Naval Sea Systems Command awards $43.7M contract for fire control directors to General Dynamics

Contract Overview

Contract Amount: $43,751,546 ($43.8M)

Contractor: General Dynamics Armament and

Awarding Agency: Department of Defense

Start Date: 2001-10-01

End Date: 2011-10-31

Contract Duration: 3,682 days

Daily Burn Rate: $11.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200205!015857!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401C5158 !A!N! !N! !20010212!20040930!077219350!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT SYST!128 LAKESIDE AVENUE !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITTENDEN !VERMONT !+000029970403!N!N!000000000000!1210!FIRE CONTROL DIRECTORS !A7 !ELECTRONICS AND COMMUNICATION !2CLN!DIRECTOR/DIRECTOR CONTROLLER !334511!E! !3! ! ! ! ! !99990909!B! ! !B! !D!U!J!1!001!N!1G!A!Y!A! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! ! ! !Y! ! !0001!

Place of Performance

Location: BURLINGTON, CHITTENDEN County, VERMONT, 05401, UNITED STATES OF AMERICA

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $43.8 million to GENERAL DYNAMICS ARMAMENT AND for work described as: 200205!015857!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401C5158 !A!N! !N! !20010212!20040930!077219350!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT SYST!128 LAKESIDE AVENUE !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITT… Key points: 1. Contract awarded for fire control directors, a critical component in naval defense systems. 2. The contract was awarded on a sole-source basis, raising questions about potential cost efficiencies. 3. General Dynamics, a major defense contractor, secured this significant award. 4. The contract duration spans over a decade, indicating a long-term need for these systems. 5. The North American Industry Classification System (NAICS) code 334511 points to a specialized manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $43.7 million for fire control directors is substantial. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively assess value for money. The sole-source nature of the award also limits the ability to benchmark against competitive bids, potentially leading to higher prices than might be achieved in a competitive environment. Further analysis of the specific technical requirements and the contractor's historical performance would be needed for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, General Dynamics, was solicited. This approach bypasses the competitive bidding process, which typically aims to secure the best price and terms through market forces. While sole-source awards can be justified in specific circumstances, such as unique technical requirements or urgent needs, they generally result in less price discovery and potentially higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most competitive pricing available, as the government did not explore options with other potential suppliers.

Public Impact

The primary beneficiaries are the U.S. Navy, which receives critical fire control systems for its vessels. The contract supports the production and delivery of fire control directors, essential for targeting and weapon systems. The geographic impact is primarily centered in Burlington, Vermont, where General Dynamics' facility is located, supporting local employment and the regional economy. This contract has implications for the defense manufacturing workforce, particularly those skilled in electronics and complex system integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Long contract duration (over 10 years) may not reflect current market efficiencies.
Lack of transparency in pricing due to non-competitive award.

Positive Signals

Award to a known, established defense contractor (General Dynamics) suggests reliability.
Contract addresses a critical defense need for the U.S. Navy.
Long-term award provides stability for production and supply chain.

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, classified under NAICS code 334511. This is a highly specialized segment of the defense industrial base focused on advanced electronics and systems. The market is characterized by high barriers to entry due to technological complexity, stringent quality requirements, and long development cycles. Spending in this sector is heavily influenced by defense budgets and strategic priorities, with major players like General Dynamics often holding significant market share.

Small Business Impact

There is no indication of a small business set-aside for this contract. Given the specialized nature of fire control directors and the award to a large prime contractor like General Dynamics, it is unlikely that small businesses would be the primary recipients of the prime contract. However, General Dynamics may engage small businesses as subcontractors, though this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Naval Sea Systems Command (NAVSEA) and the Department of Defense's contracting and auditing functions. Inspector General reports and contract performance reviews would be key mechanisms for accountability. Transparency is limited due to the sole-source nature, but reporting on milestones and deliverables would still be required.

Related Government Programs

Naval Combat Systems
Defense Electronics Manufacturing
Weapon System Components
U.S. Navy Procurement

Risk Flags

Sole-source award
Long contract duration
Lack of competitive pricing data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.8 million to GENERAL DYNAMICS ARMAMENT AND. 200205!015857!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401C5158 !A!N! !N! !20010212!20040930!077219350!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT SYST!128 LAKESIDE AVENUE !BURLINGTON !VT!05401!10675!007!50!BURLINGTON !CHITTENDEN !VERMONT !+000029970403!N!N!000000000000!1210!FIRE CONTROL DIRECTORS !A7 !ELECTRONICS AND COMMUNICATION !2CLN!DIRECTOR/DIRECTOR CONTROLLER !334511!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS ARMAMENT AND.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $43.8 million.

What is the period of performance?

Start: 2001-10-01. End: 2011-10-31.

What is the specific technical function of the 'fire control directors' procured under this contract?

Fire control directors are sophisticated systems that integrate sensor data (e.g., from radar, optical tracking) with target information to calculate firing solutions for naval weapon systems. They are crucial for accurately engaging surface, air, and shore targets. This involves complex algorithms, real-time data processing, and interfaces with various shipboard systems, including navigation, communication, and the weapons themselves. The specific model or capabilities of the directors procured under N0002401C5158 would depend on the precise requirements outlined in the contract statement of work, which is not fully detailed here.

How does the $43.7 million contract value compare to similar procurements for fire control systems?

Direct comparison of the $43.7 million contract value is challenging without access to a comprehensive database of similar sole-source procurements for fire control directors. However, given the specialized nature and long production runs typical for defense systems, this value appears substantial but not necessarily outside the norm for a decade-long award to a major contractor. The lack of competitive bidding prevents a direct benchmark against market-driven pricing. To assess value, one would need to compare the per-unit cost, if available, against historical data for similar systems or against the contractor's own pricing for comparable components in other contracts, adjusting for inflation and technical differences.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude include potential overpricing due to the absence of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, reliance on a single supplier can create supply chain vulnerabilities. While the government may have justifications for a sole-source award (e.g., unique capabilities, national security), these risks necessitate robust oversight and negotiation to mitigate potential negative impacts on cost and performance.

What is General Dynamics' track record with the Naval Sea Systems Command for similar contracts?

General Dynamics has a long and extensive history of contracting with the Naval Sea Systems Command (NAVSEA) and the broader Department of Defense. They are a major defense contractor involved in shipbuilding, combat systems, and munitions. For contracts related to fire control systems or similar electronic and armament systems, their track record would likely show numerous awards, varying in size and complexity. A detailed review of their past performance ratings, delivery history, and any past performance issues on similar NAVSEA contracts would be necessary to fully assess their reliability and capability for this specific award.

What are the historical spending patterns for fire control directors by the Department of the Navy?

Historical spending patterns for fire control directors by the Department of the Navy would likely show consistent investment over many years, reflecting the ongoing need for advanced naval warfare capabilities. Spending would fluctuate based on shipbuilding schedules, modernization programs, and the development of new weapon systems. Major procurements often occur through large, multi-year contracts awarded to key defense manufacturers. Analyzing historical data would reveal trends in contract values, award types (competitive vs. sole-source), and the primary contractors involved, providing context for the current $43.7 million award.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 128 LAKESIDE AVENUE, BURLINGTON, VT, 05401

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline