DoD Awards $94.5M for Shipborne Electronics, Sole-Sourced to Progeny Systems

Contract Overview

Contract Amount: $69,470,939 ($69.5M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-03-03

End Date: 2014-01-01

Contract Duration: 2,861 days

Daily Burn Rate: $24.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200606!357496!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002406C6256 !A!N! !N! ! !20060303!20061231!945837219!945837219!945837219!N!PROGENY SYSTEMS CORPORATION !9500 INNOVATION DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000007324000!N!N!000069590872!AC34!RDTE/SHIPS-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!U!1!001!N!5A!A!N!Z! ! !N!A!N!N!F! ! ! !A!A!000!D!B!N! ! ! !Y!1700!N48160!0001! !

Place of Performance

Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $69.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 200606!357496!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002406C6256 !A!N! !N! ! !20060303!20061231!945837219!945837219!945837219!N!PROGENY SYSTEMS CORPORATION !9500 INNOVATION DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANA… Key points: 1. Contract awarded for electronics and communication equipment, with a significant portion for R&D. 2. Sole-source award to Progeny Systems Corporation raises questions about competition and potential cost savings. 3. Long contract duration (2006-2014) suggests a complex, ongoing need for specialized electronic systems. 4. The $94.5M value is substantial, requiring careful oversight to ensure taxpayer value.

Value Assessment

Rating: questionable

The contract value of $94.5M for engineering services is difficult to benchmark without specific per-unit cost data. However, the sole-source nature suggests limited price discovery, potentially leading to higher costs than a competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits the government's ability to explore alternative solutions and potentially secure lower prices through competitive bidding.

Taxpayer Impact: The lack of competition for a contract of this magnitude may result in taxpayers paying a premium for the services and equipment provided.

Public Impact

Naval operations rely heavily on advanced electronics for communication and command, impacting national security. Research and Development funding within this contract could lead to future technological advancements in naval warfare. The long-term nature of the contract suggests a sustained need for specialized electronic systems, potentially indicating a critical capability gap. Virginia's economy may benefit from this contract through Progeny Systems Corporation's operations and potential subcontracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
High contract value requires scrutiny
Long contract duration
Lack of detailed cost breakdown

Positive Signals

Addresses critical naval electronics needs
Potential for R&D advancements
Supports specialized domestic manufacturing

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to naval electronics and communication equipment. Spending in this area is critical for national defense, but often involves specialized, high-cost components and R&D.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award. Future contracts of this nature should explore opportunities for small business participation where feasible.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and that the pricing remains fair throughout the contract's extended duration.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns
Limited transparency on R&D outcomes
Long contract duration may not reflect current needs
No clear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 200606!357496!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002406C6256 !A!N! !N! ! !20060303!20061231!945837219!945837219!945837219!N!PROGENY SYSTEMS CORPORATION !9500 INNOVATION DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000007324000!N!N!000069590872!AC34!RDTE/SHIPS-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541330!E! !3! ! ! ! ! !999

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 $69.5 million.

What is the period of performance?

Start: 2006-03-03. End: 2014-01-01.

What specific technological advancements or capabilities were developed or acquired through the R&D portion of this contract, and what is their current operational impact?

The R&D component of this contract likely focused on advancing shipborne electronics and communication systems. Without specific deliverables, it's difficult to ascertain the exact advancements. However, such investments typically aim to enhance naval communication security, sensor capabilities, or electronic warfare systems, ultimately contributing to improved operational effectiveness and maintaining a technological edge.

Given the sole-source award, what mechanisms were in place to ensure Progeny Systems Corporation's pricing was fair and reasonable, and were any cost audits conducted?

Sole-source contracts typically rely on pre-negotiated rates, historical pricing, or independent cost estimates to ensure fairness. The government likely conducted some level of price analysis. However, the absence of competition means robust cost audits and competitive benchmarking are crucial to validate the pricing throughout the contract's lifecycle and prevent potential overspending.

How does the $94.5M awarded for these specific naval electronics compare to similar, competitively procured contracts for comparable systems or services?

Direct comparison is challenging due to the sole-source nature and the inclusion of R&D. Competitively procured contracts for similar, mature electronic systems might yield lower prices. However, the unique requirements and R&D focus of this contract could justify a higher cost. A detailed analysis of the specific technical requirements and deliverables would be needed for a more accurate comparison.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9500 INNOVATION DR, MANASSAS, VA, 20110

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline