DoD's $74M CAC2S contract awarded to General Dynamics Mission Systems for sheet metal work manufacturing
Contract Overview
Contract Amount: $74,273,563 ($74.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-08-24
End Date: 2021-08-26
Contract Duration: 1,463 days
Daily Burn Rate: $50.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COMMON AVIATION COMMAND AND CONTROL SUITE (CAC2S) FULL DEPLOYMENT UNITS (FDUS) AND SOFTWARE MAINTENANCE
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $74.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: COMMON AVIATION COMMAND AND CONTROL SUITE (CAC2S) FULL DEPLOYMENT UNITS (FDUS) AND SOFTWARE MAINTENANCE Key points: 1. Value for money assessed through benchmarking against similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially leading to better price discovery. 3. Risk indicators include contract duration and the nature of the goods/services provided. 4. Performance context is tied to the full deployment of aviation command and control systems. 5. Sector positioning within defense IT and manufacturing, focusing on specialized components.
Value Assessment
Rating: fair
The contract value of approximately $74.3 million over four years for aviation command and control system components appears within a reasonable range for specialized defense manufacturing. Benchmarking against similar complex system integration and manufacturing contracts suggests that the pricing is competitive, though detailed cost breakdowns are not publicly available. The firm-fixed-price nature of the award provides cost certainty for the government, but the overall value proposition depends heavily on the successful deployment and performance of the CAC2S system.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of five bidders suggests a healthy level of competition for this specialized defense requirement. This competitive environment is generally expected to drive more favorable pricing and innovative solutions for the government compared to sole-source or limited competition awards.
Taxpayer Impact: The full and open competition likely resulted in a more cost-effective outcome for taxpayers by fostering a competitive bidding process that pressured prices downward.
Public Impact
The primary beneficiaries are the Department of the Navy and the broader Department of Defense, receiving enhanced aviation command and control capabilities. The contract delivers critical hardware components and software maintenance for the CAC2S system, essential for modern air operations. The geographic impact is primarily within the United States, with potential deployment to various naval aviation bases and operational theaters. Workforce implications include skilled labor in manufacturing, engineering, and software maintenance within General Dynamics Mission Systems and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 4 years) can sometimes lead to cost overruns or scope creep if not managed tightly.
- Reliance on a single prime contractor for full deployment and maintenance could pose risks if performance issues arise.
- The specialized nature of the components means limited alternative sources if issues with the current supplier emerge.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
- Firm-fixed-price contract type provides cost certainty for the government, mitigating budget risks.
- General Dynamics Mission Systems is an established defense contractor with experience in complex systems integration.
Sector Analysis
The defense electronics and systems integration market is a significant segment of the broader aerospace and defense industry. This contract falls within the domain of command, control, communications, computers, and intelligence (C4I) systems, a critical area for military operations. Spending in this sector is driven by the need for advanced technological capabilities to maintain military superiority. Comparable spending benchmarks would involve other large-scale defense system development and production contracts, often in the tens to hundreds of millions of dollars.
Small Business Impact
This contract does not appear to have a specific small business set-aside component, as indicated by 'sb: false'. While the prime contractor is a large business, there may be subcontracting opportunities for small businesses within General Dynamics' supply chain. The extent of small business participation would depend on the company's subcontracting plan and the availability of qualified small business vendors for specific components or services.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. The firm-fixed-price nature provides a degree of financial oversight by limiting cost increases. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Naval Aviation Systems
- Command and Control Systems
- Defense Electronics Manufacturing
- Aerospace Component Production
- Tactical Data Links
Risk Flags
- Long contract duration
- Potential for supply chain disruptions
- Reliance on single prime for complex system
Tags
defense, department-of-the-navy, general-dynamics-mission-systems, aviation-command-and-control, sheet-metal-manufacturing, software-maintenance, firm-fixed-price, full-and-open-competition, arizona, large-contract, c4i-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. COMMON AVIATION COMMAND AND CONTROL SUITE (CAC2S) FULL DEPLOYMENT UNITS (FDUS) AND SOFTWARE MAINTENANCE
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 Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $74.3 million.
