DoD awards $28.7M for transceivers and antennae to General Dynamics, highlighting electronic manufacturing needs

Contract Overview

Contract Amount: $28,708,638 ($28.7M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-06-23

End Date: 2024-08-21

Contract Duration: 790 days

Daily Burn Rate: $36.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCURE TRANSCEIVER AND MULTIDIRECTIONAL ANTENNAE

Place of Performance

Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: PROCURE TRANSCEIVER AND MULTIDIRECTIONAL ANTENNAE Key points: 1. Contract value represents a significant investment in advanced communication hardware. 2. General Dynamics' established presence suggests a competitive bid process. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. This award aligns with broader defense modernization efforts for tactical communications. 5. The duration indicates a sustained need for these critical components. 6. Focus on electronic computer manufacturing underscores the technological sophistication required.

Value Assessment

Rating: good

The contract value of $28.7 million for transceivers and antennae appears reasonable given the supplier and the nature of the equipment. Benchmarking against similar procurements for specialized electronic components in the defense sector would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to ensure cost predictability for the government. Without specific per-unit cost data or detailed comparisons to market rates for comparable systems, a definitive assessment of exceptional value is challenging, but the award to a known entity in a competitive process points towards fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended and likely achieved, which is beneficial for price discovery and ensuring the government receives optimal value.

Taxpayer Impact: A full and open competition process maximizes the chances of obtaining competitive pricing, which directly benefits taxpayers by ensuring funds are used efficiently for essential defense equipment.

Public Impact

The Department of the Army benefits from enhanced communication capabilities for its personnel. Service members will receive advanced transceiver and multidirectional antenna equipment essential for operations. The procurement supports the readiness and effectiveness of military units relying on secure and reliable communication. Workforce implications may include specialized manufacturing and technical support roles within General Dynamics and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the delivered equipment.
Potential for obsolescence in rapidly evolving electronic warfare and communication technologies.
Dependence on a single contractor for a critical component could pose supply chain risks if not managed proactively.

Positive Signals

Award to a reputable contractor with a history in defense systems suggests a higher likelihood of quality and reliability.
Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Full and open competition indicates a deliberate effort to secure the best possible solution through market forces.

Sector Analysis

This contract falls within the Electronic Computer Manufacturing sector, specifically focusing on communication hardware. The defense industry relies heavily on advanced electronic components for command, control, and communication systems. Spending in this area is driven by the need for technological superiority and operational effectiveness. Comparable spending benchmarks would typically involve other large-scale procurements of specialized electronic systems for military applications, often involving significant R&D and manufacturing capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to General Dynamics, a major defense contractor, it is unlikely that small businesses will be directly involved as the primary awardee. However, General Dynamics may engage small businesses as subcontractors for specific components or services, contributing to the broader small business ecosystem within the defense industrial base. Further analysis of subcontracting plans would be needed to quantify this impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods within agreed-upon terms. Transparency is facilitated by the public nature of contract awards, though detailed technical specifications and performance data may be restricted. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Communication Systems
Electronic Warfare Equipment
Command and Control Systems
Defense Communications Infrastructure
Military Radio and Antenna Systems

Risk Flags

Potential for technological obsolescence
Supply chain vulnerability for specialized components
Performance verification in demanding environments

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. PROCURE TRANSCEIVER AND MULTIDIRECTIONAL ANTENNAE

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 $28.7 million.

What is the period of performance?

Start: 2022-06-23. End: 2024-08-21.

What is General Dynamics Mission Systems' track record with similar defense communication procurements?

General Dynamics Mission Systems (GDMS) has a substantial track record in developing and delivering complex communication systems, electronic warfare solutions, and command and control platforms for various branches of the U.S. military and allied nations. They are known for producing a wide range of hardware, including radios, antennas, and integrated network solutions. Their experience often involves large-scale, multi-year contracts requiring advanced engineering, manufacturing, and integration capabilities. GDMS has consistently secured significant defense contracts, indicating a strong performance history and a deep understanding of military requirements. This specific award for transceivers and antennae aligns with their core competencies in providing robust and reliable communication hardware essential for modern military operations, suggesting a low risk associated with their ability to meet the contract's technical and delivery demands.

