DHS Coast Guard awards $12.4M contract to General Dynamics for SCLIN 0007P.2
Contract Overview
Contract Amount: $12,448,076 ($12.4M)
Contractor: General Dynamics Decision Systems
Awarding Agency: Department of Homeland Security
Start Date: 2005-11-23
End Date: 2006-03-31
Contract Duration: 128 days
Daily Burn Rate: $97.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: SCLIN 0007P.2
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $12.4 million to GENERAL DYNAMICS DECISION SYSTEMS for work described as: SCLIN 0007P.2 Key points: 1. Contract awarded to General Dynamics Decision Systems for $12.4M. 2. Procurement method was Full and Open Competition. 3. Contract type is Cost Plus Incentive Fee. 4. Duration of the contract is 128 days. 5. No small business participation noted.
Value Assessment
Rating: good
The contract value of $12.4M for a 128-day period suggests a significant but potentially reasonable cost for specialized services. Benchmarking against similar complex system development or integration contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of Full and Open Competition is a positive indicator for price discovery. This method allows all eligible vendors to bid, fostering a competitive environment that should drive down costs and ensure fair market pricing.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives the most competitive pricing available.
Public Impact
Supports U.S. Coast Guard operations with critical systems. General Dynamics is a major defense contractor, indicating established capabilities. Short contract duration suggests a specific, time-bound project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not managed tightly.
Positive Signals
- Full and Open Competition utilized.
- Award to a reputable, large contractor.
Sector Analysis
This contract falls within the IT or Defense sector, likely related to specialized systems for the U.S. Coast Guard. Spending in this area is critical for national security and operational effectiveness, with benchmarks varying widely based on system complexity.
Small Business Impact
The data indicates no specific set-aside for small businesses in this procurement. This suggests that the contract was awarded based on the best overall value, and small businesses may not have been primary targets or participants in this specific bid.
Oversight & Accountability
The contract was awarded by the Department of Homeland Security to General Dynamics. Oversight would focus on the performance metrics tied to the Cost Plus Incentive Fee structure and the successful delivery of the SCLIN 0007P.2 system.
Related Government Programs
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Cost Plus Incentive Fee contract type.
- No small business participation.
- Short contract duration may indicate urgency or a specific phase.
- Limited information on the specific system (SCLIN 0007P.2).
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 $12.4 million to GENERAL DYNAMICS DECISION SYSTEMS. SCLIN 0007P.2
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 $12.4 million.
What is the period of performance?
Start: 2005-11-23. End: 2006-03-31.
What specific services or systems does SCLIN 0007P.2 entail, and how does its cost align with industry standards for similar technological solutions?
SCLIN 0007P.2 likely refers to a specific technical requirement or system within the Coast Guard's inventory, possibly related to command, control, or communications. Without detailed specifications, a precise cost comparison is difficult. However, $12.4 million for a 128-day period suggests a high-value, specialized project. Further analysis would require understanding the system's complexity, integration needs, and the level of innovation required.
What are the key performance indicators (KPIs) for this Cost Plus Incentive Fee contract, and how are they structured to mitigate risk for the government?
For a Cost Plus Incentive Fee (CPIF) contract, KPIs typically revolve around performance, cost targets, and delivery schedules. The 'incentive' aspect means General Dynamics could earn a higher profit if they exceed performance targets or come in under cost projections, while the government benefits from cost savings or improved outcomes. Effective KPIs would be clearly defined, measurable, and directly linked to the project's success criteria to ensure accountability and manage potential cost escalations.
How effectively did the Full and Open Competition process ensure the government received the best possible value and technical solution for this requirement?
Full and Open Competition is designed to maximize value by allowing all qualified vendors to compete, theoretically driving down prices and encouraging innovation. The effectiveness in this case depends on the number and quality of bids received, the clarity of the solicitation, and the evaluation criteria used. A robust competition should yield a technically superior solution at a competitive price, ensuring taxpayer funds are used efficiently for the Coast Guard's needs.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
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: $12,448,076
Exercised Options: $12,448,076
Current Obligation: $12,448,076
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTCG2302DNDRS02
IDV Type: IDC
Timeline
Start Date: 2005-11-23
Current End Date: 2006-03-31
Potential End Date: 2006-03-31 00:00:00
Last Modified: 2025-05-14
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