VA awards $81.6M sole-source contract for file conversion services to General Dynamics IT

Contract Overview

Contract Amount: $81,612,954 ($81.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-02-13

End Date: 2023-11-12

Contract Duration: 272 days

Daily Burn Rate: $300.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOLE SOURCE - FILE CONVERSION SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $81.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SOLE SOURCE - FILE CONVERSION SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities. 2. Significant value suggests a critical need for file conversion capabilities. 3. Performance period is relatively short, indicating a focused project scope. 4. Firm-fixed-price contract type aims to control costs. 5. Contractor has a substantial existing relationship with the VA. 6. Service category points to a need for digital transformation or data management.

Value Assessment

Rating: questionable

The contract value of $81.6 million for file conversion services is substantial. Without comparable sole-source contracts for similar services, it is difficult to benchmark the value. The firm-fixed-price structure is a positive indicator for cost control. However, the sole-source nature raises concerns about whether the VA secured the best possible price and value compared to a competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning only one vendor, General Dynamics Information Technology, Inc., was solicited. This approach bypasses the standard full and open competition process, which typically involves multiple bidders. The lack of competition means the VA did not benefit from the price discovery and innovation that can arise from a competitive bidding environment.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as competition is absent, and the government may not achieve the most advantageous pricing.

Public Impact

Veterans Affairs (VA) will benefit from improved data management and accessibility through digitized records. Essential services for managing and converting critical files will be delivered. The primary geographic impact is within the District of Columbia, where the contractor is located. Workforce implications are likely internal to General Dynamics IT, with potential for specialized roles in file conversion and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings for taxpayers.
Lack of transparency in the sole-source justification process.
Potential for vendor lock-in due to the specialized nature of file conversion services.

Positive Signals

Firm-fixed-price contract type helps manage cost certainty.
Contractor is an established entity with experience in government contracting.
Focus on a specific, critical service area for the VA.

Sector Analysis

This contract falls within the IT services sector, specifically data processing and hosting. The market for file conversion and digital transformation services is robust, with many providers. However, sole-source awards in this space can limit the government's ability to leverage market competition for optimal pricing and service delivery. Comparable spending benchmarks are difficult to establish without knowing the scope and complexity of the files being converted.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to a large prime contractor, there are no direct subcontracting implications for small businesses mandated by this specific award. The overall impact on the small business ecosystem is neutral to negative, as opportunities that might have been competed and potentially awarded to small businesses were instead directed to a single large vendor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are established through the contract terms and performance requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Electronic Health Record Modernization
Federal Data Center Consolidation Initiative
Digital Government Strategy

Risk Flags

Sole Source Justification
Lack of Competition
Potential for Overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $81.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SOLE SOURCE - FILE CONVERSION SERVICES

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 $81.6 million.

What is the period of performance?

Start: 2023-02-13. End: 2023-11-12.

What specific types of files are being converted under this contract, and what is the criticality of these files to VA operations?

The provided data does not specify the exact types of files being converted. However, given the substantial value and the contractor's specialization, it is likely that these files are critical to VA operations, potentially including legacy health records, administrative documents, or financial data. The criticality would dictate the urgency and the need for specialized conversion processes to ensure data integrity and accessibility for veteran services. Without this detail, assessing the true necessity and justification for a sole-source award remains challenging.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The data indicates a 'SOLE SOURCE' award, which implies a specific justification was used by the Department of Veterans Affairs. Common justifications include unique capabilities possessed by only one vendor, urgent and compelling needs where competition is not feasible, or specific follow-on work to a previous contract where only one vendor can perform. Without the official justification document, the precise reason remains unknown, but it is a critical factor in evaluating the procurement's fairness and value.

How does the $81.6 million contract value compare to historical spending on file conversion services by the VA or other federal agencies?

Comparing this $81.6 million contract value to historical spending requires access to detailed historical procurement data. However, as a sole-source award, direct comparison to competitively bid contracts for similar services is difficult. Generally, large-scale file conversion projects can range from millions to tens of millions of dollars, depending on the volume, complexity, and digitization requirements. The VA has undertaken significant IT modernization efforts, which often involve data migration and conversion, suggesting that substantial investments in this area are not uncommon, though the sole-source nature warrants scrutiny.

What is General Dynamics Information Technology's track record with the VA, particularly in providing file conversion or data management services?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a significant history of serving the Department of Veterans Affairs across various IT and support services. While specific details on their file conversion project history with the VA are not provided in this data snippet, GDIT has extensive experience in large-scale IT solutions, data management, and digital transformation for government agencies. Their established presence and past performance with the VA likely played a role in the sole-source justification, assuming they possess unique qualifications or a deep understanding of the VA's legacy systems.

What are the potential risks associated with a sole-source contract of this magnitude for file conversion services?

The primary risks associated with a sole-source contract of this magnitude include a lack of competitive pricing, potentially leading to overpayment by taxpayers. There's also a risk of reduced innovation, as the vendor may have less incentive to offer cutting-edge solutions compared to a competitive environment. Furthermore, sole-source awards can sometimes indicate a lack of adequate market research or planning by the agency. For file conversion, risks also include data integrity issues, security vulnerabilities during transfer, and potential delays if the contractor underperforms without the pressure of competing alternatives.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 3150 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: $81,612,954

Exercised Options: $81,612,954

Current Obligation: $81,612,954

Actual Outlays: $81,612,954

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $8,803,594

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10E19D0015

IDV Type: IDC

Timeline