VA awards $78.7M for Enterprise Service Desk support to General Dynamics IT, highlighting a 3-bidder competition

Contract Overview

Contract Amount: $78,715,387 ($78.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-30

End Date: 2027-03-29

Contract Duration: 910 days

Daily Burn Rate: $86.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE SERVICE DESK (ESD) TIER ONE SUPPORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $78.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENTERPRISE SERVICE DESK (ESD) TIER ONE SUPPORT Key points: 1. The contract value of $78.7 million over its period of performance represents a significant investment in IT support. 2. Competition dynamics indicate a healthy market for IT service desk solutions, with three bids received. 3. The firm-fixed-price contract type suggests a clear understanding of scope and cost expectations. 4. This award falls within the custom computer programming services NAICS code, indicating a focus on specialized IT functions. 5. The duration of 910 days (approximately 2.5 years) allows for sustained service delivery and potential for performance improvements. 6. The contract is managed by the Department of Veterans Affairs, aligning with its mission to support veterans. 7. The absence of small business set-aside flags suggests this was competed broadly across the market.

Value Assessment

Rating: good

The contract's value of $78.7 million for Enterprise Service Desk (ESD) Tier One Support appears reasonable given the scope and duration. While specific per-unit cost benchmarks for Tier One IT support are not provided, the presence of multiple bids in a full and open competition suggests that pricing was likely competitive. Comparing this to similar large-scale IT support contracts within the federal government, the pricing structure seems aligned with market expectations for comprehensive service desk operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that three bids were received suggests a moderate level of competition for this IT support requirement. While three bidders is not an exceptionally high number, it is sufficient to provide a basis for price discovery and ensure that the government receives a competitive offer. The agency's decision to pursue full and open competition is generally favorable for achieving best value.

Taxpayer Impact: A full and open competition, even with three bidders, generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competitions. This approach maximizes the opportunity to secure competitive pricing.

Public Impact

Veterans and VA staff will benefit from improved IT support services, ensuring smoother access to critical systems and information. The contract delivers essential Tier One support for the Enterprise Service Desk, addressing help desk inquiries and technical issues. Services are primarily delivered within Virginia, supporting the operational needs of the Department of Veterans Affairs. The contract supports IT professionals employed by General Dynamics Information Technology, Inc., contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is not closely monitored.
Reliance on a single contractor for critical IT support could pose risks if service levels degrade.
Ensuring consistent service quality across all interactions requires robust performance metrics and oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
General Dynamics Information Technology has a significant presence and experience in federal IT services.
The contract duration allows for stable service delivery and relationship building.

Sector Analysis

The IT services sector, particularly custom computer programming and IT support, is a substantial segment of federal spending. This contract for Enterprise Service Desk (ESD) Tier One Support fits within the broader category of IT operations and maintenance. The federal government consistently invests heavily in IT infrastructure and support to maintain its vast digital operations. Comparable spending benchmarks for large-scale IT help desk services often run into tens or hundreds of millions of dollars, depending on the agency size and scope of services required.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb': false parameter. The award to a large prime contractor like General Dynamics Information Technology suggests that subcontracting opportunities may exist for small businesses within their supply chain. However, without specific subcontracting plans or goals outlined in the award data, the direct impact on the small business ecosystem is not immediately clear. The agency's decision not to set this aside for small businesses implies that the requirement was deemed best met through broad market competition.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures will be tied to the performance work statement and the firm-fixed-price contract terms, with potential for remedies if service levels are not met. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Enterprise IT Support Services
IT Help Desk Services
Custom Computer Programming Services
IT Operations and Maintenance
Federal IT Services Contracts

Risk Flags

Potential for service degradation if performance is not actively managed.
Reliance on a single vendor for critical IT support functions.
Cybersecurity risks associated with handling sensitive government data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $78.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENTERPRISE SERVICE DESK (ESD) TIER ONE SUPPORT

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 $78.7 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-03-29.

What is the track record of General Dynamics Information Technology, Inc. with similar IT support contracts for the VA or other federal agencies?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record of performing large-scale IT support and service desk contracts for the Department of Veterans Affairs (VA) and other federal agencies. They are a major federal IT contractor with extensive experience in areas such as help desk operations, network management, and application support. Past performance reviews and contract vehicles would provide more granular detail on their specific successes and challenges with similar engagements. Their history suggests they possess the resources and expertise to manage complex IT service delivery requirements, though performance can vary across individual contracts and require diligent oversight.

How does the awarded value of $78.7 million compare to historical spending on similar IT support services by the VA?

The awarded value of $78.7 million for Enterprise Service Desk (ESD) Tier One Support represents a significant, but not necessarily outlier, investment for a contract of this scope and duration (approximately 2.5 years). The VA, like many large federal agencies, spends billions annually on IT services. Historical data would need to be analyzed to determine if this specific award is higher or lower than previous ESD contracts or comparable IT support services. Factors such as inflation, evolving technology requirements, and the number of users supported would influence year-over-year spending comparisons. Without direct historical benchmarks for this specific service, it's challenging to definitively state if it's high or low, but it aligns with the scale of IT support needs for a major agency.

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

Primary risks associated with this contract include potential degradation of service quality over time, vendor lock-in, and cybersecurity vulnerabilities. Mitigation strategies typically involve robust performance metrics and Service Level Agreements (SLAs) within the contract, regular performance reviews, and clear termination clauses. Cybersecurity risks are addressed through adherence to federal security standards (e.g., NIST), background checks for personnel, and regular security audits. The firm-fixed-price nature of the contract also helps mitigate cost overrun risks for the government, provided the scope remains well-defined.

How effective is the current Enterprise Service Desk (ESD) support, and what improvements are expected from this new contract?

The effectiveness of the current ESD support would be assessed through performance metrics and user feedback prior to this award. This new contract is expected to maintain or improve upon existing service levels, ensuring timely and efficient resolution of IT issues for VA personnel. Improvements could stem from the contractor's proposed solutions, such as enhanced automation, improved knowledge base management, or more streamlined escalation processes. The specific goals and expected improvements would be detailed in the Performance Work Statement (PWS), which guides the contractor's deliverables and the agency's evaluation of success.

What is the typical duration and value range for federal contracts providing Tier One IT support services?

Federal contracts for Tier One IT support services, especially for large agencies like the VA, typically have durations ranging from one to five years, often with option periods. Values can vary significantly based on the size of the agency, the number of users supported, and the breadth of services included (e.g., 24/7 support, multi-channel support). Contracts can range from a few million dollars for smaller agencies or specific components to tens or even hundreds of millions of dollars for comprehensive, enterprise-wide support. The $78.7 million award for approximately 2.5 years for the VA's ESD falls within the higher end of this range, reflecting the scale of the agency's IT support needs.

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 - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C10B24Q0392

Offers Received: 3

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: $211,534,866

Exercised Options: $78,715,387

Current Obligation: $78,715,387

Actual Outlays: $31,639,220

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $44,797,221

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F393CA

IDV Type: FSS

Timeline