DoD awards $29.8M for communications equipment, with General Dynamics C4 Systems securing the contract

Contract Overview

Contract Amount: $29,836,056 ($29.8M)

Contractor: General Dynamics C4 Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-02-20

End Date: 2016-10-31

Contract Duration: 619 days

Daily Burn Rate: $48.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ORDERING 12 PE DISMOUNT SENSORS, 12 PE POR MOBILE SENSORS, 6 SENSOR ASLS, 24 3RD ENCLAVES, 12 ESRM MWO KIT, 18 SERVER REPLACEMENT KITS, 12 MIK A-MINUS KITS AND 12 SENSOR A-MINUS KITS

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257, UNITED STATES OF AMERICA

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $29.8 million to GENERAL DYNAMICS C4 SYSTEMS, INC. for work described as: ORDERING 12 PE DISMOUNT SENSORS, 12 PE POR MOBILE SENSORS, 6 SENSOR ASLS, 24 3RD ENCLAVES, 12 ESRM MWO KIT, 18 SERVER REPLACEMENT KITS, 12 MIK A-MINUS KITS AND 12 SENSOR A-MINUS KITS Key points: 1. The contract focuses on specialized sensor and server equipment, indicating a need for advanced communication capabilities. 2. A significant portion of the award is for 'PE DISMOUNT SENSORS' and 'PE POR MOBILE SENSORS', suggesting tactical or field deployment applications. 3. The inclusion of 'SERVER REPLACEMENT KITS' and 'MWO KIT' points to ongoing maintenance and upgrade requirements for existing systems. 4. The contract's duration of 619 days suggests a phased deployment or a need for sustained operational support. 5. The award falls under 'Other Communications Equipment Manufacturing', a broad category that requires further breakdown for precise benchmarking. 6. The fixed-price nature of the contract aims to provide cost certainty for the government, shifting performance risk to the contractor.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the exact specifications of the 'PE DISMOUNT SENSORS' and 'PE POR MOBILE SENSORS'. The total award of $29.8 million for a variety of sensor, server, and kit components over approximately 20 months suggests a moderate per-unit cost. However, without comparable contract data for similar advanced sensor systems, a definitive value-for-money assessment is difficult. The fixed-price contract type is generally favorable for cost control, but the complexity of the equipment could introduce unforeseen costs if not meticulously defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With three bidders participating, the competition level appears moderate. This suggests that while the market is not entirely consolidated, the number of bidders may not have been sufficient to drive prices down to the lowest possible level. The government likely received competitive proposals, but the full benefits of intense competition might have been limited.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and technical solutions, potentially leading to cost savings and better value.

Public Impact

The Department of the Army is the primary beneficiary, receiving advanced communications equipment to support its operations. The services delivered include the provision of specialized sensors, server replacements, and maintenance kits, enhancing communication infrastructure. The contract's performance period spans from February 2015 to October 2016, indicating a near-term operational focus. The workforce implications are likely related to the manufacturing, integration, and potential field support of the delivered equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed specifications for 'PE DISMOUNT SENSORS' and 'PE POR MOBILE SENSORS' makes precise value assessment difficult.
The 'Other Communications Equipment Manufacturing' NAICS code is very broad, hindering specific industry benchmarking.
The moderate number of bidders (3) in a full and open competition might suggest potential for further price optimization.
The contract duration of over 1.5 years could lead to obsolescence issues if technology evolves rapidly during its term.

Positive Signals

Awarded under full and open competition, maximizing potential vendor participation.
The firm fixed-price contract type provides cost certainty for the government.
General Dynamics C4 Systems is a known entity in defense contracting, suggesting a degree of reliability.
The contract addresses critical operational needs for sensors and server infrastructure.

Sector Analysis

The 'Other Communications Equipment Manufacturing' sector (NAICS 334290) encompasses a wide range of products, from telephone apparatus to radio and television broadcasting equipment, and specialized military communications gear. This contract appears to fall into the latter category, focusing on advanced sensor and communication systems for defense applications. The market for such specialized military equipment is often characterized by high R&D costs, stringent performance requirements, and a limited customer base, primarily government defense agencies. Comparable spending benchmarks are difficult to establish without more granular data on the specific types of sensors and their capabilities.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions, nor does it explicitly mention subcontracting goals for small businesses. Given the nature of the specialized communications equipment, it is possible that the prime contractor, General Dynamics C4 Systems, may engage large or specialized subcontractors. Further analysis would be needed to determine if small businesses are involved in the supply chain or if there are opportunities for them to participate in future similar procurements.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a firm fixed-price contract awarded under full and open competition, oversight would focus on ensuring delivery of specified goods and adherence to contract terms. The Department of Defense's Inspector General would have jurisdiction over any investigations into fraud, waste, or abuse related to this award. Transparency is generally maintained through contract award databases, though specific technical details of the equipment may be sensitive.

