DoD's $27.2M Common Training Instrumentation Architecture contract awarded to General Dynamics Mission Systems

Contract Overview

Contract Amount: $27,233,628 ($27.2M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-02-01

End Date: 2025-01-31

Contract Duration: 1,826 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COMMON TRAINING INSTRUMENTATION ARCHITECTURE FOR CONSOLIDATED PRODUCT-LINE MANAGEMENT

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $27.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: COMMON TRAINING INSTRUMENTATION ARCHITECTURE FOR CONSOLIDATED PRODUCT-LINE MANAGEMENT Key points: 1. Value for money assessed through comparison to similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract type (Cost Plus Fixed Fee) which may allow for cost overruns. 4. Performance context is within the Department of the Army's training and simulation needs. 5. Sector positioning is within defense contracting, specifically for training and simulation systems.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure warrants careful monitoring for cost efficiency, as it incentivizes cost incurrence. Benchmarking against similar complex training instrumentation systems is crucial to determine if the overall value is competitive. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the CPFF type suggests a higher risk of cost escalation compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of a competitive bidding process is generally positive for price discovery and can lead to more favorable terms for the government. The number of bidders is not specified, but the 'full and open' designation implies a robust competition.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it typically fosters a more competitive environment, potentially leading to lower prices and better value for the government's investment.

Public Impact

The primary beneficiary is the Department of the Army, receiving advanced training instrumentation. Services delivered include the development and maintenance of a consolidated product-line management architecture for training systems. The contract has a geographic impact primarily in Florida, where the contractor is located. Workforce implications include employment opportunities for engineers, technicians, and project managers within General Dynamics Mission Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed stringently.
  • Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
  • Long contract duration (5 years) increases the risk of scope creep or evolving technological needs not being met.

Positive Signals

  • Awarded through full and open competition, indicating a competitive bidding process.
  • Contractor is a well-established defense contractor with experience in similar systems.
  • Consolidated product-line management architecture aims to improve efficiency and reduce redundancy.

Sector Analysis

The defense sector, particularly the training and simulation sub-sector, is characterized by significant government investment in advanced technologies. This contract fits within the broader trend of modernizing military training capabilities through integrated digital systems. Comparable spending benchmarks would involve looking at other large-scale simulation and training system development contracts within the DoD, which often run into tens or hundreds of millions of dollars.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the prime contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in this summary. The overall impact on the small business ecosystem is likely indirect, depending on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are usually tied to contract milestones, performance reviews, and adherence to the Cost Plus Fixed Fee terms. Transparency is facilitated through contract award databases and reporting requirements, though detailed operational oversight information is often sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Army Training Information Systems
  • Simulation and Training Systems
  • Defense Logistics Agency (DLA) IT Support
  • Program Executive Office (PEO) Simulation, Training and Instrumentation

Risk Flags

  • Cost Plus Fixed Fee (CPFF) contract type carries inherent cost overrun risks.
  • Long contract duration (5 years) increases risk of technological obsolescence and changing requirements.
  • Lack of specific performance metrics in summary data hinders effectiveness assessment.

Tags

defense, department-of-the-army, training-systems, simulation, general-dynamics-mission-systems, cost-plus-fixed-fee, full-and-open-competition, florida, product-line-management, instrumentation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. COMMON TRAINING INSTRUMENTATION ARCHITECTURE FOR CONSOLIDATED PRODUCT-LINE MANAGEMENT

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 $27.2 million.

What is the period of performance?

Start: 2020-02-01. End: 2025-01-31.

What is the track record of General Dynamics Mission Systems in delivering similar training instrumentation systems?

General Dynamics Mission Systems (GDMS) has a substantial track record in developing and delivering complex defense systems, including simulation and training solutions. They are a major prime contractor for the U.S. military, involved in various aspects of command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems. Their experience often includes integrating hardware and software for realistic training environments. While specific project details for similar instrumentation architectures are proprietary, GDMS's overall portfolio suggests they possess the technical capability and program management experience necessary for this type of contract. Their history includes large-scale programs for various branches of the military, indicating a capacity to handle significant budgets and complex technical requirements.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar defense training systems?

Cost Plus Fixed Fee (CPFF) contracts are common in defense acquisition, particularly for research and development or when the scope of work is not fully defined at the outset, as is often the case with complex, evolving systems like training instrumentation. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the contractor to incur costs and be reimbursed, plus a predetermined fee. This can be advantageous when innovation or adaptation is key. However, FFP contracts generally offer better value for taxpayers when requirements are well-defined, as they place the cost risk on the contractor. Other contract types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives, which CPFF lacks. Therefore, while CPFF provides flexibility, it carries a higher risk of cost overruns and requires robust government oversight to ensure value.

What are the primary risks associated with a five-year contract for training instrumentation architecture?

A five-year contract duration for training instrumentation architecture presents several key risks. Firstly, technological obsolescence is a significant concern; technology in simulation and training evolves rapidly, and a system designed today might be outdated within five years. Secondly, scope creep is a common risk in long-term, flexible contracts like CPFF. Requirements can expand beyond the original intent, leading to increased costs and delays. Thirdly, contractor performance can degrade over time, or key personnel might leave, impacting the project's momentum and quality. Finally, the government's strategic needs or budget priorities might shift over five years, potentially rendering the investment less relevant or requiring costly modifications. Effective risk mitigation requires continuous monitoring, clear performance metrics, and agile program management.

What is the potential impact of this contract on the broader defense training and simulation market?

This contract, awarded to General Dynamics Mission Systems, contributes to the consolidation and modernization of training instrumentation architectures within the Department of the Army. It signals a continued investment in integrated, product-line-based approaches to training system development, potentially influencing how other branches or defense contractors structure their training solutions. The emphasis on a consolidated architecture could drive demand for interoperable components and standardized interfaces within the defense simulation and training market. It may also encourage competitors to focus on similar integrated solutions or specialized niches within the broader market. The scale of the contract suggests it could influence market dynamics by reinforcing the position of major defense integrators in this specialized segment.

How does the 'Other Commercial and Service Industry Machinery Manufacturing' NAICS code align with the contract's description?

The North American Industry Classification System (NAICS) code 333318, 'Other Commercial and Service Industry Machinery Manufacturing,' is a broad category. While the contract is for 'Common Training Instrumentation Architecture,' which involves complex software and systems integration, the underlying hardware components, specialized machinery, and manufacturing aspects of creating training devices or simulators can fall under this classification. This code encompasses the manufacturing of machinery used in various service industries, including those that might require specialized equipment for training purposes. It's a somewhat general classification, but it can encompass the production or integration of physical components that are part of a larger training system architecture.

Industry Classification

NAICS: ManufacturingCommercial and Service Industry Machinery ManufacturingOther Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W900KK19R0021

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 12001 RESEARCH PKWY STE 500, ORLANDO, FL, 32826

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: $28,441,440

Exercised Options: $28,441,440

Current Obligation: $27,233,628

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $2,706,707

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W900KK20D0007

IDV Type: IDC

Timeline

Start Date: 2020-02-01

Current End Date: 2025-01-31

Potential End Date: 2025-01-31 00:00:00

Last Modified: 2024-09-04

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