DoD's $12.7M Wired Telecom Contract Awarded to General Dynamics IT for West Virginia Operations

Contract Overview

Contract Amount: $12,680,382 ($12.7M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-05

End Date: 2010-12-22

Contract Duration: 838 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Other

Official Description: TASK 8: RATE PERIOD 1

Place of Performance

Location: CLARKSBURG, HARRISON County, WEST VIRGINIA, 26301, UNITED STATES OF AMERICA

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: TASK 8: RATE PERIOD 1 Key points: 1. Contract value represents a significant investment in telecommunications infrastructure for the Army in West Virginia. 2. Full and open competition suggests a potentially competitive bidding process, which can lead to better pricing. 3. The contract duration of over two years indicates a need for sustained telecommunications services. 4. The award to a large, established contractor like General Dynamics IT suggests a focus on reliability and experience. 5. The absence of small business set-aside flags indicates this was not specifically targeted for smaller enterprises. 6. The contract's focus on wired telecommunications carriers aligns with essential communication needs for military operations.

Value Assessment

Rating: good

The contract value of approximately $12.7 million over its period of performance is a substantial sum for wired telecommunications services. Benchmarking this against similar contracts for regional telecommunications support within the Department of Defense would be necessary for a precise value-for-money assessment. However, given the duration and the nature of the services, the pricing appears to be within a reasonable range for a large prime contractor. The absence of specific performance metrics in the provided data makes a detailed assessment of efficiency challenging, but the award itself suggests the Army found the proposed value acceptable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but this method of procurement generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovation as contractors vie for the award. The Army's choice to use full and open competition suggests they sought the best possible solution and price from the widest possible pool of vendors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are the Department of the Army units operating in West Virginia, who will receive enhanced wired telecommunications services. The contract delivers essential communication infrastructure, likely supporting command and control, data transmission, and operational readiness. The geographic impact is concentrated in West Virginia, where the telecommunications services will be deployed and maintained. While specific workforce implications are not detailed, the contract likely supports jobs within General Dynamics Information Technology and potentially its subcontractors in the telecommunications sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
Potential for cost overruns if the scope of work expands beyond initial projections without adequate oversight.
Dependence on a single large contractor could limit flexibility in adapting to future technological changes or service needs.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Contract awarded to a large, experienced contractor (General Dynamics IT) known for handling complex government IT projects.
The contract addresses a fundamental need for reliable wired telecommunications, crucial for military operations.

Sector Analysis

The wired telecommunications carriers sector is a critical component of the broader information technology and communications industry. This contract falls under NAICS code 517110, which covers establishments primarily engaged in operating and/or providing access to telecommunications infrastructure. The market is characterized by significant infrastructure investment and technological evolution. Spending in this sector by government agencies is substantial, supporting everything from basic voice and data services to complex network solutions. This specific contract likely supports the Army's need for secure and reliable communication lines within a specific geographic region.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does the data indicate any specific subcontracting goals for small businesses. This suggests that the primary awardee, General Dynamics Information Technology, will likely fulfill the contract requirements using its own resources or through larger, established partners. The absence of explicit small business provisions means there may be limited direct opportunities for small businesses to participate in this specific contract, potentially impacting the small business ecosystem in this particular procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Telecommunications Services
Army Network Modernization Programs
Federal Information Technology Contracts
Wired Network Infrastructure Procurement

Risk Flags

Potential for technological obsolescence given the contract duration.
Lack of explicit small business subcontracting goals.
Limited insight into the number of bidders despite full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. TASK 8: RATE PERIOD 1

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 Army).

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2008-09-05. End: 2010-12-22.

What was the specific nature of the wired telecommunications services provided under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 517110, 'Wired Telecommunications Carriers.' This typically encompasses services such as providing access to the public switched telephone network, local and long-distance voice and data communications services via wired infrastructure, and operating and maintaining the necessary network facilities. For the Department of the Army in West Virginia, this likely involved ensuring reliable voice, data, and potentially video communication services through dedicated lines, fiber optics, or other wired network solutions essential for military operations, command and control, and administrative functions within the specified region.

How does the $12.7 million contract value compare to similar telecommunications contracts awarded by the DoD?

Without specific details on the scope, duration, and geographic coverage of comparable contracts, a direct comparison of the $12.7 million value is challenging. However, this amount represents a significant investment for wired telecommunications services over approximately two years (838 days). Larger, multi-year enterprise-wide telecommunications contracts for the DoD can run into hundreds of millions or even billions of dollars. For a regional, specific service requirement like this, $12.7 million suggests a substantial, but not enterprise-level, commitment. It is likely in the mid-range for specific regional infrastructure or service contracts of this duration.

What are the potential risks associated with awarding a telecommunications contract of this nature to a single large contractor?

Awarding a contract of this nature to a single large contractor like General Dynamics Information Technology carries several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily reliant on the contractor's specific technologies and processes, making future transitions difficult or costly. Secondly, reduced competition post-award could lead to complacency or less aggressive pricing in subsequent modifications or renewals. Thirdly, if the contractor experiences financial instability or strategic shifts, it could disrupt critical services. Finally, the sheer size of the contractor might mean that smaller, more agile competitors are overlooked, potentially limiting access to innovative solutions.

What does the 'AW: DO' designation signify for this contract?

The 'AW: DO' designation in the contract data typically stands for 'Award Type: Department of Defense.' This indicates that the contract was awarded directly by a component or agency within the Department of Defense, in this case, the Department of the Army. It distinguishes it from contracts awarded by other federal agencies or those that might be inter-agency agreements. This classification helps in tracking spending patterns and understanding the distribution of defense-related procurements across various branches and services within the DoD.

Given the contract duration (838 days), what are the implications for technological obsolescence in wired telecommunications?

A contract duration of 838 days (approximately 2.3 years) in the rapidly evolving field of wired telecommunications presents a moderate risk of technological obsolescence. While core infrastructure like fiber optics has a long lifespan, the equipment and services layered upon it can become outdated relatively quickly. The Army would need to ensure that the contract includes provisions for technology refresh, upgrades, or performance standards that anticipate future needs. If the contract is purely for existing service provision without a forward-looking technology insertion clause, the services provided towards the end of the period might be less advanced than current market offerings, potentially impacting operational effectiveness.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91QUZ05R0004

Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 3160 FAIRVIEW PARK DRIVE, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,941,377

Exercised Options: $12,941,377

Current Obligation: $12,680,382

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0018

IDV Type: IDC

Timeline