NIH awards $25.7M for cyber infrastructure support, with General Dynamics IT as prime contractor

Contract Overview

Contract Amount: $25,675,718 ($25.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-08-15

End Date: 2025-08-14

Contract Duration: 364 days

Daily Burn Rate: $70.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NATIONAL INSTITUTES OF HEALTH (NIH), NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES (NIAID) CYBER TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (CISS)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $25.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: NATIONAL INSTITUTES OF HEALTH (NIH), NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES (NIAID) CYBER TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (CISS) Key points: 1. Contract focuses on essential cyber technology infrastructure support services for NIAID. 2. General Dynamics Information Technology, Inc. is the incumbent contractor. 3. The contract is a Time and Materials type, indicating potential for cost variability. 4. Awarded as a Delivery Order under a larger contract vehicle. 5. The contract duration is one year, with a potential for renewal. 6. The contract is not set aside for small businesses.

Value Assessment

Rating: good

The contract value of $25.7 million for one year of cyber technology infrastructure support appears reasonable given the scope of services for a major federal agency like NIH. Benchmarking against similar IT support contracts for federal agencies of comparable size and complexity would provide a more definitive assessment of value. The Time and Materials pricing structure, while common for IT services, warrants close monitoring to ensure costs remain within expected parameters and do not escalate unexpectedly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment that can lead to better pricing and service offerings. This approach allows the government to leverage the broadest possible range of capabilities and innovations from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures the government receives the best value for its investment.

Public Impact

The National Institute of Allergy and Infectious Diseases (NIAID) will benefit from enhanced cyber technology infrastructure. Services delivered include support for critical IT systems and networks. The geographic impact is primarily within Maryland, where the contractor is located. Workforce implications include employment for IT professionals supporting the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Reliance on a single delivery order under a larger contract vehicle may limit flexibility.
Contractor's past performance on similar large-scale IT support contracts should be reviewed for potential risks.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Contract supports critical cybersecurity infrastructure for a key research agency.
The contractor, General Dynamics Information Technology, is a well-established federal IT provider.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure to support operations and research. This contract represents a portion of NIH's broader IT spending, aimed at ensuring the security and functionality of its cyber infrastructure.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. This means that the prime contract was awarded to a large business, and opportunities for small businesses would likely be through subcontracting if the prime contractor chooses to engage them. The absence of a set-aside suggests that the scope or nature of the services was deemed best suited for larger, established IT providers.

Oversight & Accountability

Oversight for this contract will likely be managed by contracting officers and program managers within NIAID and potentially the Department of the Interior, depending on the contract vehicle. Accountability measures are typically embedded in the contract terms and conditions, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NIH IT Modernization Efforts
Federal Cybersecurity Initiatives
General IT Support Services Contracts
NIAID Research Infrastructure

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Contract performance risk if contractor's past performance is suboptimal.
Dependency on a single delivery order under a larger contract vehicle.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $25.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. NATIONAL INSTITUTES OF HEALTH (NIH), NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES (NIAID) CYBER TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (CISS)

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 the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $25.7 million.

What is the period of performance?

Start: 2024-08-15. End: 2025-08-14.

What is the track record of General Dynamics Information Technology, Inc. on similar federal IT support contracts?

General Dynamics Information Technology, Inc. (GDIT) has a long history of providing IT services to various federal agencies, including defense, civilian, and intelligence communities. They have held numerous large-scale contracts for IT infrastructure management, cybersecurity, cloud services, and application development. Their track record typically includes managing complex systems, ensuring system availability, and implementing security protocols. Performance on past contracts can be assessed through sources like the Federal Procurement Data System (FPDS) and agency performance evaluations, which often inform future contract awards. GDIT's experience suggests they possess the technical expertise and resources to manage the CISS contract, but specific performance metrics on prior, directly comparable contracts would offer a more precise risk assessment.

How does the awarded value compare to similar IT infrastructure support contracts at NIH or other agencies?

The awarded value of $25.7 million for one year of cyber technology infrastructure support services for NIAID is within the typical range for large federal IT contracts. Similar contracts for IT infrastructure management, cybersecurity, and systems design services for agencies like the Department of Health and Human Services (HHS), National Science Foundation (NSF), or even defense agencies can range from tens to hundreds of millions of dollars annually, depending on the scope, complexity, and duration. Factors influencing cost include the number of users supported, the criticality of the systems, the level of security required, and the specific services provided (e.g., network management, help desk, system design, cybersecurity monitoring). Without a direct comparison of service-level agreements and technical requirements, it's challenging to definitively benchmark this contract's value, but it appears to be a standard-sized award for its category.

What are the primary risks associated with a Time and Materials (T&M) contract for IT services?

Time and Materials (T&M) contracts, like the one awarded for CISS, carry inherent risks primarily related to cost control. The government pays for the actual labor hours at specified hourly rates and the cost of materials used. The main risk is that costs can escalate beyond initial estimates if the project scope is not well-defined, if inefficiencies arise in labor, or if the duration extends unexpectedly. This can lead to budget overruns and potentially reduced value for money if not managed diligently. To mitigate these risks, robust oversight, detailed tracking of hours and materials, and clear performance standards are crucial. Agencies often include 'not-to-exceed' clauses in T&M contracts to cap total spending and require detailed justification for any cost increases.

How does the 'full and open competition' award mechanism impact the effectiveness of this contract?

Awarding this contract through 'full and open competition' is generally seen as a positive indicator for effectiveness. This process allows any qualified vendor to submit a proposal, fostering a competitive environment that encourages innovation, efficiency, and competitive pricing. By opening the field to all potential bidders, the government increases its chances of selecting a contractor with the best technical capabilities and most cost-effective solution for NIAID's cyber technology infrastructure needs. While the specific number of bidders isn't detailed, the mechanism itself promotes a wider selection pool, theoretically leading to a more robust and effective outcome compared to sole-source or limited competition scenarios.

What are the implications of this contract for cybersecurity posture at NIAID?

This contract is directly aimed at supporting and enhancing NIAID's cyber technology infrastructure, which is fundamental to its overall cybersecurity posture. By ensuring the availability, integrity, and confidentiality of its IT systems and networks, the contract helps protect sensitive research data, intellectual property, and operational continuity. Effective cyber infrastructure support is a foundational element of cybersecurity, enabling the implementation of security controls, threat detection, incident response, and compliance with federal security mandates. The success of this contract is therefore critical for maintaining NIAID's resilience against cyber threats and safeguarding its vital research mission.

What is the historical spending trend for similar IT support services at NIAID or NIH?

Historical spending on IT support services at NIAID and the broader NIH has generally shown a consistent and often increasing trend, reflecting the growing reliance on digital infrastructure for research and operations. Agencies like NIH continuously invest in maintaining, upgrading, and securing their IT environments to support complex scientific endeavors and manage vast amounts of data. Spending patterns for IT infrastructure, cybersecurity, and systems design services typically fluctuate based on specific modernization initiatives, new technology adoption, and evolving threat landscapes. While the exact historical figures for this specific 'Cyber Technology Infrastructure Support Services' category are not provided, it's reasonable to assume that NIAID's IT support spending has been substantial and is likely to remain a significant budget item due to the critical nature of its mission.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0424Q0698

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $30,408,719

Exercised Options: $30,408,719

Current Obligation: $25,675,718

Actual Outlays: $24,778,225

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,470,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200023W

IDV Type: GWAC

Timeline