information Technology sector, specifically electronic computer manufacturing. The benchmark price of $68.26 million for this type of hardware seems within a reasonable range, but the final award value needs closer examination for efficiency.
Small Business Impact
The data indicates that small businesses did not participate in this contract, as the 'sb' field is false. This represents a missed opportunity to support small businesses and potentially foster innovation through diverse vendor engagement.
Oversight & Accountability
The award process, despite being listed as 'full and open competition,' resulted in a single awardee. Further oversight is needed to ensure the competition was robust and that the pricing achieved reflects true market value.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpricing
- Questionable competition effectiveness
- Lack of small business participation
- Single awardee despite full and open competition
Tags
electronic-computer-manufacturing, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. PROCURE CHS HARDWARE
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 $69.6 million.
What is the period of performance?
Start: 2021-03-15. End: 2023-12-30.
What specific factors contributed to General Dynamics Mission Systems, Inc. being the sole awardee under a 'full and open competition' solicitation?
The solicitation details and evaluation criteria would need to be reviewed to understand why only one vendor was selected. Potential reasons include highly specific technical requirements, a limited number of qualified bidders, or a perceived best-value offer that excluded others. Without further information, it's difficult to definitively state the cause, but it warrants investigation into the competition's effectiveness.
How does the awarded price of $69.62 million compare to market benchmarks for similar electronic computer hardware procured by the Department of Defense?
The provided benchmark price of $68.26 million is very close to the awarded price, suggesting minimal savings or potential overpayment. A thorough analysis would involve comparing this contract's unit costs and overall value against other recent DoD procurements of comparable hardware, considering factors like quantity, specifications, and vendor. A small difference between benchmark and award can still represent significant taxpayer dollars.
What is the potential impact on future IT hardware procurement costs if competition is perceived as ineffective or leads to single-award scenarios?
If future solicitations are perceived as having ineffective competition or consistently result in single awards, vendors may be less incentivized to offer competitive pricing. This could lead to a sustained increase in IT hardware costs for the government, diminishing the overall value of taxpayer investments and potentially hindering the acquisition of necessary technology.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer 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: $69,624,410
Exercised Options: $69,624,410
Current Obligation: $69,624,410
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $57,283,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T18D0008
IDV Type: IDC
Timeline
Start Date: 2021-03-15
Current End Date: 2023-12-30
Potential End Date: 2023-12-30 12:12:00
Last Modified: 2023-07-31
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