DOI awards $138M task order to General Dynamics for enterprise engagement IT services

Contract Overview

Contract Amount: $138,049,221 ($138.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-12-18

End Date: 2026-12-17

Contract Duration: 729 days

Daily Burn Rate: $189.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TASK ORDER 6 - ENTERPRISE ENGAGEMENT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $138.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TASK ORDER 6 - ENTERPRISE ENGAGEMENT Key points: 1. Value for money assessed through comparison to similar IT services contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include the time and materials pricing structure, which can lead to cost overruns if not managed closely. 4. Performance context is within enterprise engagement IT services, a critical function for departmental operations. 5. Sector positioning is within the IT services market, specifically computer systems design. 6. The contract duration of approximately two years suggests a need for ongoing support.

Value Assessment

Rating: fair

The contract's value of $138 million for two years of enterprise engagement IT services requires careful benchmarking against similar large-scale IT support contracts. Given the 'Time and Materials' pricing structure, the final cost is highly dependent on labor hours and rates incurred. Without specific details on the scope of work and the labor categories involved, a precise value-for-money assessment is challenging. However, the scale of the award suggests a significant need for these services within the Department of the Interior.

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 number of bidders is not specified, but a full and open process generally fosters a competitive environment, which can lead to more favorable pricing and better service offerings for the government. This approach aims to ensure that the government receives the best possible value by considering all qualified sources.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, thereby maximizing the return on investment for federal IT services.

Public Impact

The Department of the Interior benefits from enhanced enterprise engagement capabilities through improved IT systems and support. Services delivered likely include IT system design, integration, maintenance, and support for departmental operations. The geographic impact is likely nationwide, supporting DOI's various bureaus and offices. Workforce implications may involve IT professionals employed by General Dynamics Information Technology, Inc., and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost uncertainty and potential overruns if not closely monitored.
The duration of the contract (729 days) requires sustained oversight to ensure performance remains aligned with objectives.
Scope creep could be a risk given the nature of IT services and the T&M contract type.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
General Dynamics Information Technology, Inc. is a large, established contractor with significant experience in federal IT services.
The contract addresses critical enterprise engagement needs for the Department of the Interior.

Sector Analysis

The IT services sector, particularly computer systems design, is a significant area of federal spending. This contract falls within the broader category of professional, scientific, and technical services. Federal agencies rely heavily on IT contractors for everything from system development and maintenance to cybersecurity and cloud migration. Benchmarks for similar contracts often vary widely based on the specific services, duration, and complexity, but awards in the tens to hundreds of millions of dollars are common for large-scale enterprise IT support.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. General Dynamics Information Technology, Inc. is a large business. While there are no direct subcontracting requirements specified for small businesses in the provided data, large prime contractors are often encouraged or required by agency policy to seek out small business participation in their supply chains. The absence of a specific set-aside means that opportunities for small businesses would likely arise through subcontracting opportunities with the prime contractor.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Interior's contracting officers and program managers. Accountability measures would be tied to the performance work statement and delivery schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected related to the contract's execution.

Related Government Programs

General IT Support Services
Enterprise Resource Planning (ERP) Systems
IT Infrastructure Modernization
Cloud Computing Services
Cybersecurity Services

Risk Flags

Time and Materials Pricing
Potential for Scope Creep
Integration Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $138.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TASK ORDER 6 - ENTERPRISE ENGAGEMENT

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 $138.0 million.

What is the period of performance?

Start: 2024-12-18. End: 2026-12-17.

What is the historical spending pattern of the Department of the Interior on enterprise engagement IT services?

Analyzing historical spending patterns for enterprise engagement IT services within the Department of the Interior (DOI) is crucial for understanding trends and justifying current investments. While specific data for 'enterprise engagement' as a distinct category might be granular, broader IT services spending by DOI provides context. Historically, DOI, like many large federal agencies, has allocated substantial budgets to IT modernization, system maintenance, and support functions. This often includes significant expenditures on contracts for IT consulting, systems integration, and operational support. Examining past task orders and prime contracts awarded for similar services over the last 5-10 years would reveal average award values, contract durations, and the types of services most frequently procured. This historical perspective helps in assessing whether the current $138 million award is consistent with past investment levels, potentially indicating an increase or decrease in focus on these specific IT capabilities.

How does the pricing structure (Time and Materials) compare to other contract types for similar IT services?

