DoD awards $71.4M to General Dynamics for Engineering Services, a sole-source contract

Contract Overview

Contract Amount: $71,384,658 ($71.4M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-01-31

End Date: 2023-01-31

Contract Duration: 1,461 days

Daily Burn Rate: $48.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ENG. SERVICES - TI 0001-03 AND 01

Place of Performance

Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $71.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ENG. SERVICES - TI 0001-03 AND 01 Key points: 1. Contract awarded to a single vendor, raising questions about price competition. 2. Significant contract value of $71.4M over four years. 3. Engineering services sector is broad, making direct cost comparisons difficult without more detail. 4. Sole-source award limits opportunities for small businesses to compete.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not closely monitored. Benchmarking is difficult without specific deliverables and comparable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a $71.4M contract means taxpayers may not be receiving the best possible price for these engineering services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited visibility into the specific engineering services provided and their necessity. Potential for cost escalation under the Cost Plus Fixed Fee contract structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Engineering Services, a broad category encompassing various technical and design functions. Spending in this sector can vary widely based on project complexity and agency needs.

Small Business Impact

The sole-source nature of this award means small businesses had no opportunity to compete for this contract, potentially limiting their access to significant federal funding.

Oversight & Accountability

Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs remain reasonable and services are necessary. The Defense Contract Management Agency is responsible for this oversight.

Related Government Programs

Risk Flags

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 $71.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. ENG. SERVICES - TI 0001-03 AND 01

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 $71.4 million.

What is the period of performance?

Start: 2019-01-31. End: 2023-01-31.

What specific engineering services are being procured under this contract, and how do they align with the Department of Defense's strategic objectives?

The contract specifies 'ENG. SERVICES - TI 0001-03 AND 01'. Without further details on TI 0001-03 and 01, it's difficult to ascertain the exact nature of the engineering services. These could range from system design and integration to research and development support. Alignment with strategic objectives would depend on the specific technological needs of the Department of Defense related to these TI codes.

What justification was provided for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The data indicates the contract was 'NOT COMPETED'. A sole-source justification is typically required when only one responsible source can provide the required supplies or services. Reasons can include urgency, unique capabilities, or specific research needs. Without the official justification document, it's unknown if alternative competitive strategies were considered or why they were deemed unsuitable.

How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar engineering services, and what mechanisms are in place to control costs?

Benchmarking the fixed fee for a Cost Plus Fixed Fee contract requires detailed knowledge of the scope of work, risk, and complexity, which is not fully provided here. However, the 'br' value of 48860 might represent a benchmark or target. Effective cost control relies on robust oversight from the Defense Contract Management Agency, including audits and reviews of incurred costs and the justification for the fixed fee.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002418R6204

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: $85,721,002

Exercised Options: $80,537,219

Current Obligation: $71,384,658

Actual Outlays: $5,662,832

Subaward Activity

Number of Subawards: 50

Total Subaward Amount: $18,383,716

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2019-01-31

Current End Date: 2023-01-31

Potential End Date: 2023-01-31 00:00:00

Last Modified: 2025-02-03

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