State Department awards $43.6M for overseas consular support, with General Dynamics IT as prime contractor

Contract Overview

Contract Amount: $43,649,649 ($43.6M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of State

Start Date: 2023-06-21

End Date: 2027-06-20

Contract Duration: 1,460 days

Daily Burn Rate: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GLOBAL SUPPORT STRATEGY FOR OVERSEAS CONSULAR SUPPORT SERVICES (GSS 2.0) MISSION FOR BRAZIL.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22219

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $43.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: GLOBAL SUPPORT STRATEGY FOR OVERSEAS CONSULAR SUPPORT SERVICES (GSS 2.0) MISSION FOR BRAZIL. Key points: 1. Contract value represents a significant investment in maintaining diplomatic infrastructure abroad. 2. Full and open competition suggests a robust market for these specialized services. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of the contract indicates a long-term need for these support services. 5. This award falls within the IT services sector, specifically computer facilities management. 6. The prime contractor, General Dynamics Information Technology, has a substantial presence in federal IT contracting.

Value Assessment

Rating: good

The contract value of $43.6 million over approximately four years for overseas consular support services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts for federal agencies, particularly those with an international footprint, suggests this pricing is within expected ranges. The firm-fixed-price structure further supports value by shifting cost-risk to the contractor, encouraging efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of 3 bidders suggests a competitive environment, which typically leads to better pricing and service offerings for the government. This level of competition is a positive sign for price discovery and ensures the government is receiving a fair market price.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that drives down costs and ensures the government secures the best value for its investment in essential diplomatic support services.

Public Impact

The primary beneficiaries are the U.S. Department of State and its consular services, ensuring the smooth operation of diplomatic missions abroad. Services delivered include computer facilities management, crucial for maintaining secure and reliable communication and data systems for diplomats. The geographic impact is global, focusing on supporting overseas consular operations. Workforce implications include potential job creation within General Dynamics Information Technology and its subcontractors, particularly in IT support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competed effectively.
Reliance on a single prime contractor for critical overseas IT infrastructure could pose a risk if performance falters.

Positive Signals

Full and open competition mitigates risks associated with limited vendor pools.
Firm-fixed-price contract type incentivizes contractor efficiency and cost control.
Long contract duration suggests a stable and predictable operational environment for the contractor.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer facilities management. The market for these services is substantial, driven by government and commercial entities requiring robust IT infrastructure support. Comparable spending benchmarks for large federal IT support contracts often run into tens or hundreds of millions of dollars, reflecting the complexity and scale of maintaining systems for agencies like the Department of State.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business prime contractor. Further analysis would be needed to determine if significant subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of State's contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to meet performance standards. Transparency is generally maintained through federal procurement databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Overseas Operations Support Services
Federal IT Infrastructure Management
Consular Affairs Technology Services
Department of State IT Modernization

Risk Flags

Potential for performance issues impacting critical consular operations.
Cybersecurity risks associated with managing IT infrastructure in overseas locations.
Dependency on a single contractor for essential global IT support.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $43.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. GLOBAL SUPPORT STRATEGY FOR OVERSEAS CONSULAR SUPPORT SERVICES (GSS 2.0) MISSION FOR BRAZIL.

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 State (Department of State).

What is the total obligated amount?

The obligated amount is $43.6 million.

What is the period of performance?

Start: 2023-06-21. End: 2027-06-20.

What is the track record of General Dynamics Information Technology Inc. in managing large-scale overseas IT support contracts for federal agencies?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive history of managing complex IT support contracts for various federal agencies, including those with significant overseas operations. They are a major federal IT contractor with a proven capability in areas such as network management, cybersecurity, data center operations, and end-user support. GDIT has previously held contracts with the Department of State and other agencies requiring global reach and high levels of security and reliability. Their experience in similar environments suggests a strong foundation for executing the GSS 2.0 mission, though specific performance metrics on past overseas contracts would require deeper investigation.

How does the awarded value of $43.6 million compare to similar overseas IT support contracts awarded by the Department of State or other agencies?

The $43.6 million award for approximately four years of Global Support Strategy for Overseas Consular Support Services (GSS 2.0) is a substantial but not unprecedented figure for large-scale IT support contracts with an international component. Contracts for managing IT infrastructure, cybersecurity, and operational support for federal agencies operating abroad can easily reach these figures, especially when factoring in the complexity of global logistics, diverse regulatory environments, and the need for high availability. For instance, similar multi-year contracts for managing global networks or providing comprehensive IT services to agencies like the Department of Defense or intelligence agencies often fall within or exceed this range. The firm-fixed-price nature and the number of bidders also suggest a market-driven price point.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential performance failures by the contractor leading to disruptions in consular services, cybersecurity vulnerabilities in overseas IT systems, and cost overruns if the fixed-price structure is poorly managed or scope creep occurs. Geopolitical instability in operating regions could also impact service delivery. Mitigation strategies likely include robust performance monitoring by the Department of State, stringent cybersecurity requirements and audits, clear contract terms and conditions to manage scope, and contingency planning for operational disruptions. The competitive nature of the award also provides leverage for the government to enforce contract terms.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific service?

The firm-fixed-price (FFP) contract type is generally considered effective for services where the scope of work is well-defined and the risks are manageable. For overseas consular support services, which involve established IT facilities management tasks, FFP incentivizes the contractor, General Dynamics Information Technology Inc., to control costs and operate efficiently to maximize profit. This structure shifts the risk of cost overruns to GDIT, thereby protecting the government from unexpected price increases. However, it requires careful initial scope definition to prevent disputes or the need for costly change orders. If the scope is accurately defined, FFP is a strong mechanism for achieving value for money.

What are the historical spending patterns for similar overseas consular support services by the Department of State?

Historical spending on overseas consular support services by the Department of State has likely been significant and potentially increasing, reflecting the growing reliance on technology for diplomatic operations and the need to maintain secure, reliable IT infrastructure across numerous global posts. While specific historical data for 'GSS 2.0' or its predecessor is not provided, the Department consistently invests heavily in IT infrastructure and support services to enable its worldwide mission. Trends in federal IT spending generally show a sustained demand for services related to network management, cybersecurity, and end-user support, particularly in complex, high-security environments like diplomatic missions. The award of GSS 2.0 indicates a continued commitment to this area.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM23R0045

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3170 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: $122,054,096

Exercised Options: $44,442,181

Current Obligation: $43,649,649

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 19AQMM21D0012

IDV Type: GWAC

Timeline