VA's T4NG Program Modification P00004 awards $232M to General Dynamics IT for IT services

Contract Overview

Contract Amount: $231,957,048 ($232.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-10-30

End Date: 2022-12-21

Contract Duration: 1,878 days

Daily Burn Rate: $123.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG)PROGRAM MODIFICATION P00004

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $232.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG)PROGRAM MODIFICATION P00004 Key points: 1. The contract modification represents a significant increase in the total value of the T4NG program. 2. General Dynamics Information Technology, Inc. is the incumbent contractor, suggesting potential for continuity. 3. The primary risk lies in the potential for cost overruns or scope creep in subsequent modifications. 4. The IT services sector is highly competitive, but incumbent advantage can be substantial.

Value Assessment

Rating: good

The award of $231.9M for Computer Systems Design Services appears to be a modification to an existing contract. Without pre-modification data, a direct pricing comparison is difficult, but the scale suggests significant investment in IT infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT services.

Public Impact

Veterans will benefit from improved IT systems and services, potentially leading to better access and efficiency in healthcare. The modification impacts the broader IT services industry, with potential ripple effects on subcontractors and related businesses. Government reliance on large IT contracts highlights the importance of effective contract management and oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in future modifications.
Reliance on a single large contractor for critical IT services.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type can limit cost uncertainty.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, driven by modernization efforts and cybersecurity needs. Benchmarks vary widely based on service type and complexity.

Small Business Impact

While the prime contractor is a large business, the contract's nature may involve subcontracting opportunities for small businesses within the IT services domain. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight is crucial to ensure the contractor meets performance requirements and stays within budget, especially with contract modifications.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Incumbent contractor advantage may limit future competition.
Potential for cost increases with subsequent modifications.
Complexity of IT systems can lead to unforeseen challenges.
Dependence on a single large vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $232.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG)PROGRAM MODIFICATION P00004

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 Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $232.0 million.

What is the period of performance?

Start: 2017-10-30. End: 2022-12-21.

What specific IT services are covered under this modification, and how do they align with the VA's strategic IT goals?

This modification likely covers enhancements or expansions of existing IT services under the T4NG program, such as system integration, software development, or infrastructure support. Alignment with VA's strategic IT goals would involve assessing if these services contribute to modernization, data security, or improved veteran services delivery.

What is the historical performance data of General Dynamics Information Technology, Inc. on similar VA contracts?

Assessing General Dynamics Information Technology, Inc.'s past performance on comparable VA contracts is crucial. This includes reviewing metrics like on-time delivery, quality of service, and adherence to budget. Positive historical performance would reduce perceived risk, while negative trends might indicate potential future issues.

How does the per-unit cost of services in this modification compare to industry benchmarks for similar IT services?

A detailed breakdown of the services and their associated costs within the modification is needed for a robust per-unit cost comparison. Benchmarking against industry standards for comparable IT services, considering factors like complexity and labor rates, would reveal if the pricing is competitive and represents good value for the taxpayer.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

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: $231,957,048

Exercised Options: $231,957,048

Current Obligation: $231,957,048

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $475,052,896

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1016

IDV Type: IDC

Timeline