DoD's $88M contract with General Dynamics for wireless comms equipment lacks competition, raising value concerns
Contract Overview
Contract Amount: $88,368,034 ($88.4M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-11-10
End Date: 2026-03-28
Contract Duration: 3,425 days
Daily Burn Rate: $25.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: KGT-42
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $88.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: KGT-42 Key points: 1. Contract awarded to a single vendor without competition. 2. Significant contract value of over $88 million. 3. Potential for inflated pricing due to lack of competitive bidding. 4. Sector: Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.
Value Assessment
Rating: questionable
The contract's value of $88.4 million for wireless communications equipment is difficult to assess without competitive benchmarks. The lack of competition suggests potential overpricing compared to market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive pressure on pricing.
Public Impact
Citizens may be paying more for defense technology due to non-competitive contracts. Lack of transparency in sole-source awards can erode public trust. Ensuring fair pricing for taxpayer-funded projects is crucial for fiscal responsibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Definitive contract type
- Long-term duration
Sector Analysis
The Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector is critical for modern defense capabilities. Benchmarks for similar sole-source contracts are often higher due to limited vendor options.
Small Business Impact
This contract was not awarded to small businesses, as indicated by the 'sb' field being false. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure fair pricing and prevent potential waste. Accountability for the justification of non-competition is essential.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited transparency
- No small business participation noted
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $88.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. KGT-42
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 Air Force).
What is the total obligated amount?
The obligated amount is $88.4 million.
What is the period of performance?
Start: 2016-11-10. End: 2026-03-28.
What was the justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of adequate competition. Price reasonableness is usually determined through cost analysis, comparison to previous contracts, or market research, though the absence of competition inherently limits robust price discovery.
What are the potential risks associated with awarding a contract of this magnitude without competition?
The primary risk is paying an inflated price due to the lack of competitive pressure. Other risks include reduced innovation, potential for vendor lock-in, and a missed opportunity to foster a more competitive market, which could lead to better long-term value for the government.
How does this contract contribute to the Department of the Air Force's overall mission effectiveness, and is the value commensurate with the expected outcomes?
The contract supports the Air Force's need for specific wireless communications equipment, which is vital for operational effectiveness. However, without competition, it's challenging to definitively state if the $88.4 million value is fully commensurate with the expected outcomes compared to what could have been achieved through a competitive process.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 8201 E MCDOWELL RD, 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: $88,368,034
Exercised Options: $88,368,034
Current Obligation: $88,368,034
Subaward Activity
Number of Subawards: 61
Total Subaward Amount: $12,495,371
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-11-10
Current End Date: 2026-03-28
Potential End Date: 2026-03-28 00:00:00
Last Modified: 2026-01-07
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