DoD's $85M MUOS Ground System Sustainment contract awarded to General Dynamics Mission Systems
Contract Overview
Contract Amount: $84,935,814 ($84.9M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-05-28
End Date: 2025-06-30
Contract Duration: 1,859 days
Daily Burn Rate: $45.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: MUOS GROUND SYSTEM SUSTAINMENT
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $84.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: MUOS GROUND SYSTEM SUSTAINMENT Key points: 1. Value for money assessed through cost-plus award fee structure, allowing for performance-based incentives. 2. Competition dynamics indicate a full and open competition after exclusion of sources, suggesting a deliberate selection process. 3. Risk indicators include the cost-plus award fee contract type, which can incentivize cost overruns if not managed carefully. 4. Performance context is tied to the sustainment of the MUOS ground system, critical for satellite communications. 5. Sector positioning within Defense engineering services, supporting advanced communication infrastructure.
Value Assessment
Rating: good
The contract's cost-plus award fee (CPAF) structure allows for performance incentives, potentially driving better value. Benchmarking against similar sustainment contracts for complex communication systems would provide a clearer picture of cost-effectiveness. The awarded amount of $84.9 million over approximately 5 years suggests a significant investment in maintaining critical infrastructure. Without specific performance metrics and historical cost data, a definitive value assessment is challenging, but the CPAF model offers a mechanism for achieving good value if managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This implies that while the competition was intended to be broad, specific sources were excluded, possibly due to specialized capabilities or prior involvement. The exact number of bidders is not specified, but the 'exclusion of sources' suggests a more curated competition than a completely unrestricted one. This approach can sometimes lead to higher prices if the pool of qualified bidders is significantly reduced.
Taxpayer Impact: Taxpayers benefit from a potentially specialized solution, but the exclusion of sources may limit price discovery and potentially increase costs compared to a truly open competition.
Public Impact
The primary beneficiaries are the Department of Defense and its various branches relying on the Mobile User Objective System (MUOS) for secure, global communications. Services delivered include the sustainment and maintenance of the ground system infrastructure that supports the MUOS satellite constellation. Geographic impact is global, as MUOS provides communication capabilities to U.S. forces and allies worldwide. Workforce implications include the need for highly skilled engineers and technicians to maintain complex communication systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts if performance incentives are not tightly aligned with cost controls.
- The 'exclusion of sources' in the competition could limit competitive pressure, potentially impacting price.
- Reliance on a single contractor for sustainment of critical ground infrastructure could pose a risk if the contractor faces financial or operational difficulties.
Positive Signals
- The use of an award fee structure incentivizes contractor performance and potentially higher quality service delivery.
- General Dynamics Mission Systems is an established defense contractor with significant experience in complex systems.
- The contract duration of over 5 years provides stability for sustainment operations and planning.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting advanced defense communication systems. The market for such specialized sustainment services is dominated by a few large defense contractors. The total addressable market for defense communication infrastructure sustainment is substantial, with significant government investment allocated annually. Benchmarking against similar large-scale sustainment contracts for satellite ground systems would be relevant.
Small Business Impact
This contract does not appear to have a specific small business set-aside. Given the specialized nature of sustaining a complex ground system for a satellite constellation, it is likely that subcontracting opportunities may exist for specialized technical support or component manufacturing, but this is not explicitly detailed in the provided data. The primary awardee is a large business.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are likely embedded within the Cost Plus Award Fee structure, linking payment to performance. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- MUOS Satellite Communications
- Defense Communication Systems
- Ground Station Maintenance
- Satellite Operations Support
- DoD IT Infrastructure
Risk Flags
- Potential for reduced competition due to source exclusion.
- Cost overruns possible with Cost Plus Award Fee contract type.
- Reliance on a single prime contractor for critical sustainment.
