DoD awards $6.2M for PROPHET Enhanced Program RDT&E, a sole-source contract to General Dynamics

Contract Overview

Contract Amount: $6,238,368 ($6.2M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-28

End Date: 2027-01-31

Contract Duration: 702 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TASK ORDER W56KGY25F0022 IS HEREBY ISSUED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF BASIC CONTRACT W56JSR-23-D-0001 FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION TECHNICAL INSERTION, 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 $6.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: TASK ORDER W56KGY25F0022 IS HEREBY ISSUED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF BASIC CONTRACT W56JSR-23-D-0001 FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION TECHNICAL INSERTION, FOR THE PROPHET ENHANCED PROGRAM OF RECORD. Key points: 1. Contract focuses on research, development, test, and evaluation for a specific program. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. The contract duration of 702 days suggests a medium-term project. 4. Awarded under a basic contract, indicating a pre-existing relationship with the vendor. 5. The 'Instrument Manufacturing' NAICS code points to specialized technical equipment.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar RDT&E efforts. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not carefully managed, as the contractor is reimbursed for allowable costs plus a fixed fee. Without competitive pricing, it's difficult to ascertain if the $6.2 million represents a fair market value for the services rendered. Further analysis of the contractor's historical performance on similar contracts would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, General Dynamics Mission Systems, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically ensures the government receives the best value through price and technical proposals from multiple offerors. The justification for a sole-source award is not provided here, but it often stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the absence of competition limits price negotiation leverage. It also means that other capable small or large businesses are not given an opportunity to compete for this work.

Public Impact

The primary beneficiary is the Department of the Army, specifically the PROPHET Enhanced Program. Services delivered include research, development, testing, and evaluation of technical insertions. The contract is being performed in Arizona, indicating a geographic focus for this effort. Workforce implications are likely within specialized RDT&E roles at General Dynamics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other businesses and potentially increases costs.
CPFF contract type can incentivize cost overruns if not rigorously overseen.
Lack of competition may reduce pressure on the contractor to innovate or optimize.

Positive Signals

Award to an established contractor (General Dynamics) suggests a degree of confidence in their capabilities.
Focus on RDT&E for an existing program of record indicates continued modernization efforts.
The contract is part of a larger basic contract, suggesting a structured and managed relationship.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on advanced electronic instrumentation and systems for military applications. The NAICS code 334515 (Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals) highlights the specialized nature of the work. Spending in this area is critical for maintaining technological superiority and ensuring the effectiveness of military platforms. Comparable spending benchmarks would typically involve other RDT&E contracts for similar defense systems, often running into tens or hundreds of millions of dollars depending on program scale.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is minimal unless General Dynamics voluntarily engages small businesses for specific components or services. Further investigation into subcontracting plans would be needed to assess any indirect benefits to small businesses.

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 Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee is earned appropriately. Transparency is limited due to the sole-source nature and lack of public justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

PROPHET Program
Department of the Army RDT&E Spending
Defense Electronics Manufacturing
Sole-Source Defense Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of public justification for sole-source

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. TASK ORDER W56KGY25F0022 IS HEREBY ISSUED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF BASIC CONTRACT W56JSR-23-D-0001 FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION TECHNICAL INSERTION, 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 $6.2 million.

What is the period of performance?

Start: 2025-02-28. End: 2027-01-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available to meet the government's needs. This could be due to proprietary technology, unique capabilities, or a lack of adequate competition. For this contract, the PROPHET Enhanced Program of Record might involve specialized technology or intellectual property held exclusively by General Dynamics Mission Systems, Inc., making them the only viable option. A formal Justification for Other Than Full and Open Competition (JOFOC) would normally be required and publicly available for such awards, detailing the rationale.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other RDT&E contract types in terms of cost efficiency?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. While CPFF can be useful for RDT&E efforts where the scope is uncertain and innovation is key, it carries inherent risks of cost overruns. Unlike fixed-price contracts, the government bears the cost risk. If costs escalate, the government pays more. The fixed fee, however, is not tied to cost increases, providing some incentive for the contractor to control costs to maximize their fee percentage. However, compared to Firm-Fixed-Price (FFP) contracts, CPFF generally offers less cost certainty for the government. Other RDT&E contracts might include Cost-Plus-Incentive-Fee (CPIF) or Cost-Plus-Award-Fee (CPAF), which introduce performance incentives to better align contractor and government objectives.

What is General Dynamics Mission Systems' track record with the PROPHET program or similar RDT&E efforts?

General Dynamics Mission Systems, Inc. has a significant history of supporting defense programs, including electronic systems and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) capabilities. While specific details on their involvement with the PROPHET Enhanced Program prior to this task order are not in the data, their designation as the awardee suggests a continued role or established expertise. Their broader track record includes developing and integrating complex systems for various military branches. A comprehensive assessment would require reviewing their performance history on previous contracts, including any past performance evaluations, contract awards, and any reported issues or successes related to similar RDT&E projects.

What are the potential risks associated with the 'Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals' NAICS code in a sole-source context?

The NAICS code 334515 signifies a focus on specialized test and measurement equipment. In a sole-source context for RDT&E, risks can include the contractor having a monopoly on critical components or calibration services, potentially leading to inflated prices for parts or maintenance. There's also a risk that without competitive pressure, the contractor might be less motivated to adopt the latest technological advancements or offer the most cost-effective solutions. Furthermore, if the program relies on unique or proprietary instruments developed by the contractor, the government may face vendor lock-in, making future transitions or upgrades more complex and expensive. Ensuring rigorous oversight of technical specifications and cost elements is paramount to mitigate these risks.

How does this $6.2M contract compare to overall Department of the Army RDT&E spending?

The Department of the Army's Research, Development, Test, and Evaluation (RDT&E) budget is substantial, typically running into the tens of billions of dollars annually. For example, in recent fiscal years, the Army's RDT&E budget requests have often exceeded $15 billion. Therefore, this $6.2 million task order, while significant for the specific PROPHET Enhanced Program, represents a relatively small fraction of the Army's total RDT&E investment. It highlights the granular nature of defense spending, where large overall budgets are comprised of numerous individual contracts for specific research, development, and modernization efforts across various programs and technologies.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,238,368

Exercised Options: $6,238,368

Current Obligation: $6,238,368

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56JSR23D0001

IDV Type: IDC

Timeline