DoD's $26.2M contract for engineering services awarded to General Dynamics IT shows potential for cost savings
Contract Overview
Contract Amount: $26,205,217 ($26.2M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-03-08
End Date: 2009-12-07
Contract Duration: 1,370 days
Daily Burn Rate: $19.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200606!002906!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0123 ! !20060308!20110129!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000000984300!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A! !99990909!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
Plain-Language Summary
Department of Defense obligated $26.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200606!002906!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0123 ! !20060308!20110129!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALL… Key points: 1. The contract's value of $26.2 million over its period of performance suggests a significant investment in engineering services. 2. Competition dynamics indicate a full and open competition, which typically fosters better pricing and value. 3. The use of a Time and Materials contract type introduces potential cost risks if not managed closely. 4. The contract was awarded to General Dynamics Information Technology, Inc., a major player in the defense IT sector. 5. The engineering services provided likely support critical defense systems, contributing to national security objectives. 6. The contract's duration of 1370 days (approx. 3.75 years) indicates a long-term need for these services.
Value Assessment
Rating: fair
Benchmarking this contract's value is challenging without specific details on the engineering services rendered. However, the $26.2 million award over nearly four years for engineering services by the Department of Defense is substantial. The Time and Materials (T&M) contract type, while offering flexibility, can lead to higher costs compared to fixed-price contracts if not meticulously managed and monitored for efficiency. Further analysis of the specific labor categories and rates billed would be necessary to provide a more precise value-for-money assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The data indicates 14 bids were received, which is a healthy number and generally points to robust competition. This level of competition is beneficial for the government as it typically drives down prices and encourages contractors to offer their best value propositions to secure the award.
Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
The primary beneficiaries are likely components of the Department of Defense requiring specialized engineering expertise. Services delivered include systems engineering, crucial for the development, integration, and maintenance of complex defense systems. The geographic impact is centered around the contractor's operations and the defense installations they support, likely within the US. Workforce implications include employment opportunities for engineers and technical specialists within General Dynamics Information Technology and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored, as it bases payment on direct labor hours and material costs.
- Lack of specific performance metrics in the provided data makes it difficult to assess the quality and effectiveness of the engineering services delivered.
- The contract's duration, while indicating a long-term need, also means sustained financial commitment from the government.
Positive Signals
- The award was made under full and open competition, indicating a robust bidding process that likely secured competitive pricing.
- The significant number of bids (14) suggests strong market interest and a healthy competitive environment for these services.
- General Dynamics Information Technology is a well-established contractor with a significant presence in the defense sector, implying experience and capability.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports various government functions, particularly in defense, by providing specialized expertise for complex projects. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and development of military systems. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts within the DoD for similar system development or sustainment efforts.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. While General Dynamics Information Technology, the prime contractor, is a large business, there may be subcontracting opportunities for small businesses within the scope of the engineering services. Further investigation into the contractor's subcontracting plan would be needed to assess the direct impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer (ACO) within the Department of the Army. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Engineering Services
- Systems Engineering
- Information Technology Support Services
- Department of Defense IT Procurement
- Professional, Scientific, and Technical Services
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Lack of specific performance metrics makes value assessment difficult.
- Concentration of work with a single large contractor.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, systems-engineering, time-and-materials, full-and-open-competition, general-dynamics-information-technology, usa, federal-contract, it-services, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200606!002906!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0123 ! !20060308!20110129!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000000984300!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A! !999
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 $26.2 million.
What is the period of performance?
Start: 2006-03-08. End: 2009-12-07.
What specific types of engineering services were provided under this contract?
The contract data indicates the primary service category as 'Systems Engineering Services' (NAICS code 541330). This broadly encompasses a range of activities related to the design, development, integration, testing, and maintenance of complex systems. For a defense contract, this could include areas like software engineering, hardware integration, requirements analysis, system architecture, and lifecycle support for military platforms or communication systems. Without more granular detail from the contract's statement of work, the precise nature of the engineering tasks remains general.
How does the $26.2 million contract value compare to similar engineering services contracts within the DoD?
Comparing the $26.2 million value requires context on the specific services and duration. For systems engineering and technical assistance (SETA) contracts within the DoD, this amount is substantial but not extraordinary, especially for multi-year efforts supporting major defense programs. Larger programs can easily exceed hundreds of millions or even billions. However, for a contract focused on a specific set of engineering services over approximately 3.75 years, it represents a significant investment. Benchmarking would involve looking at other contracts with similar NAICS codes (e.g., 541330) and contract types (Time and Materials) awarded by agencies like the Army, Navy, or Air Force over comparable periods.
What are the primary risks associated with the Time and Materials (T&M) contract type used for this award?
The primary risk with Time and Materials contracts is the potential for cost growth, as the government pays for direct labor hours at specified rates and for the cost of materials. Unlike fixed-price contracts, there is less incentive for the contractor to control costs efficiently. If labor hours are not diligently tracked or if material costs escalate unexpectedly, the total contract value can exceed initial estimates. Effective oversight, including detailed monitoring of labor hours, review of material invoices, and clear definition of 'materials' versus 'supplies', is crucial to mitigate these risks and ensure fair pricing for the government.
What is General Dynamics Information Technology's track record with similar DoD contracts?
General Dynamics Information Technology (GDIT), a business unit of General Dynamics, has an extensive track record of performing large-scale IT and engineering services contracts for the Department of Defense and other federal agencies. They are a major incumbent contractor across numerous defense programs, providing services ranging from enterprise IT infrastructure management to complex systems engineering and modernization. Their history includes both successful contract executions and, like many large contractors, occasional performance issues or contract disputes that are publicly documented. A detailed review of their past performance ratings and any significant contract challenges would provide further insight.
How has spending on engineering services by the Department of the Army trended over the past decade?
Spending on engineering services by the Department of the Army, and the DoD overall, has generally remained robust, particularly in areas supporting modernization, R&D, and sustainment of complex weapon systems. While specific figures fluctuate based on budget priorities, geopolitical events, and program lifecycles, the need for specialized engineering expertise is a constant. Trends often show increased investment in areas like cybersecurity, artificial intelligence, and advanced communications, which all rely heavily on engineering services. Analyzing historical spending patterns within specific NAICS codes like 541330 for the Army would reveal trends related to the type and volume of engineering support procured.
What are the implications of awarding this contract to a single large entity like General Dynamics IT?
Awarding a contract of this magnitude to a single large entity like General Dynamics IT concentrates the execution of these critical engineering services within one organization. This can lead to efficiencies through economies of scale and established processes. However, it also concentrates risk; if the contractor underperforms or faces financial difficulties, the program's continuity could be jeopardized. Furthermore, it may limit opportunities for smaller, specialized firms to directly participate unless they are brought in as subcontractors. The government relies on robust contract management to ensure performance and value from such large awards.
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
Start Date: 2006-03-08
Current End Date: 2009-12-07
Potential End Date: 2009-12-07 00:00:00
Last Modified: 2015-04-16
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