Navy awards $92M+ contract to General Dynamics for software engineering services, with limited competition
Contract Overview
Contract Amount: $92,047,728 ($92.0M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-07-20
End Date: 2028-06-18
Contract Duration: 3,256 days
Daily Burn Rate: $28.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: NAVY SOFTWARE ENGINEERING SERVICES
Place of Performance
Location: MANASSAS, MANASSAS CITY County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $92.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: NAVY SOFTWARE ENGINEERING SERVICES Key points: 1. Significant contract value exceeding $92 million for specialized software engineering. 2. Sole provider General Dynamics Mission Systems, Inc. indicates potential lack of competitive pricing. 3. Long contract duration until 2028 raises concerns about adaptability and future cost-effectiveness. 4. The 'Engineering Services' sector often involves complex, specialized requirements.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without a competitive benchmark, assessing the pricing's fairness against similar services is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', suggesting a sole-source or limited competition scenario. This significantly reduces price discovery mechanisms and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of robust competition for a contract of this magnitude raises concerns about the efficient use of taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract could lock the Navy into potentially outdated technology or services. Dependence on a single contractor for critical software engineering raises national security concerns if performance falters.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Long Contract Duration
- Cost Plus Fixed Fee Contract Type
Positive Signals
- Established Contractor
- Definitive Contract Award
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense and technology development. Spending benchmarks in this area vary widely based on complexity and specialization, but the lack of competition here is a key concern.
Small Business Impact
The contract data indicates that small businesses were not involved in this award, as the prime contractor is General Dynamics Mission Systems, Inc. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The 'VA' status and 'NOT AVAILABLE FOR COMPETITION' designation warrant close oversight to ensure the Navy is receiving fair value and that the contractor is meeting all performance requirements. Accountability for cost and performance is critical.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpricing due to lack of competition.
- Risk of contractor lock-in and technological obsolescence.
- Limited transparency in cost justification.
- Dependency on a single entity for critical services.
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $92.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. NAVY SOFTWARE ENGINEERING 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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $92.0 million.
What is the period of performance?
Start: 2019-07-20. End: 2028-06-18.
What specific factors justified the 'NOT AVAILABLE FOR COMPETITION' designation for this significant software engineering contract?
The justification for a sole-source or limited competition award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can fulfill. Without detailed documentation, it's difficult to assess if these justifications were valid or if alternative solutions were adequately explored.
How will the Department of the Navy ensure cost control and performance monitoring under a Cost Plus Fixed Fee contract with limited competition?
Effective oversight involves rigorous tracking of all costs incurred by the contractor, regular performance reviews against defined metrics, and proactive communication to address any deviations. The Navy should establish clear milestones and deliverables, with financial incentives tied to successful completion and penalties for underperformance.
What is the potential long-term impact on technological advancement and innovation within the Navy's software engineering capabilities given this sole-source award?
Sole-source contracts can stifle innovation by reducing the incentive for the contractor to explore cutting-edge solutions or for other companies to develop competing technologies. This could lead to the Navy relying on potentially less advanced or adaptable systems over the contract's lifespan.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002418R6406
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $97,895,894
Exercised Options: $97,618,700
Current Obligation: $92,047,728
Actual Outlays: $1,593,332
Subaward Activity
Number of Subawards: 133
Total Subaward Amount: $25,841,576
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-07-20
Current End Date: 2028-06-18
Potential End Date: 2028-06-18 00:00:00
Last Modified: 2025-10-24
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