DHS Coast Guard Awards $43.5M for Section Islands Systems, Full Competition
Contract Overview
Contract Amount: $43,533,580 ($43.5M)
Contractor: General Dynamics Decision Systems
Awarding Agency: Department of Homeland Security
Start Date: 2008-01-30
End Date: 2014-09-30
Contract Duration: 2,435 days
Daily Burn Rate: $17.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: SCLIN 0007AF: SECTION ISLANDS
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $43.5 million to GENERAL DYNAMICS DECISION SYSTEMS for work described as: SCLIN 0007AF: SECTION ISLANDS Key points: 1. Significant contract value of $43.5 million awarded. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. 4. The award was made to General Dynamics Decision Systems, a major defense contractor.
Value Assessment
Rating: fair
The Cost Plus Incentive Fee contract type allows for shared savings and cost overruns, making direct pricing assessment challenging without detailed cost breakdowns. The award amount of $43.5M for a 2435-day duration suggests a moderate per-day cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it encourages competitive pricing and potentially lower costs for government services.
Public Impact
Taxpayers benefit from a competitive bidding process for this significant contract. The contract duration of over 6 years suggests a long-term need for these systems. The award to a large defense contractor may impact opportunities for smaller businesses in this specific contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type can incentivize cost overruns.
- Long contract duration may lead to scope creep or evolving requirements.
- No specific small business participation noted.
Positive Signals
- Full and open competition utilized.
- Awarded to a reputable contractor.
- Clear contract end date.
Sector Analysis
This contract falls within the IT and Defense sectors, likely related to maritime surveillance or operational systems for the U.S. Coast Guard. Spending benchmarks for similar complex system development and integration contracts can vary widely.
Small Business Impact
The data indicates that small business participation was not a specific set-aside or requirement for this contract. Further analysis would be needed to determine if any small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of Homeland Security, U.S. Coast Guard. Oversight would typically involve contract management teams monitoring performance, cost, and adherence to the incentive fee structure.
Related Government Programs
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Cost Plus Incentive Fee contract type.
- Long contract duration.
- No explicit small business participation noted.
- Lack of specific system details.
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 $43.5 million to GENERAL DYNAMICS DECISION SYSTEMS. SCLIN 0007AF: SECTION ISLANDS
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 $43.5 million.
What is the period of performance?
Start: 2008-01-30. End: 2014-09-30.
What specific systems or services does 'SECTION ISLANDS' refer to, and how does the $43.5M award align with the scope of work?
The specific nature of 'SECTION ISLANDS' is not detailed in the provided data. To assess value, a thorough understanding of the system's functionality, criticality to Coast Guard operations, and the complexity of development or integration is required. Benchmarking against similar specialized system procurements would be necessary to determine if $43.5M represents a fair price for the defined scope.
What are the key performance indicators and incentive structures within the Cost Plus Incentive Fee (CPIF) agreement, and how are they monitored to mitigate cost risks?
The CPIF structure aims to incentivize both the contractor and the government by sharing cost savings or overruns based on performance targets. Effective oversight requires clearly defined performance metrics, realistic target costs, and a robust monitoring system to track expenditures against the budget and ensure the contractor is motivated to control costs while meeting quality standards.
How does the performance of General Dynamics Decision Systems on similar contracts inform the assessment of this award's effectiveness and potential risks?
Assessing effectiveness requires examining General Dynamics' past performance on comparable contracts, including on-time delivery, budget adherence, and quality of work. A review of their track record can highlight potential strengths or weaknesses, informing the likelihood of successful project completion and identifying any recurring issues that might pose risks to this specific award.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
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: $43,640,272
Exercised Options: $43,640,272
Current Obligation: $43,533,580
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTCG2302DNDRS02
IDV Type: IDC
Timeline
Start Date: 2008-01-30
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2025-05-12
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