Tags
defense, department-of-defense, general-dynamics-mission-systems, engineering-services, cost-plus-award-fee, full-and-open-competition-after-exclusion-of-sources, delivery-order, arizona, satellite-communications, ground-system-sustainment, muos
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $84.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. MUOS GROUND SYSTEM SUSTAINMENT
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 Air Force).
What is the total obligated amount?
The obligated amount is $84.9 million.
What is the period of performance?
Start: 2020-05-28. End: 2025-06-30.
What is the historical spending pattern for the MUOS Ground System Sustainment program?
The provided data indicates a current award of $84,935,813.99 for the MUOS Ground System Sustainment, with an estimated completion date of June 30, 2025. This suggests a significant investment in the program during this period. To understand the historical spending pattern, one would need to examine prior contracts related to the MUOS ground system's development, deployment, and sustainment. This would involve searching contract databases for previous awards to General Dynamics Mission Systems or other contractors involved in the MUOS program. Analyzing the total lifecycle cost, including initial procurement and ongoing sustainment, would provide a comprehensive view of the program's financial history and trends.
How does the awarded amount compare to similar sustainment contracts for satellite ground systems?
Comparing this $84.9 million award requires identifying comparable sustainment contracts for satellite ground systems, which can be challenging due to the proprietary nature of some defense contracts and the unique specifications of each system. However, general benchmarks for large-scale, multi-year sustainment of complex communication infrastructure can be considered. Contracts for similar duration (approximately 5 years) and complexity, supporting global communication networks, often range in the tens to hundreds of millions of dollars. The cost-plus award fee structure suggests a performance-driven approach, which can influence the final cost. Without specific details on the scope of work, system criticality, and contractor overhead for other contracts, a precise comparison is difficult, but the awarded amount appears consistent with significant investments in maintaining critical defense communication assets.
What are the key performance indicators (KPIs) used to evaluate General Dynamics Mission Systems under this contract?
The contract type is Cost Plus Award Fee (CPAF), which inherently means that performance is a critical factor in determining the contractor's fee. While the specific KPIs are not detailed in the provided data, they would typically be aligned with the operational requirements of the MUOS ground system. These could include metrics such as system uptime and availability, response times for maintenance and issue resolution, successful execution of software updates and hardware maintenance, adherence to security protocols, and overall system reliability. The award fee structure incentivizes the contractor to meet or exceed these KPIs, with higher fees awarded for superior performance. The contracting officer and technical team would be responsible for monitoring these metrics and determining the award fee.
What is the track record of General Dynamics Mission Systems in supporting similar complex communication systems for the DoD?
General Dynamics Mission Systems (GDMS) has a long-standing and extensive track record of supporting complex communication and information systems for the Department of Defense and other government agencies. They are known for their work on various satellite communication programs, command and control systems, and secure network infrastructure. GDMS has been involved in numerous large-scale defense contracts requiring high levels of technical expertise, system integration, and long-term sustainment. Their experience with programs like the MUOS itself, or similar advanced tactical and strategic communication systems, suggests a strong capability to manage and execute contracts of this nature. A review of their contract history would likely reveal a pattern of successful delivery on complex, mission-critical programs.
What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method?
The 'Full and Open Competition After Exclusion of Sources' method, while aiming for competition, introduces specific risks. The primary risk is a reduction in the number of potential bidders, which can limit price competition and potentially lead to higher costs for the government. If the exclusion criteria are too narrow or not well-justified, it could inadvertently stifle innovation or prevent highly capable, but perhaps less obvious, sources from participating. This method requires a strong justification for excluding certain sources to ensure fairness and compliance with procurement regulations. The government must demonstrate that the exclusion is necessary and that the remaining competition is sufficient to achieve fair and reasonable pricing. There's also a risk of perceived unfairness or protest from excluded entities if the rationale is not transparent.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003918R0146
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $86,531,583
Exercised Options: $86,531,583
Current Obligation: $84,935,814
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $9,035,264
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003920D0146
IDV Type: IDC
Timeline
Start Date: 2020-05-28
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-05-16
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