DoD Awards $97.8M for CAC2S System to General Dynamics, Facing Limited Competition
Contract Overview
Contract Amount: $97,805,910 ($97.8M)
Contractor: General Dynamics C4 Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-09-28
End Date: 2018-01-30
Contract Duration: 1,950 days
Daily Burn Rate: $50.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: CAC2S DEVELOPMENTAL SYSTEM
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $97.8 million to GENERAL DYNAMICS C4 SYSTEMS, INC. for work described as: CAC2S DEVELOPMENTAL SYSTEM Key points: 1. Significant contract value of $97.8 million for system development. 2. Competition was limited after exclusion of sources, potentially impacting price discovery. 3. Risk associated with a fixed-price incentive contract type. 4. Spending falls within the 'Other Electronic Component Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $97.8 million for system development appears substantial. Benchmarking against similar developmental system contracts is difficult without more specific data on system complexity and scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This limited competition may have restricted the number of potential bidders and could have influenced the final negotiated price.
Taxpayer Impact: The limited competition raises questions about whether taxpayers received the best possible price for this developmental system.
Public Impact
Development of a critical Command, Control, Communications, and Computers System (CAC2S). Potential impact on military operational readiness and communication capabilities. Contract duration spans over 5 years, indicating a long-term project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Fixed Price Incentive contract type
- Long contract duration
Positive Signals
- Awarded to a known defense contractor
- Specific system development
Sector Analysis
This contract falls under 'Other Electronic Component Manufacturing,' which can encompass a wide range of specialized electronic systems. Benchmarking spending requires comparison to similar complex C4ISR system development contracts.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), suggesting established oversight mechanisms. However, the effectiveness of this oversight in ensuring value for money with limited competition warrants review.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for inflated costs due to limited competition.
- Risk of cost overruns with Fixed Price Incentive contract.
- Long contract duration may lead to scope creep or obsolescence.
- Lack of transparency regarding source exclusion.
Tags
other-electronic-component-manufacturing, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.8 million to GENERAL DYNAMICS C4 SYSTEMS, INC.. CAC2S DEVELOPMENTAL SYSTEM
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $97.8 million.
What is the period of performance?
Start: 2012-09-28. End: 2018-01-30.
What was the justification for excluding sources in the full and open competition?
The justification for excluding sources is critical to understanding the competitive landscape. Without this information, it's difficult to assess if the exclusion was warranted or if it unnecessarily limited competition, potentially leading to higher costs for the government and taxpayers. Further investigation into the specific reasons for exclusion is recommended.
How does the fixed-price incentive contract structure mitigate cost overruns?
A Fixed Price Incentive (FPI) contract aims to share cost risks and savings between the government and contractor. While it incentivizes the contractor to control costs, the government still bears some risk if costs exceed targets. The effectiveness depends on the clarity of the target cost, incentive sharing ratio, and the government's ability to monitor performance and costs closely.
What is the expected operational impact of the CAC2S system upon completion?
The CAC2S system is intended to enhance command, control, communications, and computer capabilities for military operations. Its successful development and deployment are expected to improve situational awareness, streamline communication, and ultimately bolster operational effectiveness and readiness. The specific impact will depend on the system's features and integration with existing military infrastructure.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6785412R0211
Offers Received: 4
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
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: $102,149,806
Exercised Options: $97,805,910
Current Obligation: $97,805,910
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-28
Current End Date: 2018-01-30
Potential End Date: 2018-01-30 00:00:00
Last Modified: 2022-06-24
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