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 Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – 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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