DoD's $70M contract for engineering services awarded to General Dynamics Mission Systems, Inc
Contract Overview
Contract Amount: $70,235,572 ($70.2M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-19
End Date: 2026-01-30
Contract Duration: 2,325 days
Daily Burn Rate: $30.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: ENGINEERING SERVICES AND PRODUCTION
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $70.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ENGINEERING SERVICES AND PRODUCTION Key points: 1. Contract value represents a significant investment in specialized engineering and production capabilities. 2. Sole-source award raises questions about potential price inflation and limited market engagement. 3. Long contract duration suggests a need for sustained support and development over several years. 4. Fixed Price Incentive contract type aims to balance cost control with performance incentives. 5. The contract falls within the broader defense sector, focusing on advanced system manufacturing. 6. Virginia is the primary state associated with this contract's performance.
Value Assessment
Rating: fair
The total contract value of $70.2 million over its period of performance is substantial. Without specific benchmarks for comparable engineering services and production contracts for similar advanced systems, a precise value-for-money assessment is challenging. The fixed-price incentive structure suggests an attempt to manage costs, but the lack of competition could lead to less favorable pricing than a fully competed contract. Further analysis would require detailed cost breakdowns and comparisons to industry standards for similar technological solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary unique capabilities, technology, or security clearances required for the specific service or product. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.
Taxpayer Impact: Sole-source awards can potentially result in higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to compete for government contracts.
Public Impact
The Department of Defense benefits from specialized engineering and production services crucial for national security. This contract supports the development and manufacturing of advanced search, detection, navigation, guidance, and related systems. The primary geographic impact is likely within Virginia, where General Dynamics Mission Systems, Inc. operates. The contract supports a workforce of engineers, technicians, and manufacturing personnel within the defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Lack of transparency in the procurement process due to non-competitive nature.
- Long contract duration may introduce risks related to technological obsolescence or changing requirements.
- Fixed Price Incentive contract can lead to cost overruns if not managed carefully.
Positive Signals
- Award to an established contractor with presumed expertise in defense systems.
- Fixed Price Incentive contract type aims to incentivize contractor performance and cost control.
- Contract duration suggests a commitment to a critical, long-term capability for the DoD.
Sector Analysis
This contract falls within the defense industrial base, specifically focusing on the manufacturing of advanced electronic systems for navigation, detection, and guidance. The North American Industry Classification System (NAICS) code 334511 covers Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. This sector is characterized by high R&D investment, specialized technical expertise, and significant government procurement. Comparable spending benchmarks would be difficult to ascertain without more specific details on the systems being developed.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary consideration or requirement for this specific contract. There is no indication of a small business set-aside or subcontracting plan being mandated. This suggests that the prime contractor, General Dynamics Mission Systems, Inc., is expected to fulfill the contract requirements directly, potentially limiting opportunities for small businesses to engage in this particular procurement.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy and the Department of Defense's contracting and program management offices. Accountability measures are embedded within the contract's fixed-price incentive structure, which links contractor profit to performance and cost targets. Transparency may be limited due to the sole-source nature of the award. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.
Related Government Programs
- Defense Advanced Research Projects Agency (DARPA) Contracts
- Naval Sea Systems Command (NAVSEA) Contracts
- Advanced Weapon Systems Procurement
- Aerospace and Defense Manufacturing
- Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Long contract duration
Tags
defense, department-of-defense, department-of-the-navy, general-dynamics-mission-systems, sole-source, definitive-contract, fixed-price-incentive, engineering-services, system-manufacturing, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. ENGINEERING SERVICES AND PRODUCTION
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 $70.2 million.
What is the period of performance?
Start: 2019-09-19. End: 2026-01-30.
What is the specific nature of the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' services being procured?
The contract data identifies the service category under NAICS code 334511, which encompasses the design, development, and manufacturing of systems and instruments used for search, detection, navigation, and guidance. This could include a wide range of advanced technologies such as radar systems, sonar, GPS receivers, inertial navigation units, flight control systems, and related electronic warfare components. Given the sole-source award to General Dynamics Mission Systems, Inc., it is likely related to highly specialized or proprietary systems critical to specific naval platforms or missions where GDMS holds unique expertise or intellectual property.
How does the $70.2 million contract value compare to similar sole-source procurements for advanced defense systems?
Benchmarking the $70.2 million value of this sole-source contract against similar procurements is challenging without more specific details on the technological complexity and scope of work. However, for advanced defense systems requiring specialized engineering and production, contract values can range from tens of millions to billions of dollars. Sole-source awards, by their nature, often lack the price competition that would provide a clear market benchmark. The value is substantial enough to indicate a significant program, but its 'fairness' relative to market rates is difficult to ascertain without comparative data on systems with equivalent technical sophistication and development stages.
What are the primary risks associated with a sole-source award of this magnitude and duration?
The primary risks associated with a sole-source award of this magnitude ($70.2 million) and duration (ending Jan 2026) include potential for inflated pricing due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a higher risk of vendor lock-in. Taxpayers may not be receiving the best value for their money. Furthermore, the long duration increases the risk of technological obsolescence if the underlying systems are not adaptable to evolving threats or requirements. There's also a risk that the government's negotiating leverage diminishes over the contract's life.
What performance metrics or milestones are likely included in the Fixed Price Incentive (FPI) contract structure?
In a Fixed Price Incentive (FPI) contract, the government and contractor agree on a target cost, target profit, and a price ceiling. The final price is determined based on the contractor's actual costs, with the profit varying inversely with cost. Performance metrics likely include technical performance specifications (e.g., system accuracy, reliability, operational readiness), delivery schedules, and potentially quality control standards. The 'incentive' aspect means that if the contractor achieves certain performance targets (e.g., exceeding reliability goals, delivering ahead of schedule), they may earn a higher profit, up to the price ceiling. Conversely, if costs exceed the target, the contractor's profit is reduced, and if costs exceed the ceiling, the contractor absorbs the overrun.
What is General Dynamics Mission Systems, Inc.'s track record with similar sole-source defense contracts?
General Dynamics Mission Systems, Inc. (GDMS) is a major defense contractor with a long history of performing complex engineering, manufacturing, and integration services for the U.S. military. They frequently hold sole-source contracts for specialized systems, particularly those involving classified technology, unique capabilities, or where they are the sole developer or manufacturer. Their track record typically involves delivering sophisticated command, control, communications, computer, intelligence, surveillance, and reconnaissance (C4ISR) systems, as well as other mission-critical hardware and software. While specific details of past sole-source awards and their performance outcomes require deeper investigation, GDMS is generally considered a capable and experienced contractor in this domain.
How does this contract fit into the broader spending patterns for defense systems manufacturing within the Department of the Navy?
This $70.2 million contract for engineering services and production of navigation, guidance, and detection systems fits within the Department of the Navy's substantial budget allocated to acquiring and maintaining advanced technological capabilities. The Navy invests heavily in platforms like ships, submarines, and aircraft, all of which rely on sophisticated electronic systems for their operation and effectiveness. Spending in this category, particularly for specialized systems manufactured by prime contractors like General Dynamics, is a consistent component of the Navy's overall procurement strategy. The sole-source nature suggests it addresses a specific, perhaps unique, requirement that aligns with the Navy's strategic objectives in areas like maritime domain awareness, force protection, or combat effectiveness.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002419R6201
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $78,703,283
Exercised Options: $73,715,206
Current Obligation: $70,235,572
Actual Outlays: $2,981,526
Subaward Activity
Number of Subawards: 134
Total Subaward Amount: $42,844,485
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-19
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2025-12-18
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