What is the period of performance?
Start: 2017-08-24. End: 2021-08-26.
What is the track record of General Dynamics Mission Systems in delivering similar complex defense systems on time and within budget?
General Dynamics Mission Systems (GDMS) has a long history of delivering complex defense systems, including command and control, communications, and intelligence platforms. They have been involved in numerous large-scale programs for the U.S. military and its allies. While specific performance metrics for every contract are not always public, GDMS is generally considered a reliable contractor in the defense sector. However, like many large defense programs, there can be instances of schedule delays or cost adjustments due to the inherent complexity and evolving requirements of military technology. A thorough review would involve examining past performance evaluations and contract modifications for programs of similar scope and complexity.
How does the awarded amount compare to the estimated value or initial budget for the CAC2S full deployment?
The awarded amount of approximately $74.3 million represents the total value of the contract for the full deployment units and software maintenance. Without access to the government's initial budget estimates or pre-solicitation cost analyses for the CAC2S program, a direct comparison is challenging. However, the fact that it was awarded under full and open competition with five bidders suggests that the final negotiated price was deemed acceptable by the government based on the proposals received. The firm-fixed-price structure implies that the government secured a defined scope of work at a set price, indicating a level of confidence in the value proposition at the time of award.
What are the primary risks associated with the manufacturing and maintenance of the CAC2S components under this contract?
Key risks include potential manufacturing defects in the specialized sheet metal components, leading to system failures or performance degradation. Software maintenance carries risks related to cybersecurity vulnerabilities, integration issues with evolving systems, and the obsolescence of technology over the contract's lifespan. Furthermore, supply chain disruptions for raw materials or specialized parts could impact production timelines. The long duration of the contract also introduces risks related to contractor performance degradation or changes in government requirements that may necessitate contract modifications, potentially impacting cost and schedule.
What is the expected impact of the CAC2S system on naval aviation operational effectiveness?
The Common Aviation Command and Control Suite (CAC2S) is designed to modernize and enhance the situational awareness and command capabilities for naval aviation. By integrating various communication, navigation, and surveillance systems, CAC2S aims to provide a common operational picture, improve data sharing, and streamline command processes. This modernization is expected to significantly boost operational effectiveness by enabling faster decision-making, better coordination among air and ground assets, and improved survivability in complex threat environments. The successful deployment and reliable functioning of the system are critical for achieving these intended benefits.
Have there been significant cost overruns or schedule delays in previous phases or related contracts for the CAC2S program?
Information regarding significant cost overruns or schedule delays in previous phases or related contracts for the CAC2S program is not readily available in the provided data. However, large-scale defense acquisition programs often encounter such challenges due to their complexity, evolving technological landscapes, and rigorous testing requirements. A comprehensive analysis would necessitate reviewing program management reports, GAO audits, and historical contract data specific to CAC2S development and procurement. The current contract's performance will be a key indicator moving forward.
What is the role of software maintenance in this contract, and how is it priced relative to the hardware deployment?
The contract includes provisions for software maintenance alongside the full deployment of hardware units. Software maintenance is crucial for ensuring the CAC2S system remains operational, secure, and compatible with future upgrades or evolving threats. It typically involves bug fixes, patches, security updates, and potentially minor enhancements. The pricing for software maintenance is often structured as an annual recurring cost or based on service level agreements. Without specific cost breakdowns, it's difficult to determine its exact proportion relative to hardware deployment, but it represents an ongoing investment to sustain the system's lifecycle value.
Industry Classification
NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Sheet Metal Work Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6785416R0217
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
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: $98,094,603
Exercised Options: $74,273,563
Current Obligation: $74,273,563
Actual Outlays: $1,600,062
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-08-24
Current End Date: 2021-08-26
Potential End Date: 2022-01-26 00:00:00
Last Modified: 2024-09-26
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