GSA Awards $399M IT Services Contract to General Dynamics, Spanning Cybersecurity and Enterprise Solutions

Contract Overview

Contract Amount: $399,468,545 ($399.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-09-25

End Date: 2025-10-24

Contract Duration: 1,855 days

Daily Burn Rate: $215.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THE SCOPE OF THIS REQUIREMENT INCLUDES PROGRAM MANAGEMENT SERVICES, TRANSITION SERVICES, AND A FULL RANGE OF ENTERPRISE IT-RELATED SERVICES AND TECHNICAL SOLUTIONS THAT SPAN CYBERSECURITY AND IT MANAGEMENT.

Place of Performance

Location: DORAL, MIAMI-DADE County, FLORIDA, 33172

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $399.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THE SCOPE OF THIS REQUIREMENT INCLUDES PROGRAM MANAGEMENT SERVICES, TRANSITION SERVICES, AND A FULL RANGE OF ENTERPRISE IT-RELATED SERVICES AND TECHNICAL SOLUTIONS THAT SPAN CYBERSECURITY AND IT MANAGEMENT. Key points: 1. Significant contract value of $399.5 million for comprehensive IT services. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. Contract covers a broad range of IT solutions including cybersecurity and program management. 4. Awarded under full and open competition, indicating a competitive bidding process. 5. Long duration of 1855 days suggests a sustained need for these services.

Value Assessment

Rating: good

The contract type is Cost Plus Award Fee (CPAF), which allows for contractor reimbursement of costs plus a fee based on performance. This structure incentivizes good performance but requires careful oversight to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders likely participated. This method is generally expected to yield competitive pricing and best value for the government.

Taxpayer Impact: The competitive nature of the award process is intended to ensure taxpayer funds are used efficiently for essential IT services.

Public Impact

Ensures continued cybersecurity and IT management for federal agencies. Supports critical government operations through advanced technical solutions. Provides a stable platform for enterprise IT services over a multi-year period. General Dynamics' role highlights significant private sector involvement in government IT.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with CPAF contract type.
Reliance on a single contractor for critical IT functions.
Scope creep could increase costs beyond initial estimates.

Positive Signals

Awarded through full and open competition.
Covers essential cybersecurity and IT management services.
Long-term contract provides stability and continuity.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical area for government operations. Spending in this sector is substantial, reflecting the increasing reliance on IT infrastructure and cybersecurity measures.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is a large corporation. There is no explicit mention of small business subcontracting goals in the provided data.

Oversight & Accountability

The contract's Cost Plus Award Fee structure necessitates robust oversight from the General Services Administration (GSA) to ensure performance standards are met and costs are controlled. Regular performance reviews will be crucial.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost overruns due to CPAF structure.
Sole awardee may limit future competition or innovation.
Dependency on one contractor for critical IT functions.
Cybersecurity risks inherent in large IT contracts.
Complexity of managing enterprise-wide IT services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $399.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THE SCOPE OF THIS REQUIREMENT INCLUDES PROGRAM MANAGEMENT SERVICES, TRANSITION SERVICES, AND A FULL RANGE OF ENTERPRISE IT-RELATED SERVICES AND TECHNICAL SOLUTIONS THAT SPAN CYBERSECURITY AND IT MANAGEMENT.

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $399.5 million.

What is the period of performance?

Start: 2020-09-25. End: 2025-10-24.

What specific performance metrics will be used to determine the award fee for General Dynamics?

The specific performance metrics for the award fee are not detailed in the provided data. Typically, for CPAF contracts, these metrics align with the contract's Statement of Work (SOW) and may include factors like cybersecurity compliance, system uptime, project delivery timelines, and user satisfaction. The GSA contracting officer will evaluate performance against these pre-defined criteria to determine the fee.

What are the primary cybersecurity risks associated with this contract and how are they mitigated?

Primary cybersecurity risks include potential data breaches, system vulnerabilities, and insider threats. Mitigation strategies likely involve strict adherence to federal cybersecurity standards (e.g., NIST), regular security audits, access controls, encryption, and incident response plans. The CPAF structure may also incentivize proactive security measures by the contractor.

How does this contract contribute to the overall effectiveness of federal IT infrastructure?

This contract contributes to federal IT effectiveness by providing essential program management, transition, and enterprise IT services, including cybersecurity. By outsourcing these complex functions to a specialized provider like General Dynamics, agencies can ensure access to up-to-date technology and expertise, maintaining operational continuity and enhancing security posture.

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

Solicitation ID: 47QFCA20R0015

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $819,154,196

Exercised Options: $447,397,990

Current Obligation: $399,468,545

Actual Outlays: $-40,013

Subaward Activity

Number of Subawards: 193

Total Subaward Amount: $115,999,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0003

IDV Type: GWAC

Timeline