DoD Awards $59.3M Contract for CTC-IS to General Dynamics, Raising Cost Concerns
Contract Overview
Contract Amount: $59,297,768 ($59.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-07-23
End Date: 2025-07-22
Contract Duration: 1,825 days
Daily Burn Rate: $32.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BASE PDSS FOR THE CTC-IS UNDER THE CONSOLIDATED PRODUCT LINE MANAGEMENT IDIQ ALSO KNOWN AS CPM PLUS.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $59.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: BASE PDSS FOR THE CTC-IS UNDER THE CONSOLIDATED PRODUCT LINE MANAGEMENT IDIQ ALSO KNOWN AS CPM PLUS. Key points: 1. The contract is for the Consolidated Product Line Management IDIQ (CPM Plus). 2. General Dynamics Mission Systems, Inc. is the sole awardee. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is Other Commercial and Service Industry Machinery Manufacturing.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type offers less price certainty than fixed-price contracts. Without clear benchmarks or detailed cost breakdowns, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although awarded under full and open competition, the specific details of the pricing and how it was determined are not fully transparent. The Cost Plus Fixed Fee structure may not incentivize the most cost-effective solutions.
Taxpayer Impact: Taxpayer funds are committed to a contract with potential for cost escalation due to its fee structure, necessitating close monitoring.
Public Impact
The Department of Defense is acquiring critical systems for product line management. This contract supports the Department of the Army's operational capabilities. The duration of the contract extends over five years, indicating a long-term commitment. The awardee, General Dynamics Mission Systems, is a significant defense contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of detailed cost transparency
- Potential for cost overruns
Positive Signals
- Awarded under full and open competition
- Supports critical defense systems
Sector Analysis
This contract falls under the 'Other Commercial and Service Industry Machinery Manufacturing' sector. Spending in this area can vary widely depending on technological advancements and defense needs. Benchmarks are difficult to establish without more specific product details.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is a large corporation. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires robust oversight to ensure costs are reasonable and allocable. The Department of Defense must actively monitor expenditures and performance to ensure accountability.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Limited transparency on pricing justification
- Long contract duration (5 years)
- No small business set-aside indicated
Tags
other-commercial-and-service-industry-ma, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. BASE PDSS FOR THE CTC-IS UNDER THE CONSOLIDATED PRODUCT LINE MANAGEMENT IDIQ ALSO KNOWN AS CPM 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 $59.3 million.
What is the period of performance?
Start: 2020-07-23. End: 2025-07-22.
What specific services or products are included under the CTC-IS and CPM Plus IDIQ, and how do they align with current defense needs?
The contract details are limited, but CTC-IS likely refers to Combatant Command Training and Simulation Systems, and CPM Plus is the IDIQ vehicle. Understanding the specific functionalities and integration capabilities of these systems is crucial to assess their alignment with evolving defense requirements and technological advancements.
How will the Cost Plus Fixed Fee structure be managed to mitigate risks of cost overruns and ensure fair pricing for taxpayers?
Effective management of a CPFF contract requires stringent oversight, detailed cost audits, and clear performance metrics. The DoD must ensure that General Dynamics provides thorough justification for all costs incurred and that the fixed fee remains appropriate for the level of effort and risk involved.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?
Key performance indicators should focus on system reliability, availability, maintainability, and the successful delivery of training and simulation capabilities. Regular performance reviews and independent assessments will be necessary to verify that the contractor is meeting or exceeding these KPIs and delivering effective solutions.
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: $60,722,316
Exercised Options: $60,722,316
Current Obligation: $59,297,768
Actual Outlays: $1,024
Subaward Activity
Number of Subawards: 91
Total Subaward Amount: $8,646,263
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: 2020-07-23
Current End Date: 2025-07-22
Potential End Date: 2025-07-22 00:00:00
Last Modified: 2025-12-02
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