DoD awards $83.7M for Engineering and Technical Services to General Dynamics, raising concerns about competition
Contract Overview
Contract Amount: $83,734,880 ($83.7M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-06-25
End Date: 2020-09-30
Contract Duration: 2,289 days
Daily Burn Rate: $36.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING AND TECHNICAL SERVICES
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $83.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ENGINEERING AND TECHNICAL SERVICES Key points: 1. Significant contract value of $83.7M awarded to a single vendor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Contract duration of 2289 days suggests a long-term need, but competition method is unclear. 4. The sector is critical for defense capabilities, making efficient spending paramount.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without competitive benchmarks, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED', indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for an $83.7M contract likely results in a higher price than if multiple vendors had competed, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock the government into a potentially suboptimal pricing arrangement. Lack of transparency in the procurement process hinders public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost Plus Contract Type
- Long Contract Duration
- Limited Transparency
Positive Signals
- Essential Services Provided
- Established Vendor
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code. Spending in this sector is crucial for national defense, but competitive procurement is vital to ensure efficiency.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential weaknesses in the oversight of the procurement process. Further review is needed to understand why competition was not pursued.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of Competition
- Potential for Cost Overruns (CPFF)
- Limited Price Discovery
- Long Contract Duration
- Lack of Transparency in Justification
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.7 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. ENGINEERING AND TECHNICAL SERVICES
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 $83.7 million.
What is the period of performance?
Start: 2014-06-25. End: 2020-09-30.
What was the justification for not competing this $83.7M contract, and what steps were taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a detailed justification, such as the existence of a unique capability or urgent need. Without this information, it's impossible to assess the fairness of the pricing or the effectiveness of any price negotiation strategies employed by the agency.
What are the risks associated with a Cost Plus Fixed Fee contract of this magnitude and duration?
Cost Plus Fixed Fee (CPFF) contracts carry inherent risks, particularly for large, long-duration awards. The government bears the cost of performance, and the fixed fee provides the contractor with a guaranteed profit margin regardless of cost efficiency. This can incentivize cost overruns and reduce the contractor's motivation to control expenses, potentially leading to higher overall costs for the government.
How does the lack of competition impact the long-term effectiveness of the services provided?
The lack of competition can negatively impact long-term effectiveness by reducing the incentive for the incumbent contractor to innovate or improve service quality. Without the threat of losing future business to competitors, the contractor may become complacent. Furthermore, the government misses out on potentially better solutions or more cost-effective approaches that could emerge from a competitive environment.
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: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002412R6235
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 9500 INNOVATION DR, MANASSAS, VA, 20110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $92,790,172
Exercised Options: $84,039,505
Current Obligation: $83,734,880
Actual Outlays: $3,247,734
Subaward Activity
Number of Subawards: 155
Total Subaward Amount: $22,834,875
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-06-25
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-09-12
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