General Dynamics awarded $2.78M contract for engineering services by GSA, with no competition

Contract Overview

Contract Amount: $2,781,692 ($2.8M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: General Services Administration

Start Date: 2023-07-13

End Date: 2026-07-12

Contract Duration: 1,095 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MAPS GEN 1 FOLLOW ON

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $2.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: MAPS GEN 1 FOLLOW ON Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract type is Time and Materials, which can lead to cost overruns if not closely managed. 3. Performance period of 3 years suggests a need for ongoing engineering support. 4. The North American Industry Classification System (NAICS) code 541330 indicates a focus on engineering services. 5. The contract is not set aside for small businesses, potentially excluding smaller players. 6. The awardee, General Dynamics Mission Systems, Inc., is a large, established defense contractor.

Value Assessment

Rating: questionable

The contract's value of $2.78 million over three years for engineering services requires careful scrutiny due to the lack of competitive bidding. Without a benchmark against similar sole-source contracts or a competitive process, it is difficult to definitively assess value for money. The Time and Materials (T&M) pricing structure, while flexible, carries inherent risks of cost escalation if not rigorously monitored against established labor rates and material costs. Further analysis would be needed to compare the proposed rates to industry standards for similar engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, or for follow-on work where it's deemed more efficient. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government compared to a competed contract.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive pressure to drive down costs. The government relies on the contractor's proposed pricing without the benefit of market validation through bids.

Public Impact

The primary beneficiary is General Dynamics Mission Systems, Inc., receiving a significant contract award. The contract will deliver engineering services, likely supporting a specific program or system managed by the General Services Administration. The geographic impact is noted as Maryland (MD), suggesting the primary performance location or a key operational hub. Workforce implications may include the utilization of skilled engineers and technical staff by General Dynamics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Time and Materials contract type poses a risk of cost overruns if not managed effectively.
Lack of small business set-aside may limit opportunities for smaller, specialized firms.

Positive Signals

Award to a large, established contractor like General Dynamics Mission Systems, Inc. may indicate a need for specialized expertise and a track record of performance.
The contract duration of three years suggests a stable, ongoing requirement for the services provided.

Sector Analysis

The engineering services sector is a critical component of government contracting, supporting a wide range of activities from defense systems to infrastructure development. The NAICS code 541330, Engineering Services, encompasses establishments primarily engaged in providing architectural, engineering, and related services. This contract fits within the broader landscape of federal spending on professional services, where agencies procure specialized expertise to support their missions. Benchmarking this contract's value would involve comparing it to other engineering service contracts awarded by GSA or other agencies for similar scope and duration, considering the specific technical requirements.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. The award to a large prime contractor like General Dynamics Mission Systems, Inc. suggests that the primary focus is on leveraging the capabilities of a major industry player. This could mean fewer direct opportunities for small businesses to participate in this specific contract, although they might be involved further down the supply chain if General Dynamics utilizes them for specific components or services.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) through its contracting officers and program managers. As a Time and Materials contract, rigorous monitoring of labor hours, rates, and material costs will be crucial to ensure accountability and prevent overspending. Transparency regarding the specific engineering tasks performed and the justification for the sole-source award would be important for public accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

General Services Administration (GSA) Contracts
Engineering Services Contracts
Time and Materials Contracts
Sole Source Contracts
Defense Engineering Support

Risk Flags

Sole-source award
Time and Materials contract type
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.8 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. MAPS GEN 1 FOLLOW ON

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2023-07-13. End: 2026-07-12.

What is the specific nature of the engineering services being provided under this contract?

The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330. However, the specific nature of these services is not detailed. Typically, engineering services can range from design and development, systems integration, technical consulting, testing and evaluation, to project management for complex systems or infrastructure. Given the awardee, General Dynamics Mission Systems, Inc., it is plausible these services relate to defense systems, communication technologies, or other specialized mission-critical applications. Further details on the contract's Statement of Work (SOW) would be necessary to ascertain the precise engineering tasks and deliverables.

How does the $2.78 million contract value compare to similar engineering service contracts awarded by GSA?

Comparing the $2.78 million contract value requires context regarding the scope, duration, and complexity of the engineering services. GSA awards a wide array of contracts, from small, specialized task orders to large, multi-year programs. Without knowing the specific deliverables and the period of performance (which is 3 years), a direct comparison is challenging. However, for a 3-year engineering services contract, $2.78 million is a moderate-sized award. GSA's Federal Procurement Data System (FPDS) could be queried for similar sole-source or competed engineering contracts within the same NAICS code and duration to establish a benchmark. The absence of competition here means direct price comparison is not feasible, making benchmarking against similar competed contracts essential for value assessment.

What are the potential risks associated with a sole-source Time and Materials contract for engineering services?

Sole-source Time and Materials (T&M) contracts present several risks. Firstly, the lack of competition means the government does not benefit from price reductions that competitive bidding might achieve. Secondly, T&M contracts can incentivize longer project durations and higher costs, as the contractor is paid for the time and materials expended, rather than a fixed outcome. This structure requires robust government oversight to ensure efficiency, prevent scope creep, and validate that labor rates and material costs are reasonable and allocable. Without strong management, T&M contracts can lead to cost overruns and a lack of clear accountability for project completion within budget. For engineering services, this could mean extended development cycles or higher-than-expected resource utilization.

What is General Dynamics Mission Systems, Inc.'s track record with GSA and similar federal contracts?

General Dynamics Mission Systems, Inc. is a well-established and large defense contractor with a significant history of performing federal contracts. Their track record with GSA and other agencies would typically involve a portfolio of complex engineering, technology, and defense-related services. Information on their past performance, including contract awards, delivery history, and any past performance issues or awards, can often be found in federal procurement databases like FPDS. Given their size and specialization, they are likely experienced in delivering the types of engineering services required. However, a detailed review of their specific performance on prior GSA contracts, especially sole-source awards, would be necessary to fully assess their reliability and value proposition for this particular contract.

What are the historical spending patterns for engineering services under NAICS code 541330 by the General Services Administration?

Historical spending patterns for engineering services (NAICS 541330) by the General Services Administration (GSA) can be analyzed through federal procurement data. GSA, as a major procurement agency, frequently awards contracts for various engineering disciplines supporting its vast portfolio of federal buildings, IT infrastructure, and shared services. Analyzing past spending would involve examining the total dollar value of contracts awarded under this NAICS code over several fiscal years, identifying major awardees, contract types (fixed-price, T&M, cost-plus), and competition levels. This analysis helps understand GSA's reliance on external engineering expertise, the typical contract sizes, and whether spending has been increasing or decreasing. Such data provides context for the current $2.78 million award, allowing for assessment of its scale relative to historical trends.

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

Solicitation ID: 47QFWA23R0012

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 12450 FAIR LAKES CIR, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,658,250

Exercised Options: $4,711,052

Current Obligation: $2,781,692

Actual Outlays: $1,681,127

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $215,268

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline