DoD's $215.5M IT contract for BRAC 133 project awarded to General Dynamics Information Technology

Contract Overview

Contract Amount: $215,529,501 ($215.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-02-25

End Date: 2013-09-26

Contract Duration: 1,309 days

Daily Burn Rate: $164.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: IT GENERAL SERVICES FOR BRAC 133 PROJECT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $215.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IT GENERAL SERVICES FOR BRAC 133 PROJECT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control but also carries inherent risk. 3. The duration of 1309 days indicates a significant, long-term project. 4. The North American Industry Classification System (NAICS) code 517110 points to services related to wired telecommunications carriers. 5. The contract was an "award" under a larger vehicle, suggesting it's part of a broader IT services framework. 6. The small business set-aside flag is false, indicating no specific provisions for small businesses in this award.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of the BRAC 133 project and the specific services rendered. However, the CPIF contract type introduces variability in the final cost. Comparing it to similar large-scale IT infrastructure projects within the DoD would be necessary for a more precise value assessment. The total award amount of over $215 million suggests a substantial investment.

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 presence of two bids suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for price discovery, the number of bidders can influence the competitiveness of the pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open competition, though the actual savings depend on the number and quality of bids received.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Army, for IT infrastructure supporting the BRAC 133 project. Services delivered likely include wired telecommunications infrastructure, network support, and potentially related IT services. The geographic impact is likely concentrated around facilities affected by the Base Realignment and Closure (BRAC) 133 initiative. Workforce implications could involve IT professionals, technicians, and project managers employed by the contractor and potentially impacted government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee (CPIF) contracts can lead to costs exceeding initial estimates if not managed carefully.
The long duration of the contract (over 3.5 years) increases the risk of scope creep or changing technological requirements.
Lack of specific details on performance metrics makes it difficult to assess the contractor's incentive to deliver exceptional value.
The contract is a delivery order under a larger vehicle, which might limit the ability to assess the true cost-effectiveness of the underlying contract.

Positive Signals

Awarded through full and open competition, which generally promotes competitive pricing.
The contractor, General Dynamics Information Technology, is a large, established entity with significant experience in government IT services.
The contract aims to support a critical government initiative (BRAC 133), suggesting a focus on essential infrastructure.
The CPIF structure, if well-defined, can align contractor and government interests towards achieving specific performance goals.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on wired telecommunications infrastructure. The market for government IT services is substantial, with agencies like the Department of Defense being major consumers. Contracts of this magnitude are typical for large-scale infrastructure upgrades and modernization efforts, especially those driven by initiatives like BRAC. Comparable spending benchmarks would involve other large IT service contracts for telecommunications, network deployment, and infrastructure management within federal agencies.

Small Business Impact

The 'sb' (small business) flag is false, indicating that this specific delivery order was not set aside for small businesses. This means large businesses were eligible to compete and likely dominated the bidding process. There are no explicit subcontracting implications for small businesses mentioned in this data, suggesting that any involvement would be at the discretion of the prime contractor, General Dynamics Information Technology.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers. As a Cost Plus Incentive Fee contract, performance and cost monitoring would be critical. Transparency is facilitated by contract award databases, but detailed operational oversight and accountability measures are internal to the agency and contractor. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

BRAC Program Management
DoD IT Infrastructure Modernization
Wired Telecommunications Services
General Dynamics IT Contracts
Cost Plus Incentive Fee Contracts

Risk Flags

Potential for cost overruns due to CPIF structure.
Risk of technological obsolescence given the contract duration.
Limited competition at the delivery order level may impact price.
Scope creep risk over the 3.5-year performance period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $215.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IT GENERAL SERVICES FOR BRAC 133 PROJECT

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 $215.5 million.

What is the period of performance?

Start: 2010-02-25. End: 2013-09-26.

What specific IT services were included under this delivery order for the BRAC 133 project?

The provided data indicates the NAICS code is 517110, which pertains to Wired Telecommunications Carriers. This suggests the services likely involved the installation, maintenance, and management of wired network infrastructure, including cabling, switches, routers, and related hardware. Given the context of BRAC (Base Realignment and Closure), these services were probably crucial for consolidating or relocating military facilities and ensuring robust communication capabilities at the designated sites. The Cost Plus Incentive Fee (CPIF) structure implies that the exact scope might have been flexible, with incentives tied to achieving specific performance targets related to network uptime, speed, or cost efficiency.

How does the Cost Plus Incentive Fee (CPIF) structure impact the final cost and contractor performance for this contract?

A CPIF contract establishes a target cost and a target profit. If the final cost is below the target, both the government and the contractor share in the savings. If the final cost exceeds the target, both share in the overrun, up to a ceiling. The 'incentive' aspect comes into play through performance targets (e.g., delivery schedule, technical performance, quality). Achieving or exceeding these targets results in additional profit for the contractor, while failing to meet them can reduce profit. For this $215.5 million contract, the CPIF structure aims to balance cost control with the achievement of specific project goals for the BRAC 133 initiative. However, it requires diligent government oversight to ensure the incentives are aligned with the most critical objectives and that costs do not escalate excessively.

What is the significance of this contract being a 'Delivery Order' under a larger contract vehicle?

This contract is a 'Delivery Order' (awarded as 'DELIVERY ORDER'), meaning it is a specific task or order placed against a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) or other type of multiple-award contract. This approach allows agencies to procure services more efficiently by having established contract vehicles with pre-negotiated terms and conditions. For taxpayers, it can mean faster procurement cycles and potentially better pricing due to the pre-competed nature of the base contract. However, it can also make it harder to assess the true value and competition for individual delivery orders in isolation, as the primary competition likely occurred when the base contract was awarded.

What does the limited competition (2 bidders) for this delivery order imply for price discovery and value for money?

While the contract was awarded under 'full and open competition' at the base contract level, this specific delivery order saw only two bids. Limited competition, especially with only two bidders, can reduce the downward pressure on pricing compared to a scenario with numerous competitive offers. It suggests that General Dynamics Information Technology may have faced less intense price negotiation. However, the overall value for money also depends on the quality and technical capabilities of the offered solutions. Without knowing the specifics of the base contract competition or the nature of the BRAC 133 project's requirements, it's difficult to definitively state the impact on price discovery, but it warrants attention.

How does the contractor's track record with the Department of Defense influence the assessment of this contract?

General Dynamics Information Technology (GDIT) is a major federal contractor with extensive experience, particularly within the Department of Defense. Their established presence suggests familiarity with DoD procurement processes, security requirements, and operational needs. This experience can be a positive signal, potentially reducing execution risk and leading to more efficient project delivery. However, past performance is not a guarantee of future success. A thorough assessment would involve reviewing GDIT's specific performance history on similar IT infrastructure projects for the DoD, including any past issues related to cost overruns, schedule delays, or quality deficiencies on comparable contracts.

What are the potential risks associated with the 1309-day duration of this contract?

A contract duration of 1309 days (approximately 3.5 years) presents several potential risks. Firstly, technology evolves rapidly in the IT sector; requirements or the technological landscape may change significantly over this period, potentially rendering initial solutions obsolete or requiring costly modifications. Secondly, long-term contracts increase the risk of scope creep, where the project's objectives expand beyond the original intent without corresponding adjustments in cost or schedule controls. Thirdly, maintaining consistent oversight and stakeholder engagement over such an extended period can be challenging for the government. Finally, the longer the contract, the greater the potential for unforeseen economic fluctuations or changes in government priorities that could impact the project's viability or funding.

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: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $223,163,614

Exercised Options: $223,163,614

Current Obligation: $215,529,501

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0012

IDV Type: IDC

Timeline