DOJ's $41M Enterprise Applications Development BPA Order to GDIT shows strong competition and fair pricing

Contract Overview

Contract Amount: $40,957,782 ($41.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Justice

Start Date: 2023-04-01

End Date: 2024-03-31

Contract Duration: 365 days

Daily Burn Rate: $112.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ENTERPRISE APPLICATIONS DEVELOPMENT - TASK 2 BPA ORDER

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $41.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENTERPRISE APPLICATIONS DEVELOPMENT - TASK 2 BPA ORDER Key points: 1. Value for money appears reasonable given the scope of custom programming services. 2. Full and open competition suggests a healthy market for these services. 3. No immediate risk indicators are apparent from the contract data. 4. Performance context is within the standard for IT development task orders. 5. This contract fits within the broader IT services sector for government agencies. 6. The contract was awarded via a BPA call, indicating pre-competed terms.

Value Assessment

Rating: good

The contract's total value of approximately $41 million for a one-year period suggests a competitive pricing structure for enterprise application development. Benchmarking against similar custom computer programming services contracts indicates that the labor hour rates are likely within market norms. The absence of specific deliverables or fixed prices makes a precise value assessment challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a Blanket Purchase Agreement (BPA) Call, which itself was established through full and open competition. This indicates that multiple vendors had the opportunity to bid on the underlying BPA, and subsequently, this specific task order was likely competed among those BPA holders. The full and open nature of the initial BPA competition suggests a robust market for these services.

Taxpayer Impact: The full and open competition ensures that taxpayers benefit from a competitive environment, driving down prices and encouraging innovation among qualified vendors.

Public Impact

The Department of Justice, specifically the Office of Justice Programs, benefits from enhanced enterprise applications. Services delivered include custom computer programming and application development. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include the employment of skilled IT professionals by General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under a BPA call, suggesting pre-vetted and competitive terms.
Full and open competition indicates a broad vendor pool.
Contract duration of one year allows for flexibility and performance review.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The market for government IT services is substantial, with agencies increasingly relying on specialized vendors for application development and maintenance. Comparable spending benchmarks for similar task orders under large BPAs often range from tens to hundreds of millions of dollars annually, depending on the scope and duration.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside for this BPA Call, as the 'sb' field is false. There is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem is therefore neutral to potentially limited, unless GDIT voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight is provided by the Department of Justice's Office of Justice Programs. Accountability measures are typically managed through contract performance reviews and adherence to the BPA terms. Transparency is facilitated by the public availability of contract awards, though detailed performance metrics are not included in this summary data.

Related Government Programs

Department of Justice IT Services
Office of Justice Programs IT Support
Enterprise Application Development Contracts
BPA Call Awards

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $41.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENTERPRISE APPLICATIONS DEVELOPMENT - TASK 2 BPA ORDER

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 Justice (Office of Justice Programs).

What is the total obligated amount?

The obligated amount is $41.0 million.

What is the period of performance?

Start: 2023-04-01. End: 2024-03-31.

What is the track record of General Dynamics Information Technology, Inc. with the Department of Justice?

General Dynamics Information Technology, Inc. (GDIT) has a significant history of contracting with the Department of Justice (DOJ) and its various components, including the Office of Justice Programs (OJP). Their awards span a wide range of IT services, from infrastructure support and cybersecurity to complex application development and data analytics. GDIT is a major federal IT contractor, and their extensive experience with the DOJ suggests a deep understanding of the agency's mission requirements and operational environment. Past performance reviews and contract close-outs would provide more granular detail on their specific successes and challenges in fulfilling DOJ requirements.

How does the $41 million value compare to similar enterprise application development contracts within the DOJ?

The $41 million value for a one-year task order under a BPA for enterprise application development is substantial but not unusual for a large federal agency like the DOJ. Many IT development contracts can reach these figures, especially when encompassing complex systems, custom coding, and integration services. To provide a precise comparison, one would need to analyze other DOJ contracts for similar services (NAICS 541511) awarded over comparable periods and through similar procurement vehicles (like BPAs or IDIQs). However, given GDIT's scale and the nature of enterprise applications, this value appears to be within a reasonable range for the scope of work.

What are the primary risks associated with this type of custom application development contract?

Primary risks for custom application development contracts include scope creep, where requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Technical risks involve unforeseen complexities in development, integration challenges with existing systems, and potential cybersecurity vulnerabilities. Contractor performance risk is also present, where the vendor may fail to deliver the required quality or functionality. Furthermore, changes in agency priorities or user needs during the development lifecycle can necessitate costly rework. Effective project management, clear communication, and robust change control processes are crucial to mitigate these risks.

How effective is the BPA Call mechanism for ensuring value for money in IT services?

The Blanket Purchase Agreement (BPA) Call mechanism is generally effective for ensuring value for money, particularly for recurring or anticipated needs. The underlying BPA is typically established through full and open competition, allowing agencies to pre-negotiate favorable pricing, terms, and conditions with multiple vendors. Task orders placed under the BPA (BPA Calls) can then be issued more rapidly and efficiently. For IT services, this means that agencies can leverage pre-competed rates, reducing procurement lead times and administrative burden. However, the ultimate value for money depends on the initial competition for the BPA and the specific terms negotiated, as well as the agency's diligence in ensuring task orders align with requirements and represent fair pricing.

What is the historical spending trend for custom computer programming services at the Office of Justice Programs?

Analyzing historical spending trends for custom computer programming services (NAICS 541511) at the Office of Justice Programs (OJP) would require access to historical contract databases and reports. Generally, federal agencies like OJP have seen increasing IT expenditures over the years, driven by the need for modernizing legacy systems, developing new digital services, and enhancing data analytics capabilities. Spending on custom development can fluctuate based on specific program initiatives, technology upgrades, and budget allocations. A detailed analysis would involve examining annual spending figures for this specific NAICS code within OJP over the past 5-10 years to identify trends, major contract awards, and shifts in investment priorities.

Are there any specific performance metrics or KPIs associated with this contract?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, such metrics are detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For custom application development, common KPIs might include adherence to development schedules, code quality standards (e.g., defect density), successful completion of testing phases (unit, integration, user acceptance), system uptime and performance post-deployment, and user satisfaction. The effectiveness of the delivered applications would be measured against the business objectives they are intended to support.

Industry Classification

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

Pricing Type: LABOR HOURS (Z)

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: $42,576,917

Exercised Options: $42,576,917

Current Obligation: $40,957,782

Actual Outlays: $40,957,782

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $26,225,938

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15PTDD20A00000001

IDV Type: BPA

Timeline