DoD's $147M contract for mobile user objective system ground sustainment awarded to General Dynamics Mission Systems

Contract Overview

Contract Amount: $147,278,363 ($147.3M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2026-08-31

End Date: 2026-08-31

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: MOBILE USER OBJECTIVE SYSTEM GROUND SUSTAINMENT

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $147.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: MOBILE USER OBJECTIVE SYSTEM GROUND SUSTAINMENT Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but requires careful oversight. 3. Sustainment services are critical for the long-term operational effectiveness of the MOS. 4. The contract duration extends to August 2026, suggesting a need for ongoing support. 5. Geographic location of performance is Arizona, potentially impacting local workforce and economy. 6. No small business set-aside was utilized, suggesting the primary contractor is a large entity.

Value Assessment

Rating: fair

The contract's value of $147.3 million for sustainment services over its period of performance requires careful benchmarking against similar complex system support contracts. As a Cost Plus Award Fee (CPAF) contract, the final cost can fluctuate based on performance incentives, making direct price comparisons challenging without detailed award fee data. The absence of specific performance metrics and award fee payouts in the provided data makes a definitive value-for-money assessment difficult at this stage. Further analysis would involve examining historical CPAF awards for similar defense systems to establish a reasonable cost range.

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,' which implies that while the competition was generally open, specific sources may have been excluded for defined reasons. The fact that it was not a sole-source award suggests multiple entities were capable of bidding. The level of competition, even with exclusions, is generally positive for price discovery, as it allows for multiple proposals to be evaluated. However, the specific reasons for excluding certain sources would need further investigation to fully understand the competitive landscape.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple bidders to offer their best pricing and technical solutions, potentially leading to cost savings compared to a sole-source procurement.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Air Force, ensuring the continued operation of the Mobile User Objective System. Services delivered include ground sustainment, crucial for maintaining the functionality and readiness of a vital communication and intelligence system. The geographic impact is concentrated in Arizona, where the contract performance is located, potentially creating or sustaining jobs in the region. Workforce implications may include specialized technical roles in systems engineering, maintenance, and logistics within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to higher final costs if award fees are consistently maximized without clear justification of exceptional performance.
The 'Exclusion of Sources' in the competition, while potentially justified, warrants scrutiny to ensure it did not unduly limit competition.
Lack of detailed performance metrics and award fee criteria in the summary makes it difficult to assess if the contractor is truly achieving optimal value.
The sustainment nature of the contract implies ongoing costs, and the long-term affordability needs continuous monitoring.

Positive Signals

Awarded under full and open competition, suggesting a broad initial search for qualified contractors.
The contract aims to ensure the sustainment of a critical defense system, contributing to national security.
General Dynamics Mission Systems is a known entity in defense contracting, suggesting a level of established capability.
The contract has a defined end date, providing a framework for future re-competition or review.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market focused on providing specialized technical and engineering expertise. The defense industry, in particular, relies heavily on such services for the development, integration, and sustainment of complex weapon systems and communication networks. Spending in this sector is often characterized by long-term support contracts for major platforms, with values ranging from millions to billions of dollars, depending on the system's complexity and criticality. This particular contract for MOS ground sustainment is a component of the broader defense IT and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) spending.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contract was awarded to a large business entity, General Dynamics Mission Systems. While there is no direct indication of subcontracting plans for small businesses within the provided summary, large prime contractors are often required to meet small business subcontracting goals as part of their overall contract obligations. The absence of a small business set-aside means that opportunities for direct prime contracting were likely limited for small businesses in this specific award.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract will likely involve rigorous monitoring of costs incurred and performance against defined award criteria by the Department of the Air Force. The contracting officer and program management teams will be responsible for reviewing expenditures, assessing performance metrics, and determining award fee payments. Transparency may be enhanced through contract reporting mechanisms and potentially through Inspector General reviews if performance issues or financial irregularities arise. The specific oversight plan would be detailed in the contract's statement of work and associated regulations.

