DoD awards $277M engineering services contract to General Dynamics Information Technology Inc

Contract Overview

Contract Amount: $277,000,000 ($277.0M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-23

End Date: 2011-09-23

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FUNDING IN SUPPORT OF AGREEMENT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $277.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: FUNDING IN SUPPORT OF AGREEMENT Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract is for engineering services, a critical component of defense infrastructure. 3. The award value of $277 million indicates a significant investment in this service area. 4. The contract duration is zero, implying it may be a task order or a completed award. 5. The contractor, General Dynamics Information Technology Inc., is a major player in the defense IT sector. 6. The contract was awarded by the Department of the Army, a key branch of the DoD.

Value Assessment

Rating: fair

The contract value of $277 million for engineering services is substantial. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. Benchmarking against similar large-scale engineering service contracts within the Department of Defense would be necessary to determine if the pricing is competitive. The fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined.

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. This typically leads to a more robust selection process and potentially better pricing due to market forces. The presence of two bids suggests a moderate level of competition for this significant contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The Department of Defense benefits from specialized engineering services to support its operations and infrastructure. This contract likely supports various engineering projects critical to national defense. The geographic impact is likely broad, potentially spanning multiple military installations or operational areas. The contract may have implications for the engineering workforce, both within the contractor's organization and potentially through subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the engineering services provided.
The zero duration for the contract raises questions about its current status and whether it represents a completed award or a placeholder for task orders.
Without knowing the specific engineering tasks, it's hard to gauge the true value and necessity of the $277 million expenditure.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contractor, General Dynamics Information Technology Inc., has a significant presence and experience in the defense sector.
The fixed-price contract type shifts cost-overrun risk to the contractor, which can be advantageous for the government.

Sector Analysis

Engineering services are a vital component of the defense sector, encompassing a wide range of activities from design and development to maintenance and support of military systems and infrastructure. The market for defense engineering services is substantial, with significant annual spending by agencies like the Department of Defense. This contract fits within the broader category of professional services procured by the government to support its complex operational needs. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by the DoD or other federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, General Dynamics Information Technology Inc., is a large entity, and any subcontracting opportunities would likely be determined by their internal procurement strategies rather than specific set-aside requirements for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and program management offices. Accountability measures would be defined by the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Engineering Services
Army Professional Services Contracts
General Dynamics Information Technology Inc. Contracts
Large Value Federal Contracts
Engineering and Technical Services

Risk Flags

Contract duration is listed as 0, requiring clarification on its current operational status.
Limited competition (2 bidders) may warrant further investigation into market research and outreach efforts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $277.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. FUNDING IN SUPPORT OF AGREEMENT

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 $277.0 million.

What is the period of performance?

Start: 2011-09-23. End: 2011-09-23.

What specific engineering services were procured under this $277 million contract?

The provided data indicates the contract is for 'Engineering Services' (nd: 'Engineering Services') and has a North American Industry Classification System (NAICS) code of 541330, which specifically denotes 'Engineering Services'. However, the data does not detail the specific types of engineering services rendered. These could range from architectural and design services, systems engineering, research and development support, to technical consulting and project management for military infrastructure or equipment. A more granular analysis of the contract's statement of work (SOW) would be required to understand the precise nature and scope of the engineering tasks performed.

How does the $277 million award value compare to historical spending on similar engineering services by the Department of the Army?

To assess the $277 million award value against historical spending, one would need to analyze the Department of the Army's procurement data for engineering services over several fiscal years. This would involve identifying contracts with similar NAICS codes (e.g., 541330) and contract types (e.g., Firm Fixed Price). Comparing the average award values, total spending trends, and the number of contracts awarded annually would provide context. For instance, if historical data shows an average award value of $100 million for similar services, then $277 million would represent a significantly larger investment. Conversely, if the Army frequently awards contracts in the hundreds of millions for engineering support, this award might be within the expected range. Without access to this broader historical data, it's difficult to definitively benchmark this specific contract's value.

What is the track record of General Dynamics Information Technology Inc. in delivering engineering services to the federal government?

General Dynamics Information Technology Inc. (GDIT) is a well-established contractor with a substantial history of serving the federal government, including the Department of Defense. Their track record in engineering services is generally considered extensive, covering a wide array of technical and professional support. Analyzing their past performance evaluations, contract completion history, and any documented instances of contract disputes or awards for excellence would provide a comprehensive view. GDIT has been involved in numerous large-scale IT and engineering support contracts, suggesting a capacity to handle complex projects. However, a detailed review of specific past engineering service contracts, including their scope, value, and client satisfaction, would be necessary for a precise assessment of their performance in this specific domain.

What are the potential risks associated with a $277 million engineering services contract awarded to a single vendor?

A significant risk associated with a large-value contract awarded to a single vendor, even under full and open competition, is vendor lock-in and potential over-reliance. If the engineering services are critical and long-term, the government might become dependent on GDIT, potentially reducing future negotiating leverage. Another risk is the contractor's ability to scale resources effectively or maintain consistent quality throughout the contract's lifecycle. Performance issues, cost overruns (though mitigated by fixed-price), or unforeseen technical challenges could arise. Furthermore, if the scope is not meticulously defined, there's a risk of scope creep or misinterpretation of requirements, leading to disputes or suboptimal outcomes. The concentration of a large sum of taxpayer money with one entity necessitates robust oversight.

How does the NAICS code 541330 (Engineering Services) typically align with Department of Defense procurement needs?

The NAICS code 541330, 'Engineering Services,' is highly relevant to the Department of Defense's (DoD) procurement needs. The DoD relies heavily on specialized engineering expertise for the design, development, testing, maintenance, and modernization of its vast array of military platforms, systems, and infrastructure. This includes everything from aerospace and naval engineering to civil engineering for bases and facilities, and systems engineering for complex weapon systems. Contracts under this code support critical functions such as research and development, technical analysis, project management, and ensuring compliance with stringent military and safety standards. The DoD is consistently one of the largest government purchasers of engineering services, making this NAICS code a frequent feature in its contracting activities.

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: SEALED BID

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

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

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

Financial Breakdown

Contract Ceiling: $277,000,000

Exercised Options: $277,000,000

Current Obligation: $277,000,000

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0700DE252

IDV Type: IDC

Timeline