DoD's $30M+ tactical airspace system logistics contract awarded to General Dynamics Mission Systems, Inc
Contract Overview
Contract Amount: $30,316,401 ($30.3M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-01-01
End Date: 2019-09-30
Contract Duration: 4,290 days
Daily Burn Rate: $7.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: THIS CONTRACT IS A THREE YEARS PERFORMANCE BASED LOGISTICS (PBL) EFFORT FOR THE TACTICAL AIRSPACE INTEGRATION SYSTEMS (TAIS).
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $30.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: THIS CONTRACT IS A THREE YEARS PERFORMANCE BASED LOGISTICS (PBL) EFFORT FOR THE TACTICAL AIRSPACE INTEGRATION SYSTEMS (TAIS). Key points: 1. The contract focuses on performance-based logistics for tactical airspace integration systems. 2. A significant duration of over 11 years suggests a long-term need for these services. 3. The cost-plus-incentive-fee structure aims to align contractor performance with cost objectives. 4. The absence of competition raises questions about potential cost efficiencies and value. 5. The contract's value, while substantial, needs benchmarking against similar logistics support contracts. 6. Performance-based logistics can incentivize efficiency and effectiveness in system support.
Value Assessment
Rating: fair
The contract's total value of over $30 million over an extended period of more than 11 years indicates a substantial investment. Without comparable contract data for similar tactical airspace integration systems, a precise value-for-money assessment is challenging. The cost-plus-incentive-fee (CPIF) pricing structure suggests an attempt to control costs while incentivizing performance, but the lack of competition limits the ability to benchmark against market rates or identify potential overpricing. Further analysis would require understanding the specific services provided and the criticality of the TAIS.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one contractor possesses the necessary capabilities, proprietary knowledge, or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces. It is crucial to understand the justification for this sole-source award to ensure it was appropriate and that the government negotiated the best possible terms.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the competitive pressure to offer the lowest price is absent. This necessitates robust negotiation and oversight by the contracting agency to ensure fair pricing.
Public Impact
The primary beneficiaries are the Department of the Army and potentially other branches of the Department of Defense relying on tactical airspace integration systems. The contract delivers essential logistics support, ensuring the operational readiness and effectiveness of critical military systems. The geographic impact is likely widespread, supporting military operations across various theaters. Workforce implications may include specialized technical and logistical roles within General Dynamics Mission Systems, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in higher costs for taxpayers.
- Sole-source award requires strong justification and oversight to ensure fair pricing.
- Long contract duration could lead to complacency if not actively managed.
- Performance-based logistics requires clear metrics and effective monitoring to ensure value.
Positive Signals
- Performance-based logistics (PBL) structure incentivizes contractor efficiency and effectiveness.
- Focus on logistics support ensures system readiness and operational capability.
- General Dynamics Mission Systems, Inc. is a known entity in defense contracting, suggesting established capabilities.
Sector Analysis
The defense sector, particularly within engineering and logistics services, is characterized by complex, high-value contracts often awarded to specialized firms. This contract for Tactical Airspace Integration Systems (TAIS) falls under engineering services, supporting critical military infrastructure. The market for such specialized defense logistics is often concentrated, with a few key players possessing the required expertise and security clearances. Benchmarking would involve comparing this contract's terms and pricing to other long-term, performance-based logistics contracts for similar complex defense systems.
