DoD awards $52.6M for satellite terminals, with General Dynamics Mission Systems securing the contract

Contract Overview

Contract Amount: $52,557,258 ($52.6M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-12-29

End Date: 2023-09-30

Contract Duration: 275 days

Daily Burn Rate: $191.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCURE VERY SMALL APERTURE TERMINAL AND LICENSE

Place of Performance

Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $52.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: PROCURE VERY SMALL APERTURE TERMINAL AND LICENSE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating potential for future task orders. 3. Fixed-price contract type generally shifts risk to the contractor, potentially leading to more predictable costs. 4. The award value of $52.6M falls within a moderate spending range for specialized electronic equipment. 5. The North American Industry Classification System (NAICS) code 334111 points to the manufacturing of electronic computers, a key sector for defense technology. 6. The contract duration of 275 days suggests a focused, short-term requirement for these terminals.

Value Assessment

Rating: good

Benchmarking the value of this specific delivery order is challenging without knowing the broader IDIQ contract's terms and pricing structure. However, the firm fixed-price nature suggests that the contractor has committed to a set price, which is generally favorable for the government. Comparing this to similar procurements for very small aperture terminals (VSAT) would require access to detailed pricing data for comparable systems and quantities, which is not readily available in this summary.

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 typically leads to a more robust selection of offers and potentially better pricing due to market forces. The number of bidders is not specified, but the open competition framework is a positive sign for price discovery and value for money.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors.

Public Impact

The Department of the Army will benefit from the acquisition of essential communication hardware. Services delivered include the provision of very small aperture terminals and associated licenses, crucial for secure and reliable data transmission. The geographic impact is likely global, supporting military operations in various theaters. Workforce implications may include roles in manufacturing, logistics, and technical support for these specialized terminals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the performance metrics or service level agreements for the terminals.
The short duration of the delivery order might indicate a need for rapid deployment, potentially increasing logistical complexity.
Reliance on a single contractor for this specific delivery order, even under a competitive IDIQ, warrants monitoring for future task orders.

Positive Signals

Awarded under a firm fixed-price contract, which helps control costs for the government.
The contract was competed fully and openly, suggesting a competitive market was leveraged.
The contractor, General Dynamics Mission Systems, is a known entity in defense contracting, implying a degree of established capability.

Sector Analysis

The procurement falls within the broader defense electronics manufacturing sector, specifically focusing on satellite communication terminals. This sector is characterized by high technological sophistication, stringent security requirements, and significant government investment. The market size for defense-related satellite communications equipment is substantial, driven by the need for resilient and secure global connectivity for military operations. This contract represents a specific, albeit significant, component of the Department of Defense's overall spending on tactical communication systems.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, General Dynamics Mission Systems, is a large corporation. There is no explicit indication of subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though larger prime contractors often have subcontracting goals on broader IDIQ vehicles.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a delivery order under an IDIQ, the overarching contract vehicle likely has its own set of oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Tactical Satellite Communications Systems
Defense Communications Equipment
Satellite Terminal Manufacturing
Indefinite-Delivery/Indefinite-Quantity (IDIQ) Contracts
Department of Defense Procurement

Risk Flags

Potential for obsolescence if technology evolves rapidly
Dependence on satellite infrastructure availability
Cybersecurity risks inherent in networked communication devices

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. PROCURE VERY SMALL APERTURE TERMINAL AND LICENSE

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 $52.6 million.

What is the period of performance?

Start: 2022-12-29. End: 2023-09-30.

What is the track record of General Dynamics Mission Systems in delivering similar satellite communication terminals to the Department of Defense?

General Dynamics Mission Systems (GDMS) has a long-standing and extensive track record in providing a wide array of communication systems, including satellite terminals, to the U.S. military and other government agencies. They are known for their expertise in secure and resilient communication solutions. Their portfolio often includes terminals for various frequency bands and operational environments, supporting tactical and strategic missions. While this specific award is for a delivery order, GDMS frequently holds prime positions on larger IDIQ contracts and has a history of successful contract performance in this domain. Detailed performance metrics for past contracts would require further investigation into contract databases and performance reports.

How does the awarded price of $52.6 million compare to market rates for similar Very Small Aperture Terminals (VSAT)?

Directly comparing the $52.6 million award to market rates for VSATs is complex without specific details on the terminal's capabilities, quantity, and licensing terms. VSATs can range significantly in price from a few thousand dollars for basic commercial units to tens or hundreds of thousands for highly specialized, ruggedized, and secure military-grade terminals. Given this is a Department of Defense procurement, it is likely for advanced terminals with specific security certifications and performance requirements, which command a premium. The firm fixed-price nature suggests the government has negotiated a specific price for the defined scope. A true market comparison would necessitate analyzing the technical specifications against commercially available or other government-procured systems with similar features.

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

Primary risks for this contract include potential technical performance issues if the terminals do not meet stringent military requirements, schedule delays in delivery, and cybersecurity vulnerabilities. Mitigation strategies are embedded in the contract structure and execution. The firm fixed-price (FFP) nature shifts cost overrun risk to the contractor. The award under full and open competition suggests a thorough vetting of bidders' capabilities. Specific technical requirements and acceptance testing protocols within the contract serve to ensure performance. Cybersecurity requirements are paramount in defense procurements and are typically addressed through stringent specifications and compliance mandates. The relatively short duration (275 days) also limits the window for significant schedule slippage.

How effective is the 'full and open competition' approach in ensuring value for money for this specific procurement?

The 'full and open competition' approach is generally considered highly effective in ensuring value for money, especially for procurements like this where multiple vendors likely possess the capability to supply the required terminals. By allowing all responsible sources to bid, the government leverages market competition to drive down prices and encourage innovative solutions. This process typically results in multiple proposals being evaluated, allowing the contracting authority to select the offer that provides the best overall value, considering factors beyond just price, such as technical merit and past performance. While the specific number of bidders isn't provided, the framework itself is designed to maximize competitive pressure and thus taxpayer value.

What are the historical spending patterns for Very Small Aperture Terminals (VSAT) by the Department of the Army?

Historical spending patterns for VSATs by the Department of the Army indicate a consistent and significant investment in satellite communication capabilities. The Army relies heavily on VSAT technology for command and control, intelligence, surveillance, and reconnaissance (ISR), and logistical support across diverse operational environments. Spending in this category fluctuates based on modernization efforts, deployment needs, and the lifecycle of existing equipment. Over the past decade, there has been a trend towards more agile, mobile, and secure VSAT systems capable of operating in contested spectrum environments. The total annual spending can range from tens to hundreds of millions of dollars, depending on the scale of major programs and the number of individual delivery orders issued under larger IDIQ contracts.

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: $52,557,258

Exercised Options: $52,557,258

Current Obligation: $52,557,258

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T18D0008

IDV Type: IDC

Timeline