DoD Awards $270M to General Dynamics for Telephone Apparatus Manufacturing, No Competition Identified
Contract Overview
Contract Amount: $270,110,227 ($270.1M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-01-28
End Date: 2015-06-10
Contract Duration: 1,594 days
Daily Burn Rate: $169.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FUNDING FOR THE LOT 1B AND 2 ORDERS AND INCLUSION OF UPDATES TO SHIPPING, PLACE OF PERFORMANCE, AND INSPECTION/ACCEPTANCE.
Place of Performance
Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780
Plain-Language Summary
Department of Defense obligated $270.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: FUNDING FOR THE LOT 1B AND 2 ORDERS AND INCLUSION OF UPDATES TO SHIPPING, PLACE OF PERFORMANCE, AND INSPECTION/ACCEPTANCE. Key points: 1. Significant award to a single vendor for essential communication equipment. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract spans over 1500 days, indicating a long-term need. 4. Focus on telephone apparatus manufacturing suggests a niche but critical defense need.
Value Assessment
Rating: questionable
The award amount of $270 million for telephone apparatus manufacturing is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates or similar government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery mechanisms and potentially leads to higher costs for taxpayers as there is no competitive pressure to lower prices.
Taxpayer Impact: The lack of competition in this large contract may result in taxpayers paying a premium for the goods and services procured.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single vendor could create supply chain vulnerabilities. The long duration of the contract suggests a sustained need for these specific communication devices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Clear vendor identified
- Specific product category
Sector Analysis
The defense sector frequently procures specialized communication equipment. Awards of this magnitude, especially when not competed, warrant scrutiny to ensure value for money and adherence to procurement best practices.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' fields are false. Further analysis would be needed to determine if small business participation was considered or possible.
Oversight & Accountability
The 'st' (Massachusetts) and 'sa' (Defense Contract Management Agency) fields suggest oversight is in place, but the lack of competition raises questions about the effectiveness of this oversight in ensuring competitive pricing.
Related Government Programs
- Telephone Apparatus Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Long contract duration increases risk exposure
- No small business participation indicated
Tags
telephone-apparatus-manufacturing, department-of-defense, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $270.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. FUNDING FOR THE LOT 1B AND 2 ORDERS AND INCLUSION OF UPDATES TO SHIPPING, PLACE OF PERFORMANCE, AND INSPECTION/ACCEPTANCE.
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 $270.1 million.
What is the period of performance?
Start: 2011-01-28. End: 2015-06-10.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without specific documentation, it's presumed the agency determined General Dynamics Mission Systems was the only source. However, the absence of competition makes it challenging to independently verify fair and reasonable pricing without access to cost breakdowns or market research data.
What are the risks associated with relying on a single vendor for critical communication apparatus over a four-year period?
The primary risks include potential supply chain disruptions if the vendor faces production issues, lack of innovation due to no competitive pressure, and continued exposure to potentially inflated prices. Over time, this dependency can also make it difficult to switch vendors or adopt newer technologies if the sole-source vendor's offerings become outdated or less cost-effective.
How does the $270 million expenditure align with the typical spending for telephone apparatus manufacturing within the Department of Defense?
Benchmarking this $270 million expenditure against typical DoD spending for telephone apparatus manufacturing is difficult without specific category data. However, given the 'NOT COMPETED' status and the substantial amount, it suggests either a highly specialized need or a potential area where competitive bidding could yield significant savings if alternative vendors or solutions exist.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 400 JOHN QUINCY ADAMS RD, TAUNTON, MA, 02780
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: $270,110,227
Exercised Options: $270,110,227
Current Obligation: $270,110,227
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15P7T10DC007
IDV Type: IDC
Timeline
Start Date: 2011-01-28
Current End Date: 2015-06-10
Potential End Date: 2015-06-10 00:00:00
Last Modified: 2020-06-12
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