GSA Awards $208M for Cyber Operations Support to General Dynamics

Contract Overview

Contract Amount: $208,146,587 ($208.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2022-07-29

End Date: 2026-07-28

Contract Duration: 1,460 days

Daily Burn Rate: $142.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: GUARD ENTERPRISE CYBER OPERATIONS SUPPORT ORIGINAL AWARD.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $208.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: GUARD ENTERPRISE CYBER OPERATIONS SUPPORT ORIGINAL AWARD. Key points: 1. Significant contract value of $208M for cyber operations support. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. Potential risk associated with a single contractor for critical cyber functions. 4. IT sector spending, specifically computer systems design services.

Value Assessment

Rating: fair

The contract is a Cost Plus Award Fee type, which can lead to higher costs if not managed effectively. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded via a delivery order under full and open competition. This suggests a competitive process was used, but the specific pricing discovery mechanisms for this particular order are not detailed.

Taxpayer Impact: Taxpayer funds are being used for critical cyber operations support, with the ultimate value dependent on the effectiveness and efficiency of the services provided.

Public Impact

Ensures continuity of essential federal cyber defense capabilities. Supports national security by maintaining robust cybersecurity operations. Potential for job creation within the IT and cybersecurity sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure may incentivize higher spending.
Lack of detailed cost breakdown for per-unit analysis.
Long contract duration (4 years) could lead to price escalation.

Positive Signals

Awarded under full and open competition.
Supports critical national security functions.
Experienced contractor likely to provide reliable services.

Sector Analysis

This contract falls within the Information Technology sector, specifically computer systems design services. Federal spending in this area is substantial, driven by the increasing need for digital infrastructure and cybersecurity.

Small Business Impact

The awardee is a large business, and there is no indication of small business participation in this specific contract based on the provided data.

Oversight & Accountability

Oversight will be crucial to ensure the Cost Plus Award Fee structure delivers value and that performance meets the required standards for cyber operations.

Related Government Programs

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

Risk Flags

Cost Plus Award Fee structure.
Potential for contractor lock-in.
Long contract duration.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $208.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. GUARD ENTERPRISE CYBER OPERATIONS SUPPORT ORIGINAL AWARD.

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 $208.1 million.

What is the period of performance?

Start: 2022-07-29. End: 2026-07-28.

How does the Cost Plus Award Fee structure compare to fixed-price contracts for similar cyber operations support, in terms of overall cost efficiency and contractor performance incentives?

Cost Plus Award Fee (CPAF) contracts offer flexibility for complex services where costs are hard to predict, allowing for performance-based incentives. However, they can potentially lead to higher overall costs than fixed-price contracts if not managed rigorously. The government pays allowable costs plus a fee that is adjusted based on performance. Fixed-price contracts offer more cost certainty but may not adequately incentivize performance in highly technical or evolving fields like cyber operations.

What are the specific risks associated with relying on a single contractor for critical cyber operations support, particularly concerning vendor lock-in and the ability to adapt to evolving threats?

Relying on a single contractor for critical cyber operations can create vendor lock-in, making it difficult and costly to switch providers if performance declines or needs change. It also concentrates risk; if the contractor faces financial instability, security breaches, or key personnel loss, it could severely disrupt essential services. Furthermore, a single vendor may have less incentive to innovate or adapt quickly to evolving cyber threats compared to a market with multiple competing providers.

What metrics will be used to evaluate contractor performance under the 'Award Fee' component, and how will these metrics ensure effective and efficient delivery of cyber operations support?

Effective evaluation under CPAF requires clearly defined, measurable, and relevant performance metrics tied to the critical aspects of cyber operations support. These could include response times to incidents, successful threat mitigation rates, system uptime, adherence to security protocols, and proactive threat identification. The 'Award Fee' component should incentivize exceeding baseline requirements, ensuring the contractor is motivated to deliver high-quality, efficient services that directly contribute to the government's cybersecurity objectives.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA22R0018

Offers Received: 3

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: $267,279,987

Exercised Options: $267,279,987

Current Obligation: $208,146,587

Actual Outlays: $-80,662

Subaward Activity

Number of Subawards: 61

Total Subaward Amount: $102,059,859

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0003

IDV Type: GWAC

Timeline