DoD's $230M contract with General Dynamics Mission Systems for electronic components shows long-term commitment
Contract Overview
Contract Amount: $230,621,781 ($230.6M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-01-30
End Date: 2010-09-15
Contract Duration: 2,785 days
Daily Burn Rate: $82.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $230.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: Key points: 1. Significant long-term award valued at over $230 million. 2. Competition method was 'Full and Open', suggesting broad market engagement. 3. Contract type 'Cost Plus Fixed Fee' carries inherent cost escalation risks. 4. Sector is 'Other Electronic Component Manufacturing', a critical defense supply chain area.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs compared to fixed-price contracts. The duration of the contract (2003-2010) also suggests potential for cost growth over time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'Full and Open Competition' method is generally positive for price discovery. However, the long duration and CPFF structure may have allowed for cost increases over the contract's lifespan, potentially impacting the final price paid.
Taxpayer Impact: The long-term nature and CPFF structure of this contract warrant scrutiny to ensure taxpayer funds were used efficiently and that the final cost represented good value.
Public Impact
Ensures continued supply of critical electronic components for defense systems. Supports a major defense contractor and its supply chain. Long-term commitment may indicate unique or specialized component needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (7+ years)
- No indication of small business participation
Positive Signals
- Full and Open Competition
- Award to established defense contractor
Sector Analysis
This contract falls under 'Other Electronic Component Manufacturing', a broad category essential for various defense platforms. Spending in this sector is often driven by technological advancements and long-term sustainment needs for military equipment.
Small Business Impact
The data indicates that small businesses were not explicitly involved in this contract, as 'sb' is false. Further analysis would be needed to determine if subcontractors utilized by General Dynamics included small businesses.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The long duration necessitates ongoing oversight to manage costs and ensure delivery.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Extended contract duration may lead to price creep.
- Lack of explicit small business participation noted.
- Limited transparency on specific component costs.
- Need for robust ongoing oversight.
Tags
other-electronic-component-manufacturing, department-of-defense, az, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $230.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. See the official description on USAspending.
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $230.6 million.
What is the period of performance?
Start: 2003-01-30. End: 2010-09-15.
What was the final cost of the contract compared to the initial estimate, and how did the CPFF structure impact this?
The contract awarded was $230,621,780.95. Without the initial estimate and a breakdown of costs incurred, it's difficult to definitively assess the final cost's value. CPFF contracts inherently allow for costs to fluctuate, making direct comparison to a fixed price challenging. Post-award reviews or audits would be necessary to evaluate cost efficiency.
Given the contract's duration and CPFF structure, what were the primary risks to cost control and taxpayer value?
The primary risks stemmed from the CPFF structure, which incentivizes cost incurrence rather than cost control, and the extended period of performance (over 7 years). This combination increases the likelihood of cost overruns and potential inefficiencies. Without robust oversight and clear performance metrics, the government risks paying more than necessary for the components.
How effective was the 'Full and Open Competition' in achieving competitive pricing over the contract's lifecycle?
While 'Full and Open Competition' is a strong starting point for price discovery, its effectiveness diminishes over a long-term CPFF contract. The initial competition may have secured a reasonable baseline, but the flexibility of CPFF and the passage of time could erode competitive pressure on pricing as costs are reimbursed. Subsequent modifications or contract actions would be key indicators.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2003-01-30
Current End Date: 2010-09-15
Potential End Date: 2010-09-15 00:00:00
Last Modified: 2021-02-22
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