DoD Awards $11.5M for Navy's Solution Three System (S3S) Requirements to General Dynamics

Contract Overview

Contract Amount: $11,467,083 ($11.5M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2023-09-30

Contract Duration: 1,096 days

Daily Burn Rate: $10.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: UNDER THE TIOS-VIPER SA IDIQ CONTRACT W900KK-14-D-0009 THIS DELIVERY ORDER W900KK20F0143 FUNDS LABOR, MATERIAL AND TRAVEL FOR US NAVY FISCAL YEAR 2020 (FY20) SOLUTION THREE SYSTEM (S3S) REQUIREMENTS.

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: UNDER THE TIOS-VIPER SA IDIQ CONTRACT W900KK-14-D-0009 THIS DELIVERY ORDER W900KK20F0143 FUNDS LABOR, MATERIAL AND TRAVEL FOR US NAVY FISCAL YEAR 2020 (FY20) SOLUTION THREE SYSTEM (S3S) REQUIREMENTS. Key points: 1. This delivery order funds labor, material, and travel for the US Navy's FY20 S3S requirements. 2. The contract is with General Dynamics Mission Systems, Inc., a major defense contractor. 3. The award is a Cost Plus Fixed Fee type, which can carry higher cost risk. 4. The primary sector is Defense, specifically engineering services for a critical system.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type allows for cost overruns to be passed to the government, increasing risk. Without a fixed price, it's harder to assess value for money upfront.

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 this $11.5M award may result in taxpayers paying more than necessary for these S3S requirements.

Public Impact

Ensures continued operation and support for the US Navy's Solution Three System. Supports critical defense infrastructure and readiness. Funds labor, materials, and travel, impacting various supply chains. Potential for cost overruns due to CPFF contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Cost Plus Fixed Fee contract type
  • Lack of competition

Positive Signals

  • Supports critical Navy system
  • Funds essential labor and materials

Sector Analysis

This award falls within the Defense sector, specifically for engineering services related to a mission-critical system. Spending benchmarks for similar sole-source, CPFF contracts can vary widely, but the lack of competition is a key concern.

Small Business Impact

The awardee, General Dynamics Mission Systems, Inc., is a large business. There is no indication that small businesses were involved in this specific delivery order, nor is there a stated requirement for their participation.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. However, the sole-source nature and CPFF structure warrant close monitoring to ensure cost control and prevent waste.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Sole-source award limits competition and price discovery.
  • Cost Plus Fixed Fee contract type increases government cost risk.
  • Potential for cost overruns without strict oversight.
  • Lack of transparency regarding justification for sole-sourcing.
  • No indication of small business participation.

Tags

engineering-services, department-of-defense, az, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. UNDER THE TIOS-VIPER SA IDIQ CONTRACT W900KK-14-D-0009 THIS DELIVERY ORDER W900KK20F0143 FUNDS LABOR, MATERIAL AND TRAVEL FOR US NAVY FISCAL YEAR 2020 (FY20) SOLUTION THREE SYSTEM (S3S) REQUIREMENTS.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2020-09-29. End: 2023-09-30.

What specific justifications were provided for not competing this delivery order, given the significant funding amount?

The provided data does not include the specific justification for the sole-source award. Typically, justifications might include urgency, unique capabilities, or prior investments. However, without this information, it's difficult to assess if a competitive process was truly infeasible or if opportunities for competition were missed.

What are the projected cost ceilings and potential for cost overruns under this Cost Plus Fixed Fee (CPFF) contract?

CPFF contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can exceed initial estimates. The government bears the risk of cost overruns. Detailed financial oversight and regular audits are crucial to manage this risk effectively.

How will the effectiveness and performance of the Solution Three System (S3S) be measured and ensured under this contract?

Effectiveness is typically measured through performance metrics and deliverables outlined in the contract's Statement of Work (SOW). The Department of Defense and DCMA would monitor adherence to these metrics. However, the specific performance indicators and quality assurance procedures for S3S are not detailed in the provided data.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W900KK14R0030

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: $12,006,615

Exercised Options: $11,467,083

Current Obligation: $11,467,083

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W900KK14D0009

IDV Type: IDC

Timeline

Start Date: 2020-09-29

Current End Date: 2023-09-30

Potential End Date: 2023-09-30 00:00:00

Last Modified: 2025-09-15

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