DoD awards $301M engineering services contract to General Dynamics Mission Systems, Inc. for 10 years
Contract Overview
Contract Amount: $301,416,042 ($301.4M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-10-01
End Date: 2031-07-30
Contract Duration: 4,320 days
Daily Burn Rate: $69.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: FY20 FC OMNIBUS UK
Place of Performance
Location: PITTSFIELD, BERKSHIRE County, MASSACHUSETTS, 01201
Plain-Language Summary
Department of Defense obligated $301.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: FY20 FC OMNIBUS UK Key points: 1. Significant long-term award to a major defense contractor. 2. Engineering services are critical for defense modernization. 3. Sole-source award raises questions about price discovery. 4. Contract duration extends beyond typical acquisition cycles.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar long-term, sole-source engineering contracts is difficult due to limited public data.
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 may result in higher costs for taxpayers, as there was no market pressure to drive down prices.
Public Impact
Long-term commitment of taxpayer funds for engineering services. Potential for cost overruns due to contract type and sole-source nature. Impact on innovation if alternative solutions were not considered. Dependence on a single contractor for critical defense engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of small business participation
Positive Signals
- Award to established defense contractor
- Long-term planning for critical services
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense system development and maintenance. Spending in this area is substantial, with benchmarks varying widely based on project complexity and duration.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is a large entity. This suggests limited direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The long duration and sole-source nature of this contract warrant close oversight from the Department of Defense and Congress to ensure cost-effectiveness and performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Long contract duration
- Limited transparency
- No stated 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 $301.4 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. FY20 FC OMNIBUS UK
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 $301.4 million.
What is the period of performance?
Start: 2019-10-01. End: 2031-07-30.
What is the justification for the sole-source award, and were alternative solutions or contractors considered?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For this contract, the justification would likely stem from unique capabilities or proprietary technology held by General Dynamics Mission Systems, Inc. However, without further documentation, it's impossible to confirm if alternative solutions were thoroughly explored or if market research was conducted to ensure no other viable options existed.
How will the Cost Plus Incentive Fee structure be managed to control costs and incentivize efficiency?
Effective management of a Cost Plus Incentive Fee (CPIF) contract requires robust government oversight. The Defense Contract Management Agency (DCMA) must closely monitor incurred costs, establish realistic target costs, and define clear incentive metrics tied to performance and cost savings. Regular reviews and audits are essential to ensure the contractor is operating efficiently and that the government is receiving fair value for its investment.
What are the key performance indicators (KPIs) and deliverables for this engineering services contract, and how will they be measured?
Key performance indicators for engineering services contracts typically include technical performance, schedule adherence, and cost control. Specific deliverables might involve design documents, prototypes, testing reports, and system integration. The contract's effectiveness will be measured against these KPIs and deliverables, with performance impacting the incentive fee. Clear, measurable, and achievable metrics are crucial for successful contract execution and taxpayer value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003020R0005
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: $383,133,940
Exercised Options: $314,086,865
Current Obligation: $301,416,042
Actual Outlays: $39,578,504
Subaward Activity
Number of Subawards: 93
Total Subaward Amount: $10,038,936
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-10-01
Current End Date: 2031-07-30
Potential End Date: 2031-07-30 00:00:00
Last Modified: 2025-10-27
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