DoD awards $122M for Air Traffic Control to General Dynamics Mission Systems, Inc
Contract Overview
Contract Amount: $122,162,386 ($122.2M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-03-31
End Date: 2012-03-30
Contract Duration: 2,191 days
Daily Burn Rate: $55.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $122.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: Key points: 1. Significant contract value of over $122 million. 2. Sole-source award to General Dynamics Mission Systems, Inc. 3. Long contract duration of 6 years. 4. Focus on Air Traffic Control systems.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. Benchmarking against similar sole-source contracts would be necessary.
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 raises concerns about whether taxpayers received the best possible value for this significant expenditure.
Public Impact
Impacts air traffic control operations, a critical national security function. Large contract value suggests significant resource allocation. Sole-source nature may limit innovation from other potential vendors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Established vendor
- Definitive contract type
Sector Analysis
This contract falls within the Defense sector, specifically related to IT and operational systems for air traffic control. Spending in this area is crucial for national security and requires robust, reliable systems.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award, as it was a sole-source award to a large prime contractor.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is meeting all performance requirements and that pricing remains fair throughout the contract's life.
Related Government Programs
- Air Traffic Control
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited opportunity for innovation
- Long-term commitment without demonstrated competition
Tags
air-traffic-control, department-of-defense, al, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $122.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. See the official description on USAspending.
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 Army).
What is the total obligated amount?
The obligated amount is $122.2 million.
What is the period of performance?
Start: 2006-03-31. End: 2012-03-30.
What was the justification for the sole-source award, and were alternatives explored?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically cite reasons such as unique capabilities, urgent needs, or lack of other responsible sources. Without this information, it's impossible to fully assess if the government acted appropriately in foregoing a competitive process, which usually yields better pricing and innovation.
How does the pricing of this contract compare to similar air traffic control systems procured competitively?
Comparing the pricing of this sole-source contract to similar systems procured competitively is essential for value assessment. If this contract's per-unit costs or overall value are significantly higher than comparable competitive awards, it suggests potential overpayment and a failure to achieve optimal taxpayer value. This analysis would highlight the risks associated with non-competitive procurements.
What are the performance metrics and oversight mechanisms in place for this long-term contract?
Given the contract's duration and sole-source nature, robust performance metrics and stringent oversight are paramount. Understanding these mechanisms helps ensure the Department of the Army is receiving the expected quality and functionality for its investment. Effective oversight can mitigate risks associated with long-term, non-competitive agreements and ensure accountability.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Air Traffic Control
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 6000 TECHNOLOGY DR NW, BLDG-6, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-03-31
Current End Date: 2012-03-30
Potential End Date: 2012-03-30 00:00:00
Last Modified: 2018-08-27
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