Small Business Impact
The contract indicates that small business participation was not a primary focus, as indicated by 'sb: false'. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, General Dynamics Mission Systems, Inc., is expected to perform the majority of the work. The absence of small business considerations in the contract award details may limit opportunities for smaller firms to participate in this significant defense spending effort.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a performance-based logistics contract, key performance indicators (KPIs) and service level agreements (SLAs) would be crucial for monitoring contractor performance and ensuring value for money. Transparency would depend on the agency's reporting practices and the availability of contract data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Tactical Airspace Integration Systems (TAIS)
- Performance-Based Logistics (PBL)
- Engineering Services
- Defense Logistics Support
- Department of the Army Contracts
Risk Flags
- Sole-source award
- Long contract duration
- Cost-plus contract type (CPIF)
Tags
defense, department-of-defense, department-of-the-army, engineering-services, logistics-support, performance-based-logistics, definitive-contract, sole-source, cost-plus-incentive-fee, alabama, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.3 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. THIS CONTRACT IS A THREE YEARS PERFORMANCE BASED LOGISTICS (PBL) EFFORT FOR THE TACTICAL AIRSPACE INTEGRATION SYSTEMS (TAIS).
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 $30.3 million.
What is the period of performance?
Start: 2008-01-01. End: 2019-09-30.
What is the specific justification for the sole-source award of this contract?
The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'SOLE-SOURCE'. While the specific justification is not detailed in the provided data, sole-source awards are typically granted when only one responsible source is available or capable of meeting the agency's needs. This could be due to proprietary technology, unique capabilities, or urgent requirements where competition is not feasible. For this contract, the justification would likely stem from the specialized nature of the Tactical Airspace Integration Systems (TAIS) and the requirement for specific expertise in performance-based logistics for these systems. A thorough review of the contract file and the Federal Acquisition Regulation (FAR) justifications would be necessary to ascertain the precise reasons.
How does the performance-based logistics (PBL) structure compare to traditional cost-reimbursement contracts for similar systems?
Performance-based logistics (PBL) contracts, like this one, shift the focus from contractor inputs to desired outcomes and performance metrics. Instead of reimbursing costs incurred, the contractor is paid based on achieving specific performance standards (e.g., system availability, response times, repair turnaround). This contrasts with traditional cost-plus contracts, which reimburse allowable costs plus a fee, potentially incentivizing higher spending. For TAIS, a PBL approach aims to ensure the systems are operational when needed, potentially leading to better readiness and cost predictability over the long term, provided the performance metrics are well-defined and measurable. Traditional contracts might offer less incentive for proactive maintenance or efficiency gains.
What are the potential risks associated with a sole-source award for a contract of this duration and value?
A sole-source award for a contract valued at over $30 million and spanning more than 11 years carries several risks. Primarily, the absence of competition can lead to inflated prices, as the contractor faces less pressure to be cost-efficient. There's also a risk of reduced innovation and service quality if the contractor becomes complacent due to the lack of competitive threat. Furthermore, the government may have less leverage in contract negotiations. Robust oversight, clear performance metrics, and regular performance reviews are critical to mitigate these risks and ensure the government receives fair value and high-quality support throughout the contract's life.
What is the historical spending pattern for Tactical Airspace Integration Systems (TAIS) logistics support?
The provided data only details this specific contract, which began on January 1, 2008, and ended on September 30, 2019, with a total value of $30,316,401.44. It does not offer historical spending data prior to this contract or for other contracts related to TAIS logistics. To understand historical spending patterns, one would need to access broader federal procurement databases (like FPDS or USASpending) and search for all contracts associated with 'Tactical Airspace Integration Systems' or similar keywords, across all agencies and fiscal years. This would reveal trends in contract values, durations, award types, and contractor performance over time.
How does the 'Engineering Services' NAICS code (541330) relate to performance-based logistics?
The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' encompasses firms that provide architectural, engineering, and related services. While engineering services often involve design and development, they can also extend to the lifecycle support of complex systems, including logistics. Performance-based logistics (PBL) is a contracting strategy that can be applied to various service categories. In this context, the engineering services firm is contracted not just for design or consultation, but for ensuring the ongoing operational readiness and support of the TAIS through a performance-driven approach. The engineering expertise is leveraged to optimize the logistics and maintenance processes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $30,795,930
Exercised Options: $30,795,930
Current Obligation: $30,316,401
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-01-01
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 12:09:00
Last Modified: 2021-02-22
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