DoD Awards General Dynamics $52.3M for Software Sustainment and Field Support
Contract Overview
Contract Amount: $52,260,689 ($52.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-06-09
End Date: 2026-08-06
Contract Duration: 1,154 days
Daily Burn Rate: $45.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CONTRACT W56KGY23F0013 IS FOR PROCUREMENT OF THE FOLLOWING: SOFTWARE (SW) SUSTAINMENT, DEPOT SUPPORT, NET EQUIPMENT TRAINING (NET), NEW EQUIPMENT FIELDING (NEF), AND FIELD SYSTEMS REPRESENTATIVES (FSR) SUPPORT.
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $52.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: CONTRACT W56KGY23F0013 IS FOR PROCUREMENT OF THE FOLLOWING: SOFTWARE (SW) SUSTAINMENT, DEPOT SUPPORT, NET EQUIPMENT TRAINING (NET), NEW EQUIPMENT FIELDING (NEF), AND FIELD SYSTEMS REPRESENTATIVES (FSR) SUPPORT. Key points: 1. The contract focuses on critical software sustainment and field support for defense systems. 2. General Dynamics Mission Systems, Inc. is the sole awardee, raising questions about competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is primarily IT and Communications Equipment Manufacturing, with significant defense implications.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type offers less price certainty than fixed-price contracts. Without a competitive bidding process, it's difficult to benchmark the pricing against similar sustainment services.
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 the government compared to a competitive process.
Taxpayer Impact: The lack of competition for a significant contract value may result in taxpayers paying more than necessary for these services.
Public Impact
Ensures continued operational readiness of critical defense software and equipment. Supports training and fielding of new equipment for military personnel. Provides essential depot and field support, minimizing downtime for vital systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of clear performance metrics in provided data.
- No indication of small business participation.
Positive Signals
- Essential sustainment and support for defense systems.
- Long-term contract duration ensures continuity of services.
- Experienced contractor in General Dynamics Mission Systems.
Sector Analysis
This contract falls within the IT and Communications Equipment Manufacturing sector, specifically supporting defense applications. Spending benchmarks for similar sustainment and support contracts can vary widely based on system complexity and criticality.
Small Business Impact
The data indicates that this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure fair pricing and effective service delivery. The Cost Plus Fixed Fee structure necessitates rigorous monitoring of costs and performance by the Department of the Army.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Lack of transparency in pricing
- No small business participation noted
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 $52.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. CONTRACT W56KGY23F0013 IS FOR PROCUREMENT OF THE FOLLOWING: SOFTWARE (SW) SUSTAINMENT, DEPOT SUPPORT, NET EQUIPMENT TRAINING (NET), NEW EQUIPMENT FIELDING (NEF), AND FIELD SYSTEMS REPRESENTATIVES (FSR) SUPPORT.
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 $52.3 million.
What is the period of performance?
Start: 2023-06-09. End: 2026-08-06.
What is the justification for awarding this contract sole-source, and what steps are being taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. To ensure fair pricing, the agency should conduct a thorough price analysis, potentially using historical data, independent government cost estimates, or benchmarking against similar commercial services. Robust contract administration and auditing are also essential.
How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure value for taxpayer money?
Managing a Cost Plus Fixed Fee contract requires stringent oversight. The government must closely monitor all allowable costs incurred by the contractor, ensuring they align with the contract's scope. Regular audits, performance reviews, and clear communication channels are vital to control spending and ensure the fixed fee remains appropriate for the effort expended.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?
Key performance indicators for this contract would likely include metrics such as system uptime, response times for support requests, successful completion of training, and timely delivery of equipment. Effectiveness will be measured by tracking these KPIs against pre-defined targets and assessing the overall impact on operational readiness and mission accomplishment.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D 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: $53,765,829
Exercised Options: $52,260,689
Current Obligation: $52,260,689
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $3,000,764
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: 2023-06-09
Current End Date: 2026-08-06
Potential End Date: 2026-08-06 12:08:00
Last Modified: 2025-11-17
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