DHS awards $122.6M engineering services contract to General Dynamics Mission Systems, Inc. without competition
Contract Overview
Contract Amount: $122,578,336 ($122.6M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2016-08-30
End Date: 2019-08-31
Contract Duration: 1,096 days
Daily Burn Rate: $111.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: "IGF::CT::IGF" BASE YEAR OF THE CONTRACT.
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $122.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: "IGF::CT::IGF" BASE YEAR OF THE CONTRACT. Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and limited market engagement. 2. The firm fixed-price contract structure aims to control costs, but the lack of competition may hinder optimal value. 3. Performance period of three years suggests a substantial, ongoing need for engineering services. 4. The contract falls under engineering services, a broad category with diverse applications. 5. Awarded by the U.S. Coast Guard, indicating a focus on maritime and homeland security engineering needs. 6. The absence of small business set-asides or subcontracting requirements warrants further investigation into broader economic impact.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to its sole-source nature and the broad 'Engineering Services' category. Without competitive bids, it's difficult to ascertain if the $122.6 million represents a fair market price. Comparisons to similar sole-source contracts within DHS or the Coast Guard for specialized engineering support would be necessary to provide a more precise value assessment. The firm fixed-price type suggests an attempt to cap costs, but the initial award price remains unvalidated by market forces.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically reserved for situations where only one vendor possesses the necessary capabilities or when urgent needs preclude a competitive process. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market competition, potentially leading to a less favorable price for the government.
Taxpayer Impact: Taxpayers may be paying a premium for this service due to the absence of competitive pressure to drive down costs. The government's ability to secure the best possible value is diminished when competition is excluded.
Public Impact
The U.S. Coast Guard benefits from specialized engineering services crucial for its operational readiness and asset maintenance. This contract supports the development, modification, or maintenance of Coast Guard assets and infrastructure. The geographic impact is primarily tied to Coast Guard operations, which are national in scope but may have specific project locations. The contract likely supports a team of engineers and technical staff within General Dynamics Mission Systems, Inc., contributing to employment in the engineering sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- Sole-source awards can limit opportunities for innovative solutions from other vendors.
- Transparency concerns arise from the absence of a competitive bidding process.
- Potential for vendor lock-in due to specialized nature of services.
Positive Signals
- Firm fixed-price contract type helps manage cost certainty.
- General Dynamics Mission Systems, Inc. is a known entity with existing government contracts.
- The contract addresses a specific need within the U.S. Coast Guard's mission.
Sector Analysis
The engineering services sector is vast, encompassing design, consulting, and technical support across numerous industries. Federal spending in this area supports critical infrastructure, defense systems, and technological advancements. General Dynamics Mission Systems, Inc. operates within the defense and government contracting segment of this market. Benchmarking this specific contract's value is difficult without more granular data on the precise engineering services rendered, but overall federal spending on engineering services runs into billions annually.
Small Business Impact
The data indicates that this contract was not competed and there is no explicit mention of small business set-asides or subcontracting plans. This suggests that opportunities for small businesses to participate in this specific award may be limited, potentially bypassing the ecosystem of smaller, specialized engineering firms that could offer competitive solutions.
Oversight & Accountability
Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. Transparency is limited due to the sole-source nature of the award. Accountability measures would be defined within the contract's terms and conditions, focusing on performance deliverables and adherence to the firm fixed-price agreement. Inspector General involvement would likely be triggered by specific allegations of fraud, waste, or abuse.
Related Government Programs
- Department of Homeland Security - Engineering Services
- U.S. Coast Guard - Acquisition Programs
- General Dynamics Mission Systems, Inc. - Federal Contracts
- Sole-Source Contract Awards
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for unvalidated pricing due to lack of competition.
- Limited transparency in the procurement process.
- No indication of small business participation.
Tags
engineering-services, department-of-homeland-security, u-s-coast-guard, general-dynamics-mission-systems, sole-source, firm-fixed-price, base-year, arizona, not-competed, federal-contract, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $122.6 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. "IGF::CT::IGF" BASE YEAR OF THE CONTRACT.
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, INC..
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 $122.6 million.
What is the period of performance?
Start: 2016-08-30. End: 2019-08-31.
What specific engineering services are being provided under this contract?
The provided data classifies this contract under NAICS code 541330, 'Engineering Services.' This is a broad category that can encompass a wide range of activities, including design, consulting, research and development, and technical support. Without further details specific to this contract award, it is impossible to determine the exact nature of the engineering services. These could range from naval architecture and marine engineering for Coast Guard vessels to IT infrastructure design, cybersecurity engineering, or support for sensor systems. The specific services are critical for understanding the contract's true value and necessity.
