DHS Coast Guard Awards $49.7M for IOC Spares and Maintenance to General Dynamics
Contract Overview
Contract Amount: $49,711,007 ($49.7M)
Contractor: General Dynamics Decision Systems
Awarding Agency: Department of Homeland Security
Start Date: 2005-08-12
End Date: 2006-09-30
Contract Duration: 414 days
Daily Burn Rate: $120.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CLIN 0021 IOC SPARES, INITIAL DEPOT SPARES AND INTERIM MAINTENANCE SUPPORT FOR THE IOC AND LRIP REGIONS.
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $49.7 million to GENERAL DYNAMICS DECISION SYSTEMS for work described as: CLIN 0021 IOC SPARES, INITIAL DEPOT SPARES AND INTERIM MAINTENANCE SUPPORT FOR THE IOC AND LRIP REGIONS. Key points: 1. Significant award for initial depot spares and interim maintenance. 2. General Dynamics Decision Systems is the contractor. 3. Awarded under full and open competition. 4. Contract duration is 414 days.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. The award amount is substantial for the specified period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms of a Cost Plus Fixed Fee contract warrant scrutiny for price discovery.
Taxpayer Impact: Taxpayer funds are utilized for critical spares and maintenance, aiming for operational readiness. The cost-plus nature requires diligent oversight to ensure value for money.
Public Impact
Ensures operational readiness of the Information and Control (IOC) system. Supports initial depot spares and interim maintenance, crucial for system longevity. Impacts the U.S. Coast Guard's operational capabilities in the IOC and LRIP regions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Limited contract duration may not reflect long-term sustainment needs.
- No specific performance metrics or benchmarks provided.
Positive Signals
- Awarded under full and open competition.
- Addresses critical spares and maintenance needs.
- Supports a key Department of Homeland Security agency.
Sector Analysis
This contract falls within the defense logistics and support services sector. Spending benchmarks for similar spares and maintenance contracts vary widely based on system complexity and duration.
Small Business Impact
The data does not indicate any specific involvement or subcontracting with small businesses for this particular award.
Oversight & Accountability
The Cost Plus Fixed Fee structure necessitates robust oversight from the Department of Homeland Security to control costs and ensure efficient use of funds. Monitoring contractor performance against fixed fee targets is essential.
Related Government Programs
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Limited contract duration.
- Lack of detailed performance metrics.
- Potential for cost overruns.
- No explicit mention of sustainment planning beyond the contract period.
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 $49.7 million to GENERAL DYNAMICS DECISION SYSTEMS. CLIN 0021 IOC SPARES, INITIAL DEPOT SPARES AND INTERIM MAINTENANCE SUPPORT FOR THE IOC AND LRIP REGIONS.
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 $49.7 million.
What is the period of performance?
Start: 2005-08-12. End: 2006-09-30.
What is the expected return on investment for this spares and maintenance contract in terms of system uptime and operational efficiency?
The return on investment is primarily measured by the sustained operational readiness of the IOC system. Improved system uptime and reduced maintenance downtime directly contribute to the Coast Guard's mission effectiveness. Quantifying this ROI requires tracking system performance metrics before and after the contract period, alongside operational incident reports.
What are the key risks associated with the Cost Plus Fixed Fee contract type for this specific acquisition?
The primary risk with CPFF is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. This can reduce the incentive for cost control. For this acquisition, risks include scope creep, inefficient resource allocation by the contractor, and potential for inflated pricing if oversight is insufficient, impacting the overall value for taxpayer money.
How effectively does this contract support the long-term sustainment strategy for the IOC system?
This contract addresses initial depot spares and interim maintenance, which is crucial for immediate operational needs. However, its short duration (414 days) suggests it may not fully encompass a long-term sustainment strategy. A comprehensive long-term plan would likely involve follow-on contracts with potentially different pricing structures and performance-based metrics for ongoing support.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
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: $49,711,007
Exercised Options: $49,711,007
Current Obligation: $49,711,007
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTCG2302DNDRS02
IDV Type: IDC
Timeline
Start Date: 2005-08-12
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2025-05-12
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