DoD Awards $75M for Engineering Services, Software/Hardware to General Dynamics
Contract Overview
Contract Amount: $75,083,091 ($75.1M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-02-16
End Date: 2023-04-29
Contract Duration: 2,629 days
Daily Burn Rate: $28.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: PCS ENGINEERING SERVICES AND SOFTWARE/HARDWARE IGF::CL::IGF
Place of Performance
Location: MANASSAS, MANASSAS CITY County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $75.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: PCS ENGINEERING SERVICES AND SOFTWARE/HARDWARE IGF::CL::IGF Key points: 1. Significant award to a major defense contractor. 2. Contract spans nearly 7 years, indicating long-term need. 3. Full and open competition after exclusion of sources suggests a complex procurement. 4. Cost Plus Incentive Fee structure requires careful monitoring for cost overruns.
Value Assessment
Rating: fair
The contract type (Cost Plus Incentive Fee) can lead to higher costs if not managed tightly. Benchmarking against similar complex engineering service contracts is difficult without more granular data on the specific services and software/hardware provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'full and open competition after exclusion of sources' indicates a competitive process but with specific pre-qualification criteria. This method aims for best value while ensuring a degree of competition, but the exclusion aspect warrants scrutiny.
Taxpayer Impact: Taxpayer funds are being used for critical defense systems. The effectiveness of the competition and contract management will determine the ultimate value for money.
Public Impact
Supports advanced defense systems and national security. Potential for technological advancements in navigation and guidance. Ensures continued operational readiness for military assets.
Waste & Efficiency Indicators
Waste Risk Score: 100 / 10
Warning Flags
- Cost Plus Incentive Fee structure risks higher than anticipated costs.
- Long contract duration increases exposure to scope creep and evolving requirements.
- Exclusion of sources in competition may limit ultimate cost savings.
Positive Signals
- Awarded to a reputable defense contractor.
- Competition, even with exclusions, aims for best value.
- Contract supports critical national security functions.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically related to navigation and guidance systems. Spending in this area is crucial for maintaining technological superiority and operational effectiveness in defense.
Small Business Impact
The contract was awarded to General Dynamics Mission Systems, Inc., a large business. There is no indication of small business participation in this specific award, which is common for large, complex defense contracts.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The Cost Plus Incentive Fee structure necessitates robust oversight to ensure cost control and performance targets are met.
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
- Potential for cost overruns due to CPIF structure.
- Long contract duration increases risk of requirement changes.
- Limited competition due to source exclusion.
- Lack of transparency on specific deliverables.
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 $75.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. PCS ENGINEERING SERVICES AND SOFTWARE/HARDWARE IGF::CL::IGF
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 $75.1 million.
What is the period of performance?
Start: 2016-02-16. End: 2023-04-29.
What specific engineering services and software/hardware were procured under this contract, and how do they align with current defense needs?
The contract data indicates procurement of 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' services and related software/hardware. This aligns with the ongoing need for advanced systems to support military operations, reconnaissance, and strategic positioning. Specific details would require access to the contract's SOW.
How effectively did the 'full and open competition after exclusion of sources' process ensure competitive pricing and identify the best value for the government?
This procurement method suggests that while the competition was open, certain sources were excluded based on specific criteria (e.g., technical capability, security clearance). While this can ensure highly qualified bidders, it may limit the breadth of competition and potentially impact price discovery. A thorough review of the source selection documentation would be needed to assess its effectiveness.
What are the key performance indicators (KPIs) and incentive targets within the Cost Plus Incentive Fee structure, and how are they being monitored?
The Cost Plus Incentive Fee (CPIF) structure implies that both the contractor and the government share in cost savings or overruns relative to target costs, with incentives tied to achieving specific performance goals. Key performance indicators would likely relate to system performance, delivery schedules, and technical milestones. Effective monitoring by the DCMA is crucial to manage costs and ensure these KPIs are met.
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: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002414R6203
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $87,416,191
Exercised Options: $80,803,108
Current Obligation: $75,083,091
Actual Outlays: $2,551,795
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $46,571,972
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-02-16
Current End Date: 2023-04-29
Potential End Date: 2023-04-29 00:00:00
Last Modified: 2025-02-03
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