DoD's $198.6M IT support contract to General Dynamics shows strong competition and long-term performance

Contract Overview

Contract Amount: $198,648,134 ($198.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-25

End Date: 2026-04-07

Contract Duration: 3,847 days

Daily Burn Rate: $51.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: IT

Official Description: IGF::CT::IGF COMMUNICATIONS TECHNICAL SUPPORT SVCS

Plain-Language Summary

Department of Defense obligated $198.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF COMMUNICATIONS TECHNICAL SUPPORT SVCS Key points: 1. Value for money appears reasonable given the long-term nature and scope of IT support services. 2. Full and open competition indicates a healthy market for these services. 3. Contract duration and potential for follow-on work present moderate performance risks. 4. This contract supports critical defense information infrastructure. 5. Positioned within the large IT services sector for government contracts.

Value Assessment

Rating: good

The contract's total value of $198.6 million over its lifespan suggests a significant investment in IT support. Benchmarking against similar large-scale IT support contracts within the Department of Defense is crucial for a precise value assessment. However, the Cost Plus Fixed Fee (CPFF) or similar cost-reimbursement structures often used for complex IT services can sometimes lead to higher overall costs compared to fixed-price contracts if not managed tightly. The absence of specific performance metrics and detailed cost breakdowns makes a definitive value-for-money judgment challenging without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This suggests a robust market for the required IT support services. The presence of numerous potential bidders typically drives down prices and encourages innovation. The specific number of bids received is not provided, but the award type implies a competitive process that should have resulted in a fair market price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that generally leads to better pricing and service quality, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, receiving essential IT support. Services delivered include technical support, system maintenance, and potentially network management for defense systems. Geographic impact is likely widespread, supporting DoD operations globally. Workforce implications include employment for IT professionals within General Dynamics and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) increases the risk of cost overruns or performance degradation if not actively managed.
Reliance on a single large contractor for critical IT infrastructure could pose a risk if the contractor faces financial or operational difficulties.
The 'COST NO FEE' (CNF) contract type, while rare, needs careful scrutiny to ensure costs are reasonable and directly tied to essential services, as it offers limited incentive for cost efficiency.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Long-term contract provides stability and continuity for essential IT services.
General Dynamics is a large, established contractor with significant experience in government IT services.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, a significant area of federal spending. The market for government IT services is vast, encompassing everything from software development and cybersecurity to network infrastructure and technical support. Large prime contractors like General Dynamics often compete for these substantial contracts, which can involve complex systems and long-term support requirements. Benchmarks for similar IT support contracts within the DoD often range in the hundreds of millions of dollars over their lifecycle, making this contract size typical for its scope.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While large prime contractors often utilize small business subcontractors, the absence of a specific set-aside or reported subcontracting goals means the direct impact on the small business ecosystem is not explicitly detailed in this summary. Further analysis of subcontracting plans would be needed to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency (Defense Information Systems Agency) and potentially the Department of Defense's Inspector General. Mechanisms likely include regular performance reviews, audits of cost-plus contracts, and adherence to contract terms. Transparency is generally facilitated through contract award databases, but detailed performance reports and cost breakdowns may be less publicly accessible.

Related Government Programs

DoD IT Modernization Programs
Defense Information Systems Network (DISN) Services
Command and Control Systems Support
Enterprise Resource Planning (ERP) Systems Support

Risk Flags

Long contract duration increases risk of technological obsolescence.
Cost-reimbursement type contract requires stringent oversight to manage costs.
Potential for contractor complacency due to long-term engagement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $198.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF COMMUNICATIONS TECHNICAL SUPPORT SVCS

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 (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $198.6 million.

What is the period of performance?

Start: 2015-09-25. End: 2026-04-07.

What is the specific breakdown of services provided under this contract?

The provided data indicates the contract is for 'IGF COMMUNICATIONS TECHNICAL SUPPORT SVCS' (IGF::CT::IGF COMMUNICATIONS TECHNICAL SUPPORT SVCS). While the specific nature of 'IGF' is not detailed, it strongly suggests services related to Information Group Facilities or similar internal communication and technical infrastructure within the Department of Defense. This likely encompasses a range of activities such as network maintenance, hardware and software support, help desk services, system administration, and potentially cybersecurity support for communication systems critical to military operations. The 'COST NO FEE' (CNF) award type, though unusual for such a large contract, implies that the contractor is reimbursed for allowable costs but receives no fee or profit. This suggests the primary objective is service provision rather than profit generation for the contractor, potentially indicating a unique or mission-critical requirement where standard profit motives are secondary.

How does the $198.6 million total obligation compare to similar IT support contracts within the DoD?

The $198.6 million total obligation over a period potentially spanning over a decade (from 2015 to 2026) places this contract within the mid-to-large range for IT support services within the Department of Defense. DoD IT spending is in the tens of billions annually, supporting a vast array of complex systems. Contracts for enterprise-wide IT support, network operations, and system sustainment frequently reach or exceed this value. For instance, contracts for managing large networks like the Defense Information Systems Network (DISN) or providing comprehensive IT support for major commands can easily run into hundreds of millions or even billions over their lifecycles. The 'full and open competition' aspect suggests that this value was deemed competitive within the market for the specified services.

What are the primary risks associated with a 'COST NO FEE' contract of this magnitude?

The 'COST NO FEE' (CNF) contract type presents unique risks, primarily centered around cost control and contractor motivation. Unlike fixed-price contracts that incentivize efficiency, or cost-plus contracts that offer profit, CNF means the contractor is reimbursed for all allowable costs but receives no additional fee. This can reduce the contractor's incentive to control costs aggressively, as their primary motivation might shift from profit to simply fulfilling the contract requirements. Oversight becomes paramount to ensure that costs incurred are reasonable, allocable, and necessary for contract performance. There's also a risk that the contractor might prioritize other, more profitable work if not adequately managed. For a contract of $198.6 million, rigorous auditing and performance monitoring are essential to mitigate these risks and ensure taxpayer funds are used judiciously.

What is General Dynamics Information Technology's track record with similar large-scale DoD IT contracts?

General Dynamics Information Technology (GDIT), a business unit of General Dynamics, has a long and extensive track record of performing large-scale IT and mission support contracts for the Department of Defense and other federal agencies. They are a major player in the government contracting space, known for handling complex systems integration, network operations, cybersecurity, and enterprise IT services. GDIT has held numerous significant contracts supporting various DoD branches, including the Army, Navy, and Air Force, as well as agencies like DISA. Their history includes managing substantial budgets and providing critical support for defense communications and information systems. While specific performance details for every contract are not always public, GDIT's sustained presence and continued awards in this competitive sector indicate a generally positive track record in delivering complex IT solutions for the government.

How does the contract's duration (2015-2026) impact its overall value and risk profile?

The extended duration of this contract, spanning over a decade (from September 25, 2015, to April 7, 2026), significantly impacts both its value and risk profile. From a value perspective, a long-term contract can offer stability and predictability for essential services, potentially leading to economies of scale and reduced administrative burden compared to frequent re-competitions. It allows the contractor to invest in specialized resources and personnel. However, this extended period also increases risks. Technology evolves rapidly, and a decade-old contract might not fully align with current or future technological needs without modifications. There's a higher chance of cost escalation due to inflation or unforeseen technical challenges. Furthermore, long-term reliance on a single contractor can reduce flexibility and potentially lead to complacency or vendor lock-in. Robust contract management, including regular reviews and potential for scope adjustments, is critical to mitigate these long-term risks and ensure continued value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: HC102814R0006

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

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

Financial Breakdown

Contract Ceiling: $204,636,164

Exercised Options: $198,648,134

Current Obligation: $198,648,134

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $6,019,497

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102815D0007

IDV Type: IDC

Timeline