Commerce Department's $18.5M IT Services Contract Awarded to General Dynamics

Contract Overview

Contract Amount: $18,482,885 ($18.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Commerce

Start Date: 2018-06-14

End Date: 2023-10-31

Contract Duration: 1,965 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ENABLING TECHNOLOGY SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $18.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF ENABLING TECHNOLOGY SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of approximately $18.5 million over its period of performance. 3. Services procured fall under custom computer programming, a key IT function. 4. The contract duration spans over 1900 days, indicating a long-term need. 5. Firm Fixed Price contract type aims to control costs and provide predictability. 6. No small business set-aside was utilized, potentially limiting direct small business participation.

Value Assessment

Rating: good

The contract value of $18.5 million for custom computer programming services over approximately five years appears reasonable given the scope of IT support. Benchmarking against similar large-scale IT service contracts within the federal government suggests that pricing is likely competitive, especially considering it was awarded under full and open competition. The firm fixed price structure further supports cost control. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, meaning all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competitive environment. This level of competition is generally expected to drive down prices and encourage innovative solutions as contractors vie for the award. The agency likely benefited from a range of proposals and pricing structures.

Taxpayer Impact: Taxpayers benefit from a competitive process that is designed to secure the best possible value for the government's investment in IT services. Full and open competition increases the likelihood that the awarded price reflects market rates and that the chosen contractor offers the most advantageous technical and cost solution.

Public Impact

The primary beneficiary is the Department of Commerce, which receives essential custom computer programming services. These services likely support the agency's internal IT infrastructure, data management, and application development needs. The contract's impact is primarily within the District of Columbia, where the agency is headquartered. The contract supports a workforce skilled in custom computer programming and related IT fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the services delivered.
The absence of small business subcontracting goals may limit opportunities for smaller firms to participate in this contract.
Limited transparency on the number of bidders and specific evaluation criteria used in the award process.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield good value.
Firm Fixed Price contract type provides cost certainty for the government.
The long duration suggests a stable, ongoing need for these critical IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The federal IT services market is substantial, with agencies consistently investing in software development, system integration, and IT support to maintain and modernize their operations. Comparable spending benchmarks for custom programming services vary widely based on complexity and duration, but contracts of this magnitude are common for supporting agency-wide IT functions. General Dynamics Information Technology is a major player in this market.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of specific small business subcontracting requirements. This means that while large businesses like General Dynamics were the primary focus for the prime contract, opportunities for small businesses would likely arise through subcontracting if the prime contractor chooses to engage them. The absence of set-asides or explicit subcontracting goals may limit direct participation and revenue flow to the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of Commerce, responsible for monitoring performance and ensuring compliance with contract terms. Accountability is established through the firm fixed price structure, which incentivizes the contractor to deliver services within the agreed-upon budget. Transparency is generally facilitated through federal procurement databases like FPDS, which record contract awards, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General IT Support Services
Custom Software Development
IT Professional Services
Enterprise Resource Planning (ERP) Systems Support
Cloud Computing Services

Risk Flags

Potential for scope creep despite FFP contract
Risk of contractor performance not meeting expectations
Technological obsolescence in a rapidly changing IT field

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $18.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF ENABLING TECHNOLOGY SERVICES

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 (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2018-06-14. End: 2023-10-31.

What is the track record of General Dynamics Information Technology, Inc. in delivering custom computer programming services to the federal government?

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive history of providing IT services, including custom computer programming, to various federal agencies. They are a major government contractor with a broad portfolio encompassing IT modernization, cybersecurity, cloud solutions, and data analytics. Their track record includes numerous large-scale contracts across defense, civilian, and intelligence communities. While specific performance data for individual contracts is often proprietary or not publicly detailed, GDIT's sustained presence and significant contract awards suggest a generally reliable performance history. However, like any large contractor, they may have faced performance challenges or disputes on specific projects, which are not detailed here. Prospective analysis would require examining past performance evaluations and any publicly available dispute or termination data.

How does the $18.5 million contract value compare to similar custom computer programming contracts awarded by the Department of Commerce?

The $18.5 million contract value for custom computer programming services awarded to General Dynamics Information Technology, Inc. by the Department of Commerce appears to be within a typical range for significant IT support over a multi-year period. The Department of Commerce, like other large federal agencies, procures substantial IT services to support its diverse operations. Benchmarking this specific contract against others within the Commerce Department would require analyzing contracts with similar North American Industry Classification System (NAICS) codes (e.g., 541511) and similar durations. However, given the firm fixed price nature and full and open competition, it suggests the agency sought competitive bids for a substantial IT requirement. Without access to a detailed database of comparable contracts and their specific scopes of work, a precise comparison is difficult, but the value is consistent with large-scale IT service procurements.

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

Key risks for this contract include potential scope creep, where the requirements expand beyond the initial agreement, leading to cost overruns or schedule delays, although the firm fixed price structure aims to mitigate this. Another risk is contractor performance falling short of expectations, impacting the Department of Commerce's IT operations. Technical obsolescence is also a risk in the rapidly evolving IT landscape, potentially making the developed solutions outdated. Mitigation strategies include robust contract management by the COR, clear definition and management of scope, regular performance reviews, and incorporating flexibility or upgrade clauses within the contract where feasible. The competitive award process itself helps mitigate risks by selecting a contractor deemed capable and offering a competitive price.

How effective is the firm fixed price (FFP) contract type in ensuring value for money for this custom computer programming service?

The Firm Fixed Price (FFP) contract type is generally considered effective in ensuring value for money for custom computer programming services when the scope of work is well-defined and unlikely to change significantly. Under an FFP contract, the contractor assumes most of the risk for cost overruns, providing the government with cost certainty. This incentivizes the contractor to manage their costs efficiently and deliver the required services within the agreed-upon price. For custom programming, where requirements can sometimes be fluid, an FFP contract is most effective when detailed specifications and milestones are established upfront. If requirements do change, formal change order processes are necessary, which can add administrative burden but are crucial for maintaining cost control and value.

What are the historical spending patterns for custom computer programming services within the Department of Commerce?

Historical spending patterns for custom computer programming services within the Department of Commerce indicate a consistent and significant investment in IT modernization and support. Agencies like Commerce rely heavily on tailored software solutions to manage data, facilitate research, and operate their various bureaus and offices. Spending in this category typically fluctuates based on major system upgrades, new initiative rollouts, and ongoing maintenance needs. While specific historical figures for the Department of Commerce are not provided in this data snippet, federal procurement databases show that agencies collectively spend billions annually on IT services, with custom programming being a substantial component. This contract represents a portion of that ongoing investment, reflecting a sustained need for specialized IT development.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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: $18,482,885

Exercised Options: $18,482,885

Current Obligation: $18,482,885

Actual Outlays: $36,450

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $94,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: DOCSS130117BU0002

IDV Type: BPA

Timeline