DoD Awards $220.9M Contract for Hammerhead Prototype to General Dynamics
Contract Overview
Contract Amount: $220,932,045 ($220.9M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2027-12-22
Contract Duration: 2,274 days
Daily Burn Rate: $97.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: HAMMERHEAD PROTOTYPE
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $220.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: HAMMERHEAD PROTOTYPE Key points: 1. Significant investment in advanced navigation systems. 2. General Dynamics holds a strong position in defense contracting. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. The contract falls within the specialized System and Instrument Manufacturing sector.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee. While this encourages contractor participation, it carries a risk of cost overruns if not closely monitored. Benchmarking CPFF contracts in this sector is challenging due to unique prototype development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific nature of prototype development might limit the number of truly capable bidders, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for advanced defense technology development. The CPFF structure necessitates robust oversight to ensure cost efficiency and prevent unnecessary expenditures.
Public Impact
Enhances naval search and navigation capabilities. Supports technological advancement in defense systems. Potential for job creation within the defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Lack of specific per-unit cost benchmark.
- Prototype development can be inherently unpredictable.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical national defense capabilities.
- Long-term contract duration allows for sustained development.
Sector Analysis
This contract falls under the System and Instrument Manufacturing sector, which is crucial for defense capabilities. Spending in this area is often characterized by high R&D costs and specialized manufacturing requirements, with significant government investment.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. General Dynamics, a large prime contractor, will likely manage the majority of the work, potentially limiting direct opportunities for small businesses unless specifically included in subcontracting plans.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires diligent oversight from the Department of the Navy to manage costs effectively and ensure the contractor meets performance milestones. Regular audits and performance reviews are essential for accountability.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Prototype development is inherently high-risk.
- Limited information on specific performance metrics.
- No explicit small business subcontracting noted.
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $220.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. HAMMERHEAD PROTOTYPE
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 $220.9 million.
What is the period of performance?
Start: 2021-09-30. End: 2027-12-22.
What is the projected return on investment for this Hammerhead prototype development in terms of enhanced operational capabilities?
The return on investment is primarily measured by the enhanced operational capabilities the Hammerhead prototype will provide to the Department of the Navy. This includes improvements in search, detection, and navigation, potentially leading to increased mission effectiveness and reduced risk to personnel. Quantifying the ROI is complex and depends on the successful integration and deployment of the technology in future naval operations.
What are the primary risks associated with the Cost Plus Fixed Fee contract type for this prototype development?
The primary risks with a CPFF contract for prototype development include potential cost overruns if development proves more complex or expensive than initially estimated. The fixed fee provides incentive for the contractor to control costs, but the government bears the risk of unforeseen expenses. Effective oversight is crucial to mitigate these risks and ensure the project stays within budget while achieving its technical objectives.
How will the effectiveness of the Hammerhead prototype be measured and validated before full-scale deployment?
The effectiveness of the Hammerhead prototype will be measured through rigorous testing and validation protocols established by the Department of the Navy. This typically involves a series of performance benchmarks, operational scenario simulations, and field trials to assess its capabilities against defined requirements. Feedback from end-users and technical assessments will inform decisions regarding further development or full-scale deployment.
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: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002421R6405
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 12450 FAIR LAKES CIR, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $228,827,954
Exercised Options: $221,362,922
Current Obligation: $220,932,045
Subaward Activity
Number of Subawards: 59
Total Subaward Amount: $28,470,697
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-30
Current End Date: 2027-12-22
Potential End Date: 2027-12-22 00:00:00
Last Modified: 2026-01-15
More Contracts from General Dynamics Mission Systems, Inc.
- 200410!005969!2100!w15p7t!usa Communications-Electronics !w15p7t04ce405 !A!N! !N! ! !20040716!20111230!046863929!046863929!001381284!n!general Dynamics Decision Syst!8201 E Mcdowell Road !scottsdale !az!85257!65000!013!04!scottsdale !maricopa !arizona !+000010000000!n!n!000000000000!ac63!rdte/Electronics&communication Eq-Adv Tech DEV !A7 !electronics and Communication Equip !360 !jtrs Cluster I !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!b! !A!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $1.5B (Department of Defense)
- Federal Contract — $1.4B (Department of Defense)
- THE Space Network (SN) Consists of a Space Segment Comprised of the Tracking and Data Relay Satellites (tdrss), and a Ground Segment (sngs). the SN Provides the Capability for Global Space-To-Ground Telecommunications and Tracking Coverage for LOW Earth Orbit (LEO) and Near-Earth Spaceflight Missions, Including Both Robotic and Human Space Flight. the Sngs Includes Facilities and Systems Located AT the White Sands Complex (WSC) AT LAS Cruces, NM the Guam Remote Ground Terminal (grgt) AT Guam and Space Network Expansion (SNE) East AT Blossom Point, MD. the Purpose of the Sgss Project IS to Implement a Modern Ground Segment That Will Enable the SN to Continue to Deliver High Quality Services to the SN Community, Meet Stakeholder Requirements, and Significantly Reduce Required Operations and Maintenance Resources — $1.2B (National Aeronautics and Space Administration)
- Federal Contract — $1.2B (Department of Defense)
- SDA Tranche 1 Operations and Integration — $861.6M (Department of Defense)
View all General Dynamics Mission Systems, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)