General Dynamics IT awarded $40.6M for NOAA IT support, highlighting need for sustained enterprise services

Contract Overview

Contract Amount: $40,633,254 ($40.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Commerce

Start Date: 2019-08-27

End Date: 2026-07-22

Contract Duration: 2,521 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: R&D HPCS TASK ORDER 0014 AWARD FOR SITE AND ENTERPRISE SUPPORT LABOR

Place of Performance

Location: PRINCETON, MIDDLESEX County, NEW JERSEY, 08540

State: New Jersey Government Spending

Plain-Language Summary

Department of Commerce obligated $40.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: R&D HPCS TASK ORDER 0014 AWARD FOR SITE AND ENTERPRISE SUPPORT LABOR Key points: 1. Contract provides essential IT infrastructure and enterprise support, crucial for NOAA's operational continuity. 2. The firm fixed-price structure aims to control costs, but requires careful monitoring of scope creep. 3. A single delivery order under a larger contract suggests a need for specialized, long-term support. 4. The duration of the contract indicates a significant investment in maintaining critical IT systems. 5. Focus on site and enterprise support points to a foundational role in NOAA's technological backbone.

Value Assessment

Rating: good

This contract's value of $40.6 million over approximately 7 years for IT support appears reasonable given the scope of enterprise and site support. Benchmarking against similar large-scale IT service contracts for federal agencies suggests that pricing is competitive, especially considering the specialized nature of supporting a scientific organization like NOAA. The firm fixed-price contract type provides cost certainty for the government, assuming the scope of work remains 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 multiple vendors had the opportunity to bid. This competitive process is expected to yield fair market pricing and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that government funds are used efficiently.

Public Impact

NOAA's scientific and operational missions are supported through reliable IT infrastructure. Federal employees and contractors relying on NOAA's IT systems will experience continued service. The contract ensures the functioning of IT services across NOAA's various sites. Workforce implications include the potential for continued employment for IT specialists supporting NOAA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope is not tightly managed due to the long duration.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract provides cost certainty for the government.
Long contract duration indicates a stable, long-term need for these services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. This sector supports government agencies in managing and maintaining their complex technological infrastructures. The market for these services is highly competitive, with numerous large and small businesses vying for federal contracts. Spending in this area is substantial across all federal agencies, reflecting the increasing reliance on digital systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary awardee, General Dynamics Information Technology, Inc., will likely perform the majority of the work. Further analysis would be needed to determine if any subcontracting opportunities exist within the broader ecosystem.

Oversight & Accountability

As a delivery order under a larger contract, oversight is likely managed through the contracting officer's representative (COR) and the agency's procurement office. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General involvement would typically be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Support Services
Enterprise IT Services
Computer Systems Design Services
Cloud Computing Services
Network Operations and Maintenance

Risk Flags

Long contract duration may increase risk of scope creep and technological obsolescence.
Dependence on a single large contractor for critical infrastructure.
Need for vigilant oversight to ensure performance standards are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $40.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. R&D HPCS TASK ORDER 0014 AWARD FOR SITE AND ENTERPRISE SUPPORT LABOR

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 Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $40.6 million.

What is the period of performance?

Start: 2019-08-27. End: 2026-07-22.

What is the track record of General Dynamics Information Technology, Inc. in performing similar IT support contracts for federal agencies?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record of performing large-scale IT support and systems integration contracts for various federal agencies, including the Department of Defense, NASA, and the Department of Veterans Affairs. Their experience often involves managing complex networks, providing cybersecurity solutions, and delivering enterprise-wide IT services. GDIT's history includes numerous prime contracts for IT modernization and sustainment, indicating a capacity to handle significant federal requirements. However, like any large contractor, they have also faced scrutiny and performance reviews on specific contracts, underscoring the importance of ongoing performance monitoring by the government.

How does the awarded amount compare to similar IT support contracts for NOAA or other scientific agencies?

The awarded amount of approximately $40.6 million over roughly seven years for site and enterprise IT support is within the expected range for contracts of this nature supporting federal scientific agencies. NOAA, with its extensive data collection and research missions, requires robust and continuous IT infrastructure. Comparable contracts for agencies like NASA or the National Science Foundation often involve similar dollar figures for comprehensive IT services, including network management, system administration, and user support. The firm fixed-price structure suggests an effort to contain costs, which is a positive indicator when benchmarked against cost-plus contracts that can be more prone to overruns if not managed tightly.

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

The primary risks associated with this contract include potential scope creep, contractor performance issues, and technological obsolescence. Scope creep is a risk given the long duration and the breadth of 'site and enterprise support,' which could lead to cost overruns if not meticulously managed through change control processes. Contractor performance is a constant risk, mitigated by the government's oversight, performance metrics, and potential remedies for non-performance. Technological obsolescence is mitigated by the contract's structure, which should allow for adaptation to new technologies, and by NOAA's own technology roadmaps. The firm fixed-price nature also incentivizes GDIT to manage costs efficiently.

What is the expected effectiveness of this contract in ensuring NOAA's IT systems remain operational and secure?

This contract is expected to be highly effective in ensuring NOAA's IT systems remain operational and secure, given its focus on foundational 'site and enterprise support.' The long duration (over 7 years) suggests a commitment to sustained operational capability and modernization. By outsourcing these critical functions to a large, experienced IT provider like GDIT, NOAA can leverage specialized expertise and resources. The firm fixed-price structure incentivizes efficient service delivery. However, effectiveness hinges on robust government oversight, clear performance standards, and GDIT's ability to adapt to evolving cybersecurity threats and technological advancements.

How has NOAA's spending on IT support services evolved over the past five years, and does this contract align with historical trends?

Analyzing NOAA's IT support spending over the past five years would reveal trends in its investment in technology infrastructure. Typically, federal agencies aim for stable or incrementally increasing budgets for essential IT services to maintain operational continuity and address modernization needs. This $40.6 million contract, spread over approximately seven years, represents a significant but likely consistent level of annual investment in IT support. If NOAA's historical spending shows a pattern of similar large-scale IT support contracts, this award aligns with those trends. Deviations might indicate a strategic shift towards greater reliance on external IT support or a response to specific technological challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $54,228,616

Exercised Options: $40,633,254

Current Obligation: $40,633,254

Actual Outlays: $16,032,878

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCST133018CQ0073

IDV Type: IDC

Timeline