Related Government Programs

Mobile User Objective System (MUOS) Program
Defense Communications Systems
Satellite Communications Sustainment
Air Force IT Services
Engineering Services Contracts

Risk Flags

Potential for cost overruns due to CPAF structure
Effectiveness of 'Exclusion of Sources' in maintaining adequate competition
Long-term sustainment cost projections
Cybersecurity risks for critical ground infrastructure
Technological obsolescence of aging systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $147.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. MOBILE USER OBJECTIVE SYSTEM GROUND SUSTAINMENT

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 $147.3 million.

What is the period of performance?

Start: 2026-08-31. End: 2026-08-31.

What is the historical spending pattern for the Mobile User Objective System (MUOS) ground sustainment, and how does this $147M contract compare?

Analyzing historical spending for MUOS ground sustainment requires accessing detailed contract databases beyond the provided summary. Typically, sustainment contracts for complex systems like MUOS involve significant, recurring costs over the system's lifecycle. This $147 million contract, covering a period likely spanning several years until August 2026, represents a substantial investment. To compare, one would need to examine previous sustainment contracts for MUOS, looking at their total value, duration, and the specific services rendered. Benchmarking against similar large-scale satellite communication system sustainment contracts within the DoD would also provide context. Without prior data, it's difficult to definitively state if this contract's value is higher or lower than historical norms, but its scale suggests a critical and ongoing need for system support.

What are the specific performance metrics and award fee criteria used to evaluate General Dynamics Mission Systems under this Cost Plus Award Fee contract?

The provided data summary does not include the specific performance metrics or award fee criteria for this contract. Cost Plus Award Fee (CPAF) contracts are structured such that the contractor receives a base cost reimbursement plus an award fee if predetermined performance objectives are met. These objectives are typically detailed in the contract's Performance Work Statement (PWS) and include metrics related to system availability, reliability, response times, technical accuracy, and adherence to schedules. The award fee amount is determined by the government based on the contractor's performance against these metrics. To understand the value and accountability, a review of the contract's PWS and the associated award fee plan would be necessary.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for the competitive landscape and potential cost savings?

The designation 'Full and Open Competition After Exclusion of Sources' indicates that the solicitation was broadly advertised, allowing all responsible sources to submit offers. However, specific sources were excluded from this particular competition. The reasons for exclusion are critical to understanding the competitive impact; they could range from national security concerns, proprietary information limitations, or specific capability requirements that only a subset of potential bidders could meet. While 'full and open' competition generally promotes price discovery and cost savings, the exclusion of certain sources might limit the number of bidders, potentially impacting the downward pressure on price. A thorough analysis would require knowing which sources were excluded and why.

What is the track record of General Dynamics Mission Systems in delivering similar ground sustainment services for complex defense systems?

General Dynamics Mission Systems (GDMS) has a significant track record in providing complex systems engineering, integration, and sustainment services for various defense programs. They are a major contractor for numerous DoD initiatives, including command and control systems, communication networks, and intelligence platforms. Their experience often involves managing large-scale, long-term support contracts that require deep technical expertise and robust program management. While specific details on their performance for MUOS ground sustainment prior to this award would require further investigation into past contracts and performance evaluations, GDMS's overall profile suggests they possess the requisite capabilities for such a critical role. Assessing their specific performance on this contract will depend on ongoing monitoring of metrics and award fee outcomes.

Are there any identified risks associated with the sustainment of the Mobile User Objective System (MUOS) ground infrastructure, and how does this contract address them?

Risks associated with sustaining complex systems like MUOS ground infrastructure can include technological obsolescence, cybersecurity vulnerabilities, supply chain disruptions, and the potential for performance degradation over time. This contract, by focusing specifically on 'ground sustainment,' aims to mitigate these risks through ongoing maintenance, upgrades, and operational support. The Cost Plus Award Fee structure incentivizes the contractor, General Dynamics Mission Systems, to proactively manage these risks and maintain high performance levels. However, the effectiveness of risk mitigation depends heavily on the clarity of the performance work statement, the rigor of government oversight, and the contractor's ability to adapt to evolving threats and technological landscapes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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

Financial Breakdown

Contract Ceiling: $178,752,562

Exercised Options: $164,370,476

Current Obligation: $147,278,363

Actual Outlays: $80,285

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $10,099,520

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003920D0146

IDV Type: IDC

Timeline