DoD's $24.8M contract for product-line management awarded to General Dynamics Mission Systems, Inc

Contract Overview

Contract Amount: $24,795,041 ($24.8M)

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: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CONSTRUCT FOR CONSOLIDATED PRODUCT-LINE MANAGEMENT PLUS

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: CONSTRUCT FOR CONSOLIDATED PRODUCT-LINE MANAGEMENT PLUS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Performance period spans over five years, indicating a long-term need for these services. 4. The contract is for product-line management, a critical function for maintaining and evolving complex systems. 5. The award amount of $24.8 million over five years suggests a significant investment in this area. 6. The contractor, General Dynamics Mission Systems, Inc., is a major player in the defense sector.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns. However, the total award of $24.8 million over five years averages to approximately $4.96 million annually. This figure needs to be compared against the scope and complexity of the product-line management services provided. Given the contractor's experience, the price may be reasonable, but the CPFF structure inherently carries a risk of costs exceeding initial estimates if not rigorously overseen.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the best value. The open competition suggests that the market for these services is robust enough to support multiple qualified vendors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage a wider range of innovative solutions.

Public Impact

The Department of the Army benefits from consolidated product-line management, potentially leading to improved efficiency and cost savings in managing its product lines. Services delivered include the management and oversight of specific product lines within the Department of Defense. The geographic impact is primarily within Florida, where the contract is being performed. Workforce implications may include the utilization of skilled personnel by General Dynamics Mission Systems, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to achieve a higher fee, requiring robust oversight.
The long performance period of five years increases the risk of scope creep or evolving requirements not being adequately addressed in the initial contract.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance trajectory.
The nature of 'product-line management' is broad and could encompass a wide range of activities, making precise value assessment difficult without further detail.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for best value.
General Dynamics Mission Systems, Inc. is a well-established defense contractor with significant experience in complex systems.
The contract addresses a long-term need for product-line management, suggesting strategic importance.
The contract is being performed in Florida, potentially supporting local economic activity and workforce.

Sector Analysis

This contract falls within the 'Other Commercial and Service Industry Machinery Manufacturing' sector, specifically focusing on product-line management services. This is a niche but critical area within the broader defense industrial base, supporting the lifecycle management of complex military equipment and systems. The market for such specialized services is often dominated by large, experienced defense contractors like General Dynamics.

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 contract was not specifically targeted towards small businesses, and large prime contractors are likely to be the primary performers. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award notice.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure value for money and prevent contractor overreach. Transparency is generally maintained through contract reporting mechanisms, though specific oversight details are not provided.

Related Government Programs

Defense Logistics Agency (DLA) Contracts
Army Aviation and Missile Command (AMCOM) Contracts
Naval Sea Systems Command (NAVSEA) Contracts
Air Force Materiel Command (AFMC) Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Long contract duration increases potential for scope creep and evolving requirements.
Lack of detailed performance metrics makes objective assessment of value difficult.
Broad definition of 'product-line management' requires careful monitoring to ensure focused execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. CONSTRUCT FOR CONSOLIDATED PRODUCT-LINE MANAGEMENT PLUS

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 $24.8 million.

What is the period of performance?

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

What is the specific scope of 'product-line management' covered by this contract?

The term 'product-line management' in this context likely refers to the oversight, sustainment, modernization, and lifecycle support of a defined set of military products or systems. This can include activities such as managing obsolescence, planning for upgrades, ensuring interoperability, coordinating maintenance strategies, and tracking performance metrics for the entire product family. Without more specific details from the contract statement of work, the precise activities remain generalized. However, for a major defense contractor like General Dynamics Mission Systems, Inc., this typically involves managing complex, integrated systems critical to national defense.

How does the $24.8 million award compare to similar product-line management contracts within the DoD?

Comparing this $24.8 million award over five years (averaging $4.96 million annually) to similar contracts requires access to a broader dataset of DoD procurements for product-line management. However, for large, complex defense systems managed by major contractors, this figure appears to be within a reasonable range. Contracts for sustainment and lifecycle management of major platforms can run into hundreds of millions or even billions of dollars over their lifespan. This specific contract's value is contingent on the criticality, size, and technological sophistication of the product lines it encompasses. Further analysis would involve benchmarking against contracts for comparable systems or product families.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor receives a fixed fee, the 'cost' portion is reimbursable. This structure can incentivize contractors to incur higher costs, as their fee is a percentage of those costs (though in a fixed fee structure, the fee itself is fixed, but the contractor is reimbursed for allowable costs). Effective oversight is crucial to ensure that all costs are reasonable, allocable, and necessary. Without stringent monitoring, the government could end up paying more than anticipated. Other risks include potential for scope creep if not managed tightly and ensuring the contractor maintains efficiency.

What is General Dynamics Mission Systems, Inc.'s track record with similar DoD contracts?

General Dynamics Mission Systems, Inc. (GDMS) has a substantial track record with the Department of Defense, often securing large and complex contracts related to command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, as well as other defense technologies. They are known for their work on various platforms and systems integration. Their history includes numerous prime contract awards across different military branches, indicating a strong capability in managing large-scale defense programs. Specific performance metrics and past issues on similar contracts would require a deeper dive into contract performance reports and historical data, but their consistent presence as a major awardee suggests a generally reliable performance history.

What are the potential implications for future spending on product-line management within the DoD?

This contract award suggests a continued strategic focus by the DoD on robust product-line management, particularly for systems requiring long-term sustainment and modernization. The investment in consolidated management indicates an effort to streamline operations and potentially achieve economies of scale. Future spending in this area is likely to remain significant, especially as the military modernizes its equipment and faces evolving technological landscapes. Contracts like this may serve as a model for how the DoD intends to manage the lifecycle of its diverse and complex asset base, potentially leading to more integrated and long-term support agreements.

How does the geographic location of performance (Florida) impact the contract's execution and oversight?

The performance location in Florida means that oversight activities, such as site visits, audits, and progress meetings, will need to be conducted by personnel who can travel to or are stationed near the contractor's facilities in the state. This can add logistical considerations and costs for government representatives. However, Florida hosts a significant defense industrial base, so it is plausible that government oversight resources are already present or can be efficiently deployed. The specific impact depends on the proximity of government program offices or contracting officer representatives (CORs) to the contractor's operational sites.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other 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: $25,541,466

Exercised Options: $25,541,466

Current Obligation: $24,795,041

Actual Outlays: $1,546,526

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $1,894,654

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