DoD's $14.5M contract for financial and accounting services awarded to Computer Sciences Corporation shows potential value concerns

Contract Overview

Contract Amount: $14,541,554 ($14.5M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2003-04-02

End Date: 2004-03-31

Contract Duration: 364 days

Daily Burn Rate: $39.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200312!000069!9700!ZF26 !DEF FIN & ACTG SVC, INDIANAPOLIS!MDA22002A0001 !A!N! !N!0004 !20030402!20040331!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!38000!095!29!KANSAS CITY !JACKSON !MISSOURI !+000007415049!N!N!000000000000!D302!ADP SYSTEMS DEVELOPMENT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541511!A!A!7! ! ! ! ! !99990909!C!E!Y!A! !A!N!J!2!002! ! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64197

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: 200312!000069!9700!ZF26 !DEF FIN & ACTG SVC, INDIANAPOLIS!MDA22002A0001 !A!N! !N!0004 !20030402!20040331!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!38000!095!29!KANSAS CITY !JACKS… Key points: 1. The contract's value appears high relative to its duration and scope, suggesting potential overpricing or scope creep. 2. Limited competition information available makes it difficult to assess if the government secured the best possible price. 3. The contract's performance period was relatively short, raising questions about long-term value and contractor commitment. 4. The specific services provided, ADP Systems Development, are critical but the pricing benchmark is unclear. 5. The award was made under full and open competition, but the number of bidders is not specified, impacting price discovery. 6. The contractor, Computer Sciences Corporation, is a large entity, but its specific track record on this type of contract needs further review.

Value Assessment

Rating: fair

The contract value of $14.5 million over approximately one year for ADP Systems Development Services appears substantial. Without more detailed service breakdowns or comparable contract data, it's challenging to definitively benchmark the value. However, the per-diem cost implied by the total award and duration suggests a potentially high rate, especially considering the services were for financial and accounting support. Further analysis of the specific deliverables and the contractor's historical performance on similar contracts would be necessary to provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the provided data does not specify the number of bids received. A higher number of bids typically leads to more competitive pricing. The absence of this detail limits the assessment of how effectively competition drove down costs for this specific contract.

Taxpayer Impact: While full and open competition is intended to benefit taxpayers, the lack of specific bid counts prevents a definitive conclusion on the extent of taxpayer savings achieved in this instance.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Finance and Accounting Service (DFAS). The contract supported ADP Systems Development Services, crucial for financial and accounting operations. The geographic impact is centered around DFAS operations, likely supporting military and civilian personnel financial data. The workforce implications involve IT and financial system development professionals employed by Computer Sciences Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bid count under full and open competition hinders price discovery assessment.
The total contract value relative to its duration may indicate a high per-unit cost.
Limited information on specific performance metrics makes it difficult to gauge effectiveness.
The contract's focus on ADP systems development could have risks if not aligned with evolving DoD financial requirements.

Positive Signals

Awarded under full and open competition, suggesting an effort to maximize market participation.
The contractor, Computer Sciences Corporation, is a large, established entity with significant resources.
The contract addresses critical financial and accounting support functions for the DoD.

Sector Analysis

This contract falls within the Information Technology (IT) and professional services sector, specifically focusing on custom computer programming and ADP systems development. The market for such services is highly competitive, with numerous large and small businesses offering specialized expertise. The total federal spending on IT services is in the hundreds of billions annually, making this contract a small fraction of the overall IT expenditure. Benchmarking this contract's value against similar IT development contracts within the DoD or other federal agencies would provide better context.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. The primary contractor, Computer Sciences Corporation, is a large business. Therefore, the direct impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities were pursued and are not detailed in this record.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Finance and Accounting Service (DFAS) contracting officers and program managers. Inspector General (IG) oversight from the Department of Defense is also a standard mechanism for reviewing contract performance and financial integrity. Transparency is generally facilitated through contract databases like FPDS, although detailed performance reports are often not publicly accessible.

