DoD's $28.7M contract for IT services awarded to General Dynamics IT shows fair competition and potential value

Contract Overview

Contract Amount: $28,746,147 ($28.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-06-22

End Date: 2008-10-21

Contract Duration: 1,217 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 200509!005049!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0110 ! !20050622!20090129!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000006912500!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !20200930!B! ! !A! !A!N!Y!2!014!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724, UNITED STATES OF AMERICA

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200509!005049!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0110 ! !20050622!20090129!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALL… Key points: 1. Contract awarded to a large, established IT services provider. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract duration of over 3 years indicates a significant need for services. 4. The contract type (Time and Materials) can lead to cost overruns if not managed carefully. 5. Services provided fall under engineering and IT support, crucial for defense operations. 6. Small business participation was not a stated requirement, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: good

The total award amount of $28.7 million over approximately 3 years for engineering and IT services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts within the Department of Defense suggests this falls within expected spending ranges. The Time and Materials contract type, while flexible, warrants close monitoring to ensure costs remain aligned with the value delivered and do not escalate beyond initial projections.

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. The presence of 14 bids suggests a robust competitive environment. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: A competitive bidding process like this one helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple vendors.

Public Impact

The Department of Defense benefits from enhanced IT and engineering support, crucial for its operational readiness. Services likely include system design, integration, maintenance, and technical support for electronic and communication equipment. The geographic impact is primarily within the contractor's operational areas, supporting defense infrastructure. Workforce implications include employment for IT professionals, engineers, and support staff within General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Lack of specific small business set-aside may limit opportunities for smaller, specialized firms.
The contract's duration and value suggest a significant reliance on this single provider for critical services.

Positive Signals

Awarded under full and open competition, indicating a healthy market response.
Multiple bids received (14) suggest strong vendor interest and competitive pricing.
Contract supports essential defense IT and engineering functions.

Sector Analysis

This contract falls within the broader IT and professional services sector, specifically focusing on engineering services (NAICS 541330). The market for defense IT and engineering support is substantial, with significant government spending allocated annually. This contract represents a portion of the Department of Defense's investment in maintaining and upgrading its complex technological infrastructure, competing with other large defense contractors for similar opportunities.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. This suggests that the primary award went to a large business, General Dynamics Information Technology. While this may not directly benefit small businesses through this specific award, large prime contractors often engage small businesses for specialized services, though the extent of this contract's subcontracting is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring, invoicing review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting, though specific internal oversight details are not publicly available.

Related Government Programs

Department of Defense IT Services Contracts
Engineering Services Contracts
Information Technology Support Services
Defense Communications and Electronics Procurement

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of explicit small business subcontracting goals may limit SMB participation.
Contract duration implies long-term reliance on a single vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200509!005049!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0110 ! !20050622!20090129!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000006912500!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $28.7 million.

What is the period of performance?

Start: 2005-06-22. End: 2008-10-21.

What is the track record of General Dynamics Information Technology with the Department of Defense for similar services?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long and extensive history of providing IT and engineering services to the Department of Defense and other federal agencies. They are a major contractor involved in a wide array of programs, including network modernization, cybersecurity, enterprise IT, cloud migration, and systems engineering. Their track record includes numerous large-scale, complex contracts similar in nature to this one, often involving significant dollar values and long durations. While specific performance metrics for individual contracts are not always public, GDIT's continued success in winning competitive bids indicates a generally positive performance history and strong capabilities recognized by the government.

How does the per-unit cost or value of this contract compare to similar engineering services contracts within the DoD?

Direct per-unit cost comparison for this contract is challenging due to its Time and Materials (T&M) nature and the broad scope of 'Systems Engineering Services.' T&M contracts bill based on actual labor hours and material costs, making a fixed per-unit price difficult to establish. However, the total award of approximately $28.7 million over roughly three years averages to about $9.6 million per year. This annual spending level is within the expected range for large-scale IT and engineering support contracts awarded by the Department of Defense, which often involve complex systems and require specialized expertise. Benchmarking against other large DoD contracts for similar services suggests this contract represents a fair market value, assuming effective cost control and efficient service delivery.

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

The primary risks associated with this contract include potential cost overruns due to the Time and Materials (T&M) pricing structure, which can incentivize longer task durations if not managed tightly. Another risk is the potential for vendor lock-in or over-reliance on a single large provider for critical services. Performance risk, ensuring the contractor delivers high-quality engineering and IT support, is also present. Mitigation strategies typically involve robust contract oversight by the government, including detailed review of invoices, performance metrics tracking, regular progress meetings, and clearly defined task orders. The government can also implement cost ceilings and require competitive re-competition at contract expiration or modification points to manage costs and ensure continued value.

How effective is the competition level (14 bidders) in ensuring value for taxpayers?

A competition level of 14 bidders is generally considered very strong and highly effective in ensuring value for taxpayers. This high number of bids indicates significant market interest and suggests that multiple companies possessed the capabilities to fulfill the contract requirements. Intense competition typically drives down prices as bidders strive to offer the most attractive proposals. It also fosters innovation as companies differentiate themselves through technical solutions and cost-effectiveness. For taxpayers, this means the government likely secured services at a more competitive price than if there had been fewer bidders, and the chosen contractor is incentivized to perform well to maintain future business opportunities.

What is the historical spending trend for similar engineering and IT services within the Department of the Army?

The Department of the Army, like other branches of the DoD, consistently spends billions of dollars annually on engineering, IT, and professional services. Historical data shows a significant and often increasing trend in spending for these categories, driven by the need to maintain and modernize complex weapon systems, IT infrastructure, and communication networks. Contracts for systems engineering, software development, cybersecurity, and general IT support are a major component of the Army's budget. While specific figures fluctuate year to year based on strategic priorities and budget allocations, the overall demand for these services remains high, making contracts like this a recurring necessity for the organization.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 14

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 15 CHRISTOPHER WAY, EATONTOWN, NJ, 07724

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0703DB007

IDV Type: IDC

Timeline