DoD awards $99.8M for Engineering and Logistics Support to General Dynamics, raising value and competition questions
Contract Overview
Contract Amount: $99,797,736 ($99.8M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Defense
Start Date: 2015-09-30
End Date: 2019-08-09
Contract Duration: 1,409 days
Daily Burn Rate: $70.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF ENGINEERING AND LOGISTICS SUPPORT
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $99.8 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: IGF::OT::IGF ENGINEERING AND LOGISTICS SUPPORT Key points: 1. Significant contract value of $99.8M for engineering and logistics support. 2. General Dynamics One Source LLC is the sole awardee. 3. Contract duration of 1409 days suggests long-term need. 4. The 'Other Communications Equipment Manufacturing' NAICS code may not fully capture the scope of services.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar contracts is difficult without more detailed service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although awarded under full and open competition, the award went to a single entity, General Dynamics One Source LLC. This suggests potential for limited price discovery if competition was not robust.
Taxpayer Impact: The total value of $99.8M represents a significant taxpayer investment, the full value of which depends on the efficiency and effectiveness of the services provided.
Public Impact
Taxpayers are funding critical engineering and logistics support for the Department of Defense. The duration of the contract implies ongoing operational needs for the Army. The specific nature of the 'engineering and logistics support' impacts various defense operations.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Single awardee despite full and open competition
- NAICS code may not fully align with services
Positive Signals
- Awarded under full and open competition
- Significant contract value indicates important services
Sector Analysis
The defense sector relies heavily on specialized engineering and logistics support to maintain operational readiness. Spending benchmarks for such services can vary widely based on complexity and duration.
Small Business Impact
The data does not indicate any specific set-asides for small businesses, suggesting that large prime contractors likely dominated the competitive landscape for this award.
Oversight & Accountability
The Cost Plus Fixed Fee structure necessitates robust oversight to ensure costs are reasonable and fixed fees are earned. The Department of Defense's Inspector General may review contract expenditures.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential NAICS code misalignment
- Single awardee despite full and open competition
- Cost Plus Fixed Fee contract type introduces cost overrun risk
- Lack of detailed service description hinders value assessment
Tags
other-communications-equipment-manufactu, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $99.8 million to GENERAL DYNAMICS ONE SOURCE LLC. IGF::OT::IGF ENGINEERING AND LOGISTICS SUPPORT
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $99.8 million.
What is the period of performance?
Start: 2015-09-30. End: 2019-08-09.
What specific engineering and logistics services were procured under this contract, and how do they align with the 'Other Communications Equipment Manufacturing' NAICS code?
The provided data lacks specific details on the engineering and logistics services. The 'Other Communications Equipment Manufacturing' NAICS code (334290) typically covers the production of communication equipment. If the contract primarily involved services rather than manufacturing, the NAICS code might be misaligned, potentially impacting the accuracy of spending comparisons and competition analysis.
Given the single award to General Dynamics One Source LLC under full and open competition, what was the competitive landscape like, and were there opportunities for better price discovery?
While the contract was advertised as full and open, the fact that only one award was made to General Dynamics One Source LLC raises questions about the robustness of the competition. It's possible that only one offeror met the stringent requirements, or that the solicitation structure inadvertently limited broader participation. Further analysis of the solicitation and submitted proposals would be needed to fully assess price discovery.
How does the Cost Plus Fixed Fee (CPFF) contract type impact the overall value and taxpayer risk for this $99.8M award over its 1409-day duration?
The CPFF structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. This shifts some risk to the government, as costs can exceed initial estimates. Effective oversight is crucial to manage costs and ensure the fixed fee remains appropriate for the services rendered. Without detailed cost breakdowns and performance metrics, assessing the true value and taxpayer risk is challenging.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $100,460,658
Exercised Options: $100,460,658
Current Obligation: $99,797,736
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $149,463
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T13D0005
IDV Type: IDC
Timeline
Start Date: 2015-09-30
Current End Date: 2019-08-09
Potential End Date: 2019-08-09 12:08:00
Last Modified: 2021-01-28
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