DoD Awards $204M for Guam Defense Systems to Dynetics, Inc
Contract Overview
Contract Amount: $204,000,000 ($204.0M)
Contractor: Dynetics, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-11-14
End Date: 2026-12-31
Contract Duration: 777 days
Daily Burn Rate: $262.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UCO - GUAM DEFENSE SYSTEMS
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $204.0 million to DYNETICS, INC. for work described as: UCO - GUAM DEFENSE SYSTEMS Key points: 1. Significant contract value of $204 million. 2. Sole-source award to Dynetics, Inc. raises competition concerns. 3. Focus on Guided Missile and Space Vehicle Manufacturing. 4. Long contract duration of 777 days. 5. Potential for taxpayer impact due to limited competition.
Value Assessment
Rating: questionable
The contract value of $204 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar missile and space vehicle manufacturing contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Dynetics, Inc., was considered. This significantly limits price discovery and may lead to a higher cost for the government.
Taxpayer Impact: The lack of competition in this sole-source award could result in taxpayers paying more than necessary for these defense systems.
Public Impact
Impacts national defense capabilities through specialized missile and space vehicle manufacturing. Potential for technological advancements in defense systems. Raises questions about the efficiency of defense procurement processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- High contract value without competitive benchmark.
- Long contract duration may indicate complexity or potential for delays.
Positive Signals
- Supports critical defense manufacturing capabilities.
- Award to a single, potentially specialized vendor.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical area for national defense. Spending in this niche can be high due to specialized R&D and production requirements.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government receives fair value and that the contractor meets all performance requirements.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- High contract value
- Long contract duration
- Potential for cost overruns
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $204.0 million to DYNETICS, INC.. UCO - GUAM DEFENSE SYSTEMS
Who is the contractor on this award?
The obligated recipient is DYNETICS, 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 $204.0 million.
What is the period of performance?
Start: 2024-11-14. End: 2026-12-31.
What specific factors justified the sole-source award to Dynetics, Inc. for this significant defense contract?
Justification for a sole-source award typically involves unique capabilities, critical national security needs, or a lack of viable alternatives. The Department of Defense would need to provide documentation detailing why only Dynetics, Inc. could fulfill the requirements for the Guam Defense Systems, potentially citing proprietary technology or specialized expertise essential for this specific defense application.
How will the government ensure cost-effectiveness and prevent overspending given the absence of competitive bidding?
To mitigate the risks of overspending in a sole-source contract, the government often employs robust cost analysis, detailed negotiation strategies, and stringent performance monitoring. This includes validating the contractor's cost proposals, benchmarking against historical data or industry standards where possible, and establishing clear performance metrics tied to payment schedules to ensure value for money.
What are the potential risks associated with a long-duration, sole-source contract for advanced defense systems?
Long-duration, sole-source contracts for advanced defense systems carry risks such as technological obsolescence if requirements change, potential for cost overruns due to lack of competitive pressure, and reduced incentive for the contractor to innovate or improve efficiency. There's also a risk of vendor lock-in, making it difficult to switch providers if performance issues arise or better solutions emerge.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1002 EXPLORER BOULEVARD, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $308,040,000
Exercised Options: $204,000,000
Current Obligation: $204,000,000
Actual Outlays: $20,400,000
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $8,003,543
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q25D0003
IDV Type: IDC
Timeline
Start Date: 2024-11-14
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 12:12:00
Last Modified: 2025-11-25
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