Air Force awards $40.5M contract for security support services to General Dynamics

Contract Overview

Contract Amount: $40,465,053 ($40.5M)

Contractor: General Dynamics ONE Source LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-25

End Date: 2029-02-28

Contract Duration: 1,464 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SECURITY SUPPORT SERVICES (SSS) FOR THE DEPARTMENT OF THE AIR FORCE (DAF).

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $40.5 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: SECURITY SUPPORT SERVICES (SSS) FOR THE DEPARTMENT OF THE AIR FORCE (DAF). Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a competitive process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Delivery order issued under a larger contract, suggesting a phased approach to service delivery. 4. The contract duration is over four years, indicating a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541690 points to 'Other Scientific and Technical Consulting Services'. 6. The contract is for security support services, a critical function for the Department of the Air Force. 7. The contractor, General Dynamics One Source LLC, is a significant player in the defense sector.

Value Assessment

Rating: good

The total award amount is $40.5 million over approximately four years. Benchmarking this against similar security support contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type suggests that the government pays the contractor's allowable costs plus a fixed fee, which can be efficient if costs are well-controlled. The number of bids received (2) is on the lower side for a full and open competition, which might warrant further investigation into pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources'. This typically means that the initial solicitation was broad, but certain sources were excluded based on specific criteria before the final award. Only two bids were received, which is a relatively low number for a full and open competition. This limited number of bidders could potentially impact price discovery and may suggest that the market for this specific service is concentrated or that the requirements were highly specialized.

Taxpayer Impact: While the competition was open, the low number of bidders may have limited the downward pressure on pricing, potentially resulting in a higher cost to taxpayers than if more firms had competed.

Public Impact

The Department of the Air Force will benefit from enhanced security support services. Services delivered are expected to bolster the operational security posture of Air Force installations. The geographic impact is primarily within Virginia, where the contract is managed. Workforce implications include potential job creation for security professionals and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Low number of bidders (2) in a full and open competition could indicate limited market interest or high barriers to entry.
Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to prevent cost overruns and ensure value for money.
The 'after exclusion of sources' clause warrants understanding the rationale behind the exclusions to ensure fairness and broad competition.

Positive Signals

Award to a large, established contractor like General Dynamics suggests a high likelihood of successful performance.
The long contract duration (over 4 years) indicates a stable, ongoing need for these critical security services.
The contract is for essential security support, directly contributing to the mission readiness of the Air Force.

Sector Analysis

This contract falls within the broader Scientific and Technical Consulting Services sector, specifically related to security. The defense sector, where the Department of the Air Force operates, heavily relies on specialized consulting for operational support and risk management. Comparable spending benchmarks for security support services can vary widely based on scope, location, and specific requirements, but a $40.5 million award over four years for a major military branch suggests a significant and complex requirement.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific award, as neither a small business set-aside nor subcontracting goals are explicitly mentioned. This suggests that the primary contractor, General Dynamics, will likely handle the majority of the work. Further investigation into the contract's subcontracting plan would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures would be embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and performance against fixed fee milestones. Transparency is generally maintained through contract award databases, but specific performance metrics and cost breakdowns may be less publicly accessible.

Related Government Programs

Department of Defense Security Services
Air Force Installation Support Contracts
Federal Consulting Services
General Dynamics Contracts

Risk Flags

Low bidder count in competition
CPFF contract type requires strong oversight
Potential for cost overruns
Need to verify rationale for source exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.5 million to GENERAL DYNAMICS ONE SOURCE LLC. SECURITY SUPPORT SERVICES (SSS) FOR THE DEPARTMENT OF THE AIR FORCE (DAF).

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $40.5 million.

What is the period of performance?

Start: 2025-02-25. End: 2029-02-28.

What is the specific nature of the 'security support services' being provided under this contract?

The provided data indicates the contract is for 'SECURITY SUPPORT SERVICES (SSS) FOR THE DEPARTMENT OF THE AIR FORCE (DAF)' under NAICS code 541690 ('Other Scientific and Technical Consulting Services'). While the exact services are not detailed, this NAICS code suggests a focus on consulting, analysis, and technical support related to security. This could encompass a range of activities such as security policy development, risk assessments, physical security consulting, cybersecurity strategy, threat analysis, or personnel security vetting. The 'after exclusion of sources' aspect of the competition might imply that the services are highly specialized, requiring specific expertise or clearances that narrowed the initial pool of potential bidders.

How does the Cost Plus Fixed Fee (CPFF) structure impact the value for money for taxpayers?

The Cost Plus Fixed Fee (CPFF) contract structure means the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee. This structure can be beneficial when the scope of work is not precisely defined or is subject to change, as it allows for flexibility. However, it places a significant burden on the government to meticulously monitor and audit the contractor's costs to ensure they are reasonable and allocable. If cost controls are weak, CPFF contracts can lead to higher overall spending than fixed-price contracts, as the contractor has less incentive to minimize costs beyond what is necessary to achieve the fixed fee. For taxpayers, value for money hinges on robust government oversight and effective negotiation of the fee.

What are the potential risks associated with only two bidders participating in a 'full and open competition after exclusion of sources'?

Having only two bidders in any competitive process, especially one that started as 'full and open', raises concerns about the robustness of the competition. While 'full and open competition after exclusion of sources' implies a deliberate process, the low number of bids could indicate several risks. It might suggest that the market for these specific services is limited, or that the barriers to entry (e.g., security clearances, specialized knowledge, past performance requirements) were so high that only two firms could realistically qualify. This lack of broader competition could lead to less favorable pricing for the government, as the bidders may face less pressure to offer their most competitive rates. It also increases the risk of contractor performance issues, as there are fewer alternatives if the chosen contractor underperforms.

What is General Dynamics One Source LLC's track record with similar government contracts?

General Dynamics is a major defense contractor with extensive experience across various government agencies, including the Department of Defense. General Dynamics One Source LLC, as a subsidiary or division, likely leverages this corporate expertise. While specific performance details for this exact contract are not yet available (as it's a new award), the company's history suggests a capacity to handle large, complex service contracts. However, like any large contractor, past performance can be mixed, and a thorough review of their contract history, including any past issues with cost overruns, performance deficiencies, or disputes on similar CPFF contracts, would be necessary for a complete assessment.

How does this $40.5 million award compare to historical spending on security support services by the Air Force?

Without access to historical spending data specifically for 'security support services' by the Air Force, a direct comparison is difficult. However, $40.5 million spread over approximately four years ($10.1 million annually on average) represents a substantial investment. The Air Force, being a major branch of the DoD, has significant security needs across numerous installations and operations. This award level suggests a critical and ongoing requirement for specialized security consulting and support. To provide a precise comparison, one would need to analyze historical contract databases for similar NAICS codes and service descriptions awarded by the Air Force over previous fiscal years.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,763,352

Exercised Options: $47,763,352

Current Obligation: $40,465,053

Actual Outlays: $5,155,217

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $10,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA824023D3501

IDV Type: IDC

Timeline