DHS Coast Guard awards $30.6M system support contract to General Dynamics, a sole-source procurement

Contract Overview

Contract Amount: $30,639,091 ($30.6M)

Contractor: General Dynamics Decision Systems

Awarding Agency: Department of Homeland Security

Start Date: 2009-09-29

End Date: 2010-09-30

Contract Duration: 366 days

Daily Burn Rate: $83.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CLIN 36 - FY10 SYSTEM SUPPORT & MAINTENANCE (GDC4S)

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.6 million to GENERAL DYNAMICS DECISION SYSTEMS for work described as: CLIN 36 - FY10 SYSTEM SUPPORT & MAINTENANCE (GDC4S) Key points: 1. The contract value represents a significant investment in system support and maintenance. 2. Sole-source procurement raises questions about potential price inflation and lack of competitive pressure. 3. The contract duration of one year suggests a need for ongoing, specialized services. 4. Performance context is limited without specific details on the system being supported. 5. General Dynamics Decision Systems is positioned as the sole provider for this critical function.

Value Assessment

Rating: questionable

Benchmarking the value of this $30.6 million contract is challenging without detailed service descriptions and performance metrics. As a sole-source award, direct comparison to similar competitively bid contracts is not feasible. The pricing structure (Cost Plus Fixed Fee) can sometimes lead to higher costs if not rigorously managed, as the contractor is reimbursed for allowable costs plus a fixed fee. Without more information on the system's criticality and the market for its support, assessing true value-for-money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, General Dynamics Decision Systems, was solicited. This approach bypasses the competitive bidding process typically used to ensure fair pricing and identify the best value. The lack of competition means taxpayers did not benefit from potential cost savings that could arise from multiple vendors vying for the contract.

Taxpayer Impact: Sole-source awards limit price discovery and can result in higher costs for taxpayers compared to competitively sourced contracts. This procurement strategy may indicate a lack of market alternatives or a specific, proprietary need.

Public Impact

The U.S. Coast Guard benefits from continued support and maintenance of a critical system. This contract ensures the operational readiness of systems essential for maritime security and safety. The geographic impact is primarily within the operational areas of the U.S. Coast Guard, with potential implications for personnel in Arizona where the contractor is located. Workforce implications include the employment of personnel by General Dynamics to perform system support and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Cost-plus-fixed-fee contract type requires robust oversight to manage costs effectively.
Lack of competition may indicate a lack of market alternatives or a potential for vendor lock-in.

Positive Signals

Ensures continuity of essential system support and maintenance for the Coast Guard.
General Dynamics Decision Systems likely possesses specialized knowledge for this system.
Contract provides a defined period for critical operational support.

Sector Analysis

This contract falls within the broader defense and government IT services sector, specifically focusing on system support and maintenance. The market for specialized system support can be niche, especially for legacy or proprietary systems. General Dynamics Decision Systems is a known entity in this space. Comparable spending benchmarks would depend heavily on the specific system supported and its complexity, but annual system support contracts for critical government infrastructure can range from millions to tens of millions of dollars.

Small Business Impact

There is no indication that this contract included small business set-asides. As a sole-source award to a large prime contractor, the potential for small business subcontracting opportunities is not explicitly detailed. Further analysis would be needed to determine if General Dynamics Decision Systems has a subcontracting plan that includes small businesses for specialized support roles.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Coast Guard contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates diligent monitoring of allowable costs and the fixed fee to ensure the government receives fair value. Transparency is limited due to the sole-source nature and lack of public detail on performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Homeland Security IT Modernization Programs
U.S. Coast Guard Command and Control Systems
General Dynamics Government IT Services Contracts

Risk Flags

Sole-source award
Cost-plus contract type requires strong oversight
Lack of public performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.6 million to GENERAL DYNAMICS DECISION SYSTEMS. CLIN 36 - FY10 SYSTEM SUPPORT & MAINTENANCE (GDC4S)

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 $30.6 million.

What is the period of performance?

Start: 2009-09-29. End: 2010-09-30.

What specific system is CLIN 36 - FY10 SYSTEM SUPPORT & MAINTENANCE (GDC4S) supporting for the U.S. Coast Guard?

The provided data does not specify the exact system that CLIN 36 - FY10 SYSTEM SUPPORT & MAINTENANCE (GDC4S) is intended to support. The abbreviation 'GDC4S' might refer to a specific command, control, communications, computers, and intelligence (C4I) system or a broader platform managed by General Dynamics C4 Systems. Understanding the nature of this system is crucial for evaluating the necessity of a sole-source award and the appropriateness of the contract's value. Without this information, it's difficult to assess the system's criticality, its market for support, and whether alternative solutions or vendors might exist.

What is the historical spending pattern for system support and maintenance for this specific system by the U.S. Coast Guard?

The provided data only includes details for a single contract award (CLIN 36 - FY10 SYSTEM SUPPORT & MAINTENANCE) valued at $30.6 million. To understand historical spending patterns, we would need access to prior contract awards for the same or similar systems, including their values, durations, and award types (competed vs. sole-source). Analyzing historical data would reveal trends in spending, identify potential cost increases over time, and highlight whether this sole-source award represents a deviation from previous competitive procurements or a continuation of a long-standing sole-source relationship. Without this historical context, it is difficult to assess if the current $30.6 million expenditure is reasonable or indicative of escalating costs.

What justification was provided for awarding this contract on a sole-source basis?

The data indicates the contract was awarded as 'NOT COMPETED,' signifying a sole-source procurement. Federal acquisition regulations typically require justification for sole-source awards, often citing reasons such as the existence of only one responsible source, urgent and compelling needs, or specific national security requirements that preclude competition. Without access to the official justification document (e.g., a Justification and Approval - J&A), it is impossible to ascertain the specific rationale. This lack of transparency hinders the ability to assess whether the sole-source award was appropriate and in the government's best interest, or if it potentially circumvented a more competitive process.

How does the Cost Plus Fixed Fee (CPFF) pricing structure impact the risk and value for this contract?

The Cost Plus Fixed Fee (CPFF) pricing structure means the contractor, General Dynamics Decision Systems, is reimbursed for all allowable costs incurred in performing the contract, plus a predetermined fixed fee representing profit. This structure shifts some cost risk to the government, as the final cost is not fixed upfront. While it can be useful for research and development or services where cost estimation is difficult, it necessitates robust government oversight to ensure costs are reasonable and allocable. For a system support and maintenance contract, the fixed fee component should ideally incentivize efficiency, but the overall cost can still escalate if not carefully managed. The value-for-money assessment is therefore heavily dependent on the government's ability to effectively monitor and control the contractor's costs.

What is the track record of General Dynamics Decision Systems in providing system support and maintenance for similar government contracts?

General Dynamics Decision Systems is a known entity in the defense and government contracting space, often involved in complex systems integration and support. To assess their track record specifically for this type of system support, one would need to examine their past performance on similar contracts. This includes reviewing contract performance evaluations (e.g., CPARS reports), identifying the types of systems they have supported, the contract values and durations, and any instances of cost overruns, schedule delays, or performance issues. Without specific performance data related to this contract or analogous ones, it's difficult to definitively assess their capability and reliability in this particular domain beyond their general reputation.

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $53,009,796

Exercised Options: $53,009,796

Current Obligation: $30,639,091

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302DNDRS02

IDV Type: IDC

Timeline