DoD's $189M contract for communication equipment awarded to GTE Government Systems, with a significant portion going to General Dynamics
Contract Overview
Contract Amount: $534,384,908 ($534.4M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 1996-12-20
End Date: 2008-04-30
Contract Duration: 4,149 days
Daily Burn Rate: $128.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 199712!2100!1257!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0797CF006 !A!*!* !19961220!20021130!188991954!114685548!001293950!N!67032!GTE GOVERNMENT SYSTEMS CORPORA!400 JOHN QUINCY ADAMS RD !TAUNTON !MA!02780!69170!005!25!TAUNTON !BRISTOL !MASS !0001!+000141000000!Y!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !1GRV!MOBILE SUBSCRIBER EQUIP !3669!3!*!*!*!B!A!*!D !U!J!1!001!N!1A!A!Y!A!* !* !N!C!*!B!B!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780
Plain-Language Summary
Department of Defense obligated $534.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 199712!2100!1257!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0797CF006 !A!*!* !19961220!20021130!188991954!114685548!001293950!N!67032!GTE GOVERNMENT SYSTEMS CORPORA!400 JOHN QUINCY ADAMS RD !TAUNTON !MA!02780!69170!005!25!TAUNTON !BRISTO… Key points: 1. Contract awarded for miscellaneous communication equipment, indicating a need for specialized hardware. 2. The contract spans over a decade, suggesting a long-term requirement for these systems. 3. A substantial portion of the contract value was realized, highlighting the importance of the delivered goods. 4. The award was not competed, raising questions about potential cost efficiencies and market engagement. 5. The primary contractor, GTE Government Systems, has a history in defense contracting. 6. The contract's duration and value suggest a significant investment in maintaining communication capabilities.
Value Assessment
Rating: fair
The total value of this contract was $188,991,954. While the exact performance period is extensive, the realized value suggests significant utilization. Benchmarking this against similar contracts for communication equipment is challenging without more specific details on the technology and quantities involved. However, the 'not competed' nature of the award may have limited opportunities for price discovery and potentially led to less competitive pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source procurement, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as there was no pressure on the contractor to offer the lowest possible price.
Public Impact
The Department of Defense benefits from the acquisition of essential communication equipment. Military personnel and units are equipped with the necessary tools for operational communication. The contract supports the defense industrial base, particularly in the electronics and communication sector. The geographic impact is primarily within the defense sector, supporting national security objectives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may have resulted in higher costs for taxpayers.
- The extended duration of the contract could indicate potential for scope creep or evolving requirements.
- Limited transparency due to sole-source award makes it difficult to assess true value for money.
Positive Signals
- The contract fulfilled a critical need for communication equipment within the Department of Defense.
- The substantial realized value indicates the equipment was likely utilized and deemed necessary.
- The contractor, GTE Government Systems, has experience in delivering defense-related solutions.
Sector Analysis
This contract falls within the Defense sector, specifically related to electronics and communication equipment. The market for such specialized military communication systems is often characterized by high barriers to entry, proprietary technology, and a limited number of qualified suppliers. Spending in this area is critical for national security, and contracts are often awarded to established defense contractors with proven track records.
Small Business Impact
Information regarding small business participation or subcontracting is not readily available for this sole-source contract. Typically, sole-source awards offer fewer opportunities for small business set-asides or subcontracting compared to competed contracts. Further investigation would be needed to determine if any small business provisions were included.
Oversight & Accountability
Oversight for this contract would have been managed by the Department of Defense, likely through the Defense Contract Management Agency (DCMA). Accountability measures would typically involve contract performance monitoring, quality assurance, and financial oversight. Transparency is limited due to the sole-source nature of the award, making public assessment of its effectiveness more challenging.
Related Government Programs
- Defense Communications Systems
- Military Electronics Procurement
- Tactical Communication Equipment
- Department of Defense IT Spending
Risk Flags
- Sole-source award limits transparency and competitive pricing.
- Extended contract duration may indicate potential for outdated technology or inefficient procurement.
- Lack of detailed itemization makes value assessment difficult.
Tags
defense, department-of-defense, communication-equipment, sole-source, definitive-contract, firm-fixed-price, gte-government-systems, general-dynamics-mission-systems, massachusetts, miscellaneous-communication-equipment, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $534.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 199712!2100!1257!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0797CF006 !A!*!* !19961220!20021130!188991954!114685548!001293950!N!67032!GTE GOVERNMENT SYSTEMS CORPORA!400 JOHN QUINCY ADAMS RD !TAUNTON !MA!02780!69170!005!25!TAUNTON !BRISTOL !MASS !0001!+000141000000!Y!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !1GRV!MOBILE SUBSCRIBER EQUIP !3669!3!*!*!*!B!A!*!D !U!J!1!0
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 $534.4 million.
What is the period of performance?
Start: 1996-12-20. End: 2008-04-30.
What specific types of communication equipment were procured under this contract?
The contract specifies 'MISCELLANEOUS COMMUNICATION EQUIPMENT' under PSC code 5895. While the data does not detail the exact items, this category typically encompasses a wide range of devices such as radios, mobile subscriber equipment, encryption devices, and related accessories used for military communication. The broad classification suggests a need for varied communication solutions rather than a single, highly specialized item. Further details would likely be found in the contract's statement of work or technical exhibits, which are not provided in this dataset.
Why was this contract awarded on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED'. Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, urgent and compelling reasons, or if the acquisition is a follow-on to a previously competed contract where only the original contractor can fulfill the need. Without specific justification documentation, the precise reason for the sole-source award remains unclear, but it implies a lack of viable alternatives or a specific strategic decision by the agency.
What was the realized value of the contract compared to its total obligated amount?
The contract had a total obligated amount of $188,991,954. The data does not explicitly state the 'realized value' or 'amount funded' separately from the total obligated amount in a way that allows for a direct comparison of spending versus obligation. However, the duration of the contract (from 1996 to 2008) and the substantial obligated amount suggest that a significant portion, if not all, of the funds were likely utilized to procure the communication equipment. The absence of a clear distinction between obligated and expended funds in this summary data makes a precise realized value calculation impossible.
What is the track record of GTE Government Systems Corporation in fulfilling defense contracts?
GTE Government Systems Corporation, prior to its acquisition and integration into other entities like General Dynamics, had a significant history of performing defense contracts. Companies like GTE were major players in providing telecommunications and IT solutions to the U.S. military and intelligence agencies. Their involvement in contracts for communication equipment, command and control systems, and other defense-related technologies was extensive. While this specific contract was awarded to GTE, the data also notes 'GENERAL DYNAMICS MISSION SYSTEMS, INC.' as the current contractor, indicating a transition or acquisition occurred, which is common in the defense industry.
How does the duration of this contract compare to typical defense procurement cycles for communication equipment?
This contract had a duration of approximately 10 years and 5 months (from December 20, 1996, to April 30, 2008), including modifications. This is a considerably long period for a single contract, even for complex systems. Typical procurement cycles for major defense systems can be lengthy, involving development, testing, and fielding. However, for 'miscellaneous communication equipment,' a decade-long contract might suggest either a continuous need for evolving technology, a very stable set of requirements, or potentially a less agile procurement strategy. Many modern defense procurements aim for shorter contract durations with options for renewal or follow-on contracts to adapt more quickly to technological advancements.
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: General Dynamics Corp
Address: 400 JOHN QUINCY ADAMS RD, TAUNTON, MA, 02780
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1996-12-20
Current End Date: 2008-04-30
Potential End Date: 2008-04-30 00:00:00
Last Modified: 2022-07-27
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