Related Government Programs

DoD Financial Management Systems
ADP Systems Development Services
IT Services Contracts
Defense Finance and Accounting Service Contracts

Risk Flags

Potential for high cost relative to duration.
Lack of specific bid count limits competition assessment.
Limited public data on performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. 200312!000069!9700!ZF26 !DEF FIN & ACTG SVC, INDIANAPOLIS!MDA22002A0001 !A!N! !N!0004 !20030402!20040331!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!38000!095!29!KANSAS CITY !JACKSON !MISSOURI !+000007415049!N!N!000000000000!D302!ADP SYSTEMS DEVELOPMENT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541511!A!A!7! ! ! ! ! !99990909!C

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 Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2003-04-02. End: 2004-03-31.

What was the specific nature of the 'ADP Systems Development Services' provided under this contract?

The contract identifies the service as 'ADP SYSTEMS DEVELOPMENT SERVICES' under the Product Service Code (PSC) D302. This typically refers to services related to the design, development, implementation, and maintenance of automated data processing systems. For the Defense Finance and Accounting Service (DFAS), this could encompass a wide range of activities, including developing new financial software, enhancing existing accounting systems, integrating different financial platforms, or providing support for the underlying infrastructure that enables these systems. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here but would specify the precise tasks, deliverables, and technical requirements.

How does the $14.5 million award compare to typical IT development contracts of similar duration within the DoD?

Comparing the $14.5 million award for a 364-day contract to typical IT development contracts within the DoD requires access to detailed benchmarking data, which is not fully available here. However, a rough calculation suggests a daily burn rate of approximately $39,949 ($14.5M / 364 days). This rate is substantial and could be considered high depending on the complexity of the systems developed, the level of expertise required, and the specific deliverables. Contracts for complex software development, especially those involving sensitive financial data and stringent security requirements like those at DFAS, can command higher prices. However, without specific comparable contract data (e.g., number of developers, skill sets, specific technologies used), it's difficult to definitively state if this represents overpayment or fair market value.

What are the potential risks associated with awarding a contract for critical financial systems development to a single vendor for a defined period?

Awarding a contract for critical financial systems development to a single vendor, even under full and open competition, carries several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes overly reliant on one provider, potentially limiting future flexibility and negotiating power. Secondly, if the vendor underperforms or faces financial difficulties, the continuity of critical financial operations could be jeopardized. Thirdly, without ongoing competitive pressure, there might be less incentive for the vendor to innovate or maintain optimal cost-efficiency throughout the contract period. Finally, the knowledge transfer risk is significant; if the vendor's personnel possess unique system knowledge, transitioning to a new vendor or in-house management later could be complex and costly.

What is Computer Sciences Corporation's track record with the DoD, particularly in financial systems development?

Computer Sciences Corporation (CSC), prior to its merger with the Enterprise Solutions business of Hewlett Packard Enterprise to form DXC Technology, had a long history of contracting with the U.S. Department of Defense and other federal agencies. CSC was known for providing a wide range of IT services, including systems integration, software development, and IT support for large-scale government programs. While specific details on their performance for DFAS's ADP Systems Development Services under this particular contract (MDA22002A0001) are not readily available in this summary, CSC generally had a significant presence and substantial contract portfolio within the DoD. Their track record would typically be assessed based on past performance evaluations, CPARS reports, and the successful delivery of complex IT solutions across various defense agencies.

Were there any specific performance metrics or key performance indicators (KPIs) associated with this contract?

The provided data does not explicitly list the specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, for ADP Systems Development Services, especially within a critical function like financial and accounting support for DFAS, KPIs would typically be established in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These might include metrics related to system uptime, bug resolution times, successful deployment of new features, adherence to project timelines, data accuracy, security compliance, and user satisfaction. The effectiveness of the contract's value is heavily dependent on how well these (unspecified) metrics were met and monitored.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: MDA22002A0001

IDV Type: IDC

Timeline