Commerce awards $99.4M for NESCC Compute and File Systems Update to General Dynamics IT

Contract Overview

Contract Amount: $99,350,258 ($99.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Commerce

Start Date: 2025-02-26

End Date: 2031-03-20

Contract Duration: 2,213 days

Daily Burn Rate: $44.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO-40: RDHPCS - NESCC COMPUTE AND FILE SYSTEMS UPDATE

Place of Performance

Location: FAIRMONT, MARION County, WEST VIRGINIA, 26554

State: West Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $99.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TO-40: RDHPCS - NESCC COMPUTE AND FILE SYSTEMS UPDATE Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The fixed-price contract type aims to control costs and manage contractor risk. 3. Delivery order under an existing contract indicates potential for streamlined procurement. 4. The duration of over 6 years suggests a long-term need for these IT services. 5. The contract is for computer systems design services, a critical area for NOAA's operations. 6. The award amount is substantial, requiring careful monitoring of performance and value.

Value Assessment

Rating: good

The contract value of $99.4 million over approximately six years for computer systems design services appears reasonable given the scope. Benchmarking against similar large-scale IT infrastructure upgrades for federal agencies suggests that this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, although it places more risk on the contractor. Without specific details on the exact services and hardware involved, a precise value-for-money assessment is challenging, but the competitive award process lends confidence to the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is beneficial for price discovery and achieving favorable terms for the government. The use of an existing contract vehicle for a delivery order suggests that the initial competition for the parent contract was robust.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by encouraging multiple vendors to offer their best prices to win the contract. This process helps ensure that government funds are used efficiently.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) will benefit from updated compute and file systems, enhancing its operational capabilities. Services delivered include computer systems design, crucial for maintaining and improving NOAA's IT infrastructure. The geographic impact is primarily within NOAA's operational centers, likely supporting scientific research and data management nationwide. Workforce implications may include the need for specialized IT personnel to manage and maintain the new systems, both within NOAA and potentially at the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 6 years) could lead to potential cost overruns if not managed effectively.
Reliance on a single large contractor for critical IT infrastructure may pose risks if performance falters.
The complexity of integrating new compute and file systems could introduce technical challenges and delays.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
Firm-fixed-price contract type helps to lock in costs and manage budget predictability.
General Dynamics Information Technology is an established IT services provider with experience in government contracts.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and integration. The market for federal IT services is substantial, with agencies continually investing in modernizing their infrastructure to support data-intensive operations, scientific research, and national security. NOAA's need for updated compute and file systems is consistent with broader government trends towards cloud adoption, enhanced data storage, and high-performance computing. Comparable spending benchmarks for large IT modernization projects within federal agencies often range in the tens to hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of a small business subcontracting plan being a primary focus (ss: false). This suggests that the primary award went to a large business. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of specific set-aside language implies that the direct award was not targeted towards the small business ecosystem. Further analysis would be needed to determine if subcontracting goals were established.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Commerce's acquisition and grants office, with specific program managers from NOAA overseeing performance. The firm-fixed-price nature of the contract provides a degree of accountability by defining the scope and cost upfront. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

NOAA IT Infrastructure Modernization Programs
Federal Cloud Computing Strategy Initiatives
General Services Administration (GSA) IT Schedule Contracts
Department of Commerce IT Modernization Efforts

Risk Flags

Long-term contract duration
Potential for technology obsolescence
Complexity of system integration

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $99.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TO-40: RDHPCS - NESCC COMPUTE AND FILE SYSTEMS UPDATE

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 $99.4 million.

What is the period of performance?

Start: 2025-02-26. End: 2031-03-20.

What is the specific nature of the 'NESCC COMPUTE AND FILE SYSTEMS UPDATE' and what are the key performance metrics?

The 'NESCC COMPUTE AND FILE SYSTEMS UPDATE' refers to the modernization of the National Environmental Satellite, Data, and Information Service (NESDIS) Center for Climate Prediction (NCC) compute and file storage infrastructure. This likely involves upgrading hardware (servers, storage arrays), software, and network components to improve processing power, data accessibility, and reliability for critical climate modeling and data analysis. Key performance metrics would typically include system uptime, data processing speeds, storage capacity and accessibility, security compliance, and response times for system issues. The specific metrics are usually detailed in the contract's Statement of Work (SOW) and performance work statement (PWS), which are not publicly available in this summary.

How does the $99.4 million award compare to NOAA's historical spending on similar IT infrastructure projects?

The $99.4 million award for this six-year project represents a significant investment in NOAA's IT infrastructure. To compare it to historical spending, one would need to analyze NOAA's budget allocations and contract awards for IT modernization over the past decade. Agencies like NOAA, which rely heavily on data processing and analysis for environmental monitoring and research, often undertake large-scale infrastructure upgrades every 5-10 years. This award appears to be a substantial, but not unprecedented, investment for a project of this scope and duration, aligning with the typical lifecycle of major IT systems. A detailed comparison would require access to NOAA's historical procurement data and budget reports.

What are the potential risks associated with a six-year IT modernization contract, and how are they mitigated?

Potential risks in a six-year IT modernization contract include technological obsolescence (technology advancing faster than the project's completion), scope creep (uncontrolled changes or additions to the project's requirements), contractor performance issues, budget overruns (despite fixed-price), and integration challenges with existing systems. Mitigation strategies typically involve robust contract management, clear definition of requirements and change control processes, regular performance reviews, phased delivery and acceptance, and contingency planning. The firm-fixed-price structure itself is a risk mitigation tool for the government, transferring some cost overrun risk to the contractor. Strong government oversight and clear communication channels are also crucial.

What is General Dynamics Information Technology's track record with similar large-scale federal IT contracts?

General Dynamics Information Technology (GDIT) is a major federal IT contractor with a long history of delivering complex solutions across various government agencies, including civilian, defense, and intelligence sectors. They have experience in areas such as cloud computing, cybersecurity, data center consolidation, and IT modernization. GDIT has managed numerous large-scale contracts, often in the hundreds of millions or billions of dollars, for agencies like the Department of Defense, NASA, and the Department of Health and Human Services. Their track record generally indicates capability in handling large, complex IT projects, though like any large contractor, specific project successes and challenges can vary. Past performance evaluations and contract award histories would provide more granular detail.

Given the 'Computer Systems Design Services' NAICS code (541512), how does this contract align with broader federal IT procurement trends?

The NAICS code 541512, 'Computer Systems Design Services,' is a broad category encompassing a wide range of IT services, including analysis, design, development, integration, and maintenance of hardware and software systems. This contract aligns with broader federal IT procurement trends that emphasize modernizing aging infrastructure, enhancing cybersecurity, migrating to cloud environments, and improving data analytics capabilities. Agencies are increasingly looking for integrated solutions that can support mission-critical operations, and contracts under this NAICS code often reflect these needs. The trend is towards consolidating IT services, leveraging commercial off-the-shelf (COTS) solutions where possible, and ensuring interoperability across systems, all of which are likely components of this NESCC update.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1305M424R0021

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: $99,350,258

Exercised Options: $99,350,258

Current Obligation: $99,350,258

Actual Outlays: $20,905,226

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $40,852,110

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