The Time and Materials (T&M) pricing structure used for this task order is common for IT services, particularly when the scope of work is not precisely defined at the outset or is expected to evolve. In a T&M contract, the government pays the contractor for the actual labor hours expended at agreed-upon hourly rates, plus the cost of materials. This contrasts with Fixed-Price contracts, where a set price is agreed upon for a defined scope, offering more cost certainty for the government but potentially less flexibility. Cost-Plus contracts involve reimbursing the contractor for allowable costs plus a fee (profit). For IT services, T&M can be advantageous when requirements are uncertain or when rapid response is needed, allowing for flexibility. However, it carries a higher risk of cost overruns if not managed diligently, as the government bears the risk of inefficiencies or scope creep. Fixed-Price contracts are generally preferred when requirements are well-defined to ensure budget predictability. The choice of T&M here suggests a need for flexibility in addressing evolving enterprise engagement needs.

What is General Dynamics Information Technology, Inc.'s track record with the Department of the Interior and similar agencies?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record of performing IT services for various federal agencies, including the Department of the Interior (DOI) and other departments within the defense and civilian sectors. Their experience typically spans a wide range of IT capabilities, such as systems engineering, software development, cybersecurity, cloud services, and enterprise IT support. For DOI specifically, GDIT has likely held numerous contracts, task orders, and prime awards over the years, supporting different bureaus and mission requirements. Assessing their past performance ratings, any past performance issues or commendations, and the successful completion of previous large-scale IT contracts with DOI or comparable agencies is vital. This includes reviewing their history of meeting deadlines, staying within budget (where applicable), and delivering quality services. A strong, consistent performance history with DOI would indicate a lower risk associated with this new task order.

What are the key performance indicators (KPIs) likely to be used to measure the success of this contract?

The success of this $138 million enterprise engagement IT services task order will likely be measured against a set of Key Performance Indicators (KPIs) defined in the Performance Work Statement (PWS). For IT services, common KPIs include system uptime and availability, response times for issue resolution (e.g., mean time to repair - MTTR), successful implementation of new features or system upgrades, adherence to security protocols, and user satisfaction ratings. For enterprise engagement specifically, KPIs might also focus on the efficiency and effectiveness of communication platforms, data management systems, and collaboration tools supported by the IT services. Meeting defined service level agreements (SLAs) for critical IT functions will be paramount. Regular performance reviews, progress reports, and potentially independent assessments would be used to track GDIT's performance against these KPIs throughout the contract's duration.

What is the potential impact of this contract on small businesses in the IT services sector?

As this contract was awarded to a large business (General Dynamics Information Technology, Inc.) under full and open competition and does not appear to have a specific small business set-aside, its direct impact on small businesses is primarily through potential subcontracting opportunities. Large federal contractors are often encouraged, and sometimes contractually obligated, to utilize small businesses for a portion of their subcontracting work. The specific extent to which GDIT will engage small businesses for this task order is not detailed in the provided data. However, the nature of enterprise IT services often involves specialized components or support functions where small businesses with niche expertise could be valuable partners. The overall impact depends on GDIT's subcontracting plan and the agency's emphasis on small business participation. Without specific subcontracting goals or reporting, it's difficult to quantify the direct benefit to the small business IT ecosystem from this particular award.

Are there any specific risks associated with the 'Computer Systems Design Services' (NAICS 541512) category for federal contracts?

The 'Computer Systems Design Services' category (NAICS 541512) is broad and encompasses a wide range of IT activities, from initial design and integration to ongoing support and maintenance. Key risks associated with federal contracts in this domain often revolve around scope definition and management, technological obsolescence, cybersecurity vulnerabilities, and integration challenges with legacy systems. For this specific task order, given its 'Time and Materials' (T&M) pricing, the primary risk is potential cost overruns if the scope is not tightly controlled or if project timelines extend unexpectedly. Another risk is ensuring that the designed systems align with evolving federal IT standards and security requirements. Furthermore, the complexity of integrating new enterprise engagement solutions with existing DOI infrastructure presents a significant technical risk. Effective project management, clear communication, and robust oversight are critical to mitigating these risks.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR, 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: $219,383,261

Exercised Options: $219,383,261

Current Obligation: $138,049,221

Actual Outlays: $56,253,135

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $58,913,542

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0424D0001

IDV Type: IDC

Timeline