DoD awards $97M contract to General Dynamics for Air Transportation Support, facing limited competition
Contract Overview
Contract Amount: $97,026,604 ($97.0M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-12-27
End Date: 2019-04-30
Contract Duration: 1,950 days
Daily Burn Rate: $49.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF TAIS ES AND PBL
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $97.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: IGF::OT::IGF TAIS ES AND PBL Key points: 1. Significant contract value of $97M for air transportation support services. 2. Sole-source award to General Dynamics Mission Systems, Inc. raises competition concerns. 3. Contract duration of 1950 days (over 5 years) indicates long-term reliance. 4. Fixed-price contract type aims to control costs, but limited competition may inflate pricing.
Value Assessment
Rating: questionable
The contract's $97M value for 'Other Support Activities for Air Transportation' is substantial. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely results in a higher price than a competitively bid contract, impacting taxpayer value.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Reliance on a single contractor for critical air transportation support could pose a risk. The long contract duration suggests a potential for vendor lock-in.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Firm fixed price contract type
Sector Analysis
This contract falls under 'Other Support Activities for Air Transportation' within the Defense sector. Spending in this area is critical for military logistics and operations, but often involves specialized services where competition can be challenging.
Small Business Impact
The data does not indicate any subcontracting to small businesses, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and performance. Accountability for cost-effectiveness is crucial given the limited competition.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration increases long-term risk.
- No indication of small business participation.
- Limited transparency on price justification.
Tags
other-support-activities-for-air-transpo, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. IGF::OT::IGF TAIS ES AND PBL
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 $97.0 million.
What is the period of performance?
Start: 2013-12-27. End: 2019-04-30.
What specific justification was provided for the sole-source award, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of available alternatives. Price reasonableness is often assessed through historical pricing, cost analysis, or comparison to similar, albeit not identical, services. Without detailed documentation, it's hard to verify the thoroughness of this assessment.
What are the potential risks associated with relying on a single contractor for over five years for critical air transportation support?
Risks include potential price escalation over time, reduced incentive for innovation or service improvement, and vulnerability if the contractor faces financial difficulties or operational issues. Dependency can also limit the government's flexibility to adapt to changing needs or adopt new technologies.
How does the performance of General Dynamics Mission Systems on similar contracts inform the assessment of this award's effectiveness?
Assessing effectiveness requires reviewing General Dynamics' past performance records, including on-time delivery, quality of service, and adherence to budget on comparable contracts. Positive past performance can mitigate some sole-source risks, but doesn't replace the benefits of competitive pricing.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ13R0105
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 6000 TECHNOLOGY DR NW, 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
Financial Breakdown
Contract Ceiling: $173,598,497
Exercised Options: $97,026,604
Current Obligation: $97,026,604
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-12-27
Current End Date: 2019-04-30
Potential End Date: 2019-06-30 00:00:00
Last Modified: 2025-02-07
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