Department of the Army awards $14M facilities support contract to General Dynamics Land Systems Inc

Contract Overview

Contract Amount: $14,055,786 ($14.1M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-28

End Date: 2026-06-30

Contract Duration: 1,371 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: Other

Official Description: MFC YR 2 DO TO FUND EMERGENCY CLINS (JSMC AND COCO) AND MAP WD'S FOR FACILITIES, PROGRAM & ADMIN ACTIVITIES, AND SIX YEAR PLAN.

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: MFC YR 2 DO TO FUND EMERGENCY CLINS (JSMC AND COCO) AND MAP WD'S FOR FACILITIES, PROGRAM & ADMIN ACTIVITIES, AND SIX YEAR PLAN. Key points: 1. Contract awarded for facilities support, including emergency clinics and facility mapping. 2. The contract duration extends over three years, ending in June 2026. 3. This award represents a significant investment in maintaining critical infrastructure. 4. The scope includes program and administrative activities alongside facility upgrades. 5. The contract is structured as a cost-plus-no-fee award, indicating risk is primarily on the government. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract's Cost Plus No Fee (CPNF) structure means the contractor is reimbursed for allowable costs plus a fixed fee, but the fee is zero. This structure is often used when the scope is not well-defined or when there's a high degree of uncertainty, placing the cost risk on the government. Without comparable contract data for similar facilities support services, it's difficult to benchmark the pricing effectively. However, the total award amount of $14 million over approximately three years suggests a moderate level of spending for the described services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. Sole-source awards are typically justified when only one vendor possesses the necessary capabilities, or in cases of urgent need where competition is not feasible. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government compared to a competitive award.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the government did not leverage market forces to secure the best possible price.

Public Impact

The Department of the Army benefits from essential facilities support services. Services include the maintenance and upgrade of critical facilities, ensuring operational readiness. Emergency clinic support ensures immediate medical response capabilities. Facility mapping provides crucial data for infrastructure management and future planning. The contract supports administrative activities essential for program execution. The geographic impact is concentrated in Michigan, where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Cost-plus-no-fee structure places cost risk on the government, requiring robust oversight.
Lack of transparency in the justification for sole-source award.
Limited visibility into the specific performance metrics and quality standards.
Potential for scope creep given the nature of facilities support and mapping services.

Positive Signals

Contract addresses critical needs for facilities support and emergency services.
General Dynamics Land Systems Inc. is an established defense contractor with relevant experience.
Contract duration allows for sustained support and planning.
Award supports the maintenance and modernization of essential government infrastructure.

Sector Analysis

This contract falls within the Facilities Support Services sector, which encompasses a broad range of services including maintenance, repair, operations, and management of physical infrastructure. The federal government is a significant consumer of these services across various agencies and military branches. The market for facilities support is competitive, but specific niche requirements or existing infrastructure relationships can lead to sole-source or limited competition awards. Benchmarking is challenging without specific service details, but government spending on facilities management is substantial, often in the billions annually.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this specific contract are limited unless they are direct subcontractors to General Dynamics Land Systems Inc. without a formal set-aside mandate. The absence of set-asides in larger sole-source contracts can reduce the direct flow of federal dollars into the small business ecosystem for that particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Cost Plus No Fee (CPNF) contract, rigorous oversight is crucial to ensure that all costs incurred by the contractor are allowable, reasonable, and allocable to the contract scope. Transparency regarding the justification for the sole-source award and the detailed breakdown of costs would be important for accountability. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Facilities Maintenance and Repair Services
Base Operations Support
Emergency Response Services
Infrastructure Management
Government Property Management

Risk Flags

Sole-source award
Cost-plus-no-fee structure
Lack of competition
Potential for cost overruns due to CPNF structure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to GENERAL DYNAMICS LAND SYSTEMS INC.. MFC YR 2 DO TO FUND EMERGENCY CLINS (JSMC AND COCO) AND MAP WD'S FOR FACILITIES, PROGRAM & ADMIN ACTIVITIES, AND SIX YEAR PLAN.

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 $14.1 million.

What is the period of performance?

Start: 2022-09-28. End: 2026-06-30.

What is the specific justification for awarding this contract on a sole-source basis to General Dynamics Land Systems Inc.?

The provided data indicates the contract was 'NOT COMPETED' and awarded as 'SOLE SOURCE'. While the specific justification is not detailed, common reasons for sole-source awards include unique capabilities possessed by only one vendor, urgent and compelling needs that preclude full and open competition, or situations where the government has already made substantial investments in a particular contractor's specialized systems or facilities. For General Dynamics Land Systems Inc., this could relate to specific existing infrastructure, proprietary technology, or a pre-existing relationship tied to the facilities at the specified location (Michigan). A thorough review of the Justification for Other Than Full and Open Competition (JOFOC) document would be necessary to ascertain the precise rationale.

How does the Cost Plus No Fee (CPNF) contract structure impact cost control and contractor incentive?

The Cost Plus No Fee (CPNF) structure means the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no additional fee or profit. This structure places the primary financial risk on the government, as it is obligated to cover all legitimate expenses regardless of the final cost. While it can be useful for contracts with high uncertainty or undefined scopes, it significantly reduces the contractor's incentive to control costs, as their profit is not tied to efficiency. Robust government oversight, detailed cost accounting, and stringent review of allowable expenses are critical to mitigate the risk of cost overruns and ensure value for taxpayer money under a CPNF arrangement.

What are the potential risks associated with a sole-source award for facilities support services?

The primary risk associated with a sole-source award for facilities support services is the lack of competitive pressure, which can lead to inflated pricing and reduced innovation. Without competing bids, the government may not achieve the best possible value for its money. There's also a risk that the sole-source provider may become complacent or less responsive to the government's needs over time, knowing that there are no immediate alternatives. Furthermore, the justification for sole-source procurement needs to be rigorously scrutinized to ensure it is truly warranted and not a result of poor planning or an unwillingness to explore competitive options.

What is the historical spending pattern for facilities support services by the Department of the Army, and how does this contract compare?

The provided data only pertains to this specific contract award of approximately $14 million. To assess historical spending patterns and compare this contract, one would need access to broader contract databases and historical procurement data for the Department of the Army's facilities support services. This would involve analyzing trends in contract values, types of services procured, competition levels, and pricing over several fiscal years. Without this broader context, it is impossible to determine if this $14 million award is typical, unusually high, or low for the services rendered and the duration specified.

What performance metrics and quality standards are expected under this contract, and how will they be monitored?

The provided data does not specify the performance metrics or quality standards for this contract. Typically, such details would be outlined in the Performance Work Statement (PWS) or Statement of Work (SOW) attached to the contract. These documents define the specific tasks, deliverables, service levels, and quality requirements. Monitoring would usually involve government quality assurance personnel conducting inspections, reviewing performance reports submitted by the contractor, and holding regular progress meetings. The effectiveness of oversight is crucial, especially under a CPNF contract, to ensure the services meet the required standards.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 38500 MOUND RD, STERLING HEIGHTS, MI, 48310

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: $14,055,786

Exercised Options: $14,055,786

Current Obligation: $14,055,786

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $4,588,063

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV21D0085

IDV Type: IDC

Timeline