How does the $28.7 million award compare to historical spending on similar communication hardware by the Department of Defense?

The $28.7 million award for transceivers and multidirectional antennae is a significant but not unprecedented sum for specialized defense communication equipment. The Department of Defense (DoD) regularly procures such systems, with individual contract values often ranging from several million to tens of millions of dollars, depending on the quantity, technological sophistication, and scope of integration. For instance, procurements for tactical radios, satellite communication terminals, or advanced antenna arrays can easily reach these figures. Historical spending patterns show a consistent demand for such hardware driven by modernization efforts and operational needs. While this specific award is substantial, it fits within the typical expenditure range for acquiring advanced communication assets for a major military branch like the Army, especially when considering the firm fixed-price nature which often implies a defined scope and quantity.

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

The primary risks associated with this contract include potential technological obsolescence, supply chain disruptions, and performance issues with the delivered hardware. Given the rapid pace of technological advancement in electronics and communications, the procured equipment could become outdated relatively quickly. Supply chain vulnerabilities, especially for specialized electronic components, could lead to delivery delays. Performance risks involve ensuring the transceivers and antennae meet stringent military specifications under demanding operational conditions. Mitigation strategies are embedded within the contract structure and the contractor's capabilities. The firm fixed-price nature incentivizes the contractor to deliver within budget. General Dynamics' established expertise and likely robust quality control processes help mitigate performance risks. The contract duration (ending August 2024) suggests a planned lifecycle, and the DoD typically incorporates testing and acceptance phases to verify performance before final payment.

How effective is the 'full and open competition' strategy in ensuring value for money for this type of specialized electronic equipment?

The 'full and open competition' strategy is generally highly effective in ensuring value for money for specialized electronic equipment like transceivers and antennae. This approach allows a wide range of qualified vendors to submit proposals, fostering a competitive environment that drives down prices and encourages innovation. By opening the field to all responsible sources, the Department of Defense can leverage market forces to identify the most cost-effective solutions that meet stringent technical requirements. While the specific number of bidders isn't detailed here, the principle of broad competition increases the likelihood that the government secures favorable pricing and superior technology. This contrasts with sole-source or limited competition scenarios, which can lead to higher costs and potentially less optimal solutions due to reduced market pressure.

What are the implications of this contract award on the broader defense electronics market and competition?

This award to General Dynamics Mission Systems has several implications for the broader defense electronics market. Firstly, it reinforces GDMS's position as a key player in the tactical communications sector, potentially influencing future contract awards. Secondly, it signals continued demand and investment by the DoD in advanced communication hardware, encouraging other companies in the sector to innovate and compete. The 'full and open competition' aspect means that other capable firms had the opportunity to bid, fostering a dynamic market. However, the concentration of large contracts among a few major defense contractors like GDMS can also create barriers to entry for smaller, emerging companies. The success of this contract could lead to follow-on opportunities for GDMS, while competitors will likely focus on differentiating their offerings for future procurements.

Can the firm fixed-price contract type adequately account for potential cost fluctuations in specialized electronic components?

The firm fixed-price (FFP) contract type aims to provide cost certainty by fixing the price regardless of the contractor's actual costs. For specialized electronic components, this can be both an advantage and a potential risk. The advantage is clear cost control for the government, protecting against unexpected cost increases for the contractor. However, if the cost of raw materials, labor, or unforeseen technical challenges escalates significantly during the contract period, the contractor might absorb these losses, potentially impacting their willingness or ability to perform on future contracts, or leading to disputes. Conversely, if costs decrease, the contractor benefits. For complex electronics, FFP contracts are often used when the scope is well-defined and risks are deemed manageable. Mitigation often involves detailed technical specifications and robust negotiation to ensure the fixed price reflects a realistic assessment of potential costs and risks.

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: $28,708,638

Exercised Options: $28,708,638

Current Obligation: $28,708,638

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $23,646,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T18D0008

IDV Type: IDC

Timeline