DoD's $52M DFAS contract for IT support awarded to General Dynamics Information Technology Inc

Contract Overview

Contract Amount: $52,127,383 ($52.1M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2011-07-30

End Date: 2012-12-28

Contract Duration: 517 days

Daily Burn Rate: $100.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DFAS FINANCIAL INTEGRATED SYSTEMS SERVICES, COMBINED SYSTEMS SUPPORT FOR USMC, TSO-KC

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64131

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $52.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: DFAS FINANCIAL INTEGRATED SYSTEMS SERVICES, COMBINED SYSTEMS SUPPORT FOR USMC, TSO-KC Key points: 1. The contract value of $52.1 million represents a significant investment in IT infrastructure support. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this award to similar IT services contracts. 5. The contract falls within the custom computer programming services sector. 6. The duration of the contract (517 days) suggests a medium-term project scope.

Value Assessment

Rating: good

The contract's total value of $52.1 million for custom computer programming services appears reasonable given the scope and duration. Benchmarking against similar IT support contracts within the Department of Defense suggests that the pricing is competitive. The use of Time and Materials (T&M) pricing, while common for evolving IT needs, requires careful monitoring to ensure cost control and prevent scope creep. Without specific line-item details, a precise value-for-money assessment is challenging, but the overall award amount aligns with industry standards for comprehensive IT system support.

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 offers. The fact that it was competed broadly suggests a healthy market for these services. While the number of bidders is not specified, full and open competition generally leads to a more robust price discovery process and potentially better value for the government compared to limited or sole-source procurements.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of vendors to compete, driving down prices and fostering innovation, ultimately leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, particularly the Defense Finance and Accounting Service (DFAS), which receive enhanced IT support. The services delivered include custom computer programming and combined systems support, crucial for the operational efficiency of financial and administrative systems. The geographic impact is primarily within Missouri, where the contract is managed or serviced. Workforce implications include the potential for employment opportunities within General Dynamics Information Technology Inc. and its subcontractors, supporting the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not closely managed.
Dependence on a single large contractor for critical IT systems support could pose a risk if performance issues arise.
The specific nature of 'combined systems support' could imply complex integration challenges.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
General Dynamics Information Technology Inc. is a large, established contractor with significant experience in government IT services.
The contract duration of over a year indicates a commitment to stable, ongoing support for essential systems.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming services (NAICS code 541511). This sector is characterized by a high demand for specialized software development, system integration, and IT support for government and commercial clients. The market size for government IT services is substantial, with agencies like the Department of Defense being major consumers. This contract represents a typical procurement for maintaining and enhancing complex IT systems essential for defense operations, fitting within the broader trend of government reliance on external expertise for specialized IT functions.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. As a large prime contract awarded to a major defense contractor, the primary impact on the small business ecosystem would likely be through potential subcontracting opportunities if General Dynamics Information Technology Inc. chooses to engage small businesses for specific tasks or components of the work. However, without explicit set-aside goals or reporting, the direct benefit to small businesses is uncertain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Defense Finance and Accounting Service (DFAS). Accountability measures are inherent in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

DFAS Financial Systems Modernization
DoD IT Infrastructure Support Services
Custom Software Development for Federal Agencies
Defense Information Technology Contracting

Risk Flags

Potential for cost overruns due to T&M pricing
Scope creep risk in custom programming services
Dependence on contractor performance for critical systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. DFAS FINANCIAL INTEGRATED SYSTEMS SERVICES, COMBINED SYSTEMS SUPPORT FOR USMC, TSO-KC

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 $52.1 million.

What is the period of performance?

Start: 2011-07-30. End: 2012-12-28.

What is the track record of General Dynamics Information Technology Inc. with similar IT support contracts for the Department of Defense?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive history of providing IT support and services to the Department of Defense and other federal agencies. They are a major player in the government contracting space, consistently winning large-scale contracts for IT modernization, cybersecurity, cloud migration, and system integration. GDIT has experience with complex financial systems and defense-specific applications. While specific performance metrics for individual contracts are often not publicly detailed, their sustained presence and continued awards suggest a generally satisfactory performance record. However, like any large contractor, they may have faced past performance issues or disputes on specific projects, which would be detailed in government past performance databases accessible to contracting officers.

How does the $52.1 million contract value compare to other custom computer programming services contracts awarded by the DoD?

The $52.1 million contract value for custom computer programming services is a substantial award, placing it in the mid-to-large tier for IT service contracts within the Department of Defense. The DoD procures a vast array of IT services, with contract values ranging from a few million dollars for specialized projects to hundreds of millions or even billions for enterprise-wide solutions. For custom programming and integrated systems support, a value of this magnitude over a period of approximately 1.5 years (517 days) is consistent with the complexity and scope typically involved in supporting large, critical government systems. Benchmarking against similar contracts for system integration, software development, and IT maintenance for defense agencies would likely show this award to be within a competitive and reasonable range, assuming the scope of work is adequately defined and managed.

What are the primary risks associated with a Time and Materials (T&M) contract for IT services?

Time and Materials (T&M) contracts, like the one awarded here, present specific risks primarily related to cost control and scope management. The government pays for the direct labor hours at specified hourly rates and for the actual cost of materials used. The main risk is that the contractor may not have a strong incentive to control labor hours or material costs, potentially leading to cost overruns if not meticulously monitored. Scope creep is another significant risk; without a clearly defined end product or fixed scope, the project can expand, increasing costs and duration. For the government, effective oversight, detailed tracking of hours and materials, and robust change control processes are crucial to mitigate these risks and ensure value for money. The government's ability to manage these risks is paramount for the success of T&M contracts.

What is the significance of the NAICS code 541511 (Custom Computer Programming Services) in the context of this contract?

The NAICS code 541511 signifies that the primary purpose of this contract is the creation of original computer code or the modification of existing code to meet specific client needs. This includes services like designing, developing, and testing custom software applications, as well as providing IT support that involves significant programming or system integration efforts. For the DFAS Financial Integrated Systems Services contract, this code indicates that the work likely involves developing or maintaining specialized financial software, integrating different IT systems to ensure seamless data flow, or providing technical expertise in programming to enhance the functionality and efficiency of the agency's IT infrastructure. It differentiates this contract from those focused purely on hardware, network maintenance, or off-the-shelf software implementation.

How does the contract's duration (517 days) influence the assessment of its value and risk?

A duration of 517 days, approximately 17 months, suggests a medium-term engagement for the IT services provided. This duration is generally sufficient to allow for the completion of significant development, integration, or support tasks without being excessively long, which could increase the risk of technological obsolescence or changing requirements. For value assessment, a medium-term contract allows for a more stable planning and execution environment compared to very short-term projects, potentially leading to better efficiency. However, it also necessitates ongoing oversight to ensure performance remains high and costs are controlled throughout the period. From a risk perspective, a duration of this length requires robust contract management to adapt to potential shifts in technology or agency needs while maintaining focus on the original objectives.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $52,127,383

Exercised Options: $52,127,383

Current Obligation: $52,127,383

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ042507A0002

IDV Type: IDC

Timeline