Coast Guard awards $12.7M task order for coastal engineering services to General Dynamics

Contract Overview

Contract Amount: $12,679,209 ($12.7M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-04-01

End Date: 2026-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $6.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: R21 COASTAL ENGINEERING SERVICES TASK ORDER

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: R21 COASTAL ENGINEERING SERVICES TASK ORDER Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract duration of five years suggests a long-term need for these services. 3. The fixed-price contract type aims to control costs, but the lack of competition may limit savings. 4. The specific task order is for coastal engineering services, a niche but critical area for maritime operations. 5. The awardee, General Dynamics Mission Systems, is a large defense contractor with extensive experience. 6. The contract's value is moderate within the context of large federal IT and telecommunications procurements.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging due to its specialized nature and sole-source award. Without competitive bids, it's difficult to definitively assess if the $12.7 million represents optimal value for money. However, General Dynamics is a reputable contractor, suggesting a baseline level of quality. Further analysis would require comparing the scope of work and deliverables to similar, competitively awarded coastal engineering contracts, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they generally lead to less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process. The lack of competing offers means the government did not leverage market forces to secure the most economical price.

Public Impact

The U.S. Coast Guard benefits from specialized coastal engineering expertise to support its maritime operations and infrastructure. Services delivered likely include assessments, design, and potentially construction oversight for coastal facilities and defenses. The geographic impact is focused on coastal regions where the Coast Guard operates, potentially including areas in Arizona given the state code. Workforce implications may involve specialized engineering roles within General Dynamics and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if not closely managed due to lack of competitive pressure.

Positive Signals

Award to a large, established contractor (General Dynamics) suggests reliability and experience.
Firm Fixed Price contract type provides cost certainty for the government.
Long-term contract (5 years) indicates a stable, ongoing requirement.

Sector Analysis

This contract falls within the broader telecommunications and IT services sector, specifically addressing specialized engineering needs. The market for coastal engineering services is niche, often involving firms with specific expertise in environmental, civil, and structural engineering related to maritime environments. While General Dynamics is a major player in defense and IT, this specific task order leverages their engineering capabilities. Comparable spending benchmarks would likely be found within civil works projects by agencies like the Army Corps of Engineers or other maritime-focused federal entities.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like General Dynamics suggests that opportunities for small businesses would likely be through direct subcontracting if General Dynamics chooses to engage them, rather than through a mandated set-aside program.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Coast Guard contracting and program management officials. As a delivery order under a larger contract vehicle, the specific oversight mechanisms would depend on the terms of that parent contract. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

R21 COASTAL ENGINEERING SERVICES TASK ORDER
General Dynamics Mission Systems Contracts
U.S. Coast Guard Engineering Support
Sole Source Telecommunications Procurements

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for unbenchmarked pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. R21 COASTAL ENGINEERING SERVICES TASK ORDER

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 Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2021-04-01. End: 2026-03-31.

What is the specific justification for awarding this coastal engineering services contract on a sole-source basis to General Dynamics Mission Systems?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without access to the Justification and Approval (J&A) document, it is impossible to determine the precise rationale. This lack of transparency is a common concern with sole-source awards, as it limits the public's ability to understand why competition was bypassed and whether it was truly necessary.

How does the $12.7 million contract value compare to other coastal engineering services contracts awarded by the federal government?

Directly comparing this $12.7 million task order to other coastal engineering contracts is difficult without more specific data on the scope of work and duration of those comparable contracts. Coastal engineering can encompass a wide range of services, from environmental impact studies to the design and oversight of major infrastructure projects. However, $12.7 million over five years suggests a moderate-sized engagement. Larger, multi-year programs for significant coastal defense or infrastructure development could easily run into hundreds of millions or even billions of dollars. Conversely, smaller, short-term consulting engagements might be in the hundreds of thousands. This award appears to be for a sustained, specialized support role.

What are the potential risks associated with a sole-source award for specialized engineering services like coastal engineering?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may not achieve the most cost-effective solution. Another risk is a potential decline in service quality or innovation, as the contractor may have less incentive to exceed expectations when there is no threat of losing future business to competitors. Furthermore, sole-source awards can raise concerns about fairness and equal opportunity for other qualified vendors who were not given a chance to compete. Effective contract management and oversight become even more critical in sole-source situations to mitigate these risks.

What is General Dynamics Mission Systems' track record with federal contracts, particularly in engineering and telecommunications?

General Dynamics Mission Systems (GDMS) is a well-established and significant federal contractor with a long history of performance across various sectors, including defense, intelligence, and IT. They are known for providing complex systems, software, and services. Their track record generally includes large, high-value contracts for mission-critical programs. While specific performance metrics for every contract are not publicly detailed, GDMS is considered a reputable large business. Their experience in engineering and telecommunications is extensive, often involving sophisticated technology integration and support for government operations, making them a plausible choice for specialized engineering tasks, even if awarded sole-source.

How does the 'All Other Telecommunications' NAICS code (517919) align with 'Coastal Engineering Services'?

The NAICS code 517919, 'All Other Telecommunications,' appears to be a broad classification that may encompass a wide range of services not fitting into more specific telecommunications categories. Coastal engineering services, while not directly telecommunications, could potentially involve the installation, maintenance, or integration of communication systems within coastal infrastructure, or the use of telecommunications technology for monitoring and data transmission related to coastal environments. It's also possible that the parent contract under which this task order was issued falls under this NAICS code, and this specific task order is a component of that broader telecommunications-related effort. Without more context on the parent contract, the alignment remains somewhat indirect.

Industry Classification

NAICS: Information › Other Telecommunications › All Other Telecommunications

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257

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: $12,679,209

Exercised Options: $12,679,209

Current Obligation: $12,679,209

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $140,430

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70Z04421D21000600

IDV Type: IDC

Timeline