DoD's $64.5M R&D contract to General Dynamics IT shows fair value with 2 bidders

Contract Overview

Contract Amount: $64,520,352 ($64.5M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-15

End Date: 2014-03-15

Contract Duration: 1,642 days

Daily Burn Rate: $39.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TASK 2 - BASE YEAR

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $64.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: TASK 2 - BASE YEAR Key points: 1. The contract's value appears reasonable given the scope of research and development services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of over 5 years indicates a significant, long-term commitment. 4. The use of a Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs. 5. This contract falls within the Research and Development sector, specifically physical, engineering, and life sciences. 6. The award was made by the Defense Information Systems Agency, a key DoD IT provider.

Value Assessment

Rating: good

The contract value of approximately $64.5 million over its 5-year period represents a substantial investment in R&D. Benchmarking against similar large-scale R&D contracts within the Department of Defense is challenging without more specific service details. However, the presence of two bidders in a full and open competition suggests that the pricing was likely competitive. The CPFF structure, while common for R&D, necessitates robust oversight to ensure cost efficiency and prevent overruns.

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. Two bids were received, which suggests a moderate level of competition. While more bidders could potentially drive prices lower, two bidders are sufficient to establish a competitive baseline and allow for evaluation of technical and cost proposals.

Taxpayer Impact: The full and open competition with two bidders likely resulted in a fair market price for the government, avoiding the premium often associated with sole-source or limited competition awards.

Public Impact

The primary beneficiary is the Department of Defense, which receives advanced research and development services. The services delivered are likely to enhance technological capabilities within defense systems. The geographic impact is primarily within Illinois, where the contractor is located, but the ultimate impact is national defense. The contract supports highly skilled jobs in research and development, contributing to the technical workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not closely monitored.
The limited number of bidders (two) might indicate a specialized field or high barriers to entry, potentially limiting future competition.
The specific nature of the R&D is not detailed, making it difficult to assess the true innovation and long-term value.

Positive Signals

Awarded under full and open competition, ensuring a broad search for qualified contractors.
The contractor, General Dynamics Information Technology Inc., is a well-established entity with significant experience in government contracting.
The contract duration suggests a stable, long-term need for these R&D services by the agency.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is critical for technological advancement and national security. Spending in this area is often characterized by long project timelines, high upfront investment, and the potential for significant breakthroughs. Comparable spending benchmarks are difficult to establish without knowing the precise R&D focus, but large federal R&D contracts can range from tens to hundreds of millions of dollars.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary focus was on securing specialized R&D capabilities from larger, established firms, and the direct impact on the small business ecosystem may be limited unless General Dynamics IT actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and administrative contracting officer at the Defense Information Systems Agency. The CPFF structure necessitates rigorous financial oversight to track expenditures and ensure compliance with the fixed fee. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

DoD Research and Development Programs
Defense Information Technology Modernization
Advanced Scientific Research Contracts
Engineering Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Limited number of bidders may indicate specialized requirements or market concentration.
R&D projects inherently carry technical and schedule risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. TASK 2 - BASE YEAR

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 Information Systems Agency).

What is the total obligated amount?

The obligated amount is $64.5 million.

What is the period of performance?

Start: 2009-09-15. End: 2014-03-15.

What specific R&D projects were undertaken under this contract?

The provided data does not specify the exact nature of the research and development projects. NAICS code 541712 covers a broad range of activities in physical, engineering, and life sciences. Given the contractor (General Dynamics Information Technology Inc.) and the agency (Defense Information Systems Agency), it is likely related to advanced IT, cybersecurity, communication systems, or other defense-specific technological advancements. Further details would require access to the contract's statement of work or related documentation.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control for this contract?

The CPFF structure involves the government reimbursing the contractor for allowable costs plus a fixed fee representing profit. While it allows for flexibility in R&D where costs can be unpredictable, it can incentivize contractors to incur higher costs if oversight is lax, as their profit (the fixed fee) remains constant. Effective cost control relies heavily on robust government oversight, detailed cost accounting, and regular audits to ensure all claimed costs are reasonable, allocable, and necessary for the contract's performance.

What is the track record of General Dynamics Information Technology Inc. with similar DoD R&D contracts?

General Dynamics Information Technology Inc. (GDIT) is a major federal contractor with extensive experience across various agencies, including the Department of Defense. They have a significant history of performing large-scale IT, systems engineering, and R&D services. While specific performance metrics for this particular contract are not detailed here, GDIT's overall track record suggests they possess the capacity and expertise for complex R&D endeavors. However, as with any large contractor, past performance reviews and contract-specific award histories would provide a more granular understanding.

How does the $64.5 million total value compare to other DoD R&D contracts of similar duration?

A total contract value of $64.5 million over approximately 5.5 years (from September 2009 to March 2014) averages around $11.7 million per year. This figure is substantial but not extraordinary for large-scale R&D efforts within the Department of Defense. DoD R&D spending can vary widely based on the technological area, project complexity, and strategic importance. Contracts for major weapon system development or foundational research can easily exceed this amount annually. Therefore, this contract appears to be within a moderate to high range for specialized R&D services.

What are the potential risks associated with a sole-source or limited competition R&D contract of this magnitude?

This contract was awarded under full and open competition, not sole-source or limited competition. Therefore, the risks typically associated with non-competitive awards (e.g., higher prices, reduced innovation due to lack of competitive pressure) are mitigated. The primary risks for this contract stem from the R&D nature itself: technical feasibility, potential for cost overruns under the CPFF structure, and ensuring the research yields valuable, applicable results for the DoD. The presence of two bidders suggests some level of competition was achieved.

What historical spending patterns exist for R&D contracts awarded by the Defense Information Systems Agency (DISA)?

DISA, as a primary IT and communications agency for the DoD, historically awards significant contracts for R&D related to network infrastructure, cybersecurity, command and control systems, and data management. Their R&D spending often focuses on maintaining technological superiority and adapting to evolving threats. While specific historical spending figures for DISA's R&D portfolio require detailed analysis of federal procurement data, it is known that DISA manages substantial budgets for technology development and innovation to support the warfighter.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

Address: 3160 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

Financial Breakdown

Contract Ceiling: $64,520,352

Exercised Options: $64,520,352

Current Obligation: $64,520,352

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2017

IDV Type: IDC

Timeline