DoD awards $16.3M for Prophet Enhanced Systems sustainment and training to General Dynamics
Contract Overview
Contract Amount: $16,288,929 ($16.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-03-29
End Date: 2020-10-28
Contract Duration: 579 days
Daily Burn Rate: $28.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TASK ORDER W56KGY-19-F-0036 IS ISSUED IN ACCORDANCE WITH (IAW) THE TERMS AND CONDITIONS OF CONTRACT W56KGY-17-D-0006 FOR YEAR 3 SOFTWARE (SW) SUSTAINMENT, NEW EQUIPMENT TRAINING (NET) AND FIELDING, PROGRAM QUALITY MANAGEMENT (PQM), DEPOT SUPPORT, DE-FIELDING, GFM REPAIR, SW SUSTAINMENT TEWS AND PROPOSAL PREPARATION FOR THE PROPHET ENHANCED (PE) SYSTEMS. THESE SERVICES ARE PROCURED ON A COST-PLUS- FIXED-FEE (CPFF) AND FIRM-FIXED-PRICE (FFP) BASIS.
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $16.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: TASK ORDER W56KGY-19-F-0036 IS ISSUED IN ACCORDANCE WITH (IAW) THE TERMS AND CONDITIONS OF CONTRACT W56KGY-17-D-0006 FOR YEAR 3 SOFTWARE (SW) SUSTAINMENT, NEW EQUIPMENT TRAINING (NET) AND FIELDING, PROGRAM QUALITY MANAGEMENT (PQM), DEPOT SUPPORT, DE-FIELDING, GFM REPAIR, SW SUSTA… Key points: 1. The contract covers software sustainment, training, and depot support for Prophet Enhanced Systems. 2. General Dynamics Mission Systems, Inc. is the sole awardee. 3. The award was not competed, raising potential concerns about price discovery. 4. The sector is Defense, specifically related to communications equipment manufacturing.
Value Assessment
Rating: fair
The contract uses a mix of Cost-Plus-Fixed-Fee and Firm-Fixed-Price structures. Without detailed cost breakdowns or benchmarks for similar sustainment and training services, assessing the overall value is difficult. The lack of competition further complicates a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This task order was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these critical system sustainment services.
Public Impact
Ensures continued operational readiness of critical Prophet Enhanced Systems. Supports personnel through new equipment training and field support. Maintains essential depot-level repair and software sustainment capabilities. Potential for increased costs due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-Plus-Fixed-Fee component can incentivize cost growth
Positive Signals
- Supports critical defense systems
- Includes training and sustainment
Sector Analysis
This award falls within the Defense sector, specifically related to the manufacturing of communications equipment. Spending in this area is crucial for national security, but often involves complex systems with limited competition.
Small Business Impact
The awardee is General Dynamics Mission Systems, Inc., a large business. There is no indication that small businesses were involved in this specific task order, nor is it required by the contract type or award method.
Oversight & Accountability
The award was issued under an existing contract (W56KGY-17-D-0006). Oversight would focus on ensuring the contractor meets the terms and conditions of the task order, particularly regarding cost controls within the CPFF portion and delivery schedules.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns in CPFF portion
- Limited transparency on pricing justification
- Reliance on sole-source provider
Tags
other-communications-equipment-manufactu, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. TASK ORDER W56KGY-19-F-0036 IS ISSUED IN ACCORDANCE WITH (IAW) THE TERMS AND CONDITIONS OF CONTRACT W56KGY-17-D-0006 FOR YEAR 3 SOFTWARE (SW) SUSTAINMENT, NEW EQUIPMENT TRAINING (NET) AND FIELDING, PROGRAM QUALITY MANAGEMENT (PQM), DEPOT SUPPORT, DE-FIELDING, GFM REPAIR, SW SUSTAINMENT TEWS AND PROPOSAL PREPARATION FOR THE PROPHET ENHANCED (PE) SYSTEMS. THESE SERVICES ARE PROCURED ON A COST-PLUS- FIXED-FEE (CPFF) AND FIRM-FIXED-PRICE (FFP) BASIS.
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $16.3 million.
What is the period of performance?
Start: 2019-03-29. End: 2020-10-28.
What is the breakdown of costs between the CPFF and FFP portions of the contract, and how does this impact overall cost control?
The data does not specify the cost breakdown between the Cost-Plus-Fixed-Fee (CPFF) and Firm-Fixed-Price (FFP) components. The CPFF portion carries inherent risk of cost overruns as the government pays actual costs plus a fixed fee. Understanding this allocation is crucial for assessing cost control effectiveness and potential taxpayer exposure.
Given the sole-source nature, what mechanisms are in place to ensure the government is receiving fair and reasonable pricing for sustainment and training?
Without competition, the government relies heavily on its contracting officers' price negotiation expertise and available cost/technical data. Mechanisms may include detailed cost proposals, audits, and comparison to historical data or independent cost estimates. However, the absence of competitive bids inherently limits the government's leverage in price discovery.
How does the duration and value of this task order compare to previous sustainment efforts for the Prophet Enhanced Systems?
The task order has a duration of 579 days (approx. 1.6 years) and a value of $16.3 million. Without historical data on prior sustainment task orders for this system, it's difficult to establish a direct comparison. Analyzing trends in duration and cost over time would be necessary to assess efficiency and potential cost escalation.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,288,929
Exercised Options: $16,288,929
Current Obligation: $16,288,929
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $122,887
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56KGY17D0006
IDV Type: IDC
Timeline
Start Date: 2019-03-29
Current End Date: 2020-10-28
Potential End Date: 2020-10-28 00:00:00
Last Modified: 2025-12-10
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