DoD Awards $156M+ for Submarine Combat Systems, Highlighting R&D and Electronics Focus

Contract Overview

Contract Amount: $116,102,153 ($116.1M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-12-13

End Date: 2009-12-31

Contract Duration: 2,575 days

Daily Burn Rate: $45.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200305!026889!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002403C6206 !A!N! !N! !20021213!20071231!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000000091965!N!N!000169059987!AC64!RDTE/ELECTRONICS & COMMUNICATION EQ-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION !2GAU!AN/BSY-2 SUBMARINE COMBAT SYS !334511!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!R!2!004!B! !A!Y!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!Y!E! ! ! ! ! !0001! !

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $116.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 200305!026889!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002403C6206 !A!N! !N! !20021213!20071231!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRF… Key points: 1. Significant investment in advanced submarine combat systems points to ongoing modernization efforts. 2. The contract's R&D component suggests a focus on innovation and future technological capabilities. 3. High per-unit cost warrants scrutiny for potential efficiencies in future procurements. 4. The sector is characterized by complex, high-value defense systems requiring specialized expertise.

Value Assessment

Rating: questionable

The total award of $156M over 7 years for a submarine combat system appears high. Benchmarking against similar complex defense systems is difficult without more granular data, but the per-unit cost is substantial.

Cost Per Unit: $45,088 (estimated average per unit based on total award and quantity)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms and how they influenced the final award price require further examination.

Taxpayer Impact: Taxpayer funds are directed towards advanced defense capabilities, with the potential for cost efficiencies to be realized through competitive processes.

Public Impact

Enhances national security through advanced naval warfare technology. Supports high-tech jobs in the defense manufacturing sector. Contributes to the technological superiority of the U.S. submarine fleet. Potential for spin-off technologies benefiting other industries. Requires ongoing oversight to ensure effective use of funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Defense sector, specifically focusing on electronics and communication equipment for naval systems. Spending in this area is typically high due to the complexity and critical nature of military hardware.

Small Business Impact

While this specific contract does not indicate direct small business participation, the defense sector often involves a complex supply chain where small businesses can play a vital role as subcontractors.

Oversight & Accountability

The contract is managed by the Naval Sea Systems Command, a key agency for naval procurement. Oversight would involve monitoring performance, cost, and schedule to ensure mission success and responsible use of funds.

Related Government Programs

Risk Flags

Tags

search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $116.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 200305!026889!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002403C6206 !A!N! !N! !20021213!20071231!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000000091965!N!N!000169059987!AC64!RDTE/ELECTRONICS & COMMUNICATION EQ-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION !2GAU!AN/BSY-2 SUBMARINE COMBAT SYS !334511!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 $116.1 million.

What is the period of performance?

Start: 2002-12-13. End: 2009-12-31.

What specific technological advancements does this submarine combat system offer, and how do they justify the investment?

The system likely incorporates advanced sonar, communication, and weapon control capabilities essential for modern submarine warfare. Justification rests on maintaining a technological edge against potential adversaries, enhancing situational awareness, and improving platform survivability and effectiveness in complex operational environments.

How does the per-unit cost compare to similar systems procured by other nations or previous generations of U.S. systems?

A direct comparison is challenging without detailed specifications and market data for comparable systems. However, the estimated per-unit cost of $45,088 suggests a significant investment, typical for highly specialized and technologically advanced defense platforms. Further analysis would require access to classified or proprietary cost data.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured?

Key performance indicators likely include system reliability, accuracy of detection and targeting, communication bandwidth and security, and integration with other naval platforms. Performance is typically measured through rigorous testing, operational evaluations, and adherence to delivery schedules and technical specifications.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

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, Corporate Entity Not Tax Exempt, 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: 2002-12-13

Current End Date: 2009-12-31

Potential End Date: 2009-12-31 00:00:00

Last Modified: 2022-07-27

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