DoD's $26M Land Warrior Ensembles contract awarded to General Dynamics Mission Systems raises questions about competition and value
Contract Overview
Contract Amount: $26,034,457 ($26.0M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-12-23
End Date: 2011-03-31
Contract Duration: 463 days
Daily Burn Rate: $56.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LAND WARRIOR ENSEMBLES
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $26.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: LAND WARRIOR ENSEMBLES Key points: 1. The $26M contract for Land Warrior Ensembles was awarded to a single vendor, General Dynamics Mission Systems. 2. The contract was not competed, raising concerns about potential overpricing and lack of market-driven cost discovery. 3. The absence of competition limits transparency and potentially reduces taxpayer value. 4. The sector is Defense, specifically focusing on system and instrument manufacturing for navigation and guidance.
Value Assessment
Rating: questionable
Without competitive bidding, it's difficult to assess if the $26M price represents fair market value. Benchmarking against similar, competed contracts for advanced soldier systems would be necessary for a proper evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning it was not competed. This method bypasses the price discovery benefits of a competitive process, potentially leading to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these soldier ensembles.
Public Impact
Military personnel may not receive the most cost-effective equipment due to the sole-source award. Taxpayers bear the financial burden of potentially inflated prices resulting from the lack of competition. Future procurements in this area could be influenced by this non-competitive precedent.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in cost determination
Positive Signals
- Awarded to a known defense contractor
- Definitive contract provides clear terms
Sector Analysis
The Department of Defense frequently procures advanced soldier systems. Benchmarking this $26M contract against other competed contracts for similar technological capabilities is crucial for assessing value.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for their participation and contribution.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that the decision not to compete was justified.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in cost justification
- Missed opportunity for small business participation
Tags
search-detection-navigation-guidance-aer, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. LAND WARRIOR ENSEMBLES
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 $26.0 million.
What is the period of performance?
Start: 2009-12-23. End: 2011-03-31.
What was the justification for awarding this contract sole-source instead of competing it?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without specific documentation, it's impossible to confirm the exact reason. However, the absence of competition inherently limits the government's ability to secure the best possible price and innovation.
How can the government ensure fair pricing on future sole-source contracts?
To ensure fair pricing on future sole-source contracts, the government should conduct thorough market research, obtain independent cost estimates, and negotiate aggressively. Utilizing certified cost or pricing data from the contractor and potentially engaging third-party experts can also help validate pricing and ensure taxpayer value.
What is the potential impact of this sole-source award on the development of competing technologies?
This sole-source award may discourage other companies from investing in the development of competing technologies, as they perceive the market as closed. It can create a barrier to entry and reduce overall innovation within the sector, potentially leading to less advanced or more expensive solutions in the long run.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W91CRB09R0063
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
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: $26,034,457
Exercised Options: $26,034,457
Current Obligation: $26,034,457
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-12-23
Current End Date: 2011-03-31
Potential End Date: 2011-03-31 00:00:00
Last Modified: 2021-02-25
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