VA awards $70.8M contract for file conversion services to General Dynamics IT

Contract Overview

Contract Amount: $70,823,432 ($70.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-11-13

End Date: 2024-06-12

Contract Duration: 212 days

Daily Burn Rate: $334.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LIMITED 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 $70.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: LIMITED SOURCE - FILE CONVERSION SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for file conversion services, a critical but potentially commoditized function. 3. The duration of the contract is 212 days, indicating a short-term need. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The awardee, General Dynamics Information Technology, Inc., is a large, established federal contractor. 6. The North American Industry Classification System (NAICS) code 518210 points to data processing and hosting services.

Value Assessment

Rating: fair

The contract value of $70.8 million for a 212-day period appears high for file conversion services, especially considering the relatively short duration. Without specific details on the volume and complexity of files to be converted, a direct comparison to similar contracts is difficult. However, the per-diem cost is substantial. The Firm Fixed Price structure is standard, but the overall value warrants scrutiny to ensure efficiency and avoid potential overspending for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The specific number of bidders is not provided, but this method generally promotes price discovery and allows the government to select the most advantageous offer. The competitive nature should theoretically lead to a more reasonable price, although the final award value still requires assessment.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open competition, which aims to secure the best value for government funds.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving essential file conversion services. These services likely support the digitization and modernization of VA records, improving accessibility and management. The geographic impact is centered in the District of Columbia, where the contract is managed. Workforce implications may include the utilization of specialized personnel by the contractor for the conversion process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short duration raises questions about cost-effectiveness.
Lack of specific details on the scope of work makes it difficult to benchmark value.
Potential for scope creep or inefficiencies given the fixed-price nature if not managed tightly.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm Fixed Price contract structure transfers cost overrun risk to the contractor.
Awardee is a large, experienced federal contractor with a track record in IT services.

Sector Analysis

The contract falls within the IT services sector, specifically data processing and hosting. The market for file conversion and data management services is competitive, with numerous providers ranging from small businesses to large corporations. The VA's need for such services is substantial, given its vast historical records. Comparable spending benchmarks would typically involve analyzing other government contracts for large-scale digitization and data migration projects.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like General Dynamics Information Technology, Inc. suggests that small businesses are unlikely to be directly involved in fulfilling this specific contract, potentially limiting their opportunities in this instance.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of Veterans Affairs. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

VA Electronic Health Record Modernization
Federal Records Management
IT Infrastructure Modernization Programs
Data Digitization Initiatives

Risk Flags

High Cost Relative to Duration
Lack of Detailed Scope Information

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $70.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. LIMITED 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 $70.8 million.

What is the period of performance?

Start: 2023-11-13. End: 2024-06-12.

What is the specific volume and type of data being converted under this contract?

The provided data does not specify the exact volume or types of files to be converted. This information is crucial for a thorough value assessment. File conversion can range from simple document scanning to complex database migration or legacy system data extraction. Without these details, it's challenging to determine if the $70.8 million award is commensurate with the scope of work. A high volume of sensitive or complex data requiring specialized handling and validation would justify a higher cost, whereas a simpler conversion task might indicate overpricing.

How does the per-diem cost of this contract compare to similar file conversion efforts?

The contract duration is 212 days, and the total value is $70,823,432.48. This results in a daily expenditure of approximately $334,073. This daily rate appears exceptionally high for a file conversion service, even for a large-scale operation. Typical government contracts for IT services, even complex ones, often have lower daily rates unless they involve extensive hardware, software, and highly specialized personnel. Benchmarking against similar VA or other agency contracts for large-scale digitization or data migration projects would be necessary to confirm if this rate is within an acceptable range or indicative of potential inefficiency.

What is General Dynamics Information Technology's track record with similar VA contracts?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a significant history of performing IT services for various government agencies, including the VA. They have been involved in large-scale projects such as the VA's Electronic Health Record (EHR) modernization. While GDIT has the capacity and experience to handle substantial IT contracts, the specific performance history related to file conversion services of this magnitude would need to be reviewed. Past performance evaluations and any documented issues or successes on similar projects would provide context for assessing the risk and value of this particular award.

What are the potential risks associated with this contract for the VA?

Key risks include potential cost overruns if the scope is underestimated, data security breaches during the conversion process, and the possibility that the converted data may not meet the VA's quality or usability standards. Given the Firm Fixed Price nature, the primary risk to the VA is paying a high price for potentially suboptimal or incomplete conversion services. Ensuring robust quality assurance and data validation protocols are in place is critical to mitigate these risks.

How does this contract fit into the VA's broader IT modernization strategy?

This file conversion contract likely supports the VA's ongoing efforts to modernize its IT infrastructure and improve data accessibility. Digitizing legacy records is a common component of such modernization, enabling better integration with modern systems like the EHR. The success of this contract could facilitate improved data management, faster access to veteran information, and enhanced decision-making capabilities within the VA. Its alignment with broader strategic goals suggests it addresses a fundamental need for data transformation.

What is the historical spending trend for file conversion services at the VA?

The provided data does not include historical spending trends for file conversion services at the VA. To assess this contract's value effectively, analyzing past expenditures on similar services would be beneficial. Understanding whether this $70.8 million award represents an increase, decrease, or stable level of spending compared to previous years or similar projects would provide important context regarding the VA's investment in data conversion.

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: General Dynamics Corp

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: $70,823,432

Exercised Options: $70,823,432

Current Obligation: $70,823,432

Actual Outlays: $70,823,432

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $61,706,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10E19D0015

IDV Type: IDC

Timeline