DoD Awards $65.3M for MUOS Ground System Sustainment to General Dynamics
Contract Overview
Contract Amount: $65,312,059 ($65.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-11-08
End Date: 2024-11-07
Contract Duration: 1,460 days
Daily Burn Rate: $44.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: LABOR - MUOS GROUND SYSTEM SUSTAINMENT
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $65.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: LABOR - MUOS GROUND SYSTEM SUSTAINMENT Key points: 1. Contract awarded to General Dynamics Mission Systems, Inc. 2. Focuses on sustainment of the MUOS Ground System. 3. Represents a significant investment in communication infrastructure. 4. Potential for cost overruns given Cost Plus Award Fee structure.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) contract type introduces potential for higher costs than fixed-price contracts. Benchmarking against similar sustainment contracts for complex systems is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may not yield the most competitive pricing compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for a critical defense system. The CPAF structure requires careful oversight to ensure cost efficiency and prevent unnecessary spending.
Public Impact
Ensures continued operation of the Mobile User Objective System (MUOS) ground segment. Supports secure and reliable satellite communications for military personnel. Contributes to national security by maintaining vital communication networks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to higher costs.
- Limited competition may impact price discovery.
- Sustainment contracts can be prone to scope creep.
Positive Signals
- Essential for critical military communication infrastructure.
- Long-term contract provides stability for sustainment efforts.
Sector Analysis
This contract falls under Engineering Services within the IT and Defense sectors. Spending on sustainment for complex communication systems like MUOS is crucial for maintaining operational readiness and technological superiority.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. General Dynamics Mission Systems, Inc. is a large prime contractor, and subcontracting opportunities for small businesses are not detailed in this award notice.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates robust oversight from the Department of the Air Force to ensure performance objectives are met and costs are managed effectively. Award fees should be tied to clear, measurable metrics.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Award Fee (CPAF) contract type.
- Limited competition ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES').
- Sustainment contracts can be subject to scope creep.
- Lack of detailed cost breakdown for benchmarking.
Tags
engineering-services, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. LABOR - 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 $65.3 million.
What is the period of performance?
Start: 2020-11-08. End: 2024-11-07.
What specific performance metrics are tied to the award fee structure to ensure value for money?
The award fee structure is designed to incentivize contractor performance against specific objectives related to system availability, reliability, and responsiveness. Detailed metrics are typically outlined in the contract's Performance Work Statement (PWS). Without access to the PWS, it's difficult to assess the rigor of these metrics and their alignment with true value for money.
What are the primary risks associated with the 'limited competition' aspect of this award?
Limited competition, even if preceded by exclusion of sources, can reduce the pressure on the contractor to offer the most competitive pricing. There's a risk that the government may pay a premium compared to what could be achieved through broader competition. This also limits opportunities for innovative solutions from other potential providers.
How does the sustainment of the MUOS ground system contribute to overall mission effectiveness?
The MUOS ground system is critical for managing and controlling the MUOS satellite constellation, which provides global, secure, high-bandwidth communications for mobile warfighters. Its sustainment ensures the continuous availability and reliability of this vital communication link, directly impacting mission success and operational command and control across various theaters.
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: General Dynamics Corp
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: $66,021,954
Exercised Options: $66,021,954
Current Obligation: $65,312,059
Subaward Activity
Number of Subawards: 49
Total Subaward Amount: $7,743,288
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: 2020-11-08
Current End Date: 2024-11-07
Potential End Date: 2026-01-21 00:00:00
Last Modified: 2026-01-14
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