Related Government Programs

Defense Communications Systems
Tactical Sensor Networks
Military Communication Equipment Manufacturing
Army Sensor Procurement
Command and Control Systems

Risk Flags

Potential for technology obsolescence given contract duration.
Lack of specific technical details hinders comprehensive value assessment.
Moderate competition level may limit price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.8 million to GENERAL DYNAMICS C4 SYSTEMS, INC.. ORDERING 12 PE DISMOUNT SENSORS, 12 PE POR MOBILE SENSORS, 6 SENSOR ASLS, 24 3RD ENCLAVES, 12 ESRM MWO KIT, 18 SERVER REPLACEMENT KITS, 12 MIK A-MINUS KITS AND 12 SENSOR A-MINUS KITS

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS C4 SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $29.8 million.

What is the period of performance?

Start: 2015-02-20. End: 2016-10-31.

What is the specific technical capability and intended operational use of the 'PE DISMOUNT SENSORS' and 'PE POR MOBILE SENSORS'?

The provided data does not detail the specific technical capabilities or intended operational uses of the 'PE DISMOUNT SENSORS' and 'PE POR MOBILE SENSORS'. However, the terms 'DISMOUNT' and 'MOBILE' suggest these are portable sensor systems designed for use by soldiers on foot or in vehicles, likely for intelligence gathering, surveillance, reconnaissance, or tactical communication purposes. 'PE' could potentially refer to a specific program or system designation within the Department of the Army. Without access to the contract's statement of work or technical specifications, their precise function and advanced features remain unknown, making it difficult to assess their technological value or compare them to commercial off-the-shelf alternatives.

How does the pricing of this contract compare to similar procurements for advanced military sensor systems?

Direct price comparison is challenging due to the lack of specific technical details for the sensors and kits procured under this $29.8 million contract. The 'Other Communications Equipment Manufacturing' NAICS code is broad, and military-grade sensor systems often involve proprietary technology, high research and development costs, and stringent performance requirements that differentiate them from commercial products. To benchmark effectively, one would need to identify contracts for sensor systems with comparable functionalities, such as real-time data transmission, environmental sensing, or target identification capabilities, awarded around the same period. The moderate number of bidders (3) in this full and open competition might suggest that pricing was competitive but not necessarily at the lowest possible level achievable in a more crowded market.

What are the potential risks associated with the 'SERVER REPLACEMENT KITS' and 'MWO KIT' components of this contract?

Risks associated with 'SERVER REPLACEMENT KITS' and 'MWO KIT' (likely Maintenance Work Order kits) primarily revolve around integration, compatibility, and obsolescence. Ensuring that replacement servers and maintenance components are fully compatible with existing, potentially aging, infrastructure is crucial. There's a risk that the technology within these kits could become outdated shortly after procurement, especially if the underlying systems are not upgraded concurrently. Furthermore, the effectiveness of the MWO kits depends on the availability of skilled personnel to perform the maintenance and the accuracy of the diagnostic tools included. The firm fixed-price nature means the government bears the risk if unforeseen integration issues or rapid technological obsolescence arise, impacting the long-term utility and cost-effectiveness of these components.

What is General Dynamics C4 Systems' track record with similar Department of Defense communications equipment contracts?

General Dynamics C4 Systems, Inc. is a well-established defense contractor with a significant history of providing complex communication systems, command and control solutions, and IT services to the Department of Defense and other government agencies. They have a proven track record in developing and delivering sophisticated electronic warfare systems, tactical radios, and network-centric solutions. While specific details on their performance for 'PE DISMOUNT SENSORS' or similar niche sensor procurements are not detailed in this summary, their broad experience in military communications suggests a strong capability to execute contracts of this nature. Past performance reviews and contract databases would offer more granular insights into their specific successes and challenges with similar, albeit potentially larger or more complex, communication technology awards.

How does the $29.8 million total award amount compare to historical spending on 'Other Communications Equipment Manufacturing' by the Department of the Army?

The $29.8 million award represents a specific procurement within the broad 'Other Communications Equipment Manufacturing' category for the Department of the Army. To contextualize this amount historically, one would need to analyze the Army's total spending within NAICS code 334290 over several fiscal years. This figure alone does not indicate whether it is high or low relative to the Army's overall budget for communications equipment. However, considering the specialized nature of sensor systems and military-grade hardware, this award could represent a significant investment in a particular capability area. Benchmarking against annual spending trends for similar equipment categories would provide a clearer picture of its relative scale and importance within the Army's procurement landscape.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 8201 E MCDOWELL RD, SCOTTSDALE, AZ, 85257

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,836,056

Exercised Options: $29,836,056

Current Obligation: $29,836,056

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T09DW401

IDV Type: IDC

Timeline