DoD Awards $5.89M Contract for PM-SBCT Support to General Dynamics Land Systems

Contract Overview

Contract Amount: $5,893,409 ($5.9M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-12

End Date: 2027-01-01

Contract Duration: 994 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: OVERARCHING SUPPORT FOR PM-SBCT

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $5.9 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: OVERARCHING SUPPORT FOR PM-SBCT Key points: 1. Contract awarded to a single, large incumbent provider. 2. Focus on engineering services for a specific program. 3. Potential for limited competition due to specialized nature. 4. Significant taxpayer investment in defense program support.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering support contracts for defense programs is necessary to assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach. This may be due to the specialized nature of the support required for the PM-SBCT program, potentially limiting price discovery and competitive pressure.

Taxpayer Impact: Taxpayer funds are being used for specialized engineering support. Without full and open competition, there's a risk of paying a premium for these services.

Public Impact

Ensures continued support for a critical Army program. Maintains established relationship with a key defense contractor. Potential for cost efficiencies if program requirements are well-defined.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of full and open competition
Cost Plus Fixed Fee contract type
Potential for scope creep

Positive Signals

Supports a critical defense program
Leverages incumbent expertise

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense programs. Spending in this area is often driven by national security priorities and can involve complex, long-term projects.

Small Business Impact

The data indicates that small businesses were not involved in this specific contract award. Further analysis would be needed to determine if opportunities were overlooked or if the nature of the work precluded small business participation.

Oversight & Accountability

Oversight will be crucial to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that the contractor delivers on all program requirements effectively.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may result in higher costs.
Cost Plus Fixed Fee contracts carry inherent cost overrun risk.
Potential for vendor lock-in due to specialized support.
Lack of transparency in the sole-source justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.9 million to GENERAL DYNAMICS LAND SYSTEMS INC.. OVERARCHING SUPPORT FOR PM-SBCT

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS LAND 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 $5.9 million.

What is the period of performance?

Start: 2024-04-12. End: 2027-01-01.

What is the justification for not competing this contract more broadly, given the significant taxpayer investment?

The justification for not competing this contract broadly likely stems from the specialized nature of the PM-SBCT program and the incumbent's unique expertise. However, a thorough review should confirm that no other qualified vendors could offer comparable services, even with a tailored solicitation, to ensure the best value for taxpayers.

How will the Cost Plus Fixed Fee structure be managed to mitigate risks of cost overruns?

Effective management of the Cost Plus Fixed Fee structure requires stringent oversight, detailed cost tracking, and clear performance metrics. The contracting officer must actively monitor expenditures against the fixed fee, scrutinize all costs claimed, and ensure that any deviations from the baseline are fully justified and approved.

What are the key performance indicators (KPIs) for this contract to ensure program effectiveness?

Key performance indicators should focus on technical performance, schedule adherence, and cost control. Examples include meeting specific engineering milestones, successful integration of system components, timely delivery of technical documentation, and staying within projected cost ceilings. Regular performance reviews will be essential.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 38500 MOUND RD, STERLING HEIGHTS, MI, 48310

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: $5,893,409

Exercised Options: $5,893,409

Current Obligation: $5,893,409

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV24D0012

IDV Type: IDC

Timeline