DoD's $36.6M IGF WAN/MAN/CAN/LAN/VPN Services contract awarded to General Dynamics IT shows fair value

Contract Overview

Contract Amount: $36,600,578 ($36.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-02-28

End Date: 2018-09-30

Contract Duration: 579 days

Daily Burn Rate: $63.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF WAN/MAN/CAN/LAN/VPN SERVICES - OCONUS

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $36.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF WAN/MAN/CAN/LAN/VPN SERVICES - OCONUS Key points: 1. Contract value of $36.6M over 579 days suggests a moderate annual spend. 2. Full and open competition indicates a potentially competitive bidding process. 3. Fixed-price contract type may limit cost overruns but could impact flexibility. 4. Services are OCONUS, implying specialized logistical and operational considerations. 5. Contract awarded as a delivery order, suggesting it's part of a larger framework. 6. Contractor's track record and past performance will be key to assessing future value. 7. NAICS code 541519 points to a broad category of computer-related services.

Value Assessment

Rating: fair

The contract's total value of $36.6 million over approximately 1.6 years results in an average annual spend of roughly $22.8 million. Benchmarking this against similar OCONUS IT network services contracts is challenging without more specific service details and geographic scope. However, the firm-fixed-price structure suggests that the government aimed to control costs upfront. Further analysis would require comparing the specific services rendered and their performance metrics against industry standards and other government contracts for similar OCONUS IT infrastructure support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the government sought the best value available in the market for these OCONUS network services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages a wider range of innovative solutions.

Public Impact

U.S. Special Operations Command (SOCOM) personnel and operations in OCONUS locations benefit from reliable network connectivity. The contract delivers essential Wide Area Network (WAN), Metropolitan Area Network (MAN), Campus Area Network (CAN), Local Area Network (LAN), and Virtual Private Network (VPN) services. Geographic impact is focused on overseas operational theaters supporting SOCOM missions. Workforce implications may include the need for specialized IT technicians with OCONUS deployment experience, potentially impacting both military and civilian personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements were not fully defined for complex OCONUS networks.
Reliance on a single contractor for critical OCONUS network infrastructure could pose risks if performance degrades.
Ensuring consistent service quality and uptime across diverse and potentially challenging OCONUS environments.
Cybersecurity risks associated with managing sensitive military network traffic in overseas locations.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, suggesting a potentially robust selection process.
General Dynamics Information Technology is a large, established contractor with significant experience in government IT services.
Delivery order structure may indicate efficient use of an existing contract vehicle.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on network infrastructure and telecommunications support. The market for OCONUS IT services is specialized, often requiring contractors to navigate complex logistical, security, and regulatory environments. General Dynamics Information Technology is a major player in this space, competing with other large defense contractors. Spending benchmarks for similar OCONUS network services can vary significantly based on location, bandwidth requirements, and security protocols, but this contract's value appears moderate for supporting a significant operational command.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime. The focus is on large-scale IT infrastructure, which typically favors established, larger service providers.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Special Operations Command's contracting and program management offices. As a delivery order under a larger contract, oversight might also be influenced by the parent contract's structure. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be tied to the performance work statement and the firm-fixed-price terms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Enterprise IT Services
OCONUS Communications Support
Special Operations Forces Support Contracts
Network Infrastructure Services
Information Technology Services

Risk Flags

OCONUS Operations Complexity
Cybersecurity Risk
Contractor Performance Dependency
Firm-Fixed-Price Limitations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF WAN/MAN/CAN/LAN/VPN SERVICES - OCONUS

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 (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $36.6 million.

What is the period of performance?

Start: 2017-02-28. End: 2018-09-30.

What is the specific performance history of General Dynamics Information Technology on this contract and similar OCONUS IT network contracts?

Assessing General Dynamics Information Technology's (GDIT) performance on this specific IGF WAN/MAN/CAN/LAN/VPN Services contract (awarded Feb 2017, ending Sep 2018) requires access to performance evaluation reports (e.g., CPARS). Without direct access to these reports, we can infer potential performance based on GDIT's broader track record. GDIT is a large, established federal contractor with extensive experience in IT services, including complex network infrastructure and OCONUS operations for various agencies, including the Department of Defense. They have historically managed large-scale contracts involving similar technologies. However, performance can vary significantly based on contract specifics, geographic challenges, and evolving requirements. A review of their past performance on comparable OCONUS network contracts would be necessary to identify any recurring issues or consistent successes related to service delivery, uptime, security, and responsiveness in challenging environments.

How does the per-unit cost or overall value of this contract compare to similar OCONUS network services procured by the DoD or other agencies?

Directly comparing the value of this $36.6 million contract for 579 days (approx. 1.6 years) requires detailed knowledge of the specific services, bandwidth, security levels, and geographic locations covered. The average annual spend is roughly $22.8 million. OCONUS IT network services are inherently more expensive than CONUS due to logistical challenges, specialized equipment, security requirements, and potentially higher labor costs. Without a breakdown of services (e.g., cost per Mbps, cost per site supported, cost per VPN connection), a precise benchmark is difficult. However, for supporting a major command like SOCOM in overseas locations, this value appears within a plausible range, assuming comprehensive service delivery. A more granular comparison would involve analyzing contracts with similar service level agreements (SLAs), geographic footprints, and security classifications.

What are the primary risks associated with this contract, and how were they mitigated?

Key risks for this OCONUS IT network services contract include operational disruptions due to the challenging environments, cybersecurity threats targeting sensitive military communications, potential cost overruns if the firm-fixed-price model proves inadequate for unforeseen issues, and contractor performance degradation. Mitigation strategies likely involved robust security protocols, detailed Service Level Agreements (SLAs) with performance metrics, contingency planning for infrastructure failures, and potentially phased rollouts or modular service delivery. The firm-fixed-price structure itself acts as a cost control measure, shifting some financial risk to the contractor. However, the effectiveness of these mitigations depends heavily on the specific contract clauses, the contractor's implementation, and ongoing government oversight.

How effective has this contract been in supporting the mission objectives of the U.S. Special Operations Command?

The effectiveness of this contract in supporting SOCOM's mission objectives hinges on the reliability, security, and performance of the delivered WAN/MAN/CAN/LAN/VPN services in OCONUS theaters. Reliable network connectivity is critical for command and control, intelligence sharing, logistics, and operational coordination for special operations forces. If the network services consistently met or exceeded the defined Service Level Agreements (SLAs) and security requirements, then the contract was effective. Conversely, any significant downtime, security breaches, or performance issues would detract from its effectiveness. A definitive assessment would require reviewing SOCOM's operational feedback, performance metrics documented in contract reports (like CPARS), and any reported incidents impacting mission readiness.

What has been the historical spending trend for OCONUS network services by SOCOM or the DoD?

Historical spending on OCONUS network services by SOCOM and the broader DoD has generally trended upwards over the past two decades, driven by increasing global operational tempo, the need for secure and high-bandwidth communications, and the expansion of digital capabilities. Specific figures for SOCOM's OCONUS network spending would require detailed analysis of their budget allocations and contract awards over time. However, it's understood that maintaining robust, secure, and reliable network infrastructure in diverse and often austere overseas locations represents a significant and ongoing investment for the Department of Defense. This contract, valued at $36.6 million over approximately 1.6 years, fits within this broader context of substantial investment in global IT infrastructure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: H9222210R0032

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

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: $36,878,445

Exercised Options: $36,878,445

Current Obligation: $36,600,578

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $357,289

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222211D0006

IDV Type: IDC

Timeline