DoD's $39.7M GOCO Facilities Contract with General Dynamics Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $39,682,507 ($39.7M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2004-06-25
End Date: 2015-03-01
Contract Duration: 3,901 days
Daily Burn Rate: $10.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: GOVERNMENT OWNED CONTRACTOR OPERATED FACILITES CONTRACT
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $39.7 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: GOVERNMENT OWNED CONTRACTOR OPERATED FACILITES CONTRACT Key points: 1. Significant spending on facilities support services over a decade. 2. Sole reliance on General Dynamics raises questions about cost-effectiveness. 3. Potential for taxpayer savings through competitive bidding. 4. Long-term contract duration may obscure current market value.
Value Assessment
Rating: questionable
The contract's Cost-Plus-Fixed-Fee (CPFF) structure, while common for complex services, needs careful review given the lack of competition. Without benchmarks from other bids, assessing if the $39.7M spent represents fair value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure to drive down prices.
Taxpayer Impact: The absence of competition likely resulted in higher costs than could have been achieved through a competitive process, impacting taxpayer value.
Public Impact
Taxpayers may be overpaying for facilities support due to the lack of competitive bidding. The long duration of the contract (2004-2015) suggests a need to re-evaluate current service needs and pricing. Government reliance on a single contractor for essential facility operations can create dependency and reduce flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Cost-plus contract type
Positive Signals
- Essential service provision
- Established contractor relationship
Sector Analysis
Facilities support services are crucial for maintaining government infrastructure. Spending benchmarks vary widely based on facility type, size, and location. This contract's value appears substantial for the services rendered over its lifespan.
Small Business Impact
The contract data does not indicate any specific provisions or set-asides for small businesses. The sole-source nature further suggests limited opportunities for small business participation in this specific contract.
Oversight & Accountability
The lack of competition on this significant contract warrants further oversight to ensure the government received fair value and to understand why it was not competed. Post-award reviews are essential for long-term contracts.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs
- Long contract duration without re-competition
- Limited transparency on justification for sole-source award
- Absence of small business participation noted
Tags
facilities-support-services, department-of-defense, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.7 million to GENERAL DYNAMICS LAND SYSTEMS INC.. GOVERNMENT OWNED CONTRACTOR OPERATED FACILITES CONTRACT
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS LAND 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 $39.7 million.
What is the period of performance?
Start: 2004-06-25. End: 2015-03-01.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require accessing the contract file to understand the specific justification, such as urgency, unique capabilities, or lack of market research. Without this, it's difficult to assess if a competitive process was truly infeasible or simply overlooked, potentially impacting value for money.
How does the cost-plus-fixed-fee structure compare to industry benchmarks for similar facilities support services, especially considering the lack of competition?
Cost-plus-fixed-fee contracts can be efficient for services with uncertain scope but risk higher costs without competition. Benchmarking against similar government or commercial contracts for facilities support, adjusted for scope and location, is crucial. The absence of competitive bids makes it challenging to determine if General Dynamics' pricing was optimal or inflated.
What was the overall effectiveness of General Dynamics in providing facilities support services under this long-term contract, and did it meet performance requirements?
Effectiveness is typically measured through performance metrics and contractor past performance reviews, which are not detailed in the provided data. While the contract ran for over a decade, its success hinges on meeting service level agreements and operational needs. A lack of competition doesn't inherently mean poor performance, but it reduces the incentive for continuous improvement and cost efficiency.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 38500 MOUND RD, STERLING HEIGHTS, MI, 48310
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-06-25
Current End Date: 2015-03-01
Potential End Date: 2015-03-01 00:00:00
Last Modified: 2020-09-25
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