DoD's $33.8M Engineering Support Task Order Awarded to General Dynamics IT Under R2 Program

Contract Overview

Contract Amount: $33,770,026 ($33.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-07-14

End Date: 2010-10-13

Contract Duration: 821 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PEO C3T ENGINEERING AND READINESS SUPPORT FOLLOW ON TASK ORDER UNDER THE R2 PROGRAM COMPETITIVE AWARD.

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $33.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PEO C3T ENGINEERING AND READINESS SUPPORT FOLLOW ON TASK ORDER UNDER THE R2 PROGRAM COMPETITIVE AWARD. Key points: 1. This task order represents a significant investment in engineering and readiness support for the PEO C3T. 2. The contract was awarded under the R2 Program, indicating a pre-established framework for procurement. 3. General Dynamics Information Technology, Inc. secured this award, suggesting a strong existing relationship or competitive advantage. 4. The 'Delivery Order' type suggests it's a specific, defined piece of work within a larger contract vehicle. 5. The Time and Materials pricing structure warrants scrutiny for cost control and efficiency. 6. The contract duration of 821 days points to a substantial, long-term need for these services.

Value Assessment

Rating: fair

The total award amount of $33.8 million for engineering and readiness support over approximately two years appears substantial. Benchmarking against similar engineering support contracts within the Department of Defense is crucial to assess value for money. The Time and Materials (T&M) pricing model, while flexible, can sometimes lead to higher costs if not managed diligently, as it directly reimburses labor hours and material costs. Without specific performance metrics or comparisons to industry standards for similar engineering services, it is difficult to definitively assess if this represents excellent value. However, the competitive award process suggests an effort to secure reasonable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it is a competitive award suggests that multiple companies likely vied for this contract. This level of competition is generally positive for price discovery and can lead to more favorable terms for the government compared to sole-source or limited competition scenarios. The specific number of bidders is not provided, which would offer further insight into the intensity of the competition.

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

Public Impact

The primary beneficiaries are the Program Executive Office (PEO) Command, Control, Communications, Computers, and Networks (C3T) and the Department of the Army, receiving critical engineering and readiness support. Services delivered include engineering expertise and readiness support, essential for maintaining and improving military communication and command systems. The geographic impact is likely concentrated within the operational areas and support facilities of the Department of the Army, potentially across various installations. Workforce implications include the potential for employment opportunities for engineers and technical specialists, both within the contractor's organization and potentially supporting roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services.
The 'follow-on task order' nature suggests potential for scope creep or reliance on existing, potentially outdated, frameworks.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract is part of the R2 Program, suggesting a structured and potentially efficient procurement vehicle.
General Dynamics Information Technology is a large, established contractor with significant experience in defense IT and engineering.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a critical component of the broader Information Technology and Defense industries. The market for engineering services supporting military C3T systems is substantial, driven by the continuous need for modernization, maintenance, and upgrades of complex communication networks and command systems. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the Department of Defense or other federal agencies for similar technological domains. The R2 Program itself represents a significant contracting vehicle for various support services within the defense sector.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, General Dynamics Information Technology, may still engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their internal subcontracting strategies and the availability of specialized services. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the PEO C3T. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

PEO C3T Programs
R2 Program Contracts
Department of the Army Engineering Services
Defense Communication Systems Support
Information Technology Services Contracts

Risk Flags

Time and Materials Pricing
Potential for Cost Overruns
Limited Transparency on Bidder Numbers
Lack of Specific Performance Metrics Provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PEO C3T ENGINEERING AND READINESS SUPPORT FOLLOW ON TASK ORDER UNDER THE R2 PROGRAM COMPETITIVE AWARD.

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 $33.8 million.

What is the period of performance?

Start: 2008-07-14. End: 2010-10-13.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar engineering and readiness support services to the Department of Defense?

