DHS Coast Guard Awards $10M+ Contract to General Dynamics for Systems Engineering
Contract Overview
Contract Amount: $10,029,512 ($10.0M)
Contractor: General Dynamics Decision Systems
Awarding Agency: Department of Homeland Security
Start Date: 2005-08-15
End Date: 2008-07-31
Contract Duration: 1,081 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: SCLIN 0007E
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $10.0 million to GENERAL DYNAMICS DECISION SYSTEMS for work described as: SCLIN 0007E Key points: 1. Contract awarded to General Dynamics Decision Systems for over $10 million. 2. Full and open competition was utilized for this contract. 3. The contract duration is over 1000 days, indicating a significant project. 4. The sector appears to be IT/Defense related, given the agency and service.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. The awarded amount is substantial, but without specific deliverables or performance metrics, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific pricing structure (CPIF) requires careful monitoring to ensure cost efficiency.
Taxpayer Impact: Taxpayer funds are being utilized for this significant contract. The effectiveness of the competition and contract management will determine the ultimate value for taxpayers.
Public Impact
This contract supports the U.S. Coast Guard's operational capabilities. General Dynamics is a major defense contractor, indicating a focus on national security. The duration suggests a long-term need for these systems engineering services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can incentivize contractor overspending.
- Lack of specific performance metrics makes value assessment challenging.
- Long contract duration increases risk of scope creep or obsolescence.
Positive Signals
- Awarded under full and open competition.
- Supports critical Coast Guard operations.
- Involves a well-established defense contractor.
Sector Analysis
This contract falls within the IT and Defense sectors, likely involving complex systems engineering for the U.S. Coast Guard. Spending benchmarks for similar large-scale systems engineering contracts can vary widely based on scope and technology.
Small Business Impact
The contract was awarded to General Dynamics Decision Systems, a large prime contractor. There is no indication of small business participation in the provided data.
Oversight & Accountability
Oversight would be crucial for this Cost Plus Incentive Fee contract to ensure cost control and adherence to performance objectives. The Department of Homeland Security and U.S. Coast Guard would be responsible for this oversight.
Related Government Programs
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Potential for cost overruns due to CPIF contract type.
- Lack of specific performance metrics in provided data.
- Long contract duration (over 3 years) increases risk.
- No indication of small business subcontracting.
- Limited information on specific deliverables.
Tags
department-of-homeland-security, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $10.0 million to GENERAL DYNAMICS DECISION SYSTEMS. SCLIN 0007E
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS DECISION SYSTEMS.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $10.0 million.
What is the period of performance?
Start: 2005-08-15. End: 2008-07-31.
What specific systems engineering services are being procured, and how do they align with current Coast Guard needs?
The provided data does not specify the exact systems engineering services. However, given the agency and service, it likely pertains to maritime domain awareness, command and control, or operational support systems. A detailed review of the contract statement of work would be necessary to understand the alignment with current Coast Guard modernization and operational requirements.
What are the key performance indicators (KPIs) and incentive structures within the Cost Plus Incentive Fee (CPIF) arrangement?
The CPIF structure implies that both the contractor and the government share in cost savings or overruns relative to target costs, with incentives tied to achieving specific performance goals. Without the contract details, the specific KPIs and incentive formulas are unknown. Effective oversight is critical to ensure these incentives drive desired outcomes without encouraging unnecessary costs.
How does the $10 million award compare to industry benchmarks for similar systems engineering support for maritime security agencies?
Benchmarking this $10 million award requires detailed comparison based on the specific scope of work, duration, and complexity of the systems involved. For large-scale, long-term systems engineering projects supporting critical infrastructure like the Coast Guard, this amount could be within a reasonable range, but a thorough analysis of comparable contracts and market rates would be needed for a definitive assessment.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 8201 E MCDOWELL RD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,029,512
Exercised Options: $10,029,512
Current Obligation: $10,029,512
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTCG2302DNDRS02
IDV Type: IDC
Timeline
Start Date: 2005-08-15
Current End Date: 2008-07-31
Potential End Date: 2008-07-31 00:00:00
Last Modified: 2025-05-14
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