DoD awards $40.3M for Prophet Enhanced hardware to General Dynamics, a sole-source contract
Contract Overview
Contract Amount: $40,340,975 ($40.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-02-02
End Date: 2022-04-28
Contract Duration: 450 days
Daily Burn Rate: $89.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS DELIVERY ORDER IS FOR THE HARDWARE REQUIREMENTS FOR THE PROPHET ENHANCED PROGRAM OF RECORD.
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $40.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: THIS DELIVERY ORDER IS FOR THE HARDWARE REQUIREMENTS FOR THE PROPHET ENHANCED PROGRAM OF RECORD. Key points: 1. Significant award value of $40.3M for specialized hardware. 2. Sole-source award to General Dynamics raises competition concerns. 3. Risk of inflated pricing due to lack of competition. 4. Sector: Defense - Communications Equipment Manufacturing.
Value Assessment
Rating: questionable
The award value of $40.3M for 'Other Communications Equipment Manufacturing' is difficult to benchmark without specific product details. The lack of competition suggests potential for overpricing compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Dynamics Mission Systems, Inc. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may be overpaying for essential defense hardware due to a lack of competitive bidding. The sole-source nature of this award could stifle innovation from other potential suppliers. Dependence on a single supplier for critical program hardware presents a potential supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Awarded to established contractor
- Supports critical defense program
Sector Analysis
This award falls within the 'Other Communications Equipment Manufacturing' sector, a critical component of defense technology. Spending benchmarks for sole-source contracts in this niche are hard to establish, but competitive awards typically drive better value.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' fields are false. Further analysis would be needed to determine if small businesses were subcontracting opportunities.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste. Robust oversight is needed to confirm the necessity of a sole-source approach and validate costs.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in justification.
- No small business participation indicated.
- High award value without competitive benchmark.
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 $40.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. THIS DELIVERY ORDER IS FOR THE HARDWARE REQUIREMENTS FOR THE PROPHET ENHANCED PROGRAM OF RECORD.
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 $40.3 million.
What is the period of performance?
Start: 2021-02-02. End: 2022-04-28.
What justification was provided for the sole-source award, and was it thoroughly vetted?
The provided data does not include the justification for the sole-source award. A thorough review of the justification is crucial to determine if it meets regulatory requirements and if alternative sources were truly unavailable. This ensures taxpayer funds are used responsibly and competitively where possible.
How does the unit cost compare to similar, competitively procured communications equipment?
Without specific product details and competitive benchmark data, a direct unit cost comparison is not feasible. However, sole-source contracts are inherently at a disadvantage regarding price discovery. A comparative analysis with similar, competitively awarded contracts would likely reveal a higher cost for this sole-source acquisition.
What are the long-term risks associated with relying on a single supplier for this critical hardware?
Long-term risks include potential supply chain disruptions, price escalation without competitive pressure, and a lack of incentive for the sole-source provider to innovate or improve product quality. This dependence can also limit future technological advancements if the supplier's roadmap diverges from evolving military needs.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
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: $40,340,975
Exercised Options: $40,340,975
Current Obligation: $40,340,975
Subaward Activity
Number of Subawards: 57
Total Subaward Amount: $24,665,114
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56KGY17D0006
IDV Type: IDC
Timeline
Start Date: 2021-02-02
Current End Date: 2022-04-28
Potential End Date: 2022-04-28 12:04:00
Last Modified: 2022-04-11
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