DoD Awards $166.5M Cost Plus Incentive Fee Contract to General Dynamics for Engineering Services
Contract Overview
Contract Amount: $166,516,224 ($166.5M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-06-10
End Date: 2027-11-30
Contract Duration: 2,729 days
Daily Burn Rate: $61.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: COST NO FEE CLIN ON US01 CONTRACT.
Place of Performance
Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201
Plain-Language Summary
Department of Defense obligated $166.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: COST NO FEE CLIN ON US01 CONTRACT. Key points: 1. The contract is a Cost Plus Incentive Fee (CPIF) type, indicating shared risk and reward between the government and contractor. 2. General Dynamics Mission Systems, Inc. is the sole awardee, raising questions about the extent of competition. 3. The contract spans nearly 7.5 years, suggesting a long-term need for these engineering services. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for defense operations.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar CPIF contracts for engineering services is necessary to assess if the target cost and incentive structure are reasonable.
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 may result in higher costs compared to a competitive procurement.
Taxpayer Impact: The lack of competition for a significant contract value raises concerns about potential overspending of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration of the contract could lock the government into a potentially suboptimal pricing arrangement. The effectiveness of the engineering services provided will be crucial for the Department of the Navy's mission success.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Incentive Fee structure
- Long contract duration
Positive Signals
- Award to established contractor
- Potential for performance incentives
Sector Analysis
This contract falls under engineering services, a vital sector for the Department of Defense. Spending in this area is often high due to the complexity and specialized nature of defense projects. Benchmarks for similar sole-source engineering contracts are essential for evaluating value.
Small Business Impact
The contract was not competed and awarded to General Dynamics Mission Systems, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. The Department of the Navy should actively monitor performance and costs throughout the contract's lifecycle.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost Plus Incentive Fee contracts can be susceptible to cost overruns.
- Long contract duration limits flexibility and potential for cost savings through re-competition.
- No clear indication of small business participation.
Tags
engineering-services, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $166.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. COST NO FEE CLIN ON US01 CONTRACT.
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 $166.5 million.
What is the period of performance?
Start: 2020-06-10. End: 2027-11-30.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further details, it's difficult to assess the validity of this justification. Robust price analysis, including comparison to independent cost estimates and market research, is crucial to ensure fair and reasonable pricing, especially when competition is absent.
How will the performance incentives in this Cost Plus Incentive Fee contract be structured to effectively drive desired outcomes and control costs?
The effectiveness of CPIF contracts hinges on well-defined performance metrics and incentive targets. The government must establish clear, measurable objectives related to cost, schedule, and technical performance. The incentive structure should appropriately reward the contractor for exceeding targets while mitigating excessive cost growth, ensuring alignment with taxpayer interests and mission success.
What is the projected return on investment or mission impact expected from these engineering services over the contract's duration?
The projected return on investment or mission impact is intrinsically linked to the specific engineering services provided and their contribution to the Department of the Navy's strategic goals. A thorough assessment would require understanding the project's objectives, expected technological advancements, operational improvements, or risk reductions achieved through these services. Quantifying this impact is essential for justifying the significant expenditure.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003020R0003
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 100 PLASTICS AVE, PITTSFIELD, MA, 01201
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $187,351,652
Exercised Options: $175,779,722
Current Obligation: $166,516,224
Subaward Activity
Number of Subawards: 168
Total Subaward Amount: $69,964,374
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-06-10
Current End Date: 2027-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2025-09-22
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