Army Awards $75M Contract to General Dynamics for Program Year 13 Services, Including Logistics and Fielding
Contract Overview
Contract Amount: $74,992,832 ($75.0M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-01-23
End Date: 2024-02-29
Contract Duration: 767 days
Daily Burn Rate: $97.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TO PROCURE PROGRAM YEAR 13 SERVICES INCLUSIVE OF LOGISTICS AND FIELDING (L&F), SYSTEM ENGINEERING AND TEST (E&T), SYSTEM ENGINEERING AND PROGRAM MANAGEMENT (SPEM).
Place of Performance
Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780
Plain-Language Summary
Department of Defense obligated $75.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: TO PROCURE PROGRAM YEAR 13 SERVICES INCLUSIVE OF LOGISTICS AND FIELDING (L&F), SYSTEM ENGINEERING AND TEST (E&T), SYSTEM ENGINEERING AND PROGRAM MANAGEMENT (SPEM). Key points: 1. The contract is for essential program support services, including logistics, engineering, and program management. 2. General Dynamics Mission Systems, Inc. is the sole awardee, indicating a lack of competition for this specific order. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The award falls under the Telephone Apparatus Manufacturing NAICS code, though the services are broader.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risk for cost control. Benchmarking against similar service contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting it may be a follow-on to existing work or a specific capability held by General Dynamics. The lack of competition limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The absence of competition for a $75 million contract raises concerns about whether taxpayers are receiving the best possible value.
Public Impact
Ensures continued support for critical Army programs through essential services. Potential for increased costs due to sole-source award and CPFF contract type. Limited transparency on the competitive landscape for these specific services. Impact on small businesses is unclear as the awardee is a large corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of detailed service breakdown makes value assessment difficult.
Positive Signals
- Ensures continuity of essential program support services.
- Awardee has established experience with the Department of Defense.
Sector Analysis
The Department of the Army's spending on program support services, including logistics and engineering, is substantial. Benchmarking against similar contracts is challenging due to the specific nature of the services and the sole-source award.
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 as subcontractors or partners in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and that costs are managed effectively throughout the contract duration.
Related Government Programs
- Telephone Apparatus Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Limited transparency on value for money
- Unclear 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 $75.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. TO PROCURE PROGRAM YEAR 13 SERVICES INCLUSIVE OF LOGISTICS AND FIELDING (L&F), SYSTEM ENGINEERING AND TEST (E&T), SYSTEM ENGINEERING AND PROGRAM MANAGEMENT (SPEM).
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 $75.0 million.
What is the period of performance?
Start: 2022-01-23. End: 2024-02-29.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically stems from unique capabilities, urgent needs, or the existence of only one responsible source. Without further details, it's difficult to assess if alternative competitive strategies were explored. A thorough review would examine market research conducted and the rationale provided for foregoing full and open competition to ensure taxpayer funds are used efficiently.
How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure value for money?
Effective management of a Cost Plus Fixed Fee (CPFF) contract requires robust government oversight. This includes detailed review of incurred costs, ensuring they are reasonable, allocable, and allowable. The fixed fee should be negotiated based on realistic projections of effort and risk. Regular performance reviews and clear communication channels with the contractor are crucial to control scope creep and manage potential cost increases.
What specific performance metrics are in place to measure the effectiveness of the logistics, engineering, and program management services provided?
The effectiveness of these services hinges on clearly defined performance metrics and Key Performance Indicators (KPIs). These should align with the program's objectives and include measurable outcomes for logistics (e.g., on-time delivery, inventory accuracy), engineering (e.g., successful testing, adherence to specifications), and program management (e.g., schedule adherence, budget performance). Regular reporting against these metrics is essential for accountability.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $74,992,832
Exercised Options: $74,992,832
Current Obligation: $74,992,832
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: 2022-01-23
Current End Date: 2024-02-29
Potential End Date: 2024-02-29 12:02:00
Last Modified: 2023-12-07
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