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive track record of providing a wide array of IT and engineering services to the Department of Defense and other federal agencies. They are a major defense contractor with significant experience in areas such as C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), enterprise IT, cybersecurity, and systems engineering. Their past performance often includes large-scale support contracts for various military branches, encompassing readiness, sustainment, modernization, and operational support. While specific details for this exact task order's performance would require access to internal government performance evaluations, GDIT's overall profile suggests they possess the capability and experience to handle complex engineering and readiness support requirements. Their history includes numerous successful contract completions and ongoing large programs, though like any large contractor, they may also have faced challenges or criticisms on specific projects.

How does the $33.8 million cost compare to similar engineering support contracts awarded by the Department of the Army or DoD in recent years?

Comparing the $33.8 million cost requires context regarding the scope, duration, and specific services rendered. This figure represents the total value of a delivery order under the R2 Program, awarded on July 14, 2008, and ending on October 13, 2010, spanning approximately 2 years. Engineering and readiness support contracts for major defense programs can range from tens of millions to billions of dollars. For instance, large-scale system integration, sustainment, or development contracts often exceed this amount significantly. However, for a specific task order focused on engineering and readiness support within a defined program like PEO C3T, $33.8 million is a substantial but not extraordinary sum. Benchmarking against other task orders under the R2 Program or similar IDIQ vehicles for engineering services would provide a more precise comparison. Factors like the number of personnel, specialized expertise required, and the complexity of the systems supported heavily influence cost.

What are the primary risks associated with a Time and Materials (T&M) contract for engineering services, and how might they have been mitigated in this case?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for actual labor hours and material costs incurred by the contractor, plus a fixed fee or fixed hourly rate. This can incentivize longer task durations or less efficient work if not managed properly. For the government, it can be challenging to forecast the total cost accurately. Mitigation strategies employed by the government typically include establishing ceiling prices, requiring detailed reporting of labor hours and materials, implementing robust oversight and surveillance by contracting officers and technical representatives, and defining clear work requirements and milestones. The 'follow-on task order' nature under the R2 Program might imply that some level of oversight and established procedures were already in place, potentially aiding in risk mitigation. However, the effectiveness of these measures depends heavily on the diligence of the government's program management team.

How effective is the R2 Program as a contracting vehicle for procuring engineering and readiness support services, based on this award?

The R2 (Rapid Response) Program, under which this task order was awarded, is designed to provide the Department of Defense with a flexible and efficient means to procure a wide range of services, including engineering, IT, and logistics support. The fact that this was a competitive award under the R2 Program suggests it functions as intended by facilitating competition and providing a framework for task orders. The duration and value of this specific task order indicate that the R2 Program can accommodate substantial requirements. However, assessing the overall 'effectiveness' of the R2 Program requires a broader analysis beyond a single award. Key indicators of effectiveness would include the program's ability to consistently attract competitive bids, deliver services on time and within budget across multiple task orders, and adapt to evolving technological needs. This single award suggests the program was functional for this procurement, but a comprehensive evaluation would need to examine its performance across its entire lifecycle and portfolio of contracts.

What does the 'Engineering Services' classification (NAICS 541330) entail in the context of PEO C3T and military readiness?

The NAICS code 541330, 'Engineering Services,' encompasses establishments primarily engaged in providing a wide range of engineering services, including civil, electrical, mechanical, and aeronautical engineering. In the context of the Program Executive Office (PEO) Command, Control, Communications, Computers, and Networks (C3T) and military readiness, this classification would involve specialized engineering disciplines crucial for developing, integrating, maintaining, and upgrading complex military systems. This could include systems engineering for communication networks, software engineering for command and control applications, hardware engineering for electronic systems, and readiness engineering focused on ensuring the operational availability and reliability of these critical assets. It involves applying scientific and engineering principles to design, analyze, test, and evaluate systems, ensuring they meet stringent military requirements for performance, security, and interoperability, thereby directly contributing to the overall readiness of military forces.

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: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 079735371)

Address: 6200 GUARDIAN GATEWAY DR 2ND FL, ABERDEEN PROVING GROUND, MD, 21005

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,755,290

Exercised Options: $34,294,239

Current Obligation: $33,770,026

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0703DB007

IDV Type: IDC

Timeline