Department of Defense awards $152M contract for electronic computer manufacturing to General Dynamics Mission Systems
Contract Overview
Contract Amount: $152,378,456 ($152.4M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-05-20
End Date: 2013-01-19
Contract Duration: 975 days
Daily Burn Rate: $156.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CHS-3 CUSTOMER ORDERS
Place of Performance
Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780
Plain-Language Summary
Department of Defense obligated $152.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: CHS-3 CUSTOMER ORDERS Key points: 1. Contract value of $152.3M over its period of performance. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. General Dynamics Mission Systems, Inc. is the sole awardee. 5. The contract duration was 975 days. 6. The North American Industry Classification System (NAICS) code is 334111 for Electronic Computer Manufacturing.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the electronic computer systems procured. However, a $152M contract over approximately 3 years indicates a significant investment. The firm fixed price structure suggests an expectation of predictable costs, but the ultimate value-for-money depends on the performance and longevity of the delivered systems. Without comparable contract data or detailed cost breakdowns, a precise assessment of pricing efficiency is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that only one award was made suggests that General Dynamics Mission Systems, Inc. was the most advantageous offer to the government based on the evaluation criteria. The level of competition prior to award is not detailed, but the 'full and open' designation implies a robust process.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovation. It ensures that the government explores a wide range of potential solutions and contractors.
Public Impact
The Department of the Army is the primary beneficiary, receiving electronic computer systems. The contract supports the manufacturing of electronic computer equipment. The geographic impact is likely concentrated where General Dynamics Mission Systems operates its manufacturing facilities. Workforce implications include employment opportunities within General Dynamics and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the technical requirements and performance metrics makes it difficult to assess the true value and potential risks associated with the delivered systems.
- The firm fixed price contract, while shifting risk to the contractor, could lead to compromises in quality if not adequately monitored.
- Limited information on the competitive landscape beyond the 'full and open' designation prevents a deeper understanding of price discovery.
Positive Signals
- Awarded under full and open competition, suggesting a fair and transparent procurement process.
- Firm Fixed Price contract type aligns incentives for cost control with the contractor.
- General Dynamics Mission Systems is a well-established defense contractor with a track record in complex systems.
Sector Analysis
This contract falls within the Information Technology and Defense sectors, specifically focusing on the manufacturing of electronic computer hardware. The market for defense-related electronic systems is substantial, driven by the need for advanced computing capabilities in military operations. Comparable spending benchmarks would typically involve other large-scale procurements of specialized computing hardware for government agencies, particularly within the Department of Defense.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless General Dynamics Mission Systems voluntarily engages small businesses in its supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed price contract type, requiring the contractor to deliver specified goods. Transparency is facilitated by the contract award notice, but detailed performance and financial oversight information may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Procurement
- Electronic Equipment Manufacturing Contracts
- Army Systems Modernization Programs
- Firm Fixed Price Defense Contracts
Risk Flags
- Contract awarded during a period of active military engagement, potentially increasing demand and urgency.
- Firm Fixed Price contracts can sometimes lead to reduced contractor flexibility for necessary changes.
- Limited public information on specific performance metrics and post-award oversight.
Tags
department-of-defense, department-of-the-army, general-dynamics-mission-systems, firm-fixed-price, full-and-open-competition, electronic-computer-manufacturing, it-hardware, defense-contracting, massachusetts, naics-334111
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $152.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. CHS-3 CUSTOMER ORDERS
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 Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $152.4 million.
What is the period of performance?
Start: 2010-05-20. End: 2013-01-19.
What specific types of electronic computer systems were procured under this contract?
The provided data indicates the contract is for 'Electronic Computer Manufacturing' under NAICS code 334111. However, it does not specify the exact types of electronic computer systems. These could range from general-purpose servers and workstations to highly specialized computing hardware designed for specific military applications, such as ruggedized systems for field deployment, high-performance computing clusters for data analysis, or embedded systems for integration into larger platforms. Without further details from the contract statement of work or award documentation, the precise nature of the electronic computers remains unspecified.
How does the $152.3 million award compare to other similar contracts for electronic computer manufacturing within the Department of Defense?
Comparing this $152.3 million contract requires access to a broader dataset of similar procurements. Generally, contracts of this magnitude for specialized electronic computer manufacturing are significant. The Department of Defense frequently awards large contracts for IT hardware and systems. To benchmark effectively, one would need to analyze contracts with similar NAICS codes (e.g., 334111) awarded over comparable timeframes (2010-2013) by the DoD or its branches. Factors like contract duration, specific technical requirements, and the number of bidders would also be crucial for a meaningful comparison. Without this comparative data, it's difficult to definitively state if $152.3 million represents a high, low, or average value for such procurements during that period.
What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?
The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate the success of this contract. Typically, for manufacturing contracts, success is measured by adherence to specifications, quality control standards, delivery schedules, and warranty performance. For electronic computer systems, this could involve metrics related to processing speed, reliability, power consumption, environmental resistance (if applicable), and compliance with cybersecurity standards. The firm fixed price nature of the contract implies that meeting the defined specifications and delivery timelines are paramount. However, the exact KPIs would be detailed in the contract's Statement of Work (SOW) and associated performance requirements documents.
What is the track record of General Dynamics Mission Systems, Inc. in fulfilling similar large-scale government contracts?
General Dynamics Mission Systems, Inc. (GDMS) has a substantial track record as a major defense contractor, frequently awarded large and complex contracts by the U.S. government, including the Department of Defense. They are known for providing a wide range of technology solutions, including command and control systems, cybersecurity, intelligence, surveillance, and reconnaissance (ISR) platforms, and various communication and computing systems. Their history includes numerous prime contract awards across different military branches. While specific performance details for every contract are not always public, GDMS generally operates within the established norms for large defense system integrators. Their extensive experience suggests a capacity to manage and execute contracts of this scale, though like any large contractor, they may have faced challenges or scrutiny on specific programs over time.
What was the estimated cost or budget for this contract prior to the award?
The provided data does not include the estimated cost or budget for this contract prior to its award. Government agencies typically develop an independent government cost estimate (IGCE) during the acquisition planning phase to establish a baseline for evaluating offers. However, these estimates are often internal documents and are not publicly disclosed with the contract award notice. The final award amount of $152,378,456.09 represents the negotiated price with the contractor, General Dynamics Mission Systems, Inc. Understanding the pre-award estimate would require access to more detailed procurement documentation or agency budget information related to this specific acquisition.
Are there any known risks or challenges associated with the technology or the contractor for this specific contract?
The provided data does not explicitly list any known risks or challenges associated with this specific contract or the technology procured. However, general risks in large-scale electronic computer manufacturing contracts can include technological obsolescence, supply chain disruptions, integration complexities with existing systems, cybersecurity vulnerabilities, and potential cost overruns if the fixed-price structure proves inadequate for unforeseen issues. For General Dynamics Mission Systems, Inc., as a large defense contractor, risks might also relate to program management, adherence to evolving security requirements, and the complexity of the specific military applications the computers are intended for. A thorough risk assessment would typically be conducted by the procuring agency and detailed in contract documentation.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 400 JOHN QUINCY ADAMS ROAD, TAUNTON, MA, 04
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $152,378,456
Exercised Options: $152,378,456
Current Obligation: $152,378,456
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAH0103D0029
IDV Type: IDC
Timeline
Start Date: 2010-05-20
Current End Date: 2013-01-19
Potential End Date: 2013-01-19 00:00:00
Last Modified: 2010-10-05
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