DoD awards $27.7M for Live, Virtual, Constructive Training Environment support to General Dynamics

Contract Overview

Contract Amount: $27,758,013 ($27.8M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-04-16

End Date: 2027-06-30

Contract Duration: 2,266 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LIVE, VIRTUAL, CONSTRUCTIVE TRAINING ENVIRONMENT (LVC-TE) DEVELOPMENT SUPPORT CACCTUS SUSTAINMENT AND DEVELOPMENT

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: LIVE, VIRTUAL, CONSTRUCTIVE TRAINING ENVIRONMENT (LVC-TE) DEVELOPMENT SUPPORT CACCTUS SUSTAINMENT AND DEVELOPMENT 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 incentivize cost overruns if not closely monitored. 3. The contract duration is substantial, spanning over 5 years, indicating a long-term need for these services. 4. The awardee, General Dynamics Mission Systems, is a large, established defense contractor. 5. The contract is for sustainment and development, implying ongoing support and potential for future enhancements. 6. The specific Product Service Code (PSC) is not provided, making direct comparisons to similar services challenging.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure requires careful oversight to ensure value for money, as it can lead to higher costs compared to fixed-price contracts if not managed effectively. Benchmarking the per-unit cost is difficult without more granular data on the specific services provided. However, the total award value of $27.7 million over approximately 5.5 years suggests a significant investment in training capabilities.

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 compete. The number of bidders is not specified, but this approach generally fosters price discovery and allows the government to select the best value offering. The competitive nature should, in theory, lead to more favorable pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for essential training systems. Full and open competition reduces the risk of inflated costs associated with sole-source or limited competition awards.

Public Impact

The primary beneficiaries are Department of the Army personnel who will utilize the enhanced training environment. The contract supports the development and sustainment of the Live, Virtual, Constructive Training Environment (LVC-TE). The geographic impact is primarily within Florida, where the contract is being performed. This contract supports the defense industrial workforce, particularly in areas related to simulation and training technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the sustainment and development.
The long contract duration could lock the government into a specific technology or vendor, potentially limiting future flexibility.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
General Dynamics Mission Systems is an experienced contractor with a significant presence in the defense sector.
The contract addresses a critical need for advanced military training capabilities.

Sector Analysis

The defense training and simulation market is a significant sector within the broader aerospace and defense industry. This contract for a Live, Virtual, Constructive Training Environment (LVC-TE) aligns with the military's increasing reliance on advanced technologies to prepare personnel for complex operational scenarios. Spending in this area is driven by the need for realistic, cost-effective training solutions that can replicate diverse environments and threats, often surpassing the capabilities and safety of live exercises alone. Comparable spending benchmarks would typically involve other large-scale simulation and training system development contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The prime contractor, General Dynamics Mission Systems, is a large entity, and their subcontracting plans, if any, would be outlined in their proposal and subsequent agreements, but are not detailed in this award summary.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures would be tied to the contract's performance work statement and milestones. Transparency is facilitated through contract award databases, though detailed performance reporting is often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Training Systems
Simulation and Modeling
Virtual Reality Training
Defense Logistics
Army Aviation Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to control costs.
Long contract duration may limit future flexibility in technology adoption.
Specific performance metrics are not publicly available for assessment.
Potential for technological obsolescence in a rapidly evolving training environment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. LIVE, VIRTUAL, CONSTRUCTIVE TRAINING ENVIRONMENT (LVC-TE) DEVELOPMENT SUPPORT CACCTUS SUSTAINMENT AND DEVELOPMENT

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 $27.8 million.

What is the period of performance?

Start: 2021-04-16. End: 2027-06-30.

What is the historical spending pattern for LVC-TE development and sustainment by the Department of the Army?

Analyzing historical spending for LVC-TE by the Department of the Army requires accessing detailed contract databases and budget reports over several fiscal years. Generally, spending in this area has been increasing as the military prioritizes advanced, technology-driven training solutions. This includes investments in hardware, software, integration, and ongoing sustainment to keep these complex systems operational and relevant. Without specific historical data points for this exact contract or program, it's difficult to provide precise figures, but the trend indicates a sustained and growing commitment to sophisticated training environments to meet evolving mission requirements and reduce reliance on costly live exercises.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of cost efficiency for training systems?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or involves research and development, making it difficult to estimate costs accurately upfront. While they offer flexibility, they carry a higher risk of cost overruns compared to fixed-price contracts, as the contractor is reimbursed for actual costs plus a fixed fee. For training systems, fixed-price incentive fee (FPIF) or firm-fixed-price (FFP) contracts might offer better cost control if the requirements are well-defined. However, for complex, evolving systems like LVC-TE, CPFF can be justified if robust oversight and cost controls are in place to manage contractor performance and expenditures effectively, ensuring the fixed fee remains reasonable relative to the effort.

What are the key performance indicators (KPIs) used to measure the success of the LVC-TE development and sustainment under this contract?

The specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the award abstract. However, for LVC-TE development and sustainment contracts, typical KPIs often include system uptime and availability, successful integration of new capabilities, reduction in training errors or simulation discrepancies, adherence to development schedules, and user satisfaction ratings from training personnel. For a CPFF contract, monitoring the contractor's ability to meet defined technical objectives within the estimated cost parameters, while managing the fixed fee, is also crucial. Effective oversight would involve tracking these metrics to ensure the training environment is functional, reliable, and meets the evolving needs of the Army.

What is General Dynamics Mission Systems' track record with similar LVC-TE or simulation contracts?

General Dynamics Mission Systems (GDMS) has a substantial track record in developing and supporting complex simulation, training, and C4ISR systems for the Department of Defense and other government agencies. They have been involved in various aspects of military training technologies, including virtual environments, constructive simulations, and live-virtual-constructive integration. While specific details on their performance for LVC-TE programs require deeper analysis of past performance reports and contract histories, GDMS is recognized as a major defense contractor with extensive experience in systems integration, software development, and lifecycle support for sophisticated defense platforms, suggesting a strong capability to handle this contract.

Are there any known risks associated with the sustainment of complex training environments like LVC-TE?

Yes, there are several risks associated with sustaining complex training environments like LVC-TE. Technological obsolescence is a primary concern, as hardware and software can quickly become outdated, requiring continuous updates and integration efforts. Interoperability issues can arise when trying to connect different simulation systems or integrate new components, potentially leading to performance degradation. Furthermore, the complexity of these systems makes them vulnerable to cybersecurity threats. Ensuring adequate technical expertise for maintenance and upgrades, managing the lifecycle costs, and adapting to evolving military doctrine and training requirements are ongoing challenges that require proactive management and investment.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: $70,652,658

Exercised Options: $32,566,717

Current Obligation: $27,758,013

Actual Outlays: $6,035,796

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $8,856,366

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