DoD Awards $147.6M for Prophet Enhanced Systems, Spares, and Support to General Dynamics
Contract Overview
Contract Amount: $147,617,224 ($147.6M)
Contractor: General Dynamics C4 Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-02-25
End Date: 2014-04-01
Contract Duration: 1,861 days
Daily Burn Rate: $79.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROPHET ENHANCED (PE) NON-RECURRING ENGINEERING, FIRST ARTICLE TESTING, INITIAL PRODUCTION OF SYSTEMS (A-KIT AND B-KIT) AND APPROVED SPARES LIST (ASL) AND DEPOT SPARES. FUNDING ALSO PROVIDES YEAR 1 CONTRACTOR SUPPORT FOR QUALITY MANAGEMENT OF THE PE PROGRAM.
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $147.6 million to GENERAL DYNAMICS C4 SYSTEMS, INC. for work described as: PROPHET ENHANCED (PE) NON-RECURRING ENGINEERING, FIRST ARTICLE TESTING, INITIAL PRODUCTION OF SYSTEMS (A-KIT AND B-KIT) AND APPROVED SPARES LIST (ASL) AND DEPOT SPARES. FUNDING ALSO PROVIDES YEAR 1 CONTRACTOR SUPPORT FOR QUALITY MANAGEMENT OF THE PE PROGRAM. Key points: 1. Significant investment in advanced communication systems and support. 2. General Dynamics C4 Systems is the sole awardee. 3. Risk associated with sole awardee and long-term support. 4. Spending falls within the 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $147.6 million for non-recurring engineering, testing, and initial production appears substantial. Benchmarking against similar complex defense system procurements is difficult without more detailed cost breakdowns, but the firm-fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the sole awardee indicates General Dynamics was selected as the best value. The impact on price discovery is positive due to initial competition.
Taxpayer Impact: Taxpayer funds are being used for advanced defense communication systems, with the initial competition aiming for cost-effectiveness.
Public Impact
Enhances military communication capabilities with advanced 'Prophet Enhanced' systems. Includes critical components like A-Kits, B-Kits, and approved spares. Provides contractor support for quality management, ensuring system reliability. Long-term sustainment and spares availability are addressed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee for long-term support.
- Potential for cost overruns in complex engineering.
- Reliance on a single contractor for critical spares.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract type.
- Addresses non-recurring engineering and initial production needs.
Sector Analysis
This contract falls under the 'Other Communications Equipment Manufacturing' sector, which involves the production of specialized communication hardware. Spending benchmarks for such niche defense systems are highly variable, making direct comparisons challenging.
Small Business Impact
The data indicates this contract was awarded to General Dynamics C4 Systems, Inc., and does not specify any subcontracting to small businesses. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of the Army is the procuring agency. Oversight would focus on contract performance, quality management, and adherence to the firm-fixed-price terms throughout the contract duration.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole awardee risk.
- Potential for cost growth in complex systems.
- Long-term sustainment cost uncertainty.
- Dependence on a single supplier for critical components.
Tags
other-communications-equipment-manufactu, department-of-defense, az, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $147.6 million to GENERAL DYNAMICS C4 SYSTEMS, INC.. PROPHET ENHANCED (PE) NON-RECURRING ENGINEERING, FIRST ARTICLE TESTING, INITIAL PRODUCTION OF SYSTEMS (A-KIT AND B-KIT) AND APPROVED SPARES LIST (ASL) AND DEPOT SPARES. FUNDING ALSO PROVIDES YEAR 1 CONTRACTOR SUPPORT FOR QUALITY MANAGEMENT OF THE PE PROGRAM.
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS C4 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 $147.6 million.
What is the period of performance?
Start: 2009-02-25. End: 2014-04-01.
What is the projected lifecycle cost of the Prophet Enhanced system, including sustainment and future upgrades?
The current contract focuses on initial production, spares, and Year 1 support. Estimating the full lifecycle cost requires projections for future sustainment, potential upgrades, and the longevity of the 'Prophet Enhanced' system. This data does not provide that information, necessitating separate analysis of sustainment contracts and technology roadmaps.
How will the Department of Defense ensure continued competition or fair pricing for spares and support beyond the initial contract period?
Given the sole awardee for this initial phase, ensuring future competition for spares and support will be crucial. The DoD should explore options like encouraging second-sourcing, developing robust organic repair capabilities, or structuring future solicitations to allow for broader participation, thereby mitigating potential price increases from a single provider.
What are the key performance metrics for the quality management contractor support included in this award?
The contract includes Year 1 contractor support for quality management of the PE program. Key performance metrics would likely involve adherence to quality standards, defect rates, successful completion of testing phases, and timely delivery of compliant components. Specific metrics are not detailed in the provided data but would be defined in the contract's performance work statement.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 8201 E MCDOWELL RD, SCOTTSDALE, AZ, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $147,617,224
Exercised Options: $147,617,224
Current Obligation: $147,617,224
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T09DW401
IDV Type: IDC
Timeline
Start Date: 2009-02-25
Current End Date: 2014-04-01
Potential End Date: 2014-04-01 00:00:00
Last Modified: 2014-07-23
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