DHS Coast Guard awards $4.49M for server upgrades, with General Dynamics Mission Systems as sole provider
Contract Overview
Contract Amount: $4,485,775 ($4.5M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2024-08-26
End Date: 2026-05-31
Contract Duration: 643 days
Daily Burn Rate: $7.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: R21 COASTAL FIRM FIXED PRICE TASK ORDER SERVER 2019 UPGRADE AND CONSOLIDATION RE (RECURRING ENGINEERING)
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $4.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: R21 COASTAL FIRM FIXED PRICE TASK ORDER SERVER 2019 UPGRADE AND CONSOLIDATION RE (RECURRING ENGINEERING) Key points: 1. The contract focuses on essential server upgrades and consolidation for the U.S. Coast Guard. 2. General Dynamics Mission Systems, Inc. is the sole awardee, indicating a lack of competition. 3. The firm fixed-price structure aims to control costs, but the sole-source nature raises concerns about potential overpricing. 4. This IT-related procurement falls under the 'All Other Telecommunications' category.
Value Assessment
Rating: questionable
The award of $4.49M for server upgrades and consolidation lacks comparative data due to its sole-source nature. Without competitive bids, it's difficult to assess if this price is optimal compared to similar market offerings.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning General Dynamics Mission Systems, Inc. was the only entity considered. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential IT services.
Public Impact
Ensures critical IT infrastructure for the U.S. Coast Guard remains operational and up-to-date. Supports the Coast Guard's mission by providing reliable server capabilities. Potential for increased costs due to the absence of competitive bidding. Highlights reliance on a single vendor for essential technology upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Firm fixed-price contract
- Addresses critical infrastructure needs
Sector Analysis
This procurement falls under the 'All Other Telecommunications' sector, specifically for IT infrastructure. Spending in this area is crucial for agency operations, but competitive bidding is generally expected to ensure value.
Small Business Impact
The data indicates this contract was awarded to a large business (General Dynamics Mission Systems, Inc.) and does not show any specific provisions or set-asides for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government received fair pricing and that competition was appropriately waived.
Related Government Programs
- All Other Telecommunications
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited vendor options for future needs
Tags
all-other-telecommunications, department-of-homeland-security, az, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $4.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. R21 COASTAL FIRM FIXED PRICE TASK ORDER SERVER 2019 UPGRADE AND CONSOLIDATION RE (RECURRING ENGINEERING)
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 $4.5 million.
What is the period of performance?
Start: 2024-08-26. End: 2026-05-31.
What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. Without further documentation, it's unclear why this server upgrade and consolidation was not competed. Agencies must demonstrate that competition is not feasible or would be detrimental to the government's interests to justify a sole-source award.
How does the $4.49M price compare to industry benchmarks for similar server upgrade and consolidation projects, especially considering the lack of competition?
Without competitive bids, a direct price comparison is challenging. However, the government should have conducted a price analysis based on historical data, commercial pricing, or independent cost estimates. The absence of competition raises a red flag that the price might be higher than what could have been achieved through a competitive process.
What are the long-term implications of relying on General Dynamics Mission Systems, Inc. for this critical IT infrastructure, particularly regarding future upgrades and support?
Sole-source awards can create vendor lock-in, potentially limiting future flexibility and increasing costs for subsequent upgrades or support. The Coast Guard should consider strategies to foster competition in the future or ensure robust contract management to mitigate risks associated with long-term reliance on a single provider.
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
Solicitation ID: 70Z04424RCMPL0002
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
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: $4,485,775
Exercised Options: $4,485,775
Current Obligation: $4,485,775
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,531,704
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
Start Date: 2024-08-26
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2026-04-06
More Contracts from General Dynamics Mission Systems, Inc.
- 200410!005969!2100!w15p7t!usa Communications-Electronics !w15p7t04ce405 !A!N! !N! ! !20040716!20111230!046863929!046863929!001381284!n!general Dynamics Decision Syst!8201 E Mcdowell Road !scottsdale !az!85257!65000!013!04!scottsdale !maricopa !arizona !+000010000000!n!n!000000000000!ac63!rdte/Electronics&communication Eq-Adv Tech DEV !A7 !electronics and Communication Equip !360 !jtrs Cluster I !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!b! !A!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $1.5B (Department of Defense)
- Federal Contract — $1.4B (Department of Defense)
- THE Space Network (SN) Consists of a Space Segment Comprised of the Tracking and Data Relay Satellites (tdrss), and a Ground Segment (sngs). the SN Provides the Capability for Global Space-To-Ground Telecommunications and Tracking Coverage for LOW Earth Orbit (LEO) and Near-Earth Spaceflight Missions, Including Both Robotic and Human Space Flight. the Sngs Includes Facilities and Systems Located AT the White Sands Complex (WSC) AT LAS Cruces, NM the Guam Remote Ground Terminal (grgt) AT Guam and Space Network Expansion (SNE) East AT Blossom Point, MD. the Purpose of the Sgss Project IS to Implement a Modern Ground Segment That Will Enable the SN to Continue to Deliver High Quality Services to the SN Community, Meet Stakeholder Requirements, and Significantly Reduce Required Operations and Maintenance Resources — $1.2B (National Aeronautics and Space Administration)
- Federal Contract — $1.2B (Department of Defense)
- SDA Tranche 1 Operations and Integration — $861.6M (Department of Defense)
View all General Dynamics Mission Systems, Inc. federal contracts →
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)