DHS Coast Guard Awards $80.8M for Great Lakes Section Services to General Dynamics
Contract Overview
Contract Amount: $80,840,497 ($80.8M)
Contractor: General Dynamics Decision Systems
Awarding Agency: Department of Homeland Security
Start Date: 2008-02-01
End Date: 2014-09-30
Contract Duration: 2,433 days
Daily Burn Rate: $33.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: SCLIN 0007AE: SECTION GREAT LAKES
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $80.8 million to GENERAL DYNAMICS DECISION SYSTEMS for work described as: SCLIN 0007AE: SECTION GREAT LAKES Key points: 1. Significant contract value of $80.8 million awarded over 6 years. 2. General Dynamics Decision Systems secured the contract. 3. Contract type is Cost Plus Incentive Fee, indicating potential for cost overruns. 4. Full and open competition was utilized. 5. The contract spans 2433 days, suggesting a long-term service requirement.
Value Assessment
Rating: fair
The contract's Cost Plus Incentive Fee structure can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar long-term service contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which generally promotes competitive pricing. However, the Cost Plus Incentive Fee structure may still allow for price increases based on performance incentives.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The competitive nature aims for efficiency, but the fee structure requires careful monitoring to ensure cost-effectiveness.
Public Impact
Supports U.S. Coast Guard operations in the Great Lakes region. General Dynamics Decision Systems, a major defense contractor, is the awardee. The contract duration of over 6 years suggests a critical and ongoing need for these services. Awarded by the Department of Homeland Security, highlighting national security implications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee structure can lead to cost overruns.
- Long contract duration (2433 days) requires sustained oversight.
- No specific small business participation noted.
Positive Signals
- Full and open competition utilized.
- Awarded to a known entity, General Dynamics Decision Systems.
- Supports critical Coast Guard mission.
Sector Analysis
This contract falls within the professional services sector, likely supporting operational or technical functions for the U.S. Coast Guard. Benchmarking against similar long-term service contracts for government agencies is crucial for assessing value.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses in this procurement.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from the Department of Homeland Security to ensure performance standards are met and costs remain controlled, especially given the Cost Plus Incentive Fee structure.
Related Government Programs
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Cost Plus Incentive Fee structure.
- Long contract duration.
- Lack of small business participation noted.
- Potential for scope creep over the contract's life.
- Limited detail on specific services provided.
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 $80.8 million to GENERAL DYNAMICS DECISION SYSTEMS. SCLIN 0007AE: SECTION GREAT LAKES
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 $80.8 million.
What is the period of performance?
Start: 2008-02-01. End: 2014-09-30.
What specific services are being provided under SCLIN 0007AE, and how do they align with the Coast Guard's mission in the Great Lakes?
The specific services are not detailed in the provided data. However, given the awardee and the contracting agency, it likely pertains to operational support, maintenance, or technical services crucial for the U.S. Coast Guard's presence and duties within the Great Lakes region, such as vessel support, communication systems, or logistical operations.
What are the potential risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this $80.8 million award?
The primary risk with a CPIF contract is that the contractor may incur higher costs than anticipated, as the government agrees to pay costs plus a fee that is adjusted based on performance. This structure can incentivize cost overruns if not meticulously monitored, potentially leading to the final cost exceeding initial projections and impacting overall value for taxpayers.
How effective is full and open competition in ensuring cost-effectiveness for long-term, specialized service contracts like this one?
Full and open competition is generally effective in driving cost-effectiveness by allowing a wide range of potential bidders to compete. For long-term, specialized contracts, its effectiveness depends on the clarity of the requirements and the ability of diverse companies to meet them. While it promotes initial price discovery, ongoing oversight is critical to maintain cost control throughout the contract's life.
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: $80,840,497
Exercised Options: $80,840,497
Current Obligation: $80,840,497
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTCG2302DNDRS02
IDV Type: IDC
Timeline
Start Date: 2008-02-01
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2025-05-12
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