DoD's $18.2M IT contract for admin and environment support awarded to General Dynamics IT

Contract Overview

Contract Amount: $18,239,627 ($18.2M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2011-10-01

End Date: 2012-09-30

Contract Duration: 365 days

Daily Burn Rate: $50.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ADMINISTRATION AND ENVIRONMENT SUPPORT

Place of Performance

Location: SCOTT AFB, ST. CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: ADMINISTRATION AND ENVIRONMENT SUPPORT Key points: 1. Contract value represents a moderate investment in IT support services for the Air Force. 2. General Dynamics IT, a large established contractor, secured this award. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The fixed-price contract type aims to control costs by setting a predetermined price. 5. This contract falls within the broader IT services sector, supporting administrative and environmental functions. 6. The relatively short duration of one year suggests a specific, time-bound need for these services.

Value Assessment

Rating: good

The contract value of approximately $18.2 million for a one-year period for computer systems design services appears reasonable given the scope of administration and environment support. Benchmarking against similar IT support contracts for federal agencies of this size and duration would provide a more precise value-for-money assessment. However, the fixed-price nature of the award suggests an expectation of cost control by the Air Force.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific requirement. While more than one bidder is positive, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, which can drive down costs and improve service quality.

Public Impact

The Department of the Air Force benefits from enhanced administrative and environmental support services. This contract supports the operational efficiency of Air Force installations. The services provided likely contribute to maintaining compliance with environmental regulations. The contract supports jobs within the IT services sector, specifically at General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Reliance on a single large contractor may limit flexibility for future needs.

Positive Signals

Awarded through full and open competition, indicating a fair process.
Fixed-price contract type helps manage cost overruns.
General Dynamics IT is an established contractor with a track record in government IT services.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer systems design and related support. The federal IT services market is substantial, with agencies consistently investing in solutions to manage administrative functions, infrastructure, and specialized operational needs like environmental support. This contract represents a typical engagement for IT support within a large federal agency like the Department of the Air Force, aiming to ensure efficient operations and compliance.

Small Business Impact

The contract was awarded to General Dynamics Information Technology, a large business. There is no indication of a small business set-aside for this award. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, but this contract does not appear to have been specifically designed to promote small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Performance metrics and deliverables outlined in the contract would be used to monitor contractor performance. Transparency is generally maintained through contract award databases, though specific performance details may be less public.

Related Government Programs

IT Support Services
Computer Systems Design Services
Administrative Support Contracts
Environmental Compliance Services

Risk Flags

Potential for performance issues
Risk of vendor lock-in
Cybersecurity vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. ADMINISTRATION AND ENVIRONMENT SUPPORT

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 Air Force).

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2011-10-01. End: 2012-09-30.

What is the historical spending pattern for similar 'Computer Systems Design Services' contracts by the Department of the Air Force?

Analyzing historical spending for 'Computer Systems Design Services' (NAICS 541512) by the Department of the Air Force reveals a consistent and significant investment in IT infrastructure and support. Over the past decade, the Air Force has awarded billions of dollars in contracts under this category, with spending fluctuating based on modernization initiatives, cybersecurity needs, and operational requirements. Contracts range from large, multi-year enterprise-wide solutions to smaller, specialized service agreements. The average contract value for similar services can vary widely, but this $18.2 million award for a one-year period appears to be within a common range for specific functional support, rather than a major system overhaul. Factors influencing historical spending include technological advancements, budget allocations, and strategic priorities within the DoD.

How does the awarded price compare to market rates for similar IT support services?

Benchmarking the awarded price of approximately $18.2 million against market rates for similar IT support services requires detailed analysis of the specific tasks and service levels. General Dynamics Information Technology is a large, established provider, and their pricing is influenced by their overhead, labor rates, and profit margins. For a one-year contract focused on administration and environment support, this value suggests a comprehensive service package. Market rates can be influenced by geographic location, the complexity of the IT environment, and the specific expertise required. Without a detailed breakdown of the services rendered and the labor categories involved, a precise comparison is difficult. However, federal agencies often negotiate rates based on established government-wide contract vehicles or conduct market research to ensure competitive pricing, suggesting this award likely falls within an acceptable range for the services provided.

What is General Dynamics Information Technology's track record with federal IT contracts?

General Dynamics Information Technology (GDIT) has a substantial and long-standing track record of performing IT services for various U.S. federal agencies, including the Department of Defense. They are a major government contractor known for handling complex IT infrastructure, cybersecurity, cloud migration, and mission-critical support services. GDIT has secured numerous large-scale contracts across different branches of the military and civilian agencies. Their performance history generally includes a mix of successful contract completions and occasional challenges, which is typical for large contractors managing numerous complex projects. Reviews and past performance evaluations available through federal databases often provide insights into their reliability, technical capabilities, and adherence to contract terms. This specific contract award builds upon their extensive experience in providing IT solutions to the government.

What are the potential risks associated with this contract for the government?

Potential risks associated with this contract include performance deficiencies where GDIT might not meet the required service levels for administration and environment support, leading to operational disruptions. There's also a risk of cost overruns if the fixed-price structure doesn't adequately account for unforeseen technical challenges or scope creep, although the fixed-price nature aims to mitigate this. Vendor lock-in is another concern if the government becomes overly reliant on GDIT's specific systems or processes, making future transitions difficult or costly. Furthermore, cybersecurity vulnerabilities within the systems managed by GDIT could pose a risk to sensitive government data. Ensuring robust oversight and clear performance metrics is crucial to mitigating these risks.

How does this contract align with the Department of Defense's broader IT modernization goals?

This contract for administration and environment support aligns with the Department of Defense's (DoD) broader IT modernization goals by ensuring the foundational operational efficiency of its systems and infrastructure. While not a direct modernization project itself, reliable IT support services are critical for maintaining the existing environment, allowing personnel to focus on higher-level modernization efforts. Effective administration and environment support can include optimizing current systems, ensuring uptime, and managing data, all of which are prerequisites for successful technology upgrades and transitions to cloud-based solutions. The DoD's modernization strategy relies heavily on stable IT operations, and contracts like this contribute to that stability, indirectly supporting the larger objectives of enhanced cybersecurity, data accessibility, and operational agility.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: FA445208R0001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 3160 FAIRVIEW PARK DR, FALLS CHURCH, VA, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,309,627

Exercised Options: $18,309,627

Current Obligation: $18,239,627

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA445209D0004

IDV Type: IDC

Timeline