DoD's $27.7M Logistics Network Support Contract Awarded to General Dynamics IT

Contract Overview

Contract Amount: $27,713,275 ($27.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-08-16

End Date: 2022-02-20

Contract Duration: 2,014 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF LOGISTICS INTEGRATION AND WEAPON SYSTEMS LOGISTICS NETWORK SUPPORT

Place of Performance

Location: FAIRVIEW HEIGHTS, SAINT CLAIR County, ILLINOIS, 62208

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF LOGISTICS INTEGRATION AND WEAPON SYSTEMS LOGISTICS NETWORK SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Performance period spans over five years, indicating a long-term need for these services. 4. The award was a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contractor, General Dynamics Information Technology, Inc., is a large, established entity in the IT services sector. 6. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific services rendered under the delivery order and the terms of the parent IDIQ contract. However, the firm fixed-price structure suggests an attempt to control costs. Comparing the total award amount to similar logistics integration and weapon systems support contracts would provide a clearer picture of value for money. The duration of the contract (over five years) implies a significant, ongoing requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection of qualified contractors and potentially better pricing due to market forces. The number of bidders is not specified, but the open competition suggests a healthy level of interest from the market.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The Department of the Air Force benefits from integrated logistics and weapon systems support. This contract supports the operational readiness and efficiency of military logistics networks. The services are likely to have a broad impact across various Air Force installations and units. Workforce implications may include IT and logistics specialists employed by General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess contractor performance objectively.
The duration of the contract raises questions about long-term adaptability to evolving technological needs.
Without details on the parent IDIQ, it's hard to gauge the overall value and competition for the broader requirement.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm Fixed Price contract type helps manage cost certainty for the government.
General Dynamics Information Technology is an experienced contractor in this domain.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The defense industry relies heavily on such services for maintaining complex weapon systems and logistical operations. The market for defense IT services is substantial, with significant government spending allocated to ensure technological superiority and operational efficiency. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts within the Department of Defense and other federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major IT provider, it is unlikely that significant subcontracting opportunities for small businesses will be mandated, though General Dynamics IT may engage them voluntarily. The focus appears to be on securing established capabilities rather than promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Performance monitoring, adherence to contract terms, and quality assurance are key oversight functions. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency IT Support
Air Force Command and Control Systems
Weapon Systems Sustainment Programs
IT Services for Military Operations

Risk Flags

Potential for scope creep if not managed tightly under fixed-price terms.
Cybersecurity risks inherent in managing defense logistics IT networks.
Dependence on a single large contractor for critical logistics functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF LOGISTICS INTEGRATION AND WEAPON SYSTEMS LOGISTICS NETWORK SUPPORT

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2016-08-16. End: 2022-02-20.

What is the specific nature of the 'logistics integration and weapon systems logistics network support' provided under this contract?

The provided data indicates the contract is for 'LOGISTICS INTEGRATION AND WEAPON SYSTEMS LOGISTICS NETWORK SUPPORT' under NAICS code 541512 (Computer Systems Design Services). While the exact services are not detailed, this typically involves the design, development, integration, and maintenance of IT systems that manage and optimize the flow of goods, equipment, and information within military logistics chains. This could encompass software development, network infrastructure management, data analysis for supply chain efficiency, and ensuring the seamless operation of IT supporting weapon systems logistics. The firm fixed-price nature suggests a defined scope of work with clear deliverables.

How does the $27.7 million award compare to historical spending on similar logistics IT support contracts by the Air Force?

Direct comparison of the $27.7 million award to historical spending requires access to detailed historical contract data for similar services. However, the duration of the contract (August 2016 to February 2022, approximately 5.5 years) suggests an average annual spend of roughly $5 million. This figure is moderate for a large defense IT contract. To provide a robust comparison, one would need to analyze the average award values, contract durations, and scope of work for other Air Force contracts categorized under computer systems design services (NAICS 541512) or specifically related to logistics IT support over the past decade. Without this comparative data, it's difficult to definitively state if this award represents high, low, or average spending.

What are the key performance indicators (KPIs) used to evaluate General Dynamics Information Technology's performance on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a contract focused on logistics integration and weapon systems support, typical KPIs might include system uptime and availability, response times for issue resolution, data accuracy and integrity, successful integration of new components or systems, and adherence to delivery schedules for any developed or maintained components. The contracting officer's representative (COR) would be responsible for monitoring these KPIs, often documented in the contract's Performance Work Statement (PWS), to ensure the contractor meets the required service levels.

What is the risk profile associated with General Dynamics Information Technology as a contractor for this type of service?

General Dynamics Information Technology (GDIT) is a large, established federal contractor with extensive experience in IT services, including defense logistics. Their track record generally indicates a lower risk profile in terms of technical capability and financial stability. However, risks can still exist, such as potential cost overruns if the fixed-price contract scope is not well-defined, delays in delivery, or cybersecurity vulnerabilities within the systems they manage. Past performance reviews and any past issues (e.g., contract disputes, performance failures) would be crucial for a comprehensive risk assessment, but this data is not provided.

How does the 'delivery order' nature of this award impact the overall program and taxpayer value?

This award being a 'delivery order' implies it is a task order issued under a larger, pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. This structure allows the government to procure services incrementally as needed, offering flexibility. For taxpayers, the value depends on the competitiveness and pricing established within the parent IDIQ contract. If the IDIQ was competitively awarded, delivery orders under it can represent good value. However, if the IDIQ itself lacked robust competition or had unfavorable terms, the value derived from individual delivery orders could be compromised. It also means the total spending under the IDIQ could exceed this single award amount.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA445216R0004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,713,275

Exercised Options: $27,713,275

Current Obligation: $27,713,275

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,719,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA445216D0001

IDV Type: IDC

Timeline