DoD's $15.87M contract for financial and accounting services awarded to Computer Sciences Corporation shows potential for cost savings

Contract Overview

Contract Amount: $15,867,244 ($15.9M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2005-04-01

End Date: 2006-03-31

Contract Duration: 364 days

Daily Burn Rate: $43.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 200507!500103!9700!HQ0425!DEF FIN & ACTG SVC, INDIANAPOLIS!MDA22002A0001 !A!N! !N!0008 ! !20050401!20060331!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!38000!095!29!KANSAS CITY !JACKSON !MISSOURI !+000009348971!N!N!000000000000!D302!ADP SYSTEMS DEVELOPMENT SERVICES !S1 !SERVICES !000 !* !541519!E! !7! ! ! ! ! !20200930!C!E!Y!A! !D!N!Y!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 $15.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: 200507!500103!9700!HQ0425!DEF FIN & ACTG SVC, INDIANAPOLIS!MDA22002A0001 !A!N! !N!0008 ! !20050401!20060331!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!38000!095!29!KANSAS CITY !JACK… Key points: 1. Contract value of $15.87M for financial and accounting services. 2. Awarded to Computer Sciences Corporation, a major IT services provider. 3. Contract duration of 364 days, indicating a short-term need. 4. Procurement method was full and open competition, suggesting market availability. 5. Service type is Time and Materials, which can pose cost control challenges. 6. The contract falls under ADP Systems Development Services, a critical IT function.

Value Assessment

Rating: fair

The contract's value of $15.87 million for a year of financial and accounting services appears within a reasonable range for IT support, though specific benchmarks are unavailable without more detailed service scope. The Time and Materials pricing model, while flexible, carries inherent risks for cost overruns if not closely managed. Comparing this to similar DoD contracts for financial systems support would be necessary for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The specific details of the bidding process and the number of proposals received would further illuminate the strength of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging a wider pool of qualified contractors to vie for government work.

Public Impact

The Department of Defense benefits from improved financial and accounting services. Ensures the continuity of critical financial operations within the agency. Supports the financial management infrastructure necessary for defense operations. The contract likely involves a team of IT professionals and financial analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to unpredictable costs if not managed effectively.
Short contract duration may indicate a need for ongoing, potentially higher-cost re-competition.

Positive Signals

Full and open competition suggests a robust marketplace and potential for competitive pricing.
Award to a large, established IT services provider like Computer Sciences Corporation may indicate reliability.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on IT services for government financial management. The market for IT services supporting federal agencies is substantial, with significant spending allocated to maintaining and upgrading complex financial systems. This contract represents a component of that larger spending, aimed at ensuring the operational efficiency of defense financial operations.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. As the contract was awarded under full and open competition to a large prime contractor, the direct impact on small businesses is likely minimal unless they are part of the prime's subcontracting plan, which is not detailed here.

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. Standard government oversight mechanisms, including performance reviews, audits, and contract close-out procedures, would be applied. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Defense Finance and Accounting Service (DFAS) IT Support Contracts
Federal Financial Management Systems
IT Services for Department of Defense
Computer Sciences Corporation Government Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of detailed performance data in summary.
Short contract duration may imply recurring needs and potential for contract instability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. 200507!500103!9700!HQ0425!DEF FIN & ACTG SVC, INDIANAPOLIS!MDA22002A0001 !A!N! !N!0008 ! !20050401!20060331!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!38000!095!29!KANSAS CITY !JACKSON !MISSOURI !+000009348971!N!N!000000000000!D302!ADP SYSTEMS DEVELOPMENT SERVICES !S1 !SERVICES !000 !* !541519!E! !7! ! ! ! ! !202

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 $15.9 million.

What is the period of performance?

Start: 2005-04-01. End: 2006-03-31.

What was the specific scope of work for the ADP Systems Development Services provided under this contract?

The provided data indicates the contract was for 'ADP SYSTEMS DEVELOPMENT SERVICES' and falls under the North American Industry Classification System (NAICS) code 541519 (Other Computer Related Services), with a specific mention of 'DEF FIN & ACTG SVC, INDIANAPOLIS'. This suggests the services likely involved the development, maintenance, or enhancement of automated data processing systems related to the financial and accounting functions managed by the Defense Finance and Accounting Service (DFAS) in Indianapolis. This could encompass software development, system integration, database management, or technical support for existing financial platforms.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT services within the DoD?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, allowing for flexibility. However, they are generally considered higher risk for the government compared to fixed-price contracts because costs can escalate if not closely monitored. For IT services within the DoD, fixed-price or cost-plus-fixed-fee contracts are often preferred for well-defined projects to ensure cost certainty. The use of T&M here suggests either a need for rapid response, evolving requirements, or a lack of precise definition at the time of award, necessitating strong oversight to control expenditures.

What is the track record of Computer Sciences Corporation (CSC) in delivering similar financial and accounting IT services to the federal government?

Computer Sciences Corporation (now part of DXC Technology) has a long history of providing IT services to the federal government, including extensive work with the Department of Defense. While specific performance metrics for this particular 2005-2006 contract are not detailed, CSC has generally been a major player in large-scale government IT projects. Their track record includes managing complex systems, providing technical support, and undertaking system development. However, like any large contractor, they have also faced scrutiny and performance challenges on various contracts over the years. A comprehensive assessment would require reviewing performance evaluations and past performance questionnaires for CSC's broader portfolio of DoD contracts.

Were there any performance issues or contract modifications during the period of performance for this contract?

The provided data does not contain specific details regarding contract modifications, performance issues, or disputes during the period of performance (April 1, 2005, to March 31, 2006). Standard government contract databases often track modifications and performance ratings, but this information is not directly available in the summarized data. Without access to the contract's official file or performance reports, it's impossible to definitively state whether issues arose or how they were resolved.

What was the total spending on similar financial and accounting IT services by the DoD in the fiscal year this contract was active?

Determining the exact total DoD spending on similar financial and accounting IT services for FY2005-2006 based solely on this data point is not feasible. This contract represents a single delivery order valued at approximately $15.87 million. The DoD's overall IT budget is in the tens of billions of dollars annually, encompassing a vast array of services, hardware, and software. To ascertain total spending, one would need to analyze aggregated procurement data from DFAS and other DoD components, filtering for relevant NAICS codes (like 541511, 541512, 541519) and service descriptions related to financial management systems.

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: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

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

Parent Contract

Parent Award PIID: MDA22002A0001

IDV Type: IDC

Timeline