DoD's $70.6M F-35 IT/Cyber contract awarded to General Dynamics One Source via sole-source procurement
Contract Overview
Contract Amount: $70,600,857 ($70.6M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Defense
Start Date: 2024-08-01
End Date: 2026-01-31
Contract Duration: 548 days
Daily Burn Rate: $128.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: THIS CONTRACT PROCURES TRANSITIONAL INFORMATION TECHNOLOGY (IT) AND INFORMATION ASSURANCE/CYBERSECURITY SERVICES IN SUPPORT OF VIRTUAL ENTERPRISE (JVE) NETWORK AND STANDALONE WORKSTATIONS FOR THE F-35 JOINT STRIKE FIGHTER AIRCRAFT.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $70.6 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: THIS CONTRACT PROCURES TRANSITIONAL INFORMATION TECHNOLOGY (IT) AND INFORMATION ASSURANCE/CYBERSECURITY SERVICES IN SUPPORT OF VIRTUAL ENTERPRISE (JVE) NETWORK AND STANDALONE WORKSTATIONS FOR THE F-35 JOINT STRIKE FIGHTER AIRCRAFT. Key points: 1. Contract focuses on critical IT and cybersecurity for the F-35 program. 2. Sole-source award to General Dynamics One Source raises questions about competition. 3. Significant taxpayer investment in advanced defense technology. 4. The IT and cybersecurity sector is crucial for national security.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a sole-source award, makes a direct pricing assessment difficult without competitive benchmarks. The total award amount of $70.6M over 548 days suggests a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Dynamics One Source. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this significant IT and cybersecurity contract may result in suboptimal pricing and reduced value for taxpayer funds.
Public Impact
Ensures critical IT and cybersecurity for the F-35 fighter jet program. Supports national defense capabilities through advanced network services. Potential for increased costs due to sole-source procurement. Impacts the cybersecurity posture of a key military asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of small business participation noted.
Positive Signals
- Supports a critical national defense program (F-35).
- Procures essential IT and cybersecurity services.
- Long-term contract duration provides stability.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a vital component of the IT industry supporting complex defense systems. Spending benchmarks for similar specialized IT/cybersecurity services for major defense platforms can vary widely.
Small Business Impact
The contract data indicates that small businesses were not involved in this award (sb: false). This suggests a missed opportunity to leverage small business capabilities and promote economic diversity within the defense contracting landscape.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. Accountability for performance and cost management will be crucial given the lack of competitive pressure.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type.
- No small business participation.
- Critical IT/Cybersecurity for major defense asset.
- Potential for cost overruns without competitive pressure.
Tags
computer-systems-design-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.6 million to GENERAL DYNAMICS ONE SOURCE LLC. THIS CONTRACT PROCURES TRANSITIONAL INFORMATION TECHNOLOGY (IT) AND INFORMATION ASSURANCE/CYBERSECURITY SERVICES IN SUPPORT OF VIRTUAL ENTERPRISE (JVE) NETWORK AND STANDALONE WORKSTATIONS FOR THE F-35 JOINT STRIKE FIGHTER AIRCRAFT.
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $70.6 million.
What is the period of performance?
Start: 2024-08-01. End: 2026-01-31.
What justification was provided for the sole-source award, and what steps were taken to ensure fair and reasonable pricing without competition?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without this information, it's difficult to assess if fair and reasonable pricing was achieved. The government should have conducted a thorough price analysis, potentially using historical data or independent cost estimates, to mitigate the risks associated with non-competitive procurement.
What are the specific cybersecurity risks addressed by these services, and how will their effectiveness be measured?
The contract focuses on IT and cybersecurity for the F-35 JVE network. Specific risks likely include network intrusion, data exfiltration, and system vulnerabilities. Effectiveness should be measured through metrics like incident response times, vulnerability remediation rates, and successful threat mitigation, tied directly to the operational security of the F-35 program.
How does the Cost Plus Fixed Fee structure impact the contractor's incentive to control costs for these IT and cybersecurity services?
A Cost Plus Fixed Fee (CPFF) contract provides reimbursement for allowable costs plus a fixed fee representing profit. While the fixed fee provides some incentive for efficiency, the primary cost control mechanism relies on the government's ability to audit costs and negotiate reasonable fee structures. This structure can sometimes lead to less aggressive cost management compared to fixed-price contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001924R0077
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,676,642
Exercised Options: $71,676,642
Current Obligation: $70,600,857
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $12,148,158
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-08-01
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-09-11
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