DHS awards $14M for navigation systems, highlighting need for advanced tech in border security

Contract Overview

Contract Amount: $14,084,195 ($14.1M)

Contractor: General Dynamics ONE Source LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-01

End Date: 2029-08-31

Contract Duration: 2,191 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DO #1 AWARD

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.1 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: DO #1 AWARD Key points: 1. Value for money appears reasonable given the long-term nature of the contract and the specialized equipment required. 2. Full and open competition suggests a healthy market for these navigation systems. 3. Contract duration of nearly 6 years indicates a stable, long-term requirement. 4. The award is for a delivery order under a larger contract, suggesting a streamlined procurement process. 5. This contract supports critical border security operations, aligning with national priorities. 6. The firm-fixed-price structure helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of $14.08 million over approximately 6 years suggests a moderate annual spend. Benchmarking against similar contracts for navigation systems is challenging without more specific technical details. However, the firm-fixed-price nature of the award indicates that the contractor assumes the risk for cost overruns, which is generally favorable for the government. The pricing is likely competitive given the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of a single award for this delivery order suggests that General Dynamics One Source LLC offered the best value among the competitors. The level of competition is positive for price discovery and ensures the government receives competitive offers.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential suppliers.

Public Impact

U.S. Customs and Border Protection benefits from enhanced navigation capabilities for its operations. The contract delivers essential systems for search, detection, navigation, guidance, and related instrument manufacturing. Geographic impact is likely nationwide, supporting border security efforts across various regions. The contract supports jobs within the defense and technology manufacturing sectors, specifically in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the systems are highly proprietary and difficult to integrate with other platforms.
Reliance on a single contractor for a critical system could pose risks if the contractor faces financial or operational difficulties.

Positive Signals

Firm-fixed-price contract structure limits the government's exposure to cost increases.
Long-term contract duration provides stability and predictability for both the government and the contractor.
Awarded under full and open competition, suggesting a robust market and competitive pricing.

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. This is a specialized area within the broader aerospace and defense industry. Spending in this sector is driven by national security needs, technological advancements, and the requirement for sophisticated equipment for military and homeland security applications. Comparable spending benchmarks would depend on the specific type and quantity of navigation systems procured.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. Without specific set-aside requirements or reported subcontracting goals, the direct impact on the small business ecosystem is likely minimal, though General Dynamics may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and U.S. Customs and Border Protection. As a delivery order under a larger contract, existing oversight mechanisms for the parent contract would apply. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Navigation Systems Procurement
Homeland Security Technology Modernization
Federal Aviation Administration Navigation Equipment Contracts
Coast Guard Maritime Systems Acquisition

Risk Flags

Potential for technological obsolescence given the contract duration.
Reliance on a single awardee for a critical system.
Need for detailed technical specifications to fully assess value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.1 million to GENERAL DYNAMICS ONE SOURCE LLC. DO #1 AWARD

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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2023-09-01. End: 2029-08-31.

What is the specific type of navigation system being procured, and how does it compare to existing technologies?

The contract specifies 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' While the exact system is not detailed, it implies advanced capabilities beyond basic GPS. These systems are crucial for U.S. Customs and Border Protection (CBP) operations, which can include aerial surveillance, maritime patrols, and ground operations in complex environments. Modern navigation systems often integrate multiple technologies like inertial navigation, satellite-based augmentation systems (SBAS), and advanced mapping to provide precise positioning, even in GPS-denied areas. Comparing this to existing technologies would require knowing the specific technical specifications and performance metrics outlined in the solicitation, which are not publicly available in this summary. However, the long-term nature and firm-fixed-price suggest a need for reliable, high-performance, and potentially customized solutions.

How does the $14 million award compare to historical spending by CBP on similar navigation systems?

To accurately compare this $14.08 million award to historical CBP spending on similar navigation systems, detailed historical procurement data for navigation equipment would be needed. This would involve identifying previous contracts for navigation, guidance, and related systems awarded by CBP, noting their values, durations, and technical scopes. The current award is a delivery order under a larger contract, meaning the total value of the parent contract could be significantly higher. Without access to CBP's full contract history and specific product categories, a direct comparison is difficult. However, $14 million over six years represents an average annual spend of approximately $2.33 million, which seems moderate for a federal agency with extensive operational needs like CBP, suggesting this might be one of several such procurements or for a specific set of assets.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or metrics for this specific contract. However, for contracts involving navigation and guidance systems for homeland security, typical KPIs would likely focus on system reliability, accuracy (e.g., positional accuracy within a certain tolerance), operational availability (uptime), maintainability, and compliance with relevant military or aviation standards. For CBP, success would also be measured by how effectively these systems contribute to mission objectives such as border surveillance, interdiction, and search and rescue operations. The firm-fixed-price nature implies that meeting the defined technical specifications and delivery schedules are primary performance drivers. Contract performance would likely be monitored through regular reporting and potentially operational testing.

What is the track record of GENERAL DYNAMICS ONE SOURCE LLC in delivering similar navigation systems to government agencies?

General Dynamics is a major defense contractor with a broad range of capabilities, including systems integration, electronics, and IT services. General Dynamics One Source LLC, specifically, is often associated with providing IT and mission-support services. While the parent company has extensive experience in defense and aerospace, the specific track record of 'General Dynamics One Source LLC' in delivering navigation systems requires further investigation. Typically, large contractors like General Dynamics fulfill such requirements through various divisions or subsidiaries, potentially leveraging specialized expertise. A review of past performance information (past performance questionnaires, CPARS reports) associated with General Dynamics and its relevant subsidiaries would provide a clearer picture of their success in delivering comparable navigation and guidance systems to government agencies, including the Department of Homeland Security or the Department of Defense.

Are there any identified risks associated with the long duration (nearly 6 years) of this contract?

The nearly 6-year duration of this contract presents several potential risks. Technological obsolescence is a primary concern; navigation technology evolves rapidly, and systems procured today might be outdated before the contract ends. This could necessitate costly upgrades or replacements. Contractor performance risk also increases with duration; the longer the contract, the higher the chance of performance degradation, financial instability, or changes in key personnel at the contractor's end. Furthermore, market conditions and pricing can fluctuate significantly over six years, potentially impacting the value proposition if the firm-fixed-price was set based on favorable early-term assumptions. Government requirements may also shift, requiring contract modifications that could add complexity and cost. Mitigating these risks often involves incorporating technology refresh clauses, robust performance monitoring, and clear exit strategies.

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: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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: $20,493,119

Exercised Options: $14,084,195

Current Obligation: $14,084,195

Actual Outlays: $2,200,061

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $8,396,919

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70B02C23D00000026

IDV Type: IDC

Timeline