What is the justification for awarding this contract on a sole-source basis?
The data explicitly states the contract type as 'NOT COMPETED,' indicating a sole-source award. Federal procurement regulations typically require competitive bidding unless specific exceptions apply. Common justifications for sole-source awards include the unique capability of a single contractor, urgent and compelling needs that preclude competition, or when the contract is a follow-on to a previously competed effort where only one source is deemed capable. The specific justification for this $122.6 million award to General Dynamics Mission Systems, Inc. by the U.S. Coast Guard is not provided in the data and would need to be obtained from the contract award documentation.
How does the $122.6 million award compare to historical spending on similar engineering services by the U.S. Coast Guard?
Direct comparison of this $122.6 million award to historical spending on similar engineering services by the U.S. Coast Guard is difficult without more granular data. The 'Engineering Services' category is broad. However, if this contract represents a significant portion of the Coast Guard's annual budget for such services, it could indicate a substantial investment. Analyzing past sole-source awards for engineering support within the Coast Guard, or competitive awards for similar scopes of work, would provide a benchmark. The lack of competition here makes direct value-for-money comparisons inherently problematic.
What is the track record of General Dynamics Mission Systems, Inc. in delivering engineering services to the federal government?
General Dynamics Mission Systems, Inc. is a well-established defense contractor with a significant history of delivering a wide array of services and products to the U.S. federal government, including the Department of Defense and Department of Homeland Security. Their track record generally includes complex systems integration, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) solutions, and various engineering support services. While specific performance metrics for this particular contract are not available, the company's extensive experience suggests a capacity to handle large-scale engineering requirements. However, past performance on other contracts does not guarantee success on this specific sole-source award.
Are there any performance risks associated with this sole-source contract?
Sole-source contracts inherently carry certain risks. A primary risk is the potential for inflated pricing due to the absence of competitive pressure. Another risk is that the government may not receive the most innovative or cost-effective solutions available in the market, as only one vendor's capabilities are being utilized. Performance risks also include the possibility of the contractor failing to meet technical specifications or delivery timelines, although this is a risk present in any contract. The government's ability to mitigate these risks relies heavily on robust contract management, clear performance metrics, and strong oversight.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $122,578,336
Exercised Options: $122,578,336
Current Obligation: $122,578,336
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HSCG7916DPC5023
IDV Type: IDC
Timeline
Start Date: 2016-08-30
Current End Date: 2019-08-31
Potential End Date: 2019-08-31 00:00:00
Last Modified: 2019-05-15
More Contracts from General Dynamics Mission Systems, Inc.
- 200410!005969!2100!w15p7t!usa Communications-Electronics !w15p7t04ce405 !A!N! !N! ! !20040716!20111230!046863929!046863929!001381284!n!general Dynamics Decision Syst!8201 E Mcdowell Road !scottsdale !az!85257!65000!013!04!scottsdale !maricopa !arizona !+000010000000!n!n!000000000000!ac63!rdte/Electronics&communication Eq-Adv Tech DEV !A7 !electronics and Communication Equip !360 !jtrs Cluster I !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!b! !A!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $1.5B (Department of Defense)
- Federal Contract — $1.4B (Department of Defense)
- THE Space Network (SN) Consists of a Space Segment Comprised of the Tracking and Data Relay Satellites (tdrss), and a Ground Segment (sngs). the SN Provides the Capability for Global Space-To-Ground Telecommunications and Tracking Coverage for LOW Earth Orbit (LEO) and Near-Earth Spaceflight Missions, Including Both Robotic and Human Space Flight. the Sngs Includes Facilities and Systems Located AT the White Sands Complex (WSC) AT LAS Cruces, NM the Guam Remote Ground Terminal (grgt) AT Guam and Space Network Expansion (SNE) East AT Blossom Point, MD. the Purpose of the Sgss Project IS to Implement a Modern Ground Segment That Will Enable the SN to Continue to Deliver High Quality Services to the SN Community, Meet Stakeholder Requirements, and Significantly Reduce Required Operations and Maintenance Resources — $1.2B (National Aeronautics and Space Administration)
- Federal Contract — $1.2B (Department of Defense)
- SDA Tranche 1 Operations and Integration — $861.6M (Department of Defense)
View all General Dynamics Mission Systems, Inc. federal contracts →
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)