DoD's $224.8M Missile Director Contract with General Dynamics: Full & Open Competition, Firm Fixed Price
Contract Overview
Contract Amount: $224,802,149 ($224.8M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-07-22
End Date: 2021-12-31
Contract Duration: 3,084 days
Daily Burn Rate: $72.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GUIDED MISSILE DIRECTOR/DIRECTOR CONTROLLER (MK82/MK200) MULTI-YEAR PROCUREMENT PTC SITE SUPPORT, TECHNICAL ENGINEERING SERVICES AND PRODUCTION READINESS REVIEW (PRR)
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $224.8 million to GENERAL DYNAMICS-OTS, INC. for work described as: GUIDED MISSILE DIRECTOR/DIRECTOR CONTROLLER (MK82/MK200) MULTI-YEAR PROCUREMENT PTC SITE SUPPORT, TECHNICAL ENGINEERING SERVICES AND PRODUCTION READINESS REVIEW (PRR) Key points: 1. Contract awarded to General Dynamics-OTS, Inc. for missile director systems. 2. Utilized full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type aims to control costs for the government. 4. Long duration (3084 days) indicates a significant, multi-year commitment. 5. No small business participation noted.
Value Assessment
Rating: good
The contract's firm fixed price structure is a positive indicator for cost control. Benchmarking against similar missile system procurements would be necessary for a definitive value assessment, but the competitive award suggests a reasonable price was achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is the most competitive method, allowing all responsible sources to submit bids. This process generally leads to better price discovery and potentially lower costs for the government compared to limited or sole-source procurements.
Taxpayer Impact: The competitive nature of this award is expected to benefit taxpayers by ensuring a fair market price for essential defense equipment.
Public Impact
Ensures continued supply of critical missile components for the Navy. Supports advanced manufacturing and technical engineering services. Long-term contract provides stability for defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could mask potential cost overruns if not managed closely.
Positive Signals
- Full and open competition.
- Firm Fixed Price contract type.
- Award to established contractor with relevant expertise.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically electronic computer manufacturing. Spending in this area is critical for national security. Benchmarks for similar multi-year missile system procurements would provide further context on the $224.8 million value.
Small Business Impact
The data indicates no small business participation in this contract. While not always feasible, exploring opportunities for small business subcontracting could foster innovation and broaden the defense industrial base.
Oversight & Accountability
The firm fixed price contract type provides a degree of cost certainty. However, ongoing oversight of performance, technical execution, and adherence to production readiness reviews is crucial to ensure value and mitigate risks over the contract's long duration.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of small business involvement.
- Long contract duration.
- Potential for obsolescence in rapidly evolving technology.
- Dependence on a single supplier for critical components.
Tags
electronic-computer-manufacturing, department-of-defense, vt, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $224.8 million to GENERAL DYNAMICS-OTS, INC.. GUIDED MISSILE DIRECTOR/DIRECTOR CONTROLLER (MK82/MK200) MULTI-YEAR PROCUREMENT PTC SITE SUPPORT, TECHNICAL ENGINEERING SERVICES AND PRODUCTION READINESS REVIEW (PRR)
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS-OTS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $224.8 million.
What is the period of performance?
Start: 2013-07-22. End: 2021-12-31.
What is the specific technical capability being procured with the 'GUIDED MISSILE DIRECTOR/DIRECTOR CONTROLLER' and how does it align with current and future defense needs?
The 'GUIDED MISSILE DIRECTOR/DIRECTOR CONTROLLER (MK82/MK200)' likely refers to a critical component within missile guidance systems, responsible for directing the missile's trajectory. Its procurement aligns with the Department of the Navy's ongoing need for advanced weaponry to maintain strategic advantage and fulfill operational requirements in various defense scenarios.
Given the firm fixed price structure, what mechanisms are in place to manage potential scope creep or unforeseen technical challenges that could impact the contractor's profitability and the governmen
While a firm fixed price contract aims to cap costs, robust contract management is essential. This includes clear statement of work, change control processes, and regular technical reviews. The contract's duration suggests provisions for managing technical evolution and potential unforeseen issues, likely through defined negotiation points or contract modification procedures.
How does the technical engineering services and production readiness review component of this contract ensure the long-term effectiveness and reliability of the missile systems being procured?
The inclusion of technical engineering services and Production Readiness Reviews (PRR) is vital for ensuring long-term effectiveness. These services likely involve ongoing design support, system integration, and troubleshooting. PRRs specifically assess the contractor's manufacturing processes and capabilities, confirming readiness for sustained, high-quality production, thereby mitigating risks of defects and ensuring system reliability.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002412R5101
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 326 IBM ROAD BUILDING 862, WILLISTON, VT, 05495
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $227,251,575
Exercised Options: $224,995,591
Current Obligation: $224,802,149
Actual Outlays: $509,871
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-07-22
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2024-11-06
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