DoD awards $23M for live training, with General Dynamics Mission Systems securing the contract
Contract Overview
Contract Amount: $22,986,273 ($23.0M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-12-30
End Date: 2025-12-29
Contract Duration: 1,825 days
Daily Burn Rate: $12.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LIVE TRAINING ENGAGEMENT COMPOSITION
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $23.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: LIVE TRAINING ENGAGEMENT COMPOSITION Key points: 1. Contract value of $22.99 million for live training engagement composition. 2. Awarded to General Dynamics Mission Systems, Inc., a significant defense contractor. 3. Contract duration spans five years, from December 2020 to December 2025. 4. Procurement method was full and open competition, suggesting broad market engagement. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can shift risk to the government. 6. Geographic focus appears to be Florida, based on the award notice. 7. The North American Industry Classification System (NAICS) code is 333318, related to machinery manufacturing.
Value Assessment
Rating: fair
The contract value of $22.99 million for live training engagement composition over five years averages to approximately $4.6 million annually. Benchmarking this against similar large-scale training support contracts is challenging without more specific service details. However, the CPFF contract type suggests that the government bears the risk of cost overruns, which could lead to higher overall expenditure than a fixed-price contract if not managed carefully. The lack of a specific dollar amount for the fixed fee makes it difficult to assess the contractor's profit margin and thus the value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The specific number of bidders is not provided in the data, but the designation suggests a competitive process. Full and open competition is generally expected to yield a more competitive price and a wider range of solutions.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a broader selection of qualified vendors, which can lead to more efficient use of public funds.
Public Impact
The primary beneficiaries are likely military personnel who will receive enhanced live training experiences. The services delivered are related to 'LIVE TRAINING ENGAGEMENT COMPOSITION,' suggesting the development or enhancement of training scenarios and environments. The contract has a geographic focus on Florida, implying that training activities or contractor support will be concentrated there. Workforce implications could include employment opportunities for personnel involved in training development, simulation, and support services within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to incur costs, as the government reimburses allowable costs plus a predetermined fixed fee, potentially leading to cost overruns.
- Lack of specific performance metrics or outcome-based measures in the provided data makes it difficult to assess the effectiveness and efficiency of the training engagement.
- The broad NAICS code 'Other Commercial and Service Industry Machinery Manufacturing' might not fully capture the specialized nature of live training engagement composition, potentially obscuring specific industry benchmarks.
Positive Signals
- Awarded through full and open competition, which typically fosters a competitive environment and can lead to better pricing and innovation.
- The contract is for a significant duration (five years), suggesting a long-term need and potential for sustained capability development in live training.
- General Dynamics Mission Systems, Inc. is a well-established defense contractor with a track record in complex systems integration and support, implying a level of expertise.
Sector Analysis
The defense training sector is a critical component of military readiness, encompassing a wide range of services from simulation and virtual reality to live training exercises. This contract falls within the broader defense industry, specifically focusing on enhancing live training capabilities. The market for defense training services is substantial, driven by continuous modernization and the need for realistic operational scenarios. Comparable spending benchmarks would typically involve other large-scale training support contracts awarded by the Department of Defense or its branches, often involving complex technological integration and logistical support.
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. Consequently, the primary contractor, General Dynamics Mission Systems, Inc., will likely be responsible for subcontracting opportunities. The extent to which small businesses will benefit will depend on the subcontracting plan developed by the prime contractor, which is not detailed in this data.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee (CPFF) structure necessitates robust government oversight to monitor incurred costs and ensure they are allowable and reasonable. Transparency regarding the specific costs incurred and the fixed fee would be crucial for accountability. Inspector General (IG) jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.
Related Government Programs
- Army Training Support
- Live Fire Training Systems
- Simulation and Training Technology
- Defense Readiness Programs
- Military Exercise Support
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns.
- Lack of detailed performance metrics makes objective assessment of value difficult.
- Limited information on the number of bidders in the full and open competition.
Tags
defense, department-of-defense, department-of-the-army, full-and-open-competition, cost-plus-fixed-fee, delivery-order, general-dynamics-mission-systems, live-training, training-services, florida, machinery-manufacturing, contract-award
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. LIVE TRAINING ENGAGEMENT COMPOSITION
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 $23.0 million.
What is the period of performance?
Start: 2020-12-30. End: 2025-12-29.
What is the specific breakdown of the fixed fee for General Dynamics Mission Systems, Inc. on this contract?
The provided data does not specify the breakdown of the fixed fee for General Dynamics Mission Systems, Inc. on this contract. A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs incurred plus a predetermined fixed fee, which represents the contractor's profit. Without knowing the value of this fixed fee, it is difficult to assess the contractor's profit margin and compare it to industry standards or other similar contracts. This information is typically detailed in the contract award documents and is crucial for evaluating the value for money and contractor incentive structure.
How does the annual cost of this contract compare to other live training support contracts awarded by the Department of the Army?
The total contract value is $22,986,273.25 over 1825 days (5 years), averaging approximately $4.6 million per year. Direct comparison to other live training support contracts is challenging without more granular data on the scope of services, technological complexity, and duration of those other contracts. However, this annual figure represents a moderate investment for specialized training support. Larger, more complex simulation or full-scale exercise management contracts could easily exceed this annual spend, while smaller, more localized support might fall below it. Further analysis would require a database of comparable contracts with detailed service descriptions.
What are the key performance indicators (KPIs) used to measure the success of this live training engagement composition contract?
The provided data does not include specific Key Performance Indicators (KPIs) for this contract. In a CPFF contract, performance is often monitored through regular progress reports, milestone achievement, and adherence to technical specifications. For a 'LIVE TRAINING ENGAGEMENT COMPOSITION' contract, potential KPIs could include the realism of training scenarios, participant feedback on training effectiveness, successful integration of simulation elements, timely delivery of training materials, and adherence to safety protocols during live exercises. The absence of explicit KPIs in the summary data makes it difficult to objectively assess the contractor's performance and the overall effectiveness of the training provided.
What is the historical spending pattern for 'LIVE TRAINING ENGAGEMENT COMPOSITION' by the Department of the Army?
The provided data only pertains to a single contract award. To establish a historical spending pattern for 'LIVE TRAINING ENGAGEMENT COMPOSITION' by the Department of the Army, a comprehensive review of past contracts would be necessary. This would involve searching contract databases for similar service descriptions, contract types, and durations over several fiscal years. Analyzing this historical data would reveal trends in spending levels, fluctuations in demand for such services, and potentially identify key contractors that have consistently received awards in this category. Without this broader dataset, it's impossible to determine if the current $23 million award represents an increase, decrease, or stable level of investment.
What is the risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific live training engagement?
The primary risk associated with the CPFF contract type for this live training engagement is the potential for cost overruns. Under CPFF, the government agrees to pay the contractor's allowable costs plus a fixed fee. If the contractor's costs exceed initial estimates, the government is obligated to cover these additional costs, up to the contract ceiling. This shifts the financial risk of unforeseen expenses from the contractor to the government. While the fixed fee provides the contractor with a guaranteed profit margin, it can reduce their incentive to control costs aggressively. Effective government oversight is critical to manage this risk by scrutinizing incurred costs and ensuring they are reasonable and allocable to the contract.
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: $25,444,487
Exercised Options: $23,271,574
Current Obligation: $22,986,273
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $2,931,583
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: 2020-12-30
Current End Date: 2025-12-29
Potential End Date: 2025-12-29 00:00:00
Last Modified: 2025-07-03
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