VA awards $9M contract for mail processing to General Dynamics IT, a 2-year delivery order
Contract Overview
Contract Amount: $9,035,317 ($9.0M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-08-08
End Date: 2026-08-07
Contract Duration: 729 days
Daily Burn Rate: $12.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CONSOLIDATED INTAKE OF AND PROCESSING OF MAIL
Place of Performance
Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724
Plain-Language Summary
Department of Veterans Affairs obligated $9.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CONSOLIDATED INTAKE OF AND PROCESSING OF MAIL Key points: 1. Contract value is $9.04M over 2 years. 2. General Dynamics IT is the sole awardee. 3. The contract is for computer systems design services. 4. This is a delivery order under a larger contract. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: fair
The contract value of $9.04M over two years for mail processing services appears reasonable given the scope. Benchmarking against similar IT service contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, as a delivery order, the specific pricing was likely negotiated within the terms of a pre-existing contract.
Taxpayer Impact: Taxpayer funds are being used for essential administrative services. The competitive award process aims to ensure value for money.
Public Impact
Ensures continued processing of mail for VA operations. Supports the Department of Veterans Affairs' administrative functions. General Dynamics IT, a large contractor, will perform the services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics.
- Potential for vendor lock-in on future requirements.
- Limited transparency on cost breakdown.
Positive Signals
- Firm Fixed Price contract type limits cost overrun risk.
- Awarded under full and open competition.
- Clear contract duration.
Sector Analysis
This contract falls under IT services, specifically computer systems design. The IT services sector is vast, with significant government spending. Benchmarks vary widely based on service type and complexity.
Small Business Impact
The awardee, General Dynamics Information Technology, Inc., is a large business. There is no indication that small businesses were involved in this specific delivery order.
Oversight & Accountability
As a delivery order, oversight is likely managed by the contracting officer for the parent contract. The VA should ensure performance metrics are met and documented.
Related Government Programs
- Computer Systems Design Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost creep if not managed tightly.
- Dependence on a single large vendor.
- Limited visibility into specific service delivery metrics.
- Scope of 'consolidation' needs further definition.
Tags
computer-systems-design-services, department-of-veterans-affairs, nj, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $9.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CONSOLIDATED INTAKE OF AND PROCESSING OF MAIL
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 $9.0 million.
What is the period of performance?
Start: 2024-08-08. End: 2026-08-07.
What specific IT systems or processes are being consolidated and processed under this contract?
The data indicates 'CONSOLIDATED INTAKE OF AND PROCESSING OF MAIL' as the service description. This likely involves digital mailroom solutions, scanning, indexing, and routing of incoming physical and electronic mail for the Department of Veterans Affairs. The specific IT systems would encompass document management software, scanning hardware, and workflow automation tools.
What is the risk of vendor lock-in given this is a delivery order?
The risk of vendor lock-in exists if the parent contract under which this delivery order was issued is also with General Dynamics IT and lacks clear exit strategies or competitive re-competition clauses. If the parent contract is nearing its end, the VA should plan for competitive procurement of future mail processing needs.
How does the $9M value compare to the efficiency gains expected from mail consolidation?
Without detailed metrics on the previous mail processing costs and the projected efficiencies from consolidation, a direct comparison is difficult. However, $9M over two years ($4.5M annually) for a large agency like the VA suggests a significant volume of mail. The value should be assessed against reduced manual labor, faster processing times, and improved document accessibility.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $18,221,700
Exercised Options: $9,035,317
Current Obligation: $9,035,317
Actual Outlays: $1,365,754
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $9,960,516
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
Start Date: 2024-08-08
Current End Date: 2026-08-07
Potential End Date: 2029-08-07 00:00:00
Last Modified: 2026-03-09
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