DoD Awards $153M for Digital System Resources, Inc. to Support AN/SLQ-32 Electronic Warfare Systems
Contract Overview
Contract Amount: $80,887,413 ($80.9M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-02-06
End Date: 2009-03-15
Contract Duration: 2,229 days
Daily Burn Rate: $36.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200305!031255!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002403C5439 !A!N! !N! !20030206!20040131!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000007826087!N!N!000044999987!AD96!RDTE/OTHER DEFENSE-MANAGEMENT SUPPORT !A7 !ELECTRONICS AND COMMUNICATION !2GFF!AN/SLQ-32 !541710!E! !3! ! ! ! ! !99990909!B! ! !N!Z!D!N!R!1!001!N!1B!A!Y!Z! ! !N!B!N!N! ! !Z! !A!A!000!D!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $80.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 200305!031255!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002403C5439 !A!N! !N! !20030206!20040131!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRF… Key points: 1. Contract awarded to Digital System Resources, Inc. for electronic warfare system support. 2. The contract has a base value of $116M with a potential value of $153M. 3. Competition was limited, raising questions about price discovery and taxpayer value. 4. The sector is Defense, specifically focusing on electronic warfare and communication systems.
Value Assessment
Rating: fair
The contract's potential value of $153M is significant. Benchmarking against similar contracts for electronic warfare system support is difficult without more detailed cost breakdowns. The Cost Plus Award Fee structure introduces variability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited competition scenario. This lack of robust competition may have led to a higher price than could have been achieved through a fully open process.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible value for the funds expended on this contract.
Public Impact
Enhances critical electronic warfare capabilities for naval systems. Supports the AN/SLQ-32 system, a key component in naval defense. Potential for long-term sustainment and upgrades of vital defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Award Fee structure can lead to cost overruns
- Lack of transparency in pricing due to limited competition
Positive Signals
- Supports critical defense technology
- Potential for long-term sustainment
- Experienced contractor
Sector Analysis
This contract falls within the Defense sector, specifically supporting electronic warfare and communication systems. Spending in this area is critical for national security, but often involves complex, high-value contracts with limited competition.
Small Business Impact
There is no indication that small businesses were involved as prime contractors or significant subcontractors in this award. The focus appears to be on a large, established prime contractor.
Oversight & Accountability
The contract type (Cost Plus Award Fee) and limited competition warrant close oversight to ensure cost control and effective performance. The Department of Defense and its contracting agencies are responsible for monitoring this.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition may result in higher costs.
- Cost Plus Award Fee structure can be prone to cost overruns without strict oversight.
- Lack of transparency in pricing due to limited competition.
- Potential for contractor lock-in due to specialized system support.
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $80.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 200305!031255!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002403C5439 !A!N! !N! !20030206!20040131!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000007826087!N!N!000044999987!AD96!RDTE/OTHER DEFENSE-MANAGEMENT SUPPORT !A7 !ELECTRONICS AND COMMUNICATION !2GFF!AN/SLQ-32 !541710!E! !3! ! ! ! ! !99990909!B
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $80.9 million.
What is the period of performance?
Start: 2003-02-06. End: 2009-03-15.
What specific factors justified the limited competition for this contract, and how were they documented?
Justification for limited competition typically involves factors such as unique technical capabilities, urgent need, or lack of qualified sources. The contracting agency would need to provide detailed documentation, such as a Justification and Approval (J&A) document, outlining these reasons and demonstrating that a full and open competition was not feasible or not in the government's best interest.
How does the Cost Plus Award Fee structure ensure cost efficiency and prevent contractor overspending?
The Cost Plus Award Fee (CPAF) structure aims to incentivize contractor performance by allowing for a base fee plus an award fee based on meeting or exceeding performance objectives. While it allows for flexibility, it requires robust government oversight to define clear performance metrics and to ensure that award fees are genuinely earned and not simply granted, thereby controlling costs.
What is the long-term strategic value of investing in the AN/SLQ-32 system support through this contract?
The AN/SLQ-32 system is a crucial electronic warfare suite for naval vessels, providing threat detection and countermeasures. Continued investment ensures the system remains operational, effective against evolving threats, and integrated with newer technologies. This sustains the Navy's situational awareness and survivability in contested environments.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 12450 FAIR LAKES CIR STE 800, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-02-06
Current End Date: 2009-03-15
Potential End Date: 2009-03-15 00:00:00
Last Modified: 2022-07-27
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