DoD Awards $24.7M for Integrated Test Environment to General Dynamics, Full & Open Competition

Contract Overview

Contract Amount: $24,773,404 ($24.8M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-02-28

End Date: 2026-12-31

Contract Duration: 1,767 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INTEGRATED LIVE-VIRTUAL CONSTRUCTIVE TEST ENVIRONMENT TASK ORDER.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: INTEGRATED LIVE-VIRTUAL CONSTRUCTIVE TEST ENVIRONMENT TASK ORDER. Key points: 1. Significant contract value for a specialized test environment. 2. General Dynamics Mission Systems is a major defense contractor. 3. Full and open competition suggests potential for competitive pricing. 4. Contract spans over four years, indicating a long-term need.

Value Assessment

Rating: good

The contract is Cost Plus Fixed Fee, which allows for flexibility but requires careful oversight to manage costs. The total award value of $24.7M over nearly four years needs to be benchmarked against similar complex simulation and testing environments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value through a competitive bidding process.

Public Impact

Enhances military training and readiness through advanced simulation. Supports the development and testing of complex defense systems. Potential for technological advancements in virtual and constructive environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contracts can incentivize contractor to increase costs to reach fee.
  • Long duration requires ongoing monitoring for scope creep and cost overruns.

Positive Signals

  • Full and open competition utilized.
  • Clear delivery order structure.
  • Contract supports critical defense capabilities.

Sector Analysis

This contract falls within the defense sector, specifically related to simulation and training technologies. Spending in this area is crucial for maintaining military readiness and technological superiority, with significant government investment typically allocated to advanced testing and evaluation capabilities.

Small Business Impact

The data indicates this contract was awarded to a large business (General Dynamics Mission Systems, Inc.) and does not show any specific set-aside for small businesses. Therefore, the direct impact on small businesses appears limited unless they are subcontractors.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates robust oversight from the Department of the Army to ensure costs are reasonable and the fixed fee is earned appropriately. Monitoring performance against the contract's objectives and milestones is crucial for 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.
  • Long contract duration.
  • Awarded to a large, established defense contractor.
  • No explicit small business participation noted.

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 $24.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. INTEGRATED LIVE-VIRTUAL CONSTRUCTIVE TEST ENVIRONMENT TASK ORDER.

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 $24.8 million.

What is the period of performance?

Start: 2022-02-28. End: 2026-12-31.

What is the benchmark cost for similar Integrated Live-Virtual Constructive Test Environments?

Benchmarking the $24.7M award for this Integrated Live-Virtual Constructive Test Environment requires comparing it to contracts for similar scope, complexity, and duration. Factors like the specific technologies involved, the level of integration, and the contractor's overhead rates influence pricing. Without access to detailed cost breakdowns and a broader market analysis of comparable systems, a precise benchmark is difficult, but the duration and nature of the service suggest a significant investment.

What are the primary risks associated with a Cost Plus Fixed Fee contract for this type of service?

The primary risks with a Cost Plus Fixed Fee (CPFF) contract for an Integrated Live-Virtual Constructive Test Environment include potential cost overruns if the contractor's actual costs exceed estimates, and the fixed fee might not adequately compensate for unforeseen complexities. There's also a risk that the contractor might not be sufficiently incentivized to control costs, as their fee is fixed regardless of the final cost. Effective government oversight is critical to mitigate these risks.

How does this contract contribute to the overall effectiveness of military training and readiness?

This contract is vital for enhancing military training and readiness by providing a sophisticated environment for testing and validating complex systems and operational scenarios. The Integrated Live-Virtual Constructive (LVC) approach allows for realistic, scalable, and cost-effective training that bridges the gap between live exercises and simulations. This capability ensures that warfighters can train in environments that closely mirror real-world challenges, improving decision-making and operational effectiveness.

Industry Classification

NAICS: ManufacturingCommercial and Service Industry Machinery ManufacturingOther 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: $48,820,924

Exercised Options: $48,820,924

Current Obligation: $24,773,404

Actual Outlays: $2,414,583

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $2,575,119

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: 2022-02-28

Current End Date: 2026-12-31

Potential End Date: 2026-12-31 00:00:00

Last Modified: 2025-12-18

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