DoD Awards $87M for Tactical Airspace Integration System Engineering and Logistics to General Dynamics
Contract Overview
Contract Amount: $87,038,306 ($87.0M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-09-18
End Date: 2025-03-17
Contract Duration: 2,372 days
Daily Burn Rate: $36.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ENGINEERING SERVICES AND PERFORMANCE BASED LOGISTICS FOR THE TACTICAL AIRSPACE INTEGRATION SYSTEM.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $87.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: ENGINEERING SERVICES AND PERFORMANCE BASED LOGISTICS FOR THE TACTICAL AIRSPACE INTEGRATION SYSTEM. Key points: 1. Contract awarded to General Dynamics Mission Systems, Inc. for $87M. 2. Services include engineering and performance-based logistics for tactical airspace integration. 3. The contract runs from September 2018 to March 2025. 4. This is a Cost Plus Fixed Fee contract type. 5. No small business participation was reported.
Value Assessment
Rating: good
The $87M contract value over its duration appears reasonable for complex engineering and logistics services. Benchmarking against similar large-scale defense system integration contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense systems.
Public Impact
Enhances tactical airspace management capabilities for the U.S. Army. Supports critical defense infrastructure and operational readiness. Ensures continued performance and maintenance of vital systems. Potential for long-term sustainment and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Cost Plus Fixed Fee contract type can sometimes lead to cost overruns if not managed tightly.
Positive Signals
- Awarded under full and open competition.
- Long contract duration allows for sustained support.
- Performance-based logistics component can drive efficiency.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically related to custom computer programming and systems integration. Spending in this area is substantial within the DoD for maintaining and upgrading complex technological systems.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that the prime contractor, General Dynamics, did not subcontract with small businesses for this award, which is a missed opportunity for small business engagement.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight from a major defense agency. The contract's duration and performance-based nature suggest ongoing monitoring for effectiveness and adherence to terms.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation.
- Potential for cost overruns without strict oversight.
- Complexity of integrating tactical airspace systems.
Tags
custom-computer-programming-services, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.0 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. ENGINEERING SERVICES AND PERFORMANCE BASED LOGISTICS FOR THE TACTICAL AIRSPACE INTEGRATION SYSTEM.
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 $87.0 million.
What is the period of performance?
Start: 2018-09-18. End: 2025-03-17.
What is the projected cost savings or efficiency gains anticipated from the performance-based logistics component of this contract?
Performance-based logistics (PBL) aims to improve system readiness and reduce total ownership costs by shifting focus from parts to outcomes. Specific savings are often proprietary or realized over the contract's life. DoD guidance emphasizes PBL's potential for reduced inventory, improved reliability, and streamlined maintenance, ultimately leading to better value and operational availability for the Tactical Airspace Integration System.
How does the Cost Plus Fixed Fee (CPFF) structure balance cost control with the need for flexibility in complex engineering projects?
A CPFF contract covers allowable costs plus a fixed fee representing profit. This structure is often used for research and development or complex projects where cost estimation is difficult. While it provides flexibility, robust government oversight is crucial to manage costs effectively and prevent scope creep, ensuring the fixed fee remains appropriate for the work performed and the contractor is incentivized to control expenses.
What are the key performance indicators (KPIs) used to measure the success of the engineering services and performance-based logistics?
Key performance indicators for such a contract typically include system availability rates, mean time between failures (MTBF), response times for support, delivery schedules for parts and services, and overall mission capability. The performance-based aspect means the contractor is incentivized to meet or exceed these predefined metrics, with potential financial implications tied to performance outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W58RGZ16R0100
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
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: $158,532,873
Exercised Options: $87,038,306
Current Obligation: $87,038,306
Actual Outlays: $206
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $628,879
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-09-18
Current End Date: 2025-03-17
Potential End Date: 2026-03-05 12:03:00
Last Modified: 2025-03-05
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