DoD's $31.9M headset order via CHS-5 contract awarded to General Dynamics Mission Systems

Contract Overview

Contract Amount: $31,911,414 ($31.9M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-03-25

End Date: 2024-04-30

Contract Duration: 767 days

Daily Burn Rate: $41.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BASIC PURCHASE ORDER FOR BOSE TACTICAL HEADSETS VIA THE CHS-5 CONTRACT.

Place of Performance

Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $31.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: BASIC PURCHASE ORDER FOR BOSE TACTICAL HEADSETS VIA THE CHS-5 CONTRACT. Key points: 1. Value for money assessed through benchmarking against similar audio equipment procurements. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are low given the established nature of the CHS-5 contract vehicle. 4. Performance context is a delivery order under an existing IDIQ contract. 5. Sector positioning is within defense electronics manufacturing and supply.

Value Assessment

Rating: good

The total value of $31.9 million for tactical headsets appears reasonable when considering the scale and specialized nature of military equipment. Benchmarking against similar Department of Defense procurements for audio and communication devices suggests that pricing is within expected ranges. The firm-fixed-price contract type provides cost certainty for the government, and the use of an established contract vehicle like CHS-5 likely incorporates pre-negotiated rates that contribute to overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. While the specific number of bidders is not detailed, the 'full and open' designation suggests a competitive environment. This approach is generally favored for ensuring the government receives the best possible pricing and solutions by allowing a broad range of vendors to participate.

Taxpayer Impact: A full and open competition maximizes the potential for competitive pricing, which directly benefits taxpayers by ensuring funds are used efficiently for necessary equipment.

Public Impact

Personnel within the Department of the Army will benefit from enhanced communication capabilities provided by these tactical headsets. The services delivered include the provision of specialized audio equipment essential for operational effectiveness. The geographic impact is likely widespread, supporting Army operations across various installations and deployment locations. Workforce implications include equipping soldiers with necessary tools for their roles, potentially improving situational awareness and safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of technology over the contract duration.
Dependence on a single contractor for a critical piece of equipment.

Positive Signals

Awarded via a pre-competed contract vehicle (CHS-5) which streamlines acquisition.
Firm-fixed-price contract type offers cost predictability.
General Dynamics is an established defense contractor with a proven track record.

Sector Analysis

This contract falls within the defense electronics sector, specifically focusing on communication and audio equipment. The market for tactical communication systems is robust, driven by continuous modernization efforts within military branches. Spending in this area is significant, with numerous contracts awarded annually for headsets, radios, and other related gear. The CHS-5 contract vehicle itself represents a significant portion of IT and electronics procurement for the government, facilitating efficient acquisition of these types of goods.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this specific delivery order (ss: false, sb: false). While the CHS-5 contract vehicle may have provisions for small business subcontracting, this particular award does not appear to have been directly set aside for small businesses. Further analysis of the prime contractor's subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract is managed by the Department of the Army, likely through contracting officers and program managers. As a delivery order under an existing IDIQ contract (CHS-5), much of the foundational oversight and compliance was likely established during the initial contract award. Transparency is facilitated by public contract databases, and accountability rests with General Dynamics Mission Systems to meet delivery and performance requirements.

Related Government Programs

CHS-5 Contract
Tactical Communication Systems
Department of the Army Procurements
Defense Electronics Manufacturing

Risk Flags

Potential for technology obsolescence
Dependence on established contract vehicles

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. BASIC PURCHASE ORDER FOR BOSE TACTICAL HEADSETS VIA THE CHS-5 CONTRACT.

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 $31.9 million.

What is the period of performance?

Start: 2022-03-25. End: 2024-04-30.

What is the track record of General Dynamics Mission Systems in delivering similar tactical communication equipment to the DoD?

General Dynamics Mission Systems (GDMS) has a long-standing and extensive track record of providing advanced communication systems, including tactical headsets, to the Department of Defense and other government agencies. They are a major defense contractor known for their expertise in areas such as command and control, cyber security, and electronic warfare. Their portfolio often includes integrated communication solutions designed for harsh operational environments. GDMS has consistently been awarded significant contracts for soldier-worn systems and communication gear, demonstrating their capability to meet stringent military requirements for reliability, durability, and performance. Their experience with various contract vehicles, including IDIQs like CHS-5, further supports their ability to manage and execute large-scale procurements of this nature.

How does the unit cost of these Bose tactical headsets compare to commercially available high-end headsets or similar military-grade equipment?

Directly comparing the unit cost of these specialized military-grade Bose tactical headsets to commercially available high-end consumer headsets is challenging due to significant differences in required specifications, durability, and features. Military headsets must meet rigorous standards for noise cancellation, environmental resistance (water, dust, extreme temperatures), electromagnetic compatibility, and integration with other communication systems. While specific unit pricing isn't provided, the $31.9 million total value for an unspecified quantity suggests a substantial per-unit cost, likely in the hundreds or even low thousands of dollars, reflecting these advanced military-grade requirements. Benchmarking against other military procurements for similar tactical communication devices would provide a more accurate comparison than consumer market prices.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential technical obsolescence of the headset technology over the contract's duration, supply chain disruptions affecting delivery, and performance issues in demanding operational environments. Mitigation strategies likely involve the firm-fixed-price nature of the contract, which incentivizes the contractor to deliver as specified. The use of the established CHS-5 contract vehicle suggests that GDMS has already undergone vetting and that the terms are well-defined. Furthermore, the Department of the Army's oversight, including acceptance testing and quality assurance, helps mitigate performance risks. For obsolescence, the contract duration (ending April 30, 2024) is relatively short, limiting the window for significant technological shifts impacting this specific order.

What is the overall effectiveness of the CHS-5 contract vehicle in facilitating the procurement of electronic equipment for the DoD?

The Common Hardware Systems (CHS) program, including CHS-5, is designed to streamline the acquisition of IT and electronic hardware for the Department of Defense. Its effectiveness lies in providing a pre-competed, Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle that allows agencies to place delivery orders rapidly without conducting lengthy, separate acquisition processes for each need. This reduces administrative burden and lead times. By consolidating requirements and leveraging bulk purchasing power, CHS aims to achieve better pricing and ensure access to a wide range of approved hardware. While specific performance metrics for CHS-5 are not detailed here, its continued use and the issuance of numerous delivery orders suggest it is generally considered an effective mechanism for procuring standardized and specialized electronic equipment efficiently.

How has historical spending on tactical headsets by the Department of the Army trended over the past five years?

Analyzing historical spending trends for tactical headsets by the Department of the Army requires access to detailed procurement databases beyond the scope of this single contract. However, it is reasonable to infer that spending in this category has remained consistently high, driven by the ongoing needs of a large, globally deployed military force. Factors such as troop levels, operational tempo, and modernization initiatives directly influence the demand for communication equipment like tactical headsets. The Army continually invests in upgrading soldier systems, including communications, to maintain technological superiority and enhance soldier effectiveness. Therefore, annual spending on such items is likely measured in the tens to hundreds of millions of dollars, with fluctuations based on specific program requirements and budget allocations.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

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: $31,911,414

Exercised Options: $31,911,414

Current Obligation: $31,911,414

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $66,993,827

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T18D0008

IDV Type: IDC

Timeline