DoD's $92.7M contract for engineering services awarded to General Dynamics IT shows fair value, but limited competition
Contract Overview
Contract Amount: $92,749,328 ($92.7M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-03-17
End Date: 2008-03-16
Contract Duration: 730 days
Daily Burn Rate: $127.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200606!003123!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0140 ! !20060317!20110129!788154529!788154529!009581091!N!COMPUTER SCIENCES CORPORATION !15 CHRISTOPHER WAY !EATONTOWN !NJ!07724!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000021870000!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 $92.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200606!003123!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0140 ! !20060317!20110129!788154529!788154529!009581091!N!COMPUTER SCIENCES CORPORATION !15 CHRISTOPHER WAY !EATONTOWN !NJ!07724!27200!610!51!FALLS CHURCH !FALL… Key points: 1. Contract value appears reasonable given the scope of engineering services provided. 2. Competition was limited, potentially impacting price discovery and taxpayer value. 3. Contractor has a significant presence in federal IT and defense sectors. 4. Performance period was relatively short, suggesting a need for ongoing support. 5. Services align with broader DoD efforts in systems engineering and electronics. 6. Small business participation was not a primary focus of this award.
Value Assessment
Rating: good
The contract's total value of $92.7 million over two years for engineering services appears to be within a reasonable range for the scope of work. Benchmarking against similar large-scale engineering support contracts within the Department of Defense suggests that the pricing, while not explicitly detailed per unit, was likely competitive given the complexity and specialized nature of the services. The award to a large, established contractor like General Dynamics IT indicates a level of confidence in their ability to deliver, but the limited competition raises questions about whether the absolute best value was achieved for taxpayers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. However, the data indicates that only 14 bids were received, which, while not extremely low, suggests that the market for this specific type of highly specialized engineering service may be concentrated among a few large prime contractors. The level of competition, while technically open, may not have been robust enough to drive prices down to the lowest possible point.
Taxpayer Impact: While full and open competition was utilized, the relatively modest number of bidders means taxpayers may not have benefited from the most aggressive pricing that a larger pool of competitors could have offered.
Public Impact
The Department of Defense benefits from specialized engineering and technical support for its electronics and communication equipment. This contract supports the development and maintenance of critical defense systems. The services provided likely have a national impact, contributing to defense readiness. The contract supports a workforce skilled in systems engineering and related technical fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of bidders may have reduced competitive pressure on pricing.
- Contract type (Time and Materials) can sometimes lead to cost overruns if not closely managed.
- Specific performance metrics and outcomes are not detailed in the provided data.
Positive Signals
- Awarded under full and open competition, allowing broad market participation.
- Contractor is a well-established entity with a strong track record in federal contracting.
- Services are critical to national defense infrastructure.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the Department of Defense's needs for systems engineering and electronics. The market for such specialized services is dominated by large, established defense contractors capable of handling complex, high-value projects. Spending in this area is consistent with the DoD's ongoing need to modernize and maintain its technological superiority, often involving significant investments in research, development, and sustainment of advanced communication and electronic systems.
Small Business Impact
This contract was not set aside for small businesses and the data indicates no small business participation. The prime contractor, General Dynamics Information Technology, is a large corporation. This suggests that the primary focus was on securing specialized engineering expertise from established large firms, rather than specifically promoting small business involvement or subcontracting opportunities within this particular award.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically be managed through contract officers and program managers within the Army, with potential for review by the DoD Inspector General's office. Transparency is generally facilitated through contract databases like FPDS, but detailed performance reviews and specific oversight mechanisms for this particular contract are not detailed in the provided data.
Related Government Programs
- Department of Defense Systems Engineering Support
- Army Command, Control, Communications, Computers, and Intelligence (C4I) Systems
- Electronics and Communication Equipment Procurement
- Federal IT Services Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Limited competition may have resulted in suboptimal pricing.
- Lack of detailed performance metrics in provided data hinders full assessment.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, time-and-materials, full-and-open-competition, large-contract, systems-engineering, electronics-and-communication-equipment, new-jersey, general-dynamics-information-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $92.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200606!003123!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0140 ! !20060317!20110129!788154529!788154529!009581091!N!COMPUTER SCIENCES CORPORATION !15 CHRISTOPHER WAY !EATONTOWN !NJ!07724!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000021870000!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 $92.7 million.
What is the period of performance?
Start: 2006-03-17. End: 2008-03-16.
What is the track record of General Dynamics Information Technology with Department of Defense contracts?
General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long and extensive history of contracting with the Department of Defense (DoD) and other federal agencies. They are a major provider of IT services, systems engineering, and support for a wide range of defense programs. Their portfolio includes work on command and control systems, intelligence analysis, cybersecurity, and enterprise IT infrastructure. GDIT has consistently secured large, complex contracts across various military branches, demonstrating a strong capability to meet the demanding requirements of the DoD. Their performance history generally indicates a capacity to deliver on large-scale projects, though like any major contractor, specific contract performance can vary.
How does the value of this contract compare to similar engineering services contracts?
The $92.7 million contract value for engineering services over two years ($46.35 million annually) is substantial but falls within the typical range for large-scale, specialized engineering support required by the Department of Defense. Similar contracts for systems engineering, technical assistance, and program management for complex defense systems often range from tens to hundreds of millions of dollars. The specific nature of 'Systems Engineering Services' for 'Electronics and Communication Equipment' suggests a need for high-level expertise. While this amount is significant, it is not an outlier when compared to the vast spending within the defense sector for similar critical support functions.
What are the primary risks associated with this type of Time and Materials contract?
Time and Materials (T&M) contracts, like the one awarded here, carry inherent risks primarily related to cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. The main risk for the government is that costs can escalate beyond initial estimates if the scope of work is not well-defined or if project duration extends unexpectedly. Without stringent oversight, monitoring, and defined ceiling prices, T&M contracts can lead to cost overruns. For this contract, the risk lies in ensuring that the hours billed and materials used are necessary, efficient, and directly related to the defined scope of engineering services.
How effective are engineering services contracts in ensuring the performance of defense electronics?
Engineering services contracts are crucial for ensuring the performance and lifecycle management of complex defense electronics. They provide specialized expertise that government personnel may lack, covering areas such as system design, integration, testing, maintenance, and upgrades. These services help ensure that communication and electronic equipment meet stringent operational requirements, remain interoperable with other systems, and are kept up-to-date with technological advancements. When managed effectively, these contracts contribute significantly to the reliability, security, and effectiveness of critical defense capabilities. However, their effectiveness is highly dependent on clear performance metrics, robust oversight, and the contractor's ability to deliver as specified.
What is the historical spending trend for engineering services within the Department of the Army?
Historical spending trends for engineering services within the Department of the Army (and the DoD broadly) show a consistent and significant investment. The Army, as a major component of the DoD, relies heavily on external engineering expertise for the development, acquisition, and sustainment of its vast array of systems, including communications, command and control, vehicles, and weapons platforms. Spending in this category typically fluctuates based on major acquisition programs, modernization efforts, and sustainment needs. Over the past decade, there has been a sustained high level of expenditure on engineering and technical services, reflecting the ongoing need to maintain technological superiority and adapt to evolving threats.
What does the NAICS code 541330 indicate about the nature of these services?
The North American Industry Classification System (NAICS) code 541330 signifies 'Engineering Services.' This broad category encompasses establishments primarily engaged in providing a wide range of engineering services, including civil, electrical, mechanical, and industrial engineering. For federal contracts, this code typically covers activities such as designing, developing, and testing systems and components; providing technical consultation; conducting feasibility studies; and offering project management for engineering endeavors. In the context of this DoD contract, it points to specialized technical and analytical support related to the design, implementation, or maintenance of complex electronic and communication systems.
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: 2006-03-17
Current End Date: 2008-03-16
Potential End Date: 2008-03-16 00:00:00
Last Modified